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Europe‘s Top 99 Restaurant Operators New Ranking and Analysis
Gretel Weiss FoodService Europe & Middle East
Presentation: Juliane Schaper
17th European Foodservice Summit
2015: Europe & Foodservice
Top 99 Restaurant Companies • Intro • Segment & country analysis • Value added strategies • Unit economics
• Brand distribution • Case study
• Final
Franchising
Part of the DNA of the quick service world:
Growth in partnership
→ It is a need, not just an option
Going into Partnership
Formerly: motivated by financial aspects Today: motivated by operational aspects (closer to customers / local needs)
Franchising = a vertical system
Picking a partner: win-win or lose-lose
Economics of Franchising
Franchisor:
top line driven. Sales!
Franchisee:
bottom line driven. Margin! (sales – costs = profit)
Most Popular Single Products
Pizza Italy - Europe
Burger USA - America
Sushi Japan - Asia
→ Ambassadors / Universal bestsellers
Pizza Burger Shushi
Ethnic Pyramid
Italy
US
Asia
Made by
European entrepreneurs
Large companies
Immigrants
Global by
Tastes
Brands
Products
Pizza Burger Shushi
Product Character
• Pizza – family food, perfect for sharing
• Burgers – hand-held food
• Sushi – to go, delivery
Europe: Selected Market Halls
• Amsterdam, Foodhallen • Barcelona, El Mercat Princesa • Berlin, Markthalle Neun • Copenhagen, Torvehallerne • Lisbon, Mercado da Ribeira • London, Borough Market • Madrid, Platea • Rotterdam, Markthal • Stockholm, Östermalms Saluhall
2015: Europe & Foodservice
Top 99 Restaurant Companies • Intro • Segment & country analysis • Value added strategies • Unit economics
• Brand distribution • Case study
• Final
Europe 2015 (`14): Away-From-Home - Spendings
2.6%
-0.3%
0.6%
1.4%
1.7%
2.6%
3.4%
-1,0% 0,0% 1,0% 2,0% 3,0% 4,0%
Quelle: CRESTonline Deutschland, npdgroup Deutschland GmbH, Nürnberg
(+2.5%)
(-2.0%)
(+0.1%)
(+0.5%)
(-1.1%)
(+2.0%)
Germany
UK
Spain
Ø Big 5
Russia
Italy
(+4.1%)
France
Europe 1HY/16 (1HY/15): Away-From-Home - Spendings
-1.7%
0.6%
1.4%
1.8%
2.1%
3.0%
3.3%
Russia
Italy
France
Spain
ø Big 5
Germany
UK
(3.2%)
(2.0%)
(0.8%)
(1.2%)
(-1.1%)
(-0.1%)
(-0.6%)
Quelle: CRESTonline Deutschland, npdgroup Deutschland GmbH, Nürnberg
Europe 1HY/16 (1HY/15): Away-From-Home - Visits
0.0%
0.3%
0.7%
0.9%
1.4%
1.5%
Russia
Italy
France
ø Big 5
Germany
Spain
UK (1.0%)
(0.0%)
(-0.6%)
(0.3%)
(-0.3%)
(0.0%)
-3.0% (-7.4%)
Quelle: CRESTonline Deutschland, npdgroup Deutschland GmbH, Nürnberg
Gute
Europe: 1HY/16 (1HY/15): Away-From-Home – Average Eater Check
1.3%
0.4%
0.8%
1.1%
1.4%
1.7%
2.1%
0,0% 0,5% 1,0% 1,5% 2,0% 2,5%
Russia
Spain
Italy
France
ø Big 5
