Lorna Hegenbarth gives her view on the eating out of home market.
Is it because people are just eating out less? Or is the offer just not hitting the mark with consumers, who are increasingly tempted by new and novel offerings. Miller and Carter the flag ship M&B brand showing no sign decline in popularity.
The food service market, particularly on the high street is dynamic and innovative, where constantly refreshing the offer is paramount. The casual dining sector has been an attractive proposition for venture cabalists, as the sector boomed. However in the resulting “land grab” for restaurant sites, all too often, the brands choose locations that may have been outside of their demographic norm resulting in low foot fall, or they were happy to be tied into long term expensive rental agreements, then unable to exit when they needed to. Or it could be the core business of providing good quality food was neglected in the drive to expand.
So a fascinating back drop for two major brands to decide to sell. With Whitbread seeking to sell Costa, and Pret a Manger being sold off JAB Holdings, where does all of this leave suppliers, or will it continue to be business as usual?
Well despite the apparent cull, the food service market continues seeing moderate growth, just as the retail market is flat lining. So demand in the food service market is still there. The growth is being driven by breakfast meal occasions, and snacking, as businesses latch onto the consumers desire to ‘graze on the go’. Quick service restaurants, such as McDonalds are driving this growth. Even though the interest in vegan and vegetarian eating has seen offerings increase on menus, most of the food service growth is being driven by the burger.
So how are food service operators engaging with British farmers and growers? Well it’s hard to tell, It’s frustrating when eating out to find little to no information about where your food has been produced. So why is this? Well there is no mandatory requirement to show any origin information on menus, even though we know increasingly consumers want to know where their food comes from. The tide is beginning to turn. KFC and Nandos are just two high street brands who now display the Red Tractor on their menus, and we know there are many others who do buy British, but don’t shout about it. We would urge them to, consumers want that information.
The NFU is engaging with major food service providers to make the case for supporting British food, and educating them on the high standards of animal welfare, environmental protection, and the traceability offered by the Red Tractor assurance scheme. As Brexit nears, it is more critical than ever that the food service industry secures a sustainable supply of food – that could be achieved by looking closer to home!