1. 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

2. Who we work with…
About us
Presented by CGA

3. 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

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

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

6. 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

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. Proportion of age group eating out at least weekly
CGA BrandTrack

14. 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

15. 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. 16.4%
More food led sites now than in 2012 in London
CGA Outlet Index

17. 40.2%
More food led sites now than in 2012 in MCR (2nd placed city in terms of total number of sites)

18. 34.5%
More food led sites now than in 2012 in Leeds (9th placed city in terms of total number of sites)

19. (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

20. (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

21. 79%
of business leaders expect to see more business failures in 2017 than there were in 2016
CGA Business Leaders’ Survey, Jan 2017

22. 29%
of respondents are actively looking into the option of a business acquisition in the next twelve months
CGA Business Leaders’ Survey, Jan 2017

23. 63%
of business leaders believe they are not market leading when it comes to a strong brand identity
CGA Business Leaders’ Survey, Jan 2017

24. 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

25. 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

26. 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