DAWN FARMS TOP 9 | ISSUE 23 | 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. NEW TERRITORY FOR MEAL KITS

The online delivery kit market continues to evolve with leading players exploring synergies via traditional channels in retail and foodservice ‘bricks and mortar’. HelloFresh meal kits are now available in over 580 Ahold Delhaize supermarkets in the US with plans to extend availability later this year. Another partnership sees Costco stocking Blue Apron. Blue Apron has struggled with high marketing costs and customer retention and is now also embarking on a pop-up strategy to forge a stronger customer experience. Its first Unboxed pop-up location is in New York with plans for LA, San Francisco, and Seattle.

2. WAGAMAMA’S GLOBAL AMBITIONS

Wagamama is exploring its “strategic growth options”, with an eye on US expansion under a potential new investor. Established in 1992, the Japanese casual dining chain has 130 UK stores, 5 in the US and 51 franchised restaurants around the world. Despite the challenging post-Brexit environment, it has continued to open sites and drive sales, achieving an increase of 8.2% in UK like-for-like sales in Q3, with turnover growing by 12.5% to £72m. According to CGA’s Fourth Business Confidence Survey, there is growing confidence among company leaders regarding prospects for their own business over the next 12 months - 11 percentage points higher than the last confidence survey in February. 

3. LEON’S NORDIC DEBUT 

Another player with its eye on overseas expansion is fast casual chain Leon. Leon has just made its first Scandinavian footsteps with a restaurant opening at Oslo train station, as well as a food truck in the city. Serving a variety of Leon classics, this paves the way for further global growth in Europe, Middle East and US markets. Menu items include the Moroccan meatball hotbox, fishfinger wrap and original super salad. Established player Umoe Restaurants AS (330+ outlets) will operate franchises in Norway and Sweden, offering this new concept based on natural ingredients. UMOE has well-known partners such as Rail Gourmet, Starbucks, Burger King, Peppes Pizza and TGI Fridays.

4. CRUNCH TIME FOR BK’S PRETZEL FRIES

Burger King US is keen to continue the success of its Chicken Fries with its new Crispy Pretzel version. The limited edition Crispy Pretzel Chicken Fries are made with boneless chicken meat in a salty pretzel batter seasoned with savoury spices and herbs, and deep fried until crispy. Watch the Crispy Pretzel clip here >> Since the original Chicken Fries launched in 2014, Cheetos Chicken Fries followed in 2016. According to Burger King, introducing new, must-try items like these “get people in the door", increase transaction value and remind consumers Burger King is a meal destination. In recent years we’ve seen Wendy’s Pretzel Bacon Cheeseburger and Little Caesar’s Pretzel Crust Pepperoni Pizza.

5. SPAR READY MEAL REFRESH

SPAR has refreshed its £6mn range of ready meals with a “fresh and foodie” look. As well as new packaging, new products in the revamped range include Chicken Tikka Masala, Chilli Con Carne and Lasagne. The UK chilled ready meal market is in growth (+6.5% year-on-year), and standard-tier ready meals still dominate, representing 77% value share of the category. According to research by HIM, convenience stores are increasingly under pressure from discounters as they poach top-up shoppers with wider competitively-priced meal solutions and expanding their better quality fresh convenience ranges. Since 2008 the volume of shoppers visiting a convenience store on a planned top up mission has fallen from 28% to 21%.

6. GROWING ONLINE PULLING POWER

UK online grocery sales are set grow by 48% to reach £15bn by 2022 (7.5% share of total grocery), according to IGD.  IGD’s survey also predicts more manufacturers selling directly to consumers. One retailer keen to take advantage of this growth curve is Picnic, a Dutch ‘milk round’-type business founded in 2015 which is growing rapidly thanks to £100mn investment last year. Picnic is currently focused on Germany and the Netherlands but believes its electric vehicles can offer a new and innovative approach to the “attractive” UK market. 

7. WINGSTOP FLAVOUR-PACKED ENTRY

US chicken wing chain Wingstop will open a UK site in London’s West End in August – the first of over 100 openings planned over the next 10-12 years. The chain was founded 24 years ago in Texas and now has over 1,200 outlets across the US, Central America, the Middle East and Asia. It considers the UK a ‘high chicken consumption market’, albeit over saturated and competitive in fast food terms. Specialising in chicken wings, particularly sharing dishes, Wingstop offers 11 signature sauces. Diners can order online ahead of their arrival and takeaway option also available.

8. GOIKO GRILL SET TO SOAR

Spanish fast casual gourmet burger chain Goiko Grill (est. 2013, 44 locations nationwide) is planning 58 more locations in 20 cities in Spain and abroad by the end of 2018. In less than 5 years, Goiko has become a leader in its category and with new investment from global private equity firm L Catterton, it’s ready to scale up its ambitions. Alongside gourmet burgers such as the regionally-inspired Cotilla featuring creamy feta, txistorra crumble, piquillo peppers, red onion and lettuce, Goiko’s trendsetting menu includes lighter options such as Fresh Bowls with grilled chicken chunks, mozzarella pearls, red onion, cold lentils, avocado, cherry tomatoes, cranberries and chia and a ginger vinaigrette.

9. CULINARY HEADLINES

This week the foodpeople hosted its first Culinary Congress. Speakers’ topics included Modern British and Modern French cuisines, Zero Waste, Korean and Persian cuisines (focusing on sumac and barberry) and savoury ingredients in desserts to name a few. Smokestak’s David Carter talked about different styles of barbecue from the US to Asian, Middle Eastern and more. Click here to read more of the highlights from the foodpeople session >>