Roadside Catering - UK - July 2010

About this report

Despite the inroads made by the increased role of brands at Motorway Service Areas (MSAs), the market remains dogged by consumers’ preconceived ideas of the high prices, poor quality and overall poor value for money available, the latter being particularly significant during a period of economic instability.

* During the recession, increased competition from petrol station forecourts, which are well placed to tap into the trend for convenience and lower sales value purchases, has impacted sales growth.
* One way in which motorway service areas (MSAs) can differentiate themselves from the generic offer of snacks and confectionery available at petrol stations is through stocking a range of more innovative and imaginative snacking products such as those found at sandwich retailer EAT.
* Perception continues to be MSAs’ biggest issue with a fifth of consumers believing that the food/drink offered at these sites is poor both in range and quality.
* MSAs can exploit the fact that 4 in 10 people already stop at them for food and drink and develop their role as part of the travelling ‘experience’ by introducing a range of affordable luxuries and treats such as a ‘car picnic’ of teas/coffees and afternoon tea to takeaway.
* Fast service is the key criteria for consumers stopping at MSAs for food and drink, as highlighted by the fact that coffee shops are the most popular foodservice outlets used. MSAs looking to tap into this trend should look to partner with other made to order service propositions such as ice cream and smoothie bars.
* The proposed "eco" MSA at Matson on the M5 suggests one way in which operators could harness consumer interest in local and green issues through more sympathetic landscaping and a food offer inclding home made, organic and local foods.

Table of contents

Issues in the Market
Definition
Abbreviations
Market in Brief
Food retailers gaining ground in MSAs
In-house coffee brands being phased out in favour of high street names
Consumer perceptions
Internal Market Environment
Key points
Businessmen swapping face-to-face client meetings for conference calls
Figure 1: Trips and distance per person per year, by purpose, 2006-08
Traffic levels in decline for two consecutive years
Figure 2: Road traffic, by road class, by billion vehicle kilometres, 2004-08
Figure 3: Average daily motor vehicle flow* for major sections of the motorway network, 2004 and 2008
Seasonal demand
Figure 4: Average daily traffic flows, by month, 2004-08
Car trends
Figure 5: UK car parc* and new car registration, 2006-10
Figure 6: Proportion of households who own cars, 2004-09
Figure 7: Attitudes towards cars, 2005-09
Domestic tourism
Figure 8: Domestic holidays, volume and expenditure, 2004-14
Figure 9: Main method of transport used during holidays/short breaks, 2009
Fuel prices
Figure 10: Crude oil prices, 2005-10*
Broader Market Environment
Key points
Consumer confidence rising but fragile
Figure 11: GfK NOP Consumer Confidence Index, 1988-2010
An aging population
Figure 12: Forecast adult population trends, by lifestage, 2005-15
Grab ‘n’ go society
Figure 13: Consumers who snack, 2009
Figure 14: Frequency of snacking, 2009*
Figure 15: Reasons for snacking, 2009
Competitive Context
Key points
Petrol forecourts
Consumer spending priorities
Figure 16: Consumers' spending priorities, November 2009-June 2010
The eating out market by sector
Figure 17: Eating out market*, by sector, 2005-09
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
Tough times continue in the MSA market
Figure 18: Roadside catering market, 2005-15
Market Share
Key point
Figure 19: Motorway service area percentage share, by outlet numbers, 2009
Figure 20: Motorway service areas, by outlet numbers*, 2009
Companies and Products
Key points
MSAs – Major players
Moto Hospitality
Figure 21: Moto outlets and foodservice brands, May 2010
Figure 22: Key financials for Moto Holdings Limited, 