Title: Strategic Analytical Review of the Catering Sector
1Strategic Analytical Review of the Catering Sector
James Guild Oliver Benbow Gareth Williams Claire
Ryder Lisa Westwood
Bournemouth UniversityBAIHMBusiness Strategy
2Introduction
- Catering sector consists of
- - Restaurants
- - Takeaways/Cafés
- - Pubs/Bars
- - Hotels
- Each sub-sector caters for a similar segment of
the entire market - Investing in the sector?
3Introduction - statistics
- Restaurants take up 68 of the eating out market
- Market value reached an estimated 21.8 billion
pounds in 2000 - This indicates a market growth of 6 between 1995
and 2000 - 2 in 10 adults are choosing to eat out more often
(leisure intelligence, 2001)
4Analysed Sector - Restaurants
- Restaurants
- - Fine Dining
- - Independent /Privately owned
- - Brassiere
- - Ethnic
- - A la Carte
- - Table dhote
- - Themed/Branded Restaurants
5Boston Consultancy Group Model
- Reason for analysing Restaurants
- Market Share
High
Low
Growth
Low
6Trends In The Catering Sector
- People want value for money
- More leisure time
- Social trends towards a healthier lifestyle
- Increase in PDI and consumer expenditure
7- Increase PDI and Consumer Expenditure Trends
1994-1999
8 9Trends In The Catering Industry
10Competitors
- Direct
- - Takeaways/Cafés
- - Supermarket/Convenience Food
- - Pubs
- - Hotels
- - Contract Catering i.e. in store
11Competitors
- Indirect
- - Theme parks
- - Leisure centres
- - Shopping centres
- - Cinemas
- - Hobbies
12(DEEPLIST) Factors Influencing The Catering
Sector
- Demographic
- - American demography of large portions
- - Woman from a large of customers to
restaurants in the daytime, however equal split
during the evening - - Consumers continue to seek value for money,
with an AVG spend per capita of 389 - - The UK public with the help of technology are
more knowledgeable regarding foreign/ branded
food
13(DEEPLIST) Factors Influencing The Catering
Sector
- Economic
- - Possible predicted recession
- - Current base rate lowest ever for decades
- - Food prices remain constant in the industry,
following BSC and foot and mouth - - Economic cycles
14(DEEPLIST) Factors Influencing The Catering
Sector
- Ecological
- - Consideration towards the use of recyclable
goods - - Possibility of extra operating expenses due to
environmental friendliness - - Foot and mouth
-
15(DEEPLIST) Factors Influencing The Catering
Sector
- Political
- - Impact of current worldwide political unrest
- - Implications of the Euro on the future economic
position within the UK - - Policies on subsidisation
16(DEEPLIST) Factors Influencing The Catering
Sector
- Legal
- - Legislation regarding increased minimum wage
- - European Union working time directive, 48 hour
working week - - Food and Safety Act 1995
- - Disability Discrimination Act (Updated)
17(DEEPLIST) Factors Influencing The Catering
Sector
- Informational
- - Increased access to multimedia systems
- - Virtual tours
- - Consumers choice to access and research
- specified eating requirements
18(DEEPLIST) Factors Influencing The Catering
Sector
- Social
- - Competition for leisure time
- - More women are working
- - Family orientation values (cocooning)
- - Large target market
- - Consumers are comfortable with established
high street branded restaurants
19(DEEPLIST) Factors Influencing The Catering
Sector
- Technological
- - Cook-chill methods are on the increase
allowing for a less skilled workforce to be
employed - - Growing use of internet
- - More consumer awareness via media publications
20Risk Factors For Market Entry
- Saturated market
- Predicted recession
- High start up costs
- Increased home leisure activities
- Strict legislative factors
- Ego of founder
- Uncertainty of foreign expenditure
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22Future Trends In The Catering Industry
- Systematically increasing Disposable income
- Indirect competitors expected to gain in
popularity in the next 4 years (i.e.theme parks) - Social trends towards a healthier lifestyle
- Main target market (55) is growing in age and
numbers
23Main Market Audience
24Recommendations
- Branding/theme of product
- - possible franchise affiliation
- Strive to offer value for money
- Reserve of adequate capital
- Use celebrity image to produce image of quality
- Develop effective marketing strategies
- - target correct and emerging markets
25Recommendations
- Demographic location/infrastructure
- Know your legislation
- Effective and efficient use of resources
26Conclusion
- The next 5 yrs will see an uncertain economic
- climate, worldwide. However current trends
- indicate a growth in eating establishments,
- particularly branded outlets. People will
- continue to eat out,as it is now a characteristic
- of the population!
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