Delivering insight across the leisure inDustry

Property | Marketing | Operations | Finance

CACI’s models and understanding of consumer behaviour and the unique catchments for retail, workers and leisure, underpins our consultancy services. Our team’s expert knowledge of the market has been developed over years of working with some of the biggest and most recognisable global brands in the leisure sector.

This places us in a unique position to advice on a range of business issues from property location investment and planning, to performance optimisation and benchmarking, through to market capacity, exit strategy and investment acquisition.

CACI consultants advise on a range of leisure issues. We have an in-depth understanding of your customers and the interaction of the various leisure markets they spend in. CACI is uniquely placed to understand the dynamic market changes in the leisure sector as consumer tastes and behaviour change and markets develop.

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We needed an agency who would take into consideration the sensitive nature of the project and work alongside us to ensure the final delivery met our expectations. CACI did everything we asked, listened to what we wanted and were thorough. Everything highlighted that they are the experts in their field.Rachel Hillel, International Head of Customer Insight, Pret A Manger

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CACI leisure consultancy enables success for operators across casual dining, quick service restaurants, pub & bar companies, gambling & gaming, cinema chains & entertainment, hotel & travel and gym & drinks companies. Leisure has historically been a ‘gut feel’ industry and CACI recognises that service, experience, consumer loyalty and choice play a significant role. At CACI we bring our market experience and analytical expertise to quantify ‘gut feel’ to minimise risk and achieve a better return on our clients’ investments.

Whether you want to start from a national roadmap, a review of your current strategy, or recommendations on the likely turnover of a specific site our experts have the knowledge, tools and data to provide the answers to successful growth.

CACI’s international and UK market expertise really helped us in our understanding of the market.Pierre Van Tonder Chief Executive Officer, Spur International

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Growing successfullyAs operators grow and increase the number of outlets within their portfolio so do the challenges they face. The key to successful expansion is through understanding what drives success. CACI uses sophisticated techniques and models in combination with market knowledge to establish key performance drivers. These are used to highlight the locations that will give the best return on investment. We create a prioritised roadmap for expansion providing the client with a strategic plan for growth and a prioritised target list.

RoAdmAP of THe besT loCATIons

Krispy Kreme UK engaged CACI to support them in their expansion strategy, by providing an expert independent view on the potential growth of the business in the UK market and help support a mbo.

Krispy Kreme has a complex mix of formats including transient locations, retail stores, coffee bars and cabinets, with over 300 in Tesco stores. We segmented Krispy Kreme’s UK trading estate to understand the different formats and what drove successful performance for each, using a range of CACI models and data.

As a result of CACI analysis Krispy Kreme UK were able to define their expansion strategy, the overall size of the market opportunity and how many stores were achievable.

CACI’s knowledge of the UK retail and leisure market is second to none. Their ability to get to the heart of our business and to both understand the legacy of the brand and how the business should move forward in the future, gave us huge confidence. On top of this those in the CACI leisure team were a pleasure to work with and our partnership played an important role in the MBO.Rob Hunt Joint Managing Director, Krispy Kreme UK

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Market capacity for investment acquisition With the growth of private equity and venture capital money in all areas of the leisure sector investors want to see independent validation of the return on their investments. Operators and owners likewise need to justify such investment or the sale.

CACI has worked extensively in this area supporting the investment and acquisition process from both the operator and investment side of the equation, giving expert advice from a market understanding and location perspective.

Analysis that can’t be implemented isn’t worth the paper it’s printed on. CACI’s market capacity analysis on London and other major cities not only gave us the answers we needed but also helped us get the investment we wanted. These guys know the market like no other consultants. They’re excellent at what they do.steve Richards Chief Executive Officer, Novus Leisure

mICRo AssessmenT of THe london mARKeT

novus leisure was seeking further investment and commissioned CACI to carry out a review of their business to identify the number of new bars and clubs that the london market and other selected cities could support.

CACI carried out detailed performance analysis to understand the localised drivers of success through a micro locational assessment of london. CACI then considered the opportunity of over 150,000 postcodes in the Greater london area to determine the market capacity achievable.

CACI’s independent market capacity solution supported novus leisure in securing the desired investment, including presenting and validating the results to representatives of the investors.

A risk free bet through predictive modelling It is vitally important for gambling organisations to accurately forecast performance in turnover, profit or member numbers in any location. This enables the operators to support optimisation of performance and investment strategy.

