DEEP DIVE CHANNELS On-the-go away from home Casual dining A SERIES OF SNAPSHOTS What are on-the-go and casual dining? On-the-go = Any where, anytime food occasions Casual dining = Sit down, table served meals in an informal atmosphere Three reasons to investigate them 1. They are growing significantly 2. They are significant scale Value change 2003-2011 Market value 35% 30% 19% 25% 20% 15% 81% 10% 5% 0% All foodservice On-the-go Casual dining On-the-go & casual dining Other f oodservice 3. They are on consumer trend Short Term Price Long Term Role of food Result • During the economic downturn consumers traded down to lower cost eating out options – such as on-the-go and casual dining • Increasing consumer affluence has led to a changing role for food and beverages in society. People seek less formal, less structured and more convenient foodservice occasions • Growth in on-the-go and casual dining away from home Food has to fit in with life De-structured meal eating occasions Less formal dining Impact of the consumer trends on foodservice 2003 to 2010 Traditional channels Formal dining Pubs Captive dining + 22% -12 % • In 2003 traditional foodservice channels captured 64% of sales value • By 2010 this had reduced to 56% “New” consumer driven channels One-the-go/casual dining QSR/fast casual Travel/leisure On-the-go & casual dining are well positioned for continued growth Speed & convenience Ambience & dining experience QSR Casual dining White tablecloth On-the-go Travel Leisure Investigate the overlap areas Similar consumer motivations Key consumer occasions serviced On-the-go Casual dining Re-fuelling pit stop Value for money meal A DEMAND CONTINUUM Relaxation moment A little treat/reward Relaxed social meal Special no guilt treat Speed, value & convenience driven Ambiance, experience & value driven Key channel parameters On-the-go Casual dining €1 billion €0.11 billion % chains 42% 18% Number outlets 2,641 450 +14.5% +30% Main outlet types Coffee bars Bakeries/sandwich bars Cafes Themed FSR Family FSR Ethnic FSR Route to market Delivered wholesale Cash & Carry Delivered wholesale Adolescent Embryonic Sales (consumer prices) Sales growth 2003-11 Market status Sales by food/beverage type On-the- Go Casual dining (€1 billion) (€111 million) Shared drivers and dynamics They are innovation driven in terms of concept and products Menu churn is important Innovation adds customer excitement They are location rather than system driven Offering often driven by location They are flexible and customer responsive They sell more than food, the offering includes: High service levels Relaxed atmosphere Product and menu flexibility Convenience and speed, but slow occasion options when required Market appropriate price points They are close to customers and offer occasion solutions They could, in general, do more in self promotion Two levels of customer need The customer demand map Consumer wants Operator needs Quality Traffic Builders Value Price Service Ambiance Spend Builders Occasion Builders Responsive