UK
Germany (3.1%)
(1.2%)
(0.9%)
(0.4%)
(0.0%)
(0.0%)
(6.9%)
Quelle: CRESTonline Deutschland, npdgroup Deutschland GmbH, Nürnberg
Research and Ranking
• Company performance • Segment performance • System sales incl. franchise activities
Net turnover, without VAT • Growth rate in constant currency
• UK pubs: managed houses only • Overlapping activities are disregarded
Rules: 2015 Top 99
Figures as reported, otherwise estimated Categorized by main business field
6 segments
1. QSR 2. Contract Catering 3. Travel 4. Restaurants 5. Pubs 6. In-store
2015: Currency Fluctuations
• Very strong rise for: • the Swiss Franc • the British Pound • the American Dollar
• much weaker Russian Rubel
2015: Currency £ 100m - €
€117m €115m
€123m €118m
€124m
€138m
2010 2011 2012 2013 2014 2015
Top 99 Foodservice Operators In Europe:
€107.5bn turnover in 2015 (+6.3%) 2014 (+5.0%)
2013 (+ 3.4%) 2012 (+ 4.6%) 2011 (+ 5.5%) 2010 (+ 4.5%) 2009 (+ 1.7%)
2008 (+ 6.0%) 2007 (+ 8.3%)
17 countries of origin
2015 – Top 99: New Names
• BackWerk from Germany
• Carluccio‘s from UK
• Jamie Oliver Restaurant Group from UK
*estimated/vs. 2014 in constant currency Source: FoodService Europe & Middle East
2015: Top 10 Groups in Europe R. ('15) Group Sector Origin No of C. Sales € m vs. '14
1 (1) McDonald's* QSR USA 39 20,500 4.0%
2 (3) Compass* CC UK 21 7,580 2.0%
3 (2) Sodexo CC France 29 7,518 3.2%
4 (4) Elior CC France 13 5,674 6.2%
5 (5) Yum! Rest. Int. QSR USA 39 4,288 6.9%
6 (6) Burger King* QSR USA 27 3,800 14.6%
7 (7) Mitchells & B. P UK 2 2,896 6.6%
8 (15) Greene King P UK 1 2,327 68.7%
9 (9) Whitbread QSR UK 14 2,295 11.4%
10 (11) Wetherspoon P UK 1 2,087 7.4%
Total (10) 58,965 6.8%
G
2015: Top 99
28
34 16
13 8
… only 1 country
… 2-5 countries
… 6-10 countries
… 11-20 countries
Companies operating in… … 21-40 countries
Source: FoodService Europe & Middle East
42.2%
26.0%
10.1%
12,1%
Travel (12)
- Europe 2015: share of Top 99 sales -
( ) = no. of companies Source: FoodService Europe & Middle East
Restaurants (27)
9.6%
Other (14)
Contract Catering (17)
QSR (29)
Other: Pubs 8.9% In-store 3.2%
Which Sectors?
Source: FoodService Europe & Middle East
Ø CC Travel In-St. Pubs QSR
16.6%
7.0% 6.3% 4.7% 4.3% 3.9%
2.0% Rest.
2015: Growth by Sector
Other: Germany 3.4% Switzerl. 2.7% Spain 2.0% Finland 1.6% Sweden 1.5% Netherl. 0.9% Others 4.3%
USA (8)
UK (25)
Other (43)
Italy (5)
- Europe 2015: share of Top 99 sales -
( ) = no. of companies Source: FoodService Europe & Middle East
France (18)
16.4%
19.5%
27.0%
33.2%
Which Countries of Origin?
- Europe 2015: share of Top 99 sales -
3.9%
19.5%
27.0%
33.2% 16.4%
3.4%
Which Countries of Origin?
