DAWN FARMS TOP 9 | ISSUE 44| 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. WAGAMAMA HAS NEW OWNER

The Restaurant Group, owners of Frankie & Benny and Chiquito restaurant chains, has bought Asian-inspired restaurant chain Wagamama valuing the business at £559m. Wagamama first opened in London in 1992 and now has almost 200 outlets across the UK, US, New Zealand, Middle East, Romania and Croatia. The Restaurant Group has plans to continue to expand Wagamama, potentially 40-60 more outlets, as it continues to outperform the UK casual dining market (latest same-store growth sales +9.6%). It is three times bigger than its nearest rival and is well positioned to take advantage of the growing healthy eating trend. 

2.  5 REGIONAL RESTAURANT HOTSPOTS

UK consumers are choosing takeaways over eating out, according to Barclay’s latest survey of 8 million consumers over a 2-year-period, which shows 21% growth by fast food vs 7.2% by restaurants. While consumers are dining out more frequently, average transaction values have fallen by 1.5%. This coupled with the growth in online sales, clearly favours lower price-point outlets. The top 5 on-premises growth spots are all outside London - Manchester, followed by Cardiff, Birmingham, Newcastle, Chelmsford. Consumers are also varying their destination choices, with average brands visited rising from 7.2 to 7.5 in the year leading up to June 2018. 

3. TACOS & TECHNOLOGY TEASERS

With ‘off-premises dining’ in the fast lane, will attention turn to the drive-thru channel? Taco Bell is set to open Scotland’s first drive-thru restaurant in December which will be its 33rd outlet in the UK. For more info on drive-thru trends, read this US 2018 GSR Drive-thru Study which suggests AI (artificial intelligence) could play a more important role in coming years. Some customers forgive lack of speed for greater accuracy and customer service while others simply want food fast. Staying with the automation theme, note Pizza Hut’s partnership with Toyota to develop a mobile pizza kitchen that cooks pizza en route. Watch this space for a fleet of Pizza Hut driverless delivery vans... 

4. ICELAND'S DRONE DELIVERIES

Aha, one of Iceland's largest e-commerce companies, has partnered with Flytrex to expand its delivery bandwidth through drone delivery. In the US; Amazon, UPS, Google and DHL are also exploring ways to deliver packages with drones instead of trucks. Aha is permitted to fly 13 routes around Reykjavik, giving effective coverage of around half the city. Many Reykjavik residents could soon expect their pizza delivered to their door via drone in as little as 4 minutes for about US$7. Customers simply download Aha’s app to order and track their delivery, then upon arrival the drone lowers their order on a line. Watch and learn about drone deliveries here>

5. SIP-ABLE SOUPS

We love the new sip-able soups emerging from the US in response to on-the-go snacking trends. Campbell’s Soup Company has launched a new line of Well Yes! Sipping Soups featuring nutritious ingredients in convenient packaging. Other innovators in this space include Nona Lim and Spoon Optional with 10oz 'heat-and-sip' cups in recipes such as Nona Lim Turmeric Chicken or Shitake Beef Bone Broth. With the spotlight on recyclable food packaging, let’s hope these meet the needs of today’s ‘conscious consumer’. 

6. HIGH STREET FTG GETS FESTIVE

The festive food-to-go season is ramping up; from Gregg’s festive bake to Costa’s newcomers such as Pigs & Blankets Mac & Cheese, a Turkey and Emmental Shimmer Brioche, Christmas Cheese Board Panini and the Ultimate Christmas Toastie. Also in the Christmas spirit, try EAT‘s Yorkshire pudding wrap filled with turkey, stuffing, crispy bacon and sage mayonnaise, or its Keralan turkey curry served with jasmine rice and lime pickled vegetables. Visit Tesco for its Finest Festive Feast Trio which even includes a dessert Chocolate and Cherry roll. M&S sees the return of the Three Bird Roast along with a Turkey and Pigs in Blankets wrap.   

7. 2019 FOOD TRENDS

2019 trend forecasts are starting to filter through. Consultants Baum + Whiteman highlight those of Momofuku Chef, Shaun King, who’s betting on dry aged poultry and pork, higher end quick-service restaurants and three ingredient dishes. The jury is still out on meal kits, but B&W highlights the opportunity for casual dining brands to offer their own versions for the ‘buy now, eat later’ needs (see Chick-fil-a’s take-home meal kits for example). Sour foods will also be on trend in 2019 as the influence of Korean food and Filipino cooking continues to grow. For more Baum & Whiteman perspectives from marijuana to the Katsu Sando, read here >>  

8. CO-OP SERVES EXPRESS PORRIDGE

Speed is the new currency and the Co-op has launched a new express On-The-Go concept to tap into these consumer needs. As well as clear zones for ‘food for now’ and ‘food for later’, there is a much stronger focus on food-to-go. It offers free water taps for refills and self-serve hot soups and porridge. According to MCA, supermarkets and convenience stores’ share of breakfast visits rose from 5% in the third quarter of 2017 to 6% while lunch share rose from 9.5% to 10.6%. In contrast, Harrod’s new Fresh Market Hall is somewhere to linger, check out the revamped experience with no less than 150 chefs in situ>  

9. SENSORY THRILLS

Technomic has published its take on what trends will shape restaurants in 2019 – from Israeli food, specifically Lebanon, Syria and Turkey, the Balkans – to the marketing of functional benefits “natural enhancements” which boost brain function, mental health and beauty. Instagram Stories/Facebook Live and Youtube are fuelling sensory thrills beyond food snaps. Technomic also asks how far will technology go to provide “frictionless foodservice”, replacing customer interaction and the personal touch? 

THE BUZZ | BIG STORIES IN OCTOBER

Here are the articles which received the most attention from you, the readers, last month in October.