AUTOMOTIVE
Foodservice in Europe and UK
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
Consumer trends and leverage
FASHION
FOOD & BEVERAGE
FOODSERVICE
HOME
OFFICE SUPPLIES
SOFTWARE
Dublin, June 2010
by Christine Tartanson
SPORTS
TOYS
WIRELESS
Copyright 2010. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may
not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.
Our programme this morning
„ CREST consumer tracker
„ The European market
opportunities
„ Consumer behaviours
in tough economic times
„ Consumer leverages and
trends
CREST tracker
„
„
„
„
„
„
Online panel
~ 500 Interviews per day
Every day / 365 days a year
Representative and projected to population
Covering the full Away-from-Home market
Food and beverage consumption
Today, we are running CREST in 11 countries.
Our focus today is the Big 5 in Europe …
Germany
UK
France
Spain
Italy
US
Canada
Source : NPD / CREST Europe 2009 – proprietary
Russia
China
Japan
Australia
within Commercial restaurants
Pubs/ Coffee-shops
Quick Service Restaurants
not only Fastfoods,
include also Bakeries, Sandwich shops,
Ethnics, other Take-Aways & Deliveries
Full Service Restaurants
Retail/ convenience stores
Hotels, Leisure and Travel
Source : NPD / CREST Europe 2009 – proprietary
European Consumers spend 650 Mio. Euro
per day in Commercial Restaurants
Europe
Europe Big
Big 55 -- 2009
2009
Commercial
Commercial Restaurants
Restaurants
236 Billion €
40 Billion Visits
Source : NPD / CREST Europe 2009 – proprietary
5.79 € / Visit
Yet the economic slowdown
may have impacted
our market opportunities
AUTOMOTIVE
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
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10
2007
2009
2008
2010
5
0
-5
-10
-15
-20
AUTOMOTIVE
-25
BEAUTY
COMMERCIAL TECHNOLOGY
-30
CONSUMER TECHNOLOGY
ENTERTAINMENT
FASHION
-35
FOOD & BEVERAGE
FOODSERVICE
-40
-45
UK
EU
HOME
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-50
SPORTS
TOYS
aug-07 nov-07 febr-08 may-08 aug-08 nov-08 febr-09 may-09 aug-09 WIRELESS
nov-09 febr-10 may-10
Source: Consumer Confidence – EU Commission
How do
consumers
react in
tough
times?
AUTOMOTIVE
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COMMERCIAL TECHNOLOGY
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Consumer spending trends in Europe
Spending
Spending Trends
Trends vs
vs previous
previous year
year
2,6% 2,8% 2,3% 2,7%
3,3%
1,6%
0,4%
-1,4%
-1,7%
-2,1%%
-2,3%
-3,4%
2007
Q1 07
Q2 07
Q3 07
2008
Q4 07
Q1 08
Q2 08
Source : NPD / CREST Europe 2009 – proprietary
Q3 08
2009
Q4 08
Q109
Q209
Q309
Q409
During the tougher times, UK consumer spending
more impacted
6,2%
Spending
Spending Trends
Trends vs
vs previous
previous year
year
5,8%
3,4%
2,6%
2,5%
1,1%
2,5%
0,0%
-0,3%
-3,3%
-4,6%
2007
Q1 07
Q2 07
Q3 07
-5,5%
2008
Q4 07
Q1 08
Q2 08
Source : NPD / CREST Europe 2009 – proprietary
Q3 08
Q4 08
Q109
2009
Q209
Q309
Q409
Full Service Restaurants lost overproportionally –
Quick Service remained more stable
Total Market
-1,9%
Visit
Visit Trends
Trends 2009
2009 vs
vs previous
previous year
year
QSR &
Convenience
-0,9%
Leisure &
Travel
Full Service
-2,7%
-4,1%
Source : NPD / CREST Europe 2009 – proprietary
Consumer Reaction in tough times...
Trading
Down
Trading
Out
Source : NPD / CREST Europe 2009 – proprietary
Consumer Reaction in tough times...
Trading Down:
 Switching to less
expensive
Restaurants
 Skipping Add-Ons
 Using Promotions
and Price Deals
Source : NPD / CREST Europe 2009 – proprietary
Consumer Reaction in tough times...
Trading Out:
 ‘Brown Bagging
for Lunch’
 Cooking for
Dinner at home
 Less Business
driven demand
Source : NPD / CREST Europe 2009 – proprietary
Is there light
at the end
of the tunnel?
Source : NPD / CREST Europe 2009 – proprietary
Consumer Spending started picking up
in Q1 in Europe
Spending
Spending Trends
Trends vs
vs previous
previous year
year
2,6% 2,8% 2,3% 2,7%
3,3%
1,6%
0,4%
-1,4%
-1,2%
-1,7%
-2,1%%
-2,3%
-3,4%
2007
2008
2009
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10
Source : NPD / CREST Europe 2009 – proprietary
 Several consumption indicators
turn into more positive directions:
 Weekday Lunch seems to take
off again
 Business Demand picks up
 Less price driven
Source : NPD / CREST Europe 2009 – proprietary
Key consumers
leverages and trends
Source : NPD / CREST Europe 2009 – proprietary
Key consumers leverages and trends
 Women are becoming a more important group for our
industry
 Opportunity lies in the Generation 50 plus
 Take-Away Shares are different but growing across all
countries
 Quick Service is making the most of the visits and keep on
developping
 Chains account for very different shares today but they grow
across all markets
 The Breakfast Daypart plays a very different role across
countries but stands for growth
 Yet there is also a cultural difference about WHEN we eat
Source : NPD / CREST Europe 2009 – proprietary
To have in mind about Foodservice
markets in Europe
 Our market recovery is not
there yet! Watch out for socioeco drivers
 Key challenge for operators is
to recapture traffic across
Europe and in the UK, also
reboost average spend
 Economic circumstances have
blurred our market‘s frontiers
 Our business driven by
Consumers‘ culture, price
perception and usages of a
restaurant
 Key leverage trends are
international
Implications for suppliers
Price/ Promotion Î assist
operator to implement efficient
menus and combo meals
(to increase incidence on lower traffic)
Product Offer Î match target
channel or customer’s
consumers’ usage Î try to mix
cheaper and premium options
Product Development
Î focus on key consumer
leverages
Channels Î review your
segmentation and strategy
according to consumer
leverages and product
incidence
AUTOMOTIVE
For more information, your contacts :
BEAUTY
COMMERCIAL TECHNOLOGY
CONSUMER TECHNOLOGY
ENTERTAINMENT
Guy FIELDING
Christine TARTANSON
Director
Foodservice UK
Director
Foodservice France
FOOD & BEVERAGE
+44.7.876.746310
guy.fielding@npd.com
+33.1.41.97.26.20
christine.tartanson@npd.com
OFFICE SUPPLIES
FASHION
FOODSERVICE
HOME
SOFTWARE
SPORTS
TOYS
WIRELESS
Copyright 2010. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may
not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.