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Burger and Chicken Restaurants - UK - August 2017

Published By :

Mintel

Published Date : Aug 2017

Category :

Hotels & Restaurants

No. of Pages : N/A

Parents are vital to burger and chicken restaurants as the population of 0-14 year-olds grows. Brands are focusing on non-core items to boost snacking occasions, while diners want to see less sugar, fat and salt in burger and chicken meals. Yet the sector is experiencing the halo effect, with diners interested in gourmet chicken. Meanwhile, daily deals, loyalty cards and late-night openings can nudge more diners to visit.

Table of contents

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Costs rise but opportunities knock
Burger
Figure 1: UK burger restaurants market, value sales and forecast, 2012-22
Chicken
Figure 2: UK chicken restaurants market, value sales and forecast, 2012-22
Companies and brands
McDonald’s remains the leading player while KFC experiences the halo effect
Home delivery takes off in the UK
Social media engages young diners
The consumer
People visit burger venues more than chicken venues
Figure 3: Fast food outlet usage, by type, June 2017
Eating out is a treat for parents and young diners
Figure 4: Frequency of eating in or getting a takeaway from fast food outlets, June 2017
Understanding diners’ motivations to visit
Figure 5: Motivations to visit burger and chicken outlets/restaurants, June 2017
Healthy initiatives diners would most like to see
Figure 6: Healthy initiatives diners would most like to see, June 2017
Behaviours towards eating burger and chicken out of home
Figure 7: Behaviours towards eating burger and chicken out of home, June 2017
What we think
ISSUES AND INSIGHTS
It’s vital to engage parents of under-16s
The facts
The implications
There’s scope to cater to older diners
The facts
The implications
Non-core items are important in their own way
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Costs rise…
…but opportunities knock
Burger and chicken market is in growth
SEGMENT PERFORMANCE, MARKET SIZE AND FORECAST
Burger and chicken restaurants are in growth
Figure 8: Value sales for burger and chicken restaurants market, 2012-22
Demographic changes could temper market growth
Figure 9: UK burger and chicken restaurants market, value sales and forecast, 2012-22
Burger segment continues to dominate the market despite headwinds
Figure 10: Values sales of burger restaurants segment, 2012-22
Figure 11: UK burger restaurants market, value sales and forecast, 2012-22
Chicken segment experiencing halo effect
Figure 12: Value sales of chicken restaurants segment, 2012-22
Figure 13: UK chicken restaurants market, value sales and forecast, 2011-21
Forecast methodology
MARKET DRIVERS
Rising costs on the cards for food operators in 2017
Business rates
Rising inflation and the weakened pound
National Living Wage and National Minimum Wage
Apprenticeship levy comes into force in April 2017
Consumer crutch holding up eating out sector
Driven by those who are ‘getting by’…
Figure 14: Trends in how respondents would describe their financial situation, 2009-17
…and diners who are spending up to £20 on a meal
Figure 15: Leisure activity spend on going to a fast food restaurant for a meal, January 2016-April 2017
Core user group set for stunted growth
Figure 16: Trends in the age structure of the UK population, 2011-16 and 2016-21
Understanding Britons’ attitudes towards food
Eating for health
Flexitarianism
Foodism
Figure 17: Trends in selected attitudes towards food, April 2016-May 2017
Smartphone ownership is peaking
Hospitality recruitment at its most difficult…
…but stability is on the horizon
Figure 18: Trends in healthy food factors, April 2016-May 2017
FSA issues new regulations on cooking burgers
Red Tractor toughens farm standards
KEY PLAYERS – WHAT YOU NEED TO KNOW
McDonald’s leads by store and usage numbers
KFC experiencing the halo effect
Home delivery takes off in the UK
Social media engages young diners
COMPANIES AND BRANDS
Figure 19: Selected leading burger and chicken restaurant chains, by outlet numbers, 2013-17
McDonald’s
Figure 20: Key financial data for McDonald’s Restaurants Ltd, 2014-15
Kentucky Fried Chicken (KFC)
Figure 21: Key financial data for Kentucky Fried Chicken (GB) Ltd, 2014-15
Nando’s
Figure 22: Key financial data for Nando’s Chickenland Limited, 2015-16
Burger King
Gourmet Burger Kitchen (GBK)
Figure 23: Key financial data for Gourmet Burger Kitchen Limited, 2015-16
Byron Hamburgers
Figure 24: Key financial data for Byron Hamburgers Limited, 2015-16
Five Guys
Honest Burgers
Figure 25: Key financial data for Honest Burgers Limited, 2014-15
Meat Liquor
Figure 26: Selected gourmet burger and chicken outlets, by outlet numbers, 2015-17
Ones to watch
Smashburger
Shake Shack
Absurd Bird
Chicken Society
Patty & Bun
7Bone Burger Co
BIRD
Wingstop
LAUNCH ACTIVITY AND INNOVATION
Home delivery and takeaway gains traction
Delivery-only format vs expensive restaurant sites
Using free food to drive footfall
Smaller formats scale up
Chicken goes big on new flavours
Korean
Nashville
Jamaican
Boneless chicken adds zing
Dipping sauce trend heats up
Initiatives to help diners make healthy choices
Quality of ingredients and equipment
Vegetarian concepts gain traction
Lighter choices
Non-core items become important in their own right
ADVERTISING AND MARKETING ACTIVITY
Using social media to engage young diners
Nando’s continues to drive website traffic
Gourmet Burger Kitchen (GBK) uses visuals to engage
Figure 27: Selected burger and chicken brands’ social media presence, 2016-17
McDonald’s core objective of growing consumer trust
The end of Olympic sponsorship
Aligns with UEFA Women’s Euro in 2017
Continues to target music-lovers in the UK
Pushes McDelivery services globally
Using child bereavement to promote Filet-O-Fish backfires
McCafé pokes fun at hipster coffee in 2017
Chicken Selects takes centre stage at Christmas
Launches Night Tube map app for London diners
KFC remains focused on building trust
Building trust through behind-the-scenes initiative
KFC continues to push lunchtime Ricebox range
The Whole Chicken gets mixed reviews
Burger King focuses on creative awards
Attempts to have fun with Google Home backfires
Gourmet Burger Kitchen (GBK) benefits from US presidential elections
Figure 28: Recorded above-the-line, online display and direct mail total advertising expenditure, by selected burger and chicken operators, 2012-17
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 29: Attitudes towards and usage of selected brands, June 2017
Key brand metrics
Figure 30: Key metrics for selected brands, June 2017
Brand attitudes: Burger King and KFC are seen as widely available
Figure 31: Attitudes, by brand, June 2017
Brand personality: McDonald’s and Nando’s seen as more fun and vibrant
Figure 32: Brand personality – Macro image, June 2017
TGI Fridays is cool and exciting
Figure 33: Brand personality – Micro image, June 2017
Brand analysis
Nando’s attracts more affluent diners
Figure 34: User profile of Nando’s, June 2017
KFC is surging forward
Figure 35: User profile of KFC, June 2017
TGI Fridays has low brand commitment
Figure 36: User profile of TGI Fridays, June 2017
McDonald’s is a favourite brand
Figure 37: User profile of McDonald’s, June 2017
Burger King is falling behind
Figure 38: User profile of Burger King, June 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Under-35s and parents are frequent diners
Understanding burger and chicken diners
What are diners’ motivations to visit?
How to help diners make healthy choices?
Understanding burger and chicken diners’ behaviours
USAGE HABITS
Students and parents eat burger or chicken out-of-home
Britons eat at burger venues more than chicken venues
Demographics of burger diners
Demographics of chicken diners
Figure 39: Any usage, June 2017
Usage continues to thrive in 2017 despite headwinds
Figure 40: Fast food outlet usage, by type, June 2017
Usage declines with age
Figure 41: Fast food outlet usage, by age groups, June 2017
FREQUENCY OF USE
McDonald’s and Burger King’s frequent users
KFC and Nando’s frequent users
Figure 42: Frequency of eating in or getting a takeaway from fast food outlets, June 2017
UNDERSTANDING DINERS’ MOTIVATIONS TO VISIT
Most diners are interested in daily deals
Millennials most likely to click and collect
Younger diners drawn to late-night opening hours
Young men enjoy using self-service ordering kiosks
Figure 43: Motivations to visit burger and chicken outlets/restaurants, June 2017
Drinks menus appeal to rotisserie chicken diners
35-44-year-olds most likely to use loyalty cards
Women most likely to enjoy salad and dessert bars
Figure 44: Any motivations to visit burger and chicken outlets/restaurants, by any burger or chicken fast food outlets/restaurants usage, June 2017
HEALTHY INITIATIVES DINERS WOULD MOST LIKE TO SEE
Health factors most important to Britons
Figure 45: Trends in healthy food factors, April 2016-May 2017
Behind-the-scenes visits can help build trust among core customers
Over-65s want to see less sugar, fat and salt in meals
Women would like calorie content to be more visible
Figure 46: Healthy initiatives diners would most like to see, June 2017
Healthier meal alternatives become commonplace
Men want to see a wider range of portion sizes
Diners expect healthier cooking methods
Parents of young children seek healthy snacks
Figure 47: Any healthy initiatives diners would most like to see, by any burger or chicken fast food outlets/restaurants usage, June 2017
OUT-OF-HOME EATING BEHAVIOURS
Understanding Britons’ behaviours towards food
Figure 48: Trends in selected food behaviours which consumers do all of the time, April 2016-May 2017
Customisation is important across all types of outlets/restaurants
Health concerns may convert fast food diners into gourmet diners
Consumers who have ordered home delivery from a burger/chicken restaurant
Understanding chicken diners
16-24-year-olds and over-55s prefer boneless chicken
Crispy chicken proves more popular than grilled chicken
Figure 49: Behaviours towards eating burger and chicken out of home, June 2017
Gourmet chicken becomes commonplace
There is scope to promote gift cards
Chicken diners enjoy dipping sauces
Gourmet burger diners most adventurous
Burger diners are lukewarm about paying more for gourmet burgers
Diners drawn to other chicken outlets for lunchtime meals
Figure 50: Any behaviours towards eating burger and chicken out of home, by any burger or chicken fast food outlets/restaurants usage, June 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 51: UK burger and chicken restaurants market, value sales, best- and worst-case forecast, 2017-21
Figure 52: UK burger restaurants segment, value sales, best- and worst-case forecast, 2017-21
Figure 53: UK chicken restaurants segment, value sales, best- and worst-case forecast, 2017-21

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