Other:
Germany 3.4% Switzerl. 2.7% Spain 2.0% Finland 1.6% Sweden 1.5% Netherl. 0.9% Others 4.3%
Source: FoodService Europe & Middle East
2015: Top 1-5 by % Growth
68.7%
28.0%
22.0% 18.0% 17.0%
Gre
ene
King
(8
) €2,
327m
Laga
rdèr
e Tr
avel
Ret
. (5
2) €
426m
Le
Duff
* (4
1) €
550m
Dom
ino‘
s Pi
zza*
(1
3) €
1,90
0m
Nan
do‘s
(2
6) €
859m
- 2015 vs. 2014 sales in sonstant surrency -
* estimated Source: FoodService Europe & Middle East
2015: Top 6-10 by % Growth
15.8% 14.9% 14.7% 14.6% 14.6%
Cam
st
(35)
€66
0m
Gro
up A
PI
(45)
€48
5m
Do &
Co
(23)
€91
6m
Wag
amam
a (6
4) €
327m
Burg
er K
ing *
(6) €
3,80
0m
* estimated Source: FoodService Europe & Middle East
- 2015 vs. 2014 Sales in Constant Currency -
2015: Growth Champions
Buying Market Share
• Greene King – Acquisition of Spirit Pubs • Lagardère – Bought Airest • Le Duff – Now majority owner of Kamps • Domino‘s – Takeover Pizza Sprint
2015: Europe Top 99
22 Double-digit growth
16 Declining
sales 2014: 27 - 18 2013: 19 - 28 2012: 21 - 24 2011: 21 - 18 2010: 18 - 22 2009: 11 - 52 2008: 29 - 15
Segment Analysis
What and where are the drivers
of development?
2015: QSR Segment
• Groups: 29 out of 99 • Origin: 6 x USA, 5 x France, 4 x UK • Sales: €45,327bn (out of 107bn) • Growth: +7.0% (14: +5.5%)
QSR = Pacemaker Most … new openings
… innovation … profitable … chained … industrialized
… systematized … branded … travelled … globalized … recession resistant
*estimated/vs. ’14 in constant currency Source: FoodService Europe & Middle East
2015: Top 10 QSR by Sales
R. ('99) Group Origin No of C. Sales € m vs. '14
1 (1) McDonald's* USA 39 20,500 4.0%
2 (5) Yum! Rest. Int USA 39 4,288 6.9%
3 (6) Burger King* USA 27 3,800 14.6%
4 (9) Whitbread UK 14 2,295 11.4%
5 (13) Domino's Pizza* USA 20 1,900 18.0%
6 (14) Starbucks* USA 24 1,700 14.0%
7 (15) Subway USA 35 1,620 9.9%
8 (19) Greggs UK 1 1,152 5.2%
9 (20) Quick France 3 977 -5.1%
10 (27) AmRest Poland 11 825 12.7%
Total (29) 45,327 7.0%
McDonald‘s Globally: 4 Categories
1. Home market of the brand: USA 2. International lead markets:
Canada, Australia, UK, France & Germany 3. High growth markets:
for example China and Russia 4. Foundational markets:
many, mostly smaller countries
McD: Criteria for Global Restructuring
• Maximum similarity in: • Market penetration • Chances • Challenges
Effectiveness has yet to prove itself.
McDonald‘s 2014: By Regions
Operating Inc.
System Sales Restaurants
Worldwide $87.8bn Europe $26.2bn
Worldwide 36,258 Europe 7,855
Worldwide $7.9bn Europe $3.3bn
USA 39.6%
Europe 21.7%
APMEA**
28.5%
Other 10.2% USA
40.4%
Europe 29.8%
APMEA**
20.0% Other 9.8%
USA 44.3%
Europe 41.2%
APMEA**
13.5% Other 1.0%
Europe - units: +3.3%, sales: +2.0%
McDonald‘s 2015: By Market Categories
Operating Inc.
