Assessing consumer demand for free from products in Foodservice
Emma Read
Director of Marketing & Business Development
18 November 2014
• Some context
• What consumers tell us they want
• The Operator perspective
• FreeFrom on menus
• What next?
FreeFrom in Foodservice
Some context
Not a new topic?!
The Foodservice market is a big opportunity!
• 7.8m meals
• Served from 260,000 outlets
• £44.9bn of sales
Source: Horizons Market Structure and Trends 2013
A variety of outlets to communicate the message
Market Structure by Number of Outlets Market Structure by Food and Beverage Sales
Source: Horizons Market Structure and Trends 2013
Greater independent presence in some sectors - a challenge
4.8% 4.4%
1.5%
4.7% 2.9%
-2.5%
-0.5% -0.3%
1.9%
-50%
-40%
-30%
-20%
-10%
0%
10%
£0
£2
£4
£6
£8
£10
£12
£14
Food S
ales
£Bill
ion 2
013
Ind. Sales £Bn 2013
Gp. Sales £Bn 2013
% change 2012-13
F&B Sales
Total £44.9 Bn
Group 58%
2012-13 3.4%
Source: Horizons Market Structure and Trends 2013
What consumers tell us they want
A third of consumers mention at least one health/lifestyle factor affecting choice of where or what to eat
Source: Eating Out-Look Consumer Survey July 2014. Base: Adults who eat out (2,214)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
December 2013
June 2014
More than one in ten are looking for vegetarian options
Women generally more interested in these issues than men
(particularly calorie, low fat, vegetarian)
Awareness of allergens labelling legislation gradually increasing
Source: Eating Out-Look Consumer Survey July 2014. Base: Total sample (2,366)
13% 16%
13% 17%
41% 37%
33% 30%
0%
20%
40%
60%
80%
100%
December 2013 June 2014
Unaware & not bothered
Unaware but welcome
Aware & not bothered
Aware & welcome
Majority (67%) unaware of changes
53% welcome the changes though
26% 33%
Awareness of changing legislation in relation to labelling
of allergens
The operator perspective
Issues impacting dishes you serve now or in future
61
43
22
19
12
7
73
50
24
26
20
7
78
60
21
27
28
10
0 20 40 60 80 100
Gluten Free
Dairy Free/Lactose Intolerance
Salt Levels
Calorie Info
Free from..in general
None
%
Autumn 2013
Spring 2014
Autumn 2014
9 in 10 claim specific issues affected dishes served/will serve in the future
Gluten Free tops the list, with dairy / lactose free also increasingly influential
Source: Eating Out-Look Operator Survey Base: All Respondents: Autumn 2013: (230), Spring 2014: (296),
Autumn 2014 (292)
Much greater awareness within the industry
BUT almost 1 in 4 still not
aware
27 34
23
26
31
30
46
34
47
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Autumn 2013 Spring 2014 Autumn 2014
Aware and already made changes
Aware but no action yet
Not aware
Source: Eating Out-Look Operator Survey Base: All Respondents: Autumn 2013: (230), Spring 2014: (296),
Autumn 2014 (292)
Awareness of changing legislation in relation to
labelling of food allergens
FreeFrom on menus
What menus?
Source: Horizons Menurama Summer 2014
0
5
10
15
20
25
30
Num
ber
of Fo
odse
rvic
e B
rands
Winter 2012
Summer 2013
Winter 2013
Summer 2014
‘Healthy/lifestyle’ factors Dietary requirements
Healthy/Lifestyle eating increasingly sophisticated
• FreeFrom foods on the increase
• Other lifestyle factors continue to be important, but FF driving the
growth Source: Horizons Menurama Summer 2014
Brands with gluten free menu options on the increase
Source: Horizons Menurama Summer 2014
• 23% brands in Menurama now have gluten free options
• Up from 21% in Summer 2010
• Expected to increase significantly by December 2014
10%
20%
30%
Summer Winter Summer Winter Summer Winter Summer Winter Summer
2010 2011 2012 2013 2014
As are the number of lines available
Brands offering GF
dishes
Asda
ASK
Bella Italia
Caffe Nero
Café Zest
Carluccios
Costa Coffee
Domino's Pizza
EAT
Eating Inn
Fayre & Square
Flaming Grill
Frankie & Benny's
Giraffe
Greene King Local Pubs
Hungry Horse
Itsu
John Barras
La Tasca
Las Iguanas
Le Pain Quotidien
Leon
Little Chef
Old English Inns
Patisserie Valerie
Piccolino
PizzaExpress
Pitcher & Piano
Sainsbury's Café
Starbucks
Strada
T.G.I. Fridays
Tesco Café
Wetherspoon
• 300% increase since Summer 2011
• Over 135% increase YOY and season on season
Source: Horizons Menurama Summer 2014
Carluccio’s Gluten Free menu
Filmore & Union Free From menu
Source: Horizons Menurama Summer 2014
Las Iguanas Gluten Free menu
Source: Horizons Menurama Summer 2014
Pizza Express
Source: Horizons Menurama Summer 2014
Frankie & Benny’s
The messaging is not always so clear…
‘All our food is prepared in a kitchen where nuts,
gluten & other allergens are present. Our menu
descriptions do not include ingredients - if you have a
food allergy, please let us know before ordering. Full
allergen information is available from a team member.’
Source: Horizons Menurama Summer 2014
What next?
• Changing from:
• To:
• And now:
Free From is evolving
It’s a marketing
message
It’s what consumers
want (& expect)
It’s an active reason for
choosing a location
In summary
• Foodservice is a large market with plenty of opportunities
• Consumers are saying they want FF
• Operators are actively making changes to their offer
• With plenty of evidence on menus
• FreeFrom is an active reason for consumers to choose a location
• Don’t miss out!
In summary
Thank you!