Foodservice 2005 UK

The UK foodservice industry in 2005 enjoyed a total net turnover of £33.5 billion.

The British are eating an average of 3.2 meals per week out of home, significantly higher than the European average which stands at 2.3. This is explained by the fact that a large proportion of the British public can afford to eat out of home regularly, due in part to the increasing prevalence of the dual income family. With both partners working, British families are increasingly keen to dine out in order to save time, but they are also doing so for the enjoyment of the experience itself.

As the market reaches maturity, particularly in the restaurant sector, every eating fad and style of cuisine and dining are catered for, so that the caterer must work increasingly hard to compete for the British stomach.

It has taken some time for growth within the Commercial foodservice sector to recover following a series of setbacks over recent years, the Foot and Mouth Crisis in 2002, and the falling numbers of tourists after the September 2001 terrorist attacks in New York. Between 2002 and 2005 the annual average growth rate for the commercial market was 2.3% per annum in terms of volume of meals served. Growth in restaurants and snack based outlets was surpassed by the stronger growth in pubs, the transport sector and leisure and event catering, reflecting the increase in people taking short holidays and the maturation of the restaurant sector. Tourism to London has suffered some decline since the July 2005 attacks, but not enough to stifle the growing trend towards eating out altogether.

Within the QSR sector, some chains have seen phenomenal growth, in 2005 SUBWAY was opening new branches at a rate of two per week, coffee shops have also increased in number at a terrific pace.

In the face of this competition from the high street and depressed also by the shifting of manufacturing outside of the UK, and the decline in the health sector, the Social Foodservice sector has remained virtually static with no growth forecast. Education remains the most important element of the Social foodservice sector, accounting for 39% of meals served. The schools sector has been hampered by social demographics, with the number of school aged children in the country falling year on year, the decline in numbers of children receiving free school meals, and also by the poor publicity given to school meals following Jamie Oliver's television documentary. Oliver continues to impact on the schools catering sector as new Government nutritional standards are published to enhance the healthiness of school food.

In the Commercial Foodservice sector, slower growth is anticipated to 2007 as the market becomes saturated with diverse outlets and uncertainly surrounding the economy. Some upsurge is forecast from 2007 to 2012 as the UK prepares itself to host the Olympic Games, though the implementation of a smoking ban in public places in 2007 could initially dampen growth. Market share for the QSR sector is expected to reach 46% by 2007, though growth from 2005-2007 will slow as the nation becomes increasingly health conscious, with operators continuingly looking to introduce healthier and lighter menus in response to this shift.