DAWN FARMS TOP 9 | ISSUE 20 | 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. PIZZA HUT & TELEPIZZA JOIN FORCES 

Pizza Hut has joined forces with competitor Telepizza in a strategic deal and master franchise alliance to accelerate growth across Latin America/the Caribbean, Spain, Portugal and Switzerland. This will double Pizza Hut’s presence in these regions; while also making it the leading player across Latin America in terms of store count. Telepizza will see its numbers almost double as it becomes Pizza Hut’s largest master franchisee globally. To find out more about the impact of this “landmark deal”, click here>>

2. THE ROYAL BANDWAGON

The imminent royal wedding has inspired a number of celebratory limited editions.KFC in Windsor has released a limited number (50) of specially designed bone china Bargain Buckets. Pizza Hut is offering a Royal Deal; 50% off pizzas when you spend £20 or more. Burger King’s royal wedding burger adds American bbq sauce to the Chicken Royale, while adding onion rings “to signify the royal matrimony”. Chili’s restaurant in the US is giving away food-themed cuff links and fascinators; Dunkin’ Donuts are selling royal ‘love donuts’. A landmark event such as this might just inspire UK consumers to step outside their sandwich comfort zones, according to a recent Warburtons survey.

3.  VALERIE, MEET GLORIA 

One of the top 5 branded coffee shops in the UK, Patisserie Valerie reported Q1 revenue growth of £5.4m to reach £46m, following store expansion and a strong Christmas/Easter performance. Online sales are also booming, fuelled by a social media relaunch in February. The menu has expanded to include savoury options such as breakfast/brunch items. A new competitor is however on the horizon, as a leading Australian coffee chain outlines ambitious plans for the UK. Previously we mentioned the arrival of its Crust Gourmet Pizza Bar concept; the Retail Food Group has now announced it has 13 franchised Gloria Jean’s outlets in the pipeline (190 within 10 years).

4. MCDONALD'S EMOTIONAL TOUCH 

McDonald's latest campaign places value on the small moments that matter as it promotes its convenience initiatives such as table service and mobile ordering. The campaign features 3 different adverts, each focusing on a different McDonald’s service. "Hands full" shows young parents struggling to adjust to life with a new-born baby, before eventually getting respite with table service. "Grown up" is about a father and daughter day out, ending with them getting a McDonald’s using in-store touchscreens to order. “It Must Be”, follows two teenagers who connect via the McDonald’s app. Watch McDonald’s Hands Full campaign here>>

5. STREET FOOD SOPHISTICATION

Street food offers consumers a new and exciting dining experience. The goalposts for authenticity have changed as consumers expect punchy fresh flavours and a regional identity– even from a ready meal eaten at home; some 75% of consumers eating world cuisines at home like it to be as authentic as possible (Mintel). Indian street food was highlighted as a key food trend for 2018 by major retailers Asda and Waitrose. Iceland launched its Indian street food range Mumbai Street Co in January, including tapas/ready meals such as light kale bhaji’s and fresh coconut curry. Ironically while Bangkok is reportedly banning street food, in Europe street food is becoming more established and more sophisticated.

6.  PIZZAEXPRESS PUFFIN EXPLOITS 

While PizzaExpress’ international sales are performing well for the company (13 new sites, up 8.2%), domestic outlets in the UK/Ireland also achieved a like for like sales increase for the 2nd consecutive year in the UK’s challenging market conditions. It has embraced the ‘gig economy’ with on-site live music to make it a destination for entertainment not just food. Meanwhile its retail brand reached £100mn in 2017, entering it into the top 100 UK retail brands. The family market has long been an important target for PizzaExpress; recently it has entered a year-long partnership with Penguin Random House to give away 700,000 story booklets to child diners.

7. GREGGS SUMMER SKEWERS

Earlier this week, Greggs launched its new summer menu including some light lunch and healthier Balanced Choice options. These include protein ‘split pots’ of mini chicken skewers (3 skewers x 2 chicken chunks) in Chicken Satay and Tikka Chicken flavours, accompanied by a relevant dip (satay, or yogurt and cucumber respectively) – priced at a snackable £1.80. Along with the skewers are a range of salads including a Lemon & Herb Chicken and Roast Vegetable Grain Salad, Feta & Beetroot Dip Salad with Grains (from £3.00).

8. JURASSIC EFFORT  

Last week in ‘movie watch’ we mentioned Deadpool, this week it’s dinosaur time. Pizza Hut Delivery has introduced a Jurassic World theme to its menu – including a Jurassic Feast, a new Meatysaurus pizza featuring BBQ Sauce, Beef Meatballs, Crispy Bacon and Red Onions, as well as a Veggiesaurus pizza and loaded Chicken Strips with mozzarella and bacon. Jurassic World – The Fallen Kingdom’s UK release date is 6th June. Its prequel Jurassic World was the 4th fourth highest grossing film in cinema history (+ $1.6 billion at the global box office) so expectations are high for a summer hit.

9.  ROCK PIZZA SCISSORS

Who needs a pizza cutter when you have scissors. According to NRN, a new Roman-style niche has emerged in US fast casual pizza. Pizza al taglio is a counter service concept originating in Rome, with pre-cooked rectangular sheets of pizza cut with scissors to order and priced by weight. Described as an interactive experience, consumers on the go can buy as much or as little as they like. Here are 5 examples of fast-casual Roman-style pizza concepts across the US>>