System Sales Restaurants
Worldwide $87.2bn Worldwide 36,525 Worldwide $7.5bn
39%
14%
28%
19%
USA
High Growth Markets
Foundational Markets
Int. Lead Markets 43%
12% 19%
26%
USA
Int. Lead Markets
Foundational Markets
High Growth Markets
50%
12%
36%
Int. Lead Markets
USA
High Growth Markets
McDonald‘s 2015 (14) - Comparable
Market Categories 2015 2014 2015 2014
U.S. 0.5% -2.1% -3.0% -4.1%
International Lead Markets 3.4% 0.8% 1.0% -1.2%
High Growth Markets 1.8% -2.8% -2.2% -2.9%
Foundational Markets & Corp. 0.7% -0.1% -3.7% -4.8%
Total 1.5% -1.0% -2.3% -3.6%
Comparable SalesComparable Guest
Counts
McDonald‘s in Europe
Country markets lead for example… • France: design & digital tools • UK & Scandinavia: non-cash payment &
social media • Austria: individualization of the burger • Turkey: delivery
FSE 5/15 M4 Handys
Burger King & France
• Master partner: Groupe Bertrand
• Goal: 600 stores in 2020
• For 15 years no brand presence, new start in 2012
• 2015+: very high average sales per unit
• French people love bread, meat and fries
BK Logo
*estimated/vs. ’14 in constant currency Source: FoodService Europe & Middle East
2015: Top 10 QSR by Growth
R. ('99) Group Origin No of C. Sales € m vs. '14
12 (41) Le Duff* France 9 500 22.0%
5 (13) Domino's Pizza* USA 20 1,900 18.0%
3 (6) Burger King* USA 27 3,800 14.6%
13 (46) Groupe Bertand France 1 480 14.3%
6 (14) Starbucks* USA 24 1,700 14.0%
26 (86) Ibersol Portugal 2 214 14.0%
24 (82) Shokoladnitsa* Russia 4 224 14.0%
21 (78) Max Sweden 3 250 13.5%
10 (27) AmRest Poland 11 825 12.7%
4 (9) Whitbread UK 14 2,295 11.4%
Total (29) 45,327 7.0%
Le Duff: 40 Years Overlook
1976: 1st Brioche Dorée in Brest (France) 1983: 1st pizzeria in Rennes (France) 1996: acquisition of Del Arte (France) 2002: acquisition of La Madeleine (US) 2011: acquisition of Bruegger‘s (US) 2013: acquisition of Mimi‘s Cafe (US) 2015: acquisition of Kamps (Germany)
Total sales worldwide: €2.0bn
Kamps GW
2015: Travel Segment
• Groups: 12 out of 99 • Origin: 3x UK, 2x Germany, Italy
and France • Sales: € 10,354 bn (out of 107 bn) • Growth: +4.7% (14: +3.4%)
2015: Top Travel R. ('99) Group Origin No of C. Sales € m vs. '14
1 (11) SSP UK 17 2,036 2.2%
2 (12) Autogrill Group Italy 17 2,034 1.2%
3 (17) LSG Sky Chefs Germany 15 1,215 4.5%
4 (23) Do & Co Austria 9 916 14.7%
5 (30) Gategroup Switzerl. 14 731 0.0%
6 (31) Servair* France 4 710 8.7%
7 (36) Tank & Rast* Germany 1 621 3.0%
8 (38) Newrest France 13 596 6.1%
9 (44) Cremonini Italy 7 511 3.4%
10 (52) Lagardère Travel France 17 426 28.0%
Total (12) 10,345 4.7%
*estimated/vs. ’14 in constant currency Source: FoodService Europe & Middle East
Lufthansa Flieger
Travel Hubs/Locations • The real hotspots in mobile societies • The new high streets (airports, train stations)
Goals: less sameness of products better use of time for customers
Well established brands do best: right mix of local, national, worldwide
BackWerk Bahnhof
Travel Hubs/Locations
Early bird business
• Breakfast offers of high importance
• Coffee and bakery snacks: best-selling
• Example: BackWerk
2015: Top Travel by Growth R. ('99) Group Origin No of C. Sales € m vs. '14
1 (52) Lagardère Travel France 17 426 28.0%
2 (23) Do & Co Austria 9 916 14.7%
3 (31) Servair* France 4 710 8.7%
4 (72) Welcome Break UK 1 292 6.7%
5 (38) Newrest France 13 596 6.1%
6 (17) LSG Sky Chefs Germany 15 1,215 4.5%
7 (44) Cremonini Italy 7 511 3.4%
8 (36) Tank & Rast* Germany 1 621 3.0%
9 (11) SSP UK 17 2,036 2.2%
10 (12) Autogrill Group Italy 17 2,034 1.2%
Total (12) 10,345 4.7%
*estimated/vs. ’14 in constant currency Source: FoodService Europe & Middle East
Do&Co belieferung
Travel Hubs/Locations
• Shift from local operators to national and multi-national players
• Portfolio of own brands and franchise concepts
• Landlords asking for a wide range of formulars High consumer footfall nearly guaranteed!
