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Strategic Analytical Review of the Catering Sector

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Title: THE NATIONAL TRUST Author: Stefaan E.R. Maene Last modified by: James Guild Created Date: 10/29/2001 11:41:19 PM Document presentation format – PowerPoint PPT presentation

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Title: Strategic Analytical Review of the Catering Sector


1
Strategic Analytical Review of the Catering Sector
James Guild Oliver Benbow Gareth Williams Claire
Ryder Lisa Westwood
Bournemouth UniversityBAIHMBusiness Strategy
2
Introduction
  • 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?

3
Introduction - 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)

4
Analysed Sector - Restaurants
  • Restaurants
  • - Fine Dining
  • - Independent /Privately owned
  • - Brassiere
  • - Ethnic
  • - A la Carte
  • - Table dhote
  • - Themed/Branded Restaurants

5
Boston Consultancy Group Model
  • Reason for analysing Restaurants
  • Market Share

High
Low
Growth
Low
6
Trends 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
  • Increase in eating out

9
Trends In The Catering Industry
  • Inbound tourism

10
Competitors
  • Direct
  • - Takeaways/Cafés
  • - Supermarket/Convenience Food
  • - Pubs
  • - Hotels
  • - Contract Catering i.e. in store

11
Competitors
  • 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

20
Risk 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

21
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22
Future 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

23
Main Market Audience
24
Recommendations
  • 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

25
Recommendations
  • Demographic location/infrastructure
  • Know your legislation
  • Effective and efficient use of resources

26
Conclusion
  • 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!

27
(No Transcript)
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