DAWN FARMS TOP 9 | ISSUE 19 | 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. PAPA JOHN’S REINVENTS BBQ

Papa John’s UK welcomes summer with 3 limited-edition pizzas. The range combines some of our favourite barbecue foods on 2 brand new pizzas which will be joining the BBQ Cheeseburger launched earlier this year; the Great British BBQ (sausage, chicken, Kentucky BBQ pulled beef), and the Hog Roast (spit roast pork with apple sauce). The BBQ Chicken pizza has also been relaunched with a BBQ sauce drizzle. Together with the new side of coleslaw and corn on the cob, Papa John’s is reinventing the traditional British barbecue.

2. TACO BELL’S EUROPEAN EXPANSION

America’s favourite Mexican restaurant, Taco Bell (2018 Harris Poll) is hoping to win over European consumers with plans afoot to open a further 30 new restaurants here in 2018 (20 UK, 3 Finland, 3 Netherlands, 3 Romania, 1 Cyprus). Caskade Caterers who own the UK franchise has secured funding of £29.4m to support the chain’s expansion. Taco Bell is currently in seven markets in Europe and its mission is to become a $15 billion company with 9,000 restaurants globally by 2022. Taco Bell is renowned for innovative menu concepts – the latest concept being trialled is French Toast Chalupa filled with eggs and sausage or bacon with syrup on the side.

3.  PIZZA HUT FOODIES ANONYMOUS

While aggregators herald the benefits of choice (see Deliveroo’s Eat More Amazing campaign), Pizza Hut Singapore offers a tongue-in-cheek alternative, presenting Pizza Hut as the easy choice and solution to food fads – watch the Pizza Hut Foodies Anonymous campaign here>> Meanwhile in the US, Pizza Hut is expanding its beer delivery service to over 100 stores following a successful pilot last year. The company is also expanding its partnership with beer brands Anheuser-Busch and MillerCoors. Some 1,700 of Pizza Hut’s 6,300 US stores already have alcohol licenses providing plenty of scope for further roll out.

4. FOOD PRICES POST BREXIT 

While food price inflation appears to have reached its peak in the UK following the referendum, the full impact of Brexit is yet to unfold. According to a report by the EU Energy and Environment Sub-Committee this week, the price and availability of food for UK consumers is vulnerable to imports from inside (30%) and outside the EU (11%). The ongoing negotiations suggest there is by no means a guaranteed outcome when it comes to the final trade agreement. The Committee warns that even in a best-case scenario with tariff-free and ‘frictionless’ imports, there is potential for significant price rises.

5. PEAK MILLENNIAL CONVENIENCE

What’s next in the convenience revolution? According to the NPD group, today’s consumers are less likely to define convenience simply as eating out in a restaurant. In the US half (49%) of restaurant dinner meals are consumed in the home.  Millennial consumers are now considered at peak career and family formation lifestages - often dual income and affluent households. However, from outsourcing almost everything including meal preparations, their perspective is changing in light of their new economic reality.  This generation is also buying all kinds of statement appliances for their technology-connected ‘open kitchens’. Amazon is expanding its smart home business with a new chain of showrooms which iGen/young Millennials are likely to buy into. 

6. STARBUCKS NESTLÉ ALLIANCE

Today’s generation of coffee drinkers enter the coffee world via the experiential world of coffee shops – a gateway to which Nestlé has just agreed to pay $7.15bn for.  Nestlé will market Starbucks’ products internationally (strengthening its North American position), while also making it the leading player in emerging coffee markets (such as Asia, Middle East, Latin America). Meanwhile Starbucks will receive additional revenue from the accelerated expansion of its retail channel (currently valued at $2bn), global opportunities for Nespresso and Dolce Gusto while enabling it to focus on its global coffee shop empire. The 2 companies will collaborate on “innovation and go-to-market strategies”.

7. SUPER HOT PIZZA SALES

US fast casual pizza restaurants are soaring ahead, climbing 27% in 2017 compared to the 9% growth experienced by the top 250 US fast casual sector overall. For inspiration, see Thrillist’s list of the nation’s best pizza chains here>> Closer to home, London restaurant Four Hundred Rabbits is collaborating with street vendor Up In My Grill; its latest launch features braised beef shin, spicy red chimichurri, Malbec onions & Fior di Latte mozzarella. MCA reports that pizza has increased its share of UK visits (Q1 - 4.4% up from 3.7% a year ago), especially in chain restaurants where it is a growing preference among diners (up 7 percentage points to represent 23% of visits). 

8. CELEBRITY BURGER APPEAL

Following on from the above, among non-pizza US chains with impressive growth are CoreLife Eatery and Wahlburgers. Celebrity burger chain Wahlburgers (founded by actor Mark Wahlburg and brother Paul) is planning its UK debut this summer. Since 2011, the brothers have opened 24 locations across the US and Canada. With a newly launched retail gourmet Angus beef burger range in the US, described as their proprietary blend of brisket, short rib and chuck, and a food trucks on the road, Wahlburger ticks a lot of boxes.

9.  DEADPOOL DEVOUR

Iceland is the latest retailer to adopt scare tactics to appeal to the Man Vs Food generation.  It claims its Iceland Red Hot Chilli Chicken Thighs made with bird’s eye, habanero and capsicum chillies are twice as hot as Nando’s extra hot. Meanwhile gourmet takeaway EatFirst has launched a chef-inspired range of ready meals into Ocado created by ex-Roka chef Benn Hodges, Taste of Asia, such as Asian BBQ Ribs. Lastly, from the US, we love the Devour recipe range of microwavable sandwiches (an extension to its frozen mac ‘n cheese eg Buffalo Chicken, Philly Cheesesteak and Turkey Bacon & Ranch) particularly its design and Deadpool connection – watch the video here>>