Limited-Service Restaurants in the United Kingdom

PROSPECTS

Limited-service restaurants embrace vegan and healthier options

The trend towards healthy eating practices is also being seen in limited-service restaurants, which are typically associated with fast food such as fries and meat, challenging them to incorporate healthier options in their menus. There is a veganism movement, but healthy eating is also reflected by a reduction in meat and alcohol consumption, calorie intake control and demand for organic and natural products.

On-the-go trend favours limited-service restaurants and inspires new concepts

The busier lifestyles among consumers are dictating major changes in eating and purchasing habits. On-the-go food is appreciated by busy consumers as they can have it at the time of their choosing and it is convenient and fast.

Consumers’ price sensitivity an opportunity for limited-service restaurants?

As consumers’ confidence, spending and purchasing power is lower due to Brexit uncertainty, they gradually shift to lower-price alternatives when eating out. Limited-service restaurants sales continue to benefit from this squeeze in consumers’ budgets and as uncertainty continues this will have a positive effect on their sales over the forecast period.

COMPETITIVE LANDSCAPE

Greggs continues its strong expansion and partners with Just Eat

Despite the challenging trading conditions, Greggs continued its success in the UK with strong revenue growth and further increases in its store footprint in 2019. Greggs has shown a strong expansion in outlet numbers with a net opening of 99 outlets in 2018 and 90 outlets in 2019.

Nando’s continues its solid performance and looks into new initiatives

Another player that is thriving amid economic duress is Nando’s. Its solid revenue performance has allowed it to continue a major store opening programme, with a net opening of 25 outlets in 2018 and 28 in 2019, reaching a total of 415 and 443 outlets in the UK, respectively.

Large international chains lead limited-service restaurants

McDonald’s, KFC and Domino’s Pizza continue to lead limited-service restaurants in value terms in the UK. Their brand names, large marketing investment and scalable operations have allowed them to maintain their leading positions.

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