Value Added Strategies
• Fast Casual • The number 1 driver of the
chain restaurant industry • Throughout all product categories Pioneers: • Panera Bread (US) • Wagamama (UK) • Vapiano (Germany)
The Number 1 Driver
Fast Casual
Fast Food Casual Dining
Speed/Productivity New culinary products
Nice ambience
Upgrading Influence
Putting QSR under pressure
Fast Casual
• More: premium, transparency, regional, freshness, vegetarian, individual – less standardized
• Mono product concepts – made for lunch & dinner
7 days a week
Strohballen Fahrrad
From Farming to Fine Dining
Farming
Farm Shops: emotional gap country – city
Supermarkets
From Farming to Fine Dining
Quick Service Restaurants
Albert Heijn to-go/Rewe to-go: you shop for foodservice not for food
Supermarkets
From Farming to Fine Dining
Fine Dining
Casual Fine Dining: weekly luxury
Casual Dining
From Farming to Fine Dining Fine Dining
Casual Fine Dining
Casual Dining
Fast Food
C.-stores to-go
Supermarkets
Farm Shops
Farming
Fast Casual
2015: Europe & Foodservice
Top 99 Restaurant Companies • Intro • Segment & country analysis • Value added strategies • Unit economics
• Brand distribution • Case study
• Final
Europe: Top Brands by Units
R. Brand Units Europe
Units worldwide
European share
1 McDonald‘s 7,900 36,525 21.6%
2 Subway 4,969 44,445 11.2%
3 Burger King* 3,800 15,003 25.3%
4 Costa Coffee 2,384 3,200 74.5%
5 KFC 2,376 19,580 12.1%
6 Domino‘s* 2,200 12,119 18.2%
7 McCafe* 2,034 4,600 44.2%
8 Starbucks 2,016 23,043 8.7%
9 Greggs 1,698 1,698 100.0%
10 Pizza Hut 1,442 16,125 8.9%
Total (10) 30,819 176,338 17.5%
Source: FoodService Europe & Middle East; *estimated, As of: 12/2015
Europe: Top Brands by European Share
R. Brand Units Europe
Units worldwide
European share
1 Greggs 1,698 1,698 100.0%
2 Costa Coffee 2,384 3,200 74.5%
3 McCafe* 2,034 4,600 44.2%
4 Burger King* 3,800 15,003 25.3%
5 McDonald‘s 7,900 36,525 21.6%
6 Domino‘s* 2,200 12,119 18.2%
7 KFC 2,376 19,580 12.1%
8 Subway 4,969 44,445 11.2%
9 Pizza Hut 1,442 16,125 8.9%
10 Starbucks 2,016 23,043 8.7%
Total (10) 30,819 176,338 17.5%
Source: FoodService Europe & Middle East; *estimated, As of: 12/2015
Opening Trends
• Latest up-dates: best observed in free-standing flagship-restaurants
• Gearing up for more sales to go, to drive & to deliver
→ underlined by pre-ordering and online-payment
Concept
Fame & Popularity trust emotion
Knowledge & Ability staff goods technology
SYSTEM BRAND
Suppliers Customers
Multiplication
Pret A Manger, UK
• Home of modern sandwiches
• Europe: sales of £573m (+10.4%) 315 units (+16)
• Worldwide: sales of £676m
• Very high density in London
• Take-away sales prevail
Pret A Manger, UK
• Founded 1986 • Founders:
Sinclair Beecham and Julian Metcalfe
• Pioneers in: • using organic
ingredients • sustainibility and
charity in company culture
Pret A Manger 2006 – 2015 (Europe)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10 years
Units Europe 151 185 196 200 221 236 253 283 299 315 +108,6%
Turnover £ in m 178 200 210 244 282 317 365 414 486 537 +201,7%
Turnover/Unit £ in m 1.24 1.19 1.10 1.23 1.34 1.38 1.49 1.54 1.67 1.75 +41,1%
1.24 1.19
1.10
1.23 1.34 1.38
1.49 1.54
