About us Formed 26 years ago Service in UK & US What we do… About us Formed 26 years ago Service in UK & US Out of home market specialists Food & drink retailers & suppliers Bought Peach Factory in 2013 Presented by CGA

Who we work with… About us Presented by CGA

71% of business leaders stated that they were neither ‘concerned’ nor ‘very concerned’ about the prospect of Brexit in February 2016 CGA Business Leaders’ Survey, Jan 2017

Optimism of business leaders – in terms of market and own business CGA Business Leaders’ Survey, Jan 2017

Optimism of business leaders – in terms of market and own business CGA Business Leaders’ Survey, Jan 2017

have yet to see effects to their businesses 51% have yet to see effects to their businesses from the Referendum CGA Business Leaders’ Survey, Jan 2017

Has the decision to leave the EU had an effect on your business up to this point? CGA Business Leaders’ Survey, Jan 2017 and Confidence Survey, July 2016

Where Brexit is already having an effect on business CGA Business Leaders’ Survey, Jan 2017

However, performance has generally been good over the past twelve months Just 1 in 5 Operators businesses performed below expectations in 2016 CGA Business Leaders Report, 2017

Growth is predominantly being fuelled by new openings, with like for like sales below inflation The market is still in growth (just) 1.0% 4.3% LFL sales growth in past 12 months Total sales growth in past 12 months Coffer Peach Business Tracker, February 2017

Source: Coffer Peach Business Tracker Total sales have been positive for the last 12 months Sales growth of managed outlets over past 12 months: month on month performance Source: Coffer Peach Business Tracker

Source: Coffer Peach Business Tracker With the capital outperforming the rest of the UK across the majority of the last year LFL Sales growth of managed outlets over past 12 months: month on month performance split inside/outside M25 Source: Coffer Peach Business Tracker

Proportion of age group eating out at least weekly CGA BrandTrack

Proportion of age group drinking out at least weekly Consumers continue to drink out as often as in the past, with frequency of visit relatively flat Proportion of age group drinking out at least weekly CGA BrandTrack, 2017

Outlet change in past 3 years Disruptors and ‘new independents’ have fundamentally changed the managed restaurant universe in past 3 years Under 25 sites 25 to 99 sites Over 100 sites Market share 35% 18% 47% Outlet change in past 3 years +337 outlets +288 outlets +337 outlets +23% +30% +15% CGA Outlet Index

16.4% More food led sites now than in 2012 in London CGA Outlet Index

40.2% More food led sites now than in 2012 in MCR (2nd placed city in terms of total number of sites)

34.5% More food led sites now than in 2012 in Leeds (9th placed city in terms of total number of sites)

(23% expect more new entrants) Proportion expecting fewer new entrants in 2017 48% (23% expect more new entrants) *23% expect more new entrants CGA Business Leaders’ Survey, Jan 2017

(For companies with over 200 sites, this figure rises to 60%) Proportion of Leaders anticipating opening over 10 sites in 2017 42% (For companies with over 200 sites, this figure rises to 60%) ET =Is referencing to when the question is split by how many site the operators have (Over 200 sites) CGA Business Leaders’ Survey, Jan 2017

79% of business leaders expect to see more business failures in 2017 than there were in 2016 CGA Business Leaders’ Survey, Jan 2017

29% of respondents are actively looking into the option of a business acquisition in the next twelve months CGA Business Leaders’ Survey, Jan 2017

63% of business leaders believe they are not market leading when it comes to a strong brand identity CGA Business Leaders’ Survey, Jan 2017

Alongside ‘new independents’, new-wave events are raising consumer expectations 67% Street food / drink event 39% Music festival 37% Ticketed indoor event 22% Pop up bar 20% Underground / IFT event 18% Organised rooftop party 16% Of late night consumers have been to at least one “new-wave” event in the past year CGA Consumer Research

And it is these ‘new-wave’ events that are providing the experience that consumers seek Reasons for visiting street food / pop-up bar events 47% 40% 40% Ambience & atmosphere Quality of experience Quality of food CGA Consumer Research

3 points to take away… Summary Market supply will slow…but quality of new entrants will remain high and extremely relevant There will be opportunities to acquire new sites, albeit through the failure of others Independent operators have a ‘branding’ advantage over national operators – make it pay. Presented by CGA