FSR continued to be impacted by consumers trading down to more affordable alternatives at the end of the review period. Many consumers sought to save money by opting for alternatives such as fast food and 100% home delivery/takeaway. The cocooning trend also contributed to this shift, with a growing number of consumers opting to socialise at home, with these consumers being more likely to opt for home-made food, 100% home delivery/takeaway or packaged ready meals.
Mitchells & Butlers and Gondola Holdings were the clear leaders in FSR in 2011, accounting for 4% and 3% of total value sales and 22% and 17% of chained value sales respectively. Gondola Holdings represents the leading brand PizzaExpress, alongside the other pizza casual dining chains Zizzi and Ask. These chains benefit from their strong branding and frequent price promotions, along with their large networks with the company leading in outlet volume terms with 639 outlets. Mitchells & Butlers meanwhile offers the casual dining European FSR chains Harvester, Crown Carveries, Premium Country Dining and Browns. These chains offer a wide range of dishes and are popular with families. The company also benefits from the frequent use of price promotions and a large outlet volume, ranking third in outlet volume terms with 403 FSR outlets.
FSR will continue to face a challenging time during the forecast period. The channel will continue to suffer due to on-going economic concerns, with many consumers opting for cheaper options such as fast food, 100% home delivery/takeaway, home-made food and packaged food. This trend will also be encouraged by the cocooning trend. Consequently, FSR is expected to see only slow growth during the forecast period, with less than 1% transaction volume growth and just 2% overall constant value growth. There are also expected to be on-going closures among independent FSR as they struggle to adjust to this challenging environment, with this resulting in a marginal overall outlet volume decline for FSR.
Republished with permission from Euromonitor Market Research Blog, originally posted on
Follow Market Research World on Twitter or join in the conversation with our LinkedIn Group