1.67 1.75 Ø Turnover per European store in £ million
+41.1%
Pret A Manger – How to Get There
• Menu innovation: 14% of all sales from new items
• more demand for breakfast on-the-go • vegetarian sales – double-digit growth • Avocado – fastest growing ingredient (5m)
• 65% of card payments - contactless
Pret A Manger – How to Get There
• Menu innovation: 14% of all sales from new items
• more demand for breakfast on-the-go • vegetarian sales – double-digit growth • Avocado – fastest growing ingredient (5m)
• 65% of card payments - contactless
Pret A Manger – How to Get There
• Very strong company culture
• Training, Training, Training
Educating and developing people
„It‘s nearly impossible for the competition to steal employees from Pret.“
Pret A Manger
Growth
New openings
Existing units Same store sales!
2015: +7.5%
London 1079 Bine
Pret A Manger: Mission Statements
„Innovation is never easy and
the larger you get, the more difficult it is.“
„But if you want to stay the same,
you have to keep changing!“
Pret A Manger: CEO Statement
„10 years ago, our granary sandwiches made up nearly 30% of our sales –
in 2016 they will account for less than 10%.
Replaced by protein pots, grain salads, cold pressed juices, flat whites, macaroni cheese, porridge … and most recently, gluten and dairy free soups“
Pret sandwich
Avocado
• Turning existing or new recipes into options that are: • healthier • more modern • more valuable • more culinary
A picture book superfood! Challenging sourcing and food management!
Healthy and Tasty!
„In 2016, the avocado deserves an OSCAR for best supporting role in modern recipes.“ Rudi Kull, Munich
V.eggie Pret
• First vegetarian pop up-restaurant (veggies, vegan consumers, meat eaters)
„It‘s here to stay.“
• Will be multiplied as soon as possible
V.eggie Pret
• V.eggie: first name food to expect/from field to fork
• Pret: last name competence, trust & emotional energy of parent‘s brand
Seeding and harvesting at the same time
Pret A Manger
• Social media debates
• Asking how to create even more delicious food
• CEO blog – new things in the pipeline
Pret A Manger: CEO Statement
For a long time the company refused franchising. That has changed.
„We actually do now welcome franchising and have opened franchise shops with SSP, Welcome Break and Lagardère in train stations, airports and motor service locations.“
Pret A Manger – Example
• To continue a brand with feeling and skill • To adapt to current times over and over again
Evolution, not Revolution
2015: Europe & Foodservice
Top 99 Restaurant Companies • Intro • Segment & country analysis • Value added strategies • Unit economics
• Brand distribution • Case study
• Final
Final Thoughts Winner companies are:
• highly efficient (system) • clearly profiled (brand) • stable and innovative • compatible and flexible • willing, able and eager to learn
New openings & keeping the existing network relevant
Final Thoughts The real strength:
• new technologies and workflows • value chain management • sales distribution systems • making use of different locations categories • boosting sales through day-part management
Fundamental requierment for new business oportunities
Thanks for Listening