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Ethnic Restaurants and Takeaways - UK - January 2017

Published By :

Mintel

Published Date : Jan 2017

Category :

Hotels & Restaurants

No. of Pages : N/A

It is becoming more important to provide additional reasons to visit, as ethnic restaurants face mounting pressures on recruitment, rising costs and weakening consumer confidence. Casual dining concepts that focus on communicating good food hygiene and offering leisure experiences should support growth but stand to impact on independent players.

Table of Content

Overview

What you need to know
Products covered in this Report

Executive Summary
The market
Brits are still dining out
Figure 1: Selected consumer spending priorities (after bills), November 2009-16
Potential to target the over-55s
Figure 2: Trends in the age structure of the UK population, 2011-16 and 2016-21
Shortage of skilled chefs threatens the survival of ethnic restaurants
Key players
Zing Zing attracts heavyweight investors
Wahaca launches supermarket range
Giraffe trials World Kitchen
The consumer
Ethnic restaurant visits declined in 2016
Figure 3: Frequency of visiting an ethnic restaurant for a sit-down meal, February 2012, November 2012, October 2015, and October 2017
Figure 4: Frequency of ordering an ethnic takeaway/home delivery, February 2012, November 2012, October 2015, and October 2017
Chinese and Indian cuisines top the chart
Figure 5: Usage of ethnic restaurants/takeaways by cuisine, October 2017
£20 is the spend cap on a sit-down meal
Figure 6: Average spend when visiting an ethnic restaurant for a sit-down meal, October 2016
Diners spend up to £15 for a home delivered meal
Figure 7: Average spend when ordering a takeaway/home delivery from an ethnic restaurant, October 2016
Good food hygiene ratings
Restaurant atmosphere can boost the dining experience
Figure 8: Most important qualities when choosing an ethnic restaurant, October 2016
Nutritional content on menu
Grab-and-go lunch options
Figure 9: Attitudes towards ethnic restaurants and takeaways, October 2016
What we think

Issues and Insights
Lunch options can strengthen ethnic restaurants
The facts
The implications
Produce high-quality and healthy dishes
The facts
The implications
Digital innovation can add value to the dining experience
The facts
The implications

The Market – What You Need to Know
Ethnic restaurants market is in growth
Brands need to provide more reasons to visit
Costs are going up
Shortfall of hospitality staff intensifies
Potential to target older age groups

Segment Performance, Market Size, and Forecast
Ethnic restaurants are in growth
Figure 10: Value sales^ of the total UK ethnic restaurant/takeaway market, 2011-21
Consumer confidence starts to falter in the year ahead
Figure 11: UK ethnic restaurants total market, value sales and forecast, 2011-21
The takeaway/home delivery market set to slow
Figure 12: UK ethnic takeaways, market size and forecast, 2011-21
Dine-in segment to overtake home delivery
Figure 13: UK ethnic takeaways, value sales and forecast, 2011-21
Figure 14: UK ethnic dine-in restaurants, market size and forecast, 2011-21
Figure 15: UK ethnic dine-in restaurants, value sales and forecast, 2011-21
The impact of the EU referendum vote
Eating out has been resilient in previous slowdowns
Figure 16: Alternative market scenarios for the post-Brexit ethnic restaurants total market, at current prices, 2016-21
Forecast methodology

Market Drivers
Eating out remains a key discretionary spending area
Figure 17: Selected consumer spending priorities (after bills), November 2009-16
Costs are going up
The weakened pound has pushed prices of imports higher
Rising business rates could temper growth in prime cities
Further rises in National Living Wage pose a challenge
Shortage of skilled chefs threatens the survival of ethnic restaurants
Potential to target older age groups
Figure 18: Trends in the age structure of the UK population, 2011-16 and 2016-21
Unbranded ethnic restaurants are challenged
UK pork consumption losing out to world foods

Key Players – What You Need to Know
Giraffe trials World Kitchen
Cinnamon Collection expands
Wahaca launches supermarket range
Zing Zing is the one to watch
Pho targets millennial market through Snapchat

