Having weathered the economic downturn, output in the catering and hospitality sector was forecast to grow by an annual 2.5% in 2013, and the number of people taking apprenticeships in the industry has more than doubled in the last four years with more than 35,000 people starting in 2011 – 2012.
2012 was a year of highs and lows for the catering industry. As wide-scale patriotism gripped the Nation with the Queen’s Jubilee and Olympic Games inspiring a focus on home-grown, sustainable produce, the government caused nationwide outrage with its introduction of the 20% ‘pasty tax’.
As recent years have seen the foodservice sector dented on a number of fronts, notably the VAT increase, a preoccupation with discounting, and an intensifying government focus on healthy eating in the face of rising obesity levels, the pressure is on for the industry to prepare for future trends and take advantage of emerging growth opportunities.
Sustainability
The Olympic Games presented a unique opportunity for the UK to transform catering standards at major events; to showcase British, sustainable and ethical food. The focus was on balancing affordability and practicality with being socially sustainable.
In 2012, just over 25% of meals and snacks consumed out of the home were purchased with some form of promotion. However, to adapt to the expected pressures from food inflation, in future caterers must respond by increasing prices and shifting their focus from low-cost to quality and value.
Though in the wake of the turbulent economic times, British consumers have become more controlled spenders, industry trends show that they do want to spend their money on good quality products, particularly from a provider they trust.
An example of this is the renewed interest in chicken. As prices of beef, pork and lamb rise, consumers are shifting their attention to ‘specially’ reared chicken such as hand-reared, corn-fed, heritage or heirloom, preferring to opt for good-quality value.
Understanding the Market
Moving forward, the main focus for the industry will be to better understand the consumer and to cater specifically for evolving needs and expectations.
Coeliac UK recently reported that the gluten-free market alone is thought to be worth £100m a year to the UK’s catering outlets. In addition, families with children are accountable for 56% of food service sales, and 75% of adults take into account their children’s preferences when choosing where to eat.
These statistics highlight how important it is for the catering industry to know their market, monitoring competitors and build their offering.
Contrary to popular belief, healthier eating doesn’t seem to be establishing itself as a trend, and less than 3% of respondents in an NPD survey reported this as a primary motivation.
The food service sector must learn from the recession that adaptation is invaluable to survival. According to research by the NPD Group, British consumers are still eating out more than anywhere else in Europe, with the market poised for a steady 1 – 2% growth year on year. But to sustain this expansion, the industry must prioritise evolution to cater for changing consumer preferences.
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