Knowledge – Insight - Solutions

Making Local Food a Reality – A Food Service View

Ian CrabtreeManaging Partner

Knowledge – Insight - Solutions

‘Leading solution-provider of knowledge, insight and strategic advice across all sectors

of the Food Service Market.’

Who is The Foodservice Partnership?

Knowledge – Insight - Solutions

ResearchProject Management

Delivery

Networks & Insight

Innovative

Product / Concept Development

Strategy

A unique mix of skills

Performance Improvement

Operations

Supply Chain

Marketing

Knowledge – Insight - Solutions

By both problem solving and providing proactive solutions aimed at increasing our clients’ revenue streams and profitability.

How do we operate?

Knowledge – Insight - Solutions

• 4th largest UK market• £26bn Sales• £9bn Purchases• 270,000 outlets• 10m meals pa• 35% of the food £

… and it’s Growing at 15% pa

Market Overview

Knowledge – Insight - Solutions

Market Overview

• Fragmented• Difficult to Measure• Dynamic & Inert• Lack of bespoke insight• Disciplines and Controls• ‘Big 3’ rule does not apply

…and it always imitates Retail!

Knowledge – Insight - Solutions

• Buyer, Kitchen, Finance, Marketing, Training, Production, HR, Sales … !• Food is Secondary to Core • Lack of Research / Resources• Full of Contradictions• Nature of Supplier Relationships

…it is NOT an extension of Retail!

Food Service Characteristics

Knowledge – Insight - Solutions

Convenience/ Specialist

Cafes &Coffee Shops

& Bakers

Events andFunctionCatering

Leisure &Pleasure

PublicSector

Catering

Business &Industry

Staff Feeding

BusinessOfficeService Industries

IndustryManufacturingOffshore

Education

State SchoolsNurseryPrimarySecondarySpecial

Private SchoolsPrivate BoardingPrivate Day

Further EducationUniversitiesColleges

(incl. Local Authorities)

NHS Hospitals

Private Hospitals

Care ProvidersHigh Dependency CareLow Dependency Care

PrisonsArmed ForcesWelfare OfficesPolice stationsFire stations

Accomm-odation

Hotel (excl. Budget Travel)Guest HouseB&BHoliday CampsCaravan Parks

PubsBars

Clubs

PubsNational BreweryRegional BreweryNat. IndependentReg. IndependentFreehouse

Tenanted orManaged

Wine Bars

Night Clubs

Hotel RestaurantsPub RestaurantsFine DiningDifferent Origin Rest.Quick ServiceRestaurants

Sports

SpectatorStadia / ArenaFootballRugbyRacecoursesAthleticsGreyhoundOther

ParticipatingSports & Leisure CentresHealth/Fitness ClubsSwimming PoolsSports Clubs - by type

Entertainment & LeisureDaily Visitor attractionsMuseumsGalleriesStately Homes & GardensTheme ParksZoos / Wildlife ParksWater ParksIce RinksExhibition CentresOther Tourist Attractions

LeisureCinemasTheatresBingo HallsVenuesCasinosBowling

In StoreSupermarketsHigh St RetailersDept. StoreFood CourtsShopping MallRetail ParkOutlet VillageOn-Street(incl. Furniture/Kiosks)

Branded ChainsCoffee shopsTea RoomsBakersRoadside CafesSandwich ShopsSoup Bars

Outside caterersEventsFunctionsParty

OUT OF HOME

Airlines (on-board - CPU’s)Airport terminiCoach OperatorsCoach terminiFerry OperatorsFerry terminiPort OperatorsRail OperatorsRail stationsUnderground StationsMotorway ServicesShip stores & chandlersBudget Travel Hotels

TravelCatering

Convenience- Symbols- Forecourts- CTN’s/IndependentSpecialists- Off Licences- Healthstores- Kiosks- Garden Centres

HealthcareCatering

Restaurants RetailOutlets

Local AuthorityCanteens

Civic Centres

Government Canteens

Scope of Foodservice

Knowledge – Insight - Solutions

• Profit Sector

175,000 outlets £22bn Sales

£6.15bn Purchases

• Pubs• Hotels• Restaurants• QSRs• Leisure

Market Sectors - Profit

Knowledge – Insight - Solutions

Cost Sector

90,000 outlets£2.5 – 4bn Sales£2.75bn Purchases

• Business & Industry• MOD• Education• Local Authorities• Healthcare

Market Sector - Cost

Knowledge – Insight - Solutions

• Time

• Convenience

• Provenance

• Indulgence…. and HEALTH

• Price

The Food Service Market - Trends

Knowledge – Insight - Solutions

• Market understanding is limited

• Complex market - fragmented sectors & sub-sectors

• Data is poor, often adapted to suit user / company needs

• Clouded by Organic, Health, Fairtrade, Local Provenance, Recyclable

The Food Service Market - Considerations

Knowledge – Insight - Solutions

• Who will pay?

• Business needs overide consumer needs

Key decision considerations

• Availability, continuity of supply, quality, price, cost

The Food Service Market - Considerations

Knowledge – Insight - Solutions

Downturn Effect – a lesson from the past!

1990Wrapped in cling filmHand written labelUnappetising20% of lunch time sales

1993Wrapped in Plastic Cassettes Printed labelsGreat Products40% of lunch time sales