Contents

Page No1. Trends in Catering Survey 2010 2 – 30

2.Manurama Survey 2008 30

3.Sept 08 Quick Bite 09.3 –Sept 09 31

1

Trends in Catering Survey

October 2010

Reference: 5233

Contents

Methodology

Respondent Profile

Main findings

Executive Summary

44

66

1010

2929

SlideSlide

3

Methodology

4

Research took the form of an online self-completion questionnaire sent to our database of hospitality professionals

Email invitation sent to 50,832 people containing a link to the survey

A £1,000 prize draw was used as a financial incentive to complete the survey

Field work took place between 16th August and 23rd September 2010

335 responses to the survey were received (after screening)

Note: Results shown are based on those answering each question

Email invitation

Online survey

Respondent Profile

5

6

Industry sector

Bases: All Respondents (312)

Q. Which sector of the Hospitality or Catering industry is your company involved in?

“Other” responses:Equipment supplyEducationOperations/Head OfficeRecruitmentMarketingEvents

B&I, Education, Health, Training: (29)Primary business of company:Drinks/FoodEducation/TrainingManufacturingOil/Gas/ChemicalsTechnology

7

Region

Q. Which area of the UK are you based in?

Base: All Respondents (211)

8

Main job function

Q. Please indicate your main job function from the list below:

Base: All Respondents (206)

B&I, Education, Health, Training: (28)39% Catering Manager/Officer11% General Manager11% Operations Manager7% Owner/Proprietor/Partner/Landlord7% Other Manager7% Sales/Marketing7% Lecturer4% CEO/Chairman/Board Director/MD4% Overall Head of Catering Operations4% Consultant

Views on Industry

9

Change in comparison to last year

Q. Which word best describes your current turnover in comparison to the same time last year?Q. Which word best describes your current profitability in comparison to the same time last year?

Base: All Respondents (293) Base: All Respondents (290)

10

Turnover Profitability

B&I, Education, Health, Training: (46)43% - Grown30% Flat20% Declined

B&I, Education, Health, Training: (46)35% - Grown33% Flat24% Declined

11

Challenges in last year for your business

Q. Which have proved to be the biggest challenges for your business in the past twelve months?

Base: All Respondents (248)

B&I, Education, Health, Training: (35)59% - Managing costs37% - Reduced consumer spending35% - Global economic recession33% - Effective pricing strategy33% - Retaining good employees31% - Too much competition27% - Differentiating our offering25% - Attracting good employees18% - Securing financing18% - Marketing14% Regulation12% - Building green credentials

12

Challenges in coming year for your business

Q. Which do you feel are facing your business in the coming twelve months?

Base: All Respondents (231)

B&I, Education, Health, Training: (35)35% - Managing costs33% - Reduced consumer spending29% - Effective pricing strategy25% - Global economic recession24% - Attracting good employees22% - Securing financing22% - Differentiating our offering22% - Marketing20% Regulation18% - Retaining good employees18% - Too much competition14% - Building green credentials

13

Actions taken in last year

Q. Have economic pressures forced you to take any of the following actions in the past twelve months?

Base: All Respondents (250)

B&I, Education, Health, Training: (35)66% - Cut operating costs49% - Restructure organisation46% - Lay off staff34% - Change your offering34% - Target fresh market sectors26% - Cut employee benefits26% - Stepped up marketing20% - Cut marketing spend17% - Developed a clearer business plan17% - Reduce prices6% - Borrow money

9% - Not taken any action

Attitude to future health of business

Base: All Respondents (246)

Q. Which phrase best describes your current attitude to the future health of your business?

14

B&I, Education, Health, Training: (35)20% - Very positive37% - Fairly positive31% - Neutral9% - Fairly negative3% Very negative

Positivity for next year

Q. How positive are you about the future of the UK hospitality industry / UK economy in the next twelve months?

Base: All Respondents (243) Base: All Respondents (243)

15

UK Hospitality UK economy

B&I, Education, Health, Training: (33)12% - Very positive55% - Fairly positive21% - Neutral12% - Fairly negative0% Very negative

B&I, Education, Health, Training: (33)15% - Very positive30% - Fairly positive39% - Neutral15% - Fairly negative0% Very negative