InSite, and the solution delivered within Spatial Modeller by the CACI leisure team has been invaluable to us through an intensive period of portfolio review. Their understanding of the gaming and gambling market was excellent and the solution delivered on time and to the needs of the business. As a team they were always available when we needed them and dealt with our requests efficiently and effectively in each instance.mike Cuthbert Head of Insight & Analytics, Gala Bingo

esTATe oPTImIsATIon & PeRfoRmAnCe foReCAsTInG

CACI has worked in partnership with Gala Coral to build predictive models for both their casino and bingo divisions. Gala bingo commissioned CACI to review and benchmark the existing estate performance to support a strategic investment programme and to supply Gala bingo with the tools to predict performance for new and existing clubs in a range of market scenarios.

To achieve this CACI carried out a strategic review of the Gala bingo estate and its performance. This involved understanding the Gala bingo customers, their playing habits and their value to the business. This involved segmenting the estate and understanding the characteristics of clubs as well as the markets they operate within.

We built Gala bingo a bespoke catchment gravity model to accurately forecast the interaction between their clubs and the competition. once the catchment model was completed we built a performance forecasting model using multiple regression techniques. This solution then played the key role in the consultancy and recommendations CACI presented to the business on the club estate strategy.

The development of the turnover prediction model delivered within CACI’s Insite market analysis software enables the Gala bingo business to plan with confidence for the dynamic bingo market.

The dynamic nature of the market requires in-depth knowledge and research, whether considering changes in casino licencing boundaries, the effects of the smoking ban on the bingo industry or the effect of online gambling to name just a few. CACI has experience and knowledge in all of these areas.

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Market, performance & consumer understanding for successAs market experts CACI not only understand these challenges but have the tools, techniques and consultancy to support the necessary changes to pub businesses, whether making estate acquisitions, buying leasehold opportunities or expanding their brand food led model. CACI understand both the national and local market issues by working with both national chains and regional pub operators.

As consumers have become more demanding, and value and quality become an expectation, the need for having your brands, offer and pricing in the right locations become fundamental to success. CACI understands from an operational point of view that having a different offer, price or brand in each location is not practical or cost effective. CACI supports many of our pub clients with estate segmentation solutions. By segmenting the local markets into groups with similar characteristics and consumer expectations means that you can tailor your brand, offer and pricing to meet the needs of those who shop, work and socialise in each circuit.

We also work with pub companies on understanding what drives success in their operations. This enables our clients to benchmark the performance of their outlets and channel investment and support where it is needed.

Many of our clients take these solutions within InSite, CACI’s market analysis software. This software enables our clients to maximise the results of our bespoke models and analyse any new or existing, individual or groups of sites to determine their potential.

Along with supporting property teams our solutions also play a fundamental role in marketing, from understanding consumers in catchments through to targeting offers and customer acquisition. CACI’s leisure consultancy gives our pub clients the competitive advantage and can support property, operational and marketing investment strategy.

The challenge for pubs in a changing marketThe pub market has been through a ‘perfect storm’ of change and challenges over recent years including the smoking ban, taxation squeezing margins, tenant tie ins and changes in consumer expectations.

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We have bought CACI’s InSite software to provide further re-assurance with our property investment decisions, and assist with the market positioning of our existing estate.Peter furness-smith managing director, mcmullen & sons ltd

Understanding global marketsCACI has extensive experience on a global scale carrying out solutions in over 45 countries worldwide. Leisure is truly international with brand advocacy spanning global markets.

dUPlICATInG sUCCess InTeRnATIonAlly

With Pizza Hut, KfC and Taco bell, yum! brands brings food service retailing to over 110 countries.

yum! Russia asked CACI to prioritise cities for investment by producing a customised ranking of all major towns and cities in Russia. It combined affluence, population, age profile & employment levels into a score indicating the relative potential in each city.

In moscow we recommended how many outlets should be opened and where they should be located. The final output included a range of maps and data that allowed yum! to focus their property requirements and plan the strategic development of the network. The combination of the expertise of the CACI analysts and yum!’s knowledge of the local property market enabled us to produce a detailed, realistic road map for outlet expansion.

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CACI helps leading leisure clients make strategic decisions from limited consumer and market data that is a common trend with growth markets. Where the inexperienced are floundering, we enjoy the challenge to prove that valuable location decisions can be made with limited information within a robust analytical framework.

Right from the start, CACI impressed us with their efficient, professional manner - an approach that not only inspired confidence but also generated the results we were looking for. We enjoyed doing business with CACI because they are true experts in geomarketing and also simply great people to work with every day. stas sushkov Market Planner, Yum! Restaurants International

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Consumer segmentationCustomer insight should be an essential part of any operator’s toolkit. The changing consumer is a complex beast from economic pressures to discount voucher usage, so the need to understand your customers and their behaviour is essential to find success in today’s challenging and changing market.

Tragus is one of the UK’s largest independently owned restaurant operators and their portfolio includes Café Rouge, strada and bella Italia. Tragus was keen to understand the behaviour of their customers around their voucher scheme, specifically they wanted to look at the propensity of different demographics for voucher adoption, and also whether brand was playing an important role in sign up of such schemes and the associated brand crossover.

CACI’s unique leisure segmentation, socialscene ACORN enabled Tragus to profile their customers and gain a detailed understanding of their dining-out habits, frequency and behaviour. We segmented customers by brand and enabled Tragus to develop targeted promotional offers, that are most appropriate for that demographic of customer.

by understanding their brand customers and their value through consumer insight, this enabled Tragus to analyse and plan loyalty programmes for life with and after discounting to make sure the balance between loss of volume versus increase in value is achieved.

SocialScene ACORN has supported us in the segmentation of our consumer types and the promotional offers developed as a result. A better understanding of our customers means a better return on our investment.Jemima bird Marketing Director, Tragus Group

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Site performance forecastingCACI not only undertakes national and global solutions but also evaluates individual sites for our clients. With the capital expenditure on a leisure opportunity being substantial, operators need to be certain they will achieve the right number of covers or turnover per week to make their required margin.

mInImIsInG RIsK mAxImIsInG ReTURns

CACI analysed a particular site for brasserie bar Co to explore whether the opportunity justified the capital expenditure and deal being offered.

We looked at an extensive range of micro locational factors. These included workers, residents, public transport accessibility levels, commuter & passenger numbers together with worker and tourism expenditure from CACI’s Retail dimensions models and competitor provision.

We benchmarked the site against similar restaurants within the portfolio to the determine the strength of the opportunity.We presented our recommendations to Raymond blanc and the brasserie bar Co board to support them in their investment decision.

Investors are therefore ever more demanding of operators to quantify their entrepreneurial ‘gut feel’ to support their site selection. Our experts provide on-the-ground and desk based analysis and research, reviewing pitch, accessibility and local micro factors, as well as the market metrics which will support trade throughout different times of the day and week.

This was the first time we engaged CACI’s leisure consultancy services and we now see why they work with a majority of major operators. Their recommendations to the board put science behind our site selection and gave us the confidence to move forward with the substantial investment.mark derry Chief Executive Officer, Brasserie Bar Co

Supporting an Olympic bid through location strategy

With the Olympics in 2012 being one of the most exciting and watched events on the globe many businesses were vying to become sponsors, partners and official suppliers.

CACI was approached by Bibendum to provide consultancy services to support their bid to become the official/exclusive supplier of wine for the London 2012 Olympics. Bibendum was keen to demonstrate to the London Organising Committee of the Olympic Games (LOCOG) that if chosen they had carefully considered the overall opportunity from a location perspective as to how they would maximise sales.

We helped Bibendum to measure the overall opportunity in 4 key categories; sport profile, venue capacity, transport and catchment. By understanding the venue configurations and capacities, and other localised influencing market factors such as transport, additional supporting retail & leisure destinations, using CACI’s unique Place Settings leisure catchment model and local demographics, CACI was able to rank the best opportunities on a micro-locational level.

This analysis and consultancy work allowed Bibendum to quantify how the location of their pop ups could optimise and maximise returns for the Olympic Venues & National Screen locations and this approach resulted in a successful bid.

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At Bibendum we put the consumer at the heart of everything we do. In developing a range for the 2012 Olympics we wanted to reflect the differences between consumers drawn to the specific events. CACI’s Catchment and Transport analysis, along with their use of TGI Sports profiling, allowed us to do just that. Their work helped us stand out from the crowd and put together a compelling, and ultimately successful, argument for winning the business.Kirstie PapworthCommercial director, bibendum Wine limited

These guys know the market like no other consultants. They’re excellent at what they do.

Steve Richards Chief Executive Officer, Novus Leisure

london I AmsTeRdAm I WAsHInGTon

© CACI limited 2012. All rights reserved

020 7602 6000 info@caci.co.uk www.caci.co.uk

These guys know the market like no other consultants. They’re excellent at what they do.

Steve Richards Chief Executive Officer, Novus Leisure