UK foodservice: how can UK Convenience compete
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1 UK foodservice: how can UK Convenience compete him! Food to-go study /11/ Copyright 2012 HIM Ltd
2 Food-to-go is used as the collective term to describe all ready to consume, portioned food and beverage that is purchased away from home, but which is taken away and consumed off purchase premises. It is similar to, but subtly different from, Food for Now (more immediate and can include eat-in) and Food on the Move (purely in transit).
3 What you will learn: Lunch continues to be the BIG OPPORTUNITY for Food-to-go providers Driving incremental spend & trade up is an opportunity for the foodservice channel Meal deals are a clear way to offer value & drive incremental spend Tailor the offer, communications & promotions by day of week Health is more important than ever This insight & understanding will enable you to: Make informed and successful ranging decisions Re-assess store layout, both macro & at fixture Improve relevancy & impact of marketing & comms Strengthen supplier / customer conversation, based on shopper need Shape future strategy based on fact, not assumption Source: him! Food-to go 2014
4 Methodology: Source: him! Food-to go 2014
5 Source: him! Food-to go 2014
6 About FTG 25/11/ Copyright 2012 HIM Ltd
7 Continued movement into new retail channels inc. Forecourts and C-stores Lunch-to-go is the most important F2G mission for shoppers Packed lunches are only taken 2X per week with Friday being the most popular day for L2G The average individual takes less than 37mins for lunch & 1/3 have lunch at their desk Drinks are the most popular FTG item & coffee remains the most popular purchase for B2G Independent coffee shops are most likely to be recommended to a friend driven by staff friendliness, key to FTG shoppers Value for money is key to outlet choice with 22% willing to visit more often if better value for money was available The role of Brands in meal deals is not as important except for key categories e.g. Crisps (47%) Source: him! Food-to go 2014
8 37.8 years Age X% Female X% Nonstudent X% ABC1 him! Food-to-go spend in the category p/w Women spend on average X p/w However, spend the most X p/w Affluent ABC1 s are spending X p/w him! Food-to-go on-line research 2014
9 Q. How loyal do you feel to this particular brand of outlet? C-Stores Fast food average Sandwich shop average Coffee shop average Quick serve restaurant average Pharmacy average Food-to-go average Source: him! Food-to go 2014
10 Coffee shops have done a great job of capitalising on loyalty Eat, give a buddy a coffee campaign a great way to drive trial A convenient way to pay for your favourite drink plus you can earn rewards with every purchase Shoppers are rewarded with a free coffee for collecting stamps each time they buy one Loyalty schemes also play a key role in driving VFM perceptions, ranked 8.78/10 by shoppers- the 4 th most important satisfaction driver
11 Snack-to-go Lunch-to-go Breakfast-to-go Weekly Avg Spend ( ) To relax / have a break, 8% Main reason for visit Other, 24% L2G, 31% Snack between meals, 10% Quench my thirst, 19% B2G, 7% 2.97 Freq 0.8 * spend Freq 1.24 * spend 4.55 him! Food-to-go Freq 1.18* spend 2.84 him! Food-to-go on-line research 2014 Avg. spend & frequency per week
12 Category purchases by meal occasion: Lunch Snack Breakfast Sandwich 42% 27% x% Coffee x% x% 44% Carbonated Drink e.g. cola, etc. x% x% x% Bottled Water x% x% x% Fruit juice x% x% x% Q. What have you purchased for lunch-to-go in the last 4 weeks? Ranked #1 Source: him! Food-to go 2014
13 Q. Where have you purchased x to-go from in the last 4 weeks? ( C-stores) 18.3% At present shoppers are using c-stores primarily for their On-the-go snacking needs. The higher spend offered by L2G represents an opportunity for the format 7.0% 5.0% Breakfast-to-go Lunch-to-go Snack-to-go him! Food-to-go on-line research 2014
14 Source: him! Food-to-go online research 2014
15 Q. What would encourage you to visit this outlet (here today) more than you currently do? Quality is important to 68% of FTG shoppers when deciding on which FOOD items to purchase here? Freshness is important to 53% of FTG shoppers when deciding on which FOOD items to purchase here? Clip Strips Boots Meal Deal Price (53%), Promotions (21%) is important to FTG shoppers when deciding on which FOOD items to purchase here? Freshness/ Quality Guarantee Outdoor signage promoting freshness Source: him! Food-to go 2014
16 Q. How likely would the following types of promotion be to encourage you to purchase something that you were not intending to? Likely (net) CTP 14 Money off (e.g. save 20p, 10% off etc) Multi-buy (e.g. buy 3 for 2) Cross category (e.g. buy bread get milk half price) Lunch meal deal Breakfast meal deal Dinner meal deal Coffee to-go linked promotion (e.g.buy a coffee to-go and get croissant at a reduced price) him! CTP 2014
17 Additional reports available: You may also be interested in: Maximising the food to go opportunity in UK Convenience Meal occasions: the growth phenomena of UK Convenience Price marked packs: are they right for UK Convenience? The growth and future of own label in UK Convenience Source: him! Food-to go 2014
18 For more information please contact: Copyright 2012 HIM Ltd
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