16

Biggest challenges facing hospitality industry

Q. What are the biggest challenges facing the hospitality industry?

Base: All Respondents (235)

B&I, Education, Health, Training: (34)70% - Attracting good employees65% - Raising service standards41% - Training35% - Dealing with food regulation…35% - Burden of regulation32% - Keeping up with technology29% - Delivering on the green/CSR agenda15% - Immigration laws15% - Preparing for the 2012 Olympic Games15% - Securing lending

Trends

17

18

Level of interest compared to 5 years ago

Q. How do you think the level of interest in the following has changed compared to 5 years ago?

4.31

3.90

3.86

3.67

3.53

Bases: Shown above

19

Benefits of stocking branded foods and drinks

Q. Now thinking about products, which of the following do you think are benefits of stocking branded foods and drinks?

Bases: Shown above

20

Agreement with statement

Q. To what extent do you agree or disagree with the following statements?

Bases: Shown above

4.09

4.28

3.93

21

Importance of factors

Q. How important are the following factors to your organisation, on a scale of 1 to 5?

Bases: Shown above

4.78

4.76

4.66

4.50

4.51

4.47

4.44

4.25

4.06

22

Media used to find out about new products

Q. How do you find out about new products in the market?

Base: All Respondents (215)

B&I, Education, Health, Training: (31)68% - Hospitality industry magazines68% - Email newsletter/updates61% - Hospitality industry websites

Contract Catering Sector

23

24

Objectives of catering in business and industry

Q. What do you think are the objectives of catering in business and industry?

Bases: Those whose company is involved in contract catering – business and industry (21)

Serve hot beverages in organisation

Base: Those whose company is involved in contract catering (all refs) or in house catering (47)

Q. Do you serve hot beverages in your organisation?

25

Vending machines

Q. Do you have vending facilities in your organisation?/ What type of vending machines do you have?/ Has the number of vending machines in your organisation increased or decreased in the last 5 years?

Base: Those whose company is involved in contract catering (all refs) or in house catering (47)

Base: Those who have vending facilities in their organisation (25)

Base: Those who have vending facilities in their organisation (23)

26

Decreased 35%

Influence of company policy on catering

Q. What influence does a company’s own policies have on the decisions of the firm catering on their behalf?

27

Base: Those whose company is involved in contract catering – business and industry (18)

Executive Summary

28

29

• Almost half have seen an increase in turnover compared to this time last year, and 42% say their profitability has grown over same time period.

• 7 in 10 have a positive attitude to the future health of their business. 2 in 3 are positive about the future of the UK hospitality industry in the next 12 months, while 48% are positive about the UK economy in the next year.

• Managing costs was seen as the biggest challenge for their business over the last year, and remains so in the coming year. Attracting good employees is seen as the biggest challenge facing the hospitality industry.

• Delivering a great service to customers was seen as the most important factor to organisations, followed by managing costs and offering quality products.

• There has been a marked increase in interest around local and ethical sourcing of food products, and many have agreed that green issues are a key focus in the industry.

Executive Summary

Q.1 Which of the following is important for you when considering purchasing a hot beverage away from home?

Total

Unweighted base 1035

Weighted base 1035

Quality 861

83%

Convenience 790

76%

Price 768

74%

Sustainable or Ethically sourced 499

48%

Brand 382

37%

None of these 42

4%

Don't know 3

Menurama Survey 2008

15%

18%

19%

21%

28%

28%

36%

37%

45%

53%

64%

64%

68%

78%

33%

35%

33%

34%

31%

30%

28%

31%

29%

23%

21%

26%

21%

16%

52%

46%

48%

44%

42%

43%

36%

32%

26%

23%

15%

10%

11%

6%

Matthew Algie

Bewleys

Tchibo

Illy

Lavazza

Caffe Ritazza

Taylors of Harrogate

Cafe Direct

Lyons

Caffe Nero

Douwe Egberts

Starbucks

Costa Coffee

Kenco

Yes

No

Don't know

Thinking about roast & ground coffee you drink when you are out of home, which of the following brands do you think would provide a quality Roast & Ground coffee?

Base: All coffee drinkers, 981 respondentsSource: Quick Bite 09.3 (Sept 2009)