Market Share
Taco Bell teams up with KitKat
Figure 19: Selected South American restaurant/takeaway chains, by outlet numbers, 2011-16
Figure 20: Selected other Asian restaurant/takeaway chains, by outlet numbers, 2012-16
Zing Zing attracts heavyweight investors
Figure 21: Selected Chinese restaurant/takeaway chains, by outlet numbers, 2011-16
Japanese concepts take root
Figure 22: Selected Japanese restaurant/takeaway chains, by outlet numbers, 2011-16
Gourmet Indian concepts gain traction
Figure 23: Selected Indian restaurant/takeaway chains, by outlet numbers, 2011-16
A focus on Middle Eastern cuisine
Figure 24: Selected Middle Eastern restaurant/takeaway chains, by outlet numbers, 2011-16

Launch Activity and Innovation
Wasabi invests in staff benefits and healthy options
Perkbox partnership
Brown rice sushi
Pho gains gluten-free accreditation
A mash-up of ethnic cuisines can broaden appeal
Cinnamon Collection opens bazaar concept
Giraffe trials World Kitchen
London chefs test street food concepts
Opportunities for late night trading
Wahaca launched supermarket range
Figure 25: Examples of Wahaca Grocery’s retail brands in the UK, 2016
Non-specialists encroach on ethnic offers

The Consumer – What You Need to Know
Chinese and Indian cuisines continue to dominate
34% of diners typically spend no more than £14.99 on takeaway
26% of diners would spend up to £20 on a sit-down meal
58% of diners say good food hygiene ratings is most important
45% of diners turn to recommendations from friends or family
Menus should display the nutritional content
50% of diners want customisable dishes
40% of diners want grab-and-go lunch options

Frequency of Visiting Ethnic Restaurants/Takeaways
Decline in overall visits in 2016
More users order home delivery than dine-out…
Figure 26: Frequency of visiting ethnic restaurants/takeaways, October 2017
but home delivery saw more non-users in 2016
Figure 27: Frequency of ordering an ethnic takeaway/home delivery, February 2012, November 2012, October 2015, and October 2017
Meanwhile twice a week or more restaurant visits for sit-down meals have grown in 2016
Figure 28: Frequency of visiting an ethnic restaurant for a sit-down meal, February 2012, November 2012, October 2015, and October 2017

Usage of Ethnic Restaurants/Takeaways by Cuisine
Chinese out in front
Figure 29: Usage of ethnic restaurants/takeaways by cuisine, October 2017
Repertoire of secondary shops
Users of sit-down meals experiment with different types of ethnic restaurants…
Figure 30: Repertoire of ethnic restaurants used for a sit-down meal, October 2016
while home delivery users stick to their top two favourites
Figure 31: Repertoire of ethnic restaurants used for takeaway/home delivery, October 2016

Average Spend on a Sit-down or Home Delivered Ethnic Meal
Average spend peaks at £15 for a home delivered meal…
Figure 32: Average spend when ordering a takeaway/home delivery from an ethnic restaurant
rises to £20 for a sit-down meal
Figure 33: Average spend when visiting an ethnic restaurant for a sit-down meal, October 2016
Potential to chase higher expenditure among frequent users
Almost a third of twice a week or more home delivery users spend £25+…
Figure 34: Average spend when visiting an ethnic restaurant for a takeaway/home delivery meal, by frequency of visiting ethnic restaurants/takeaways, October 2016
while a fifth of twice a week or more restaurant-goers spend £30+
Figure 35: Average Spend When Visiting an Ethnic Restaurant for a Sit-Down Meal, by Frequency of Visiting Ethnic Restaurants/Takeaways, October 2016

Restaurant Choice Drivers
Good food hygiene rating is most important
Word-of-mouth and reviews help users choose
Improved restaurant atmosphere can elevate the leisure experience
Figure 36: Most important qualities when choosing an ethnic restaurant, October 2016

Attitudes towards Ethnic Restaurants and Takeaways
Diners want to make informed choices
The flexibility to customise a dish to one’s taste is appealing
Grab-and-go lunch options can broaden appeal
Figure 37: Attitudes towards ethnic restaurants and takeaways, October 2016

Appendix – Data Sources, Abbreviations and Supporting Information
Abbreviations
Consumer research methodology

Appendix – Market Size and Forecast
Forecast Methodology
Best- and worst-case forecast
Figure 38: Best- and worst-case forecasts for UK ethnic restaurants and takeaways market, 2016-21
Figure 39: Best- and worst-case forecasts for UK Takeaway ethnic restaurants market, 2016-21
Figure 40: Best- and worst-case forecasts for UK Dine-in ethnic restaurants market, 2016-21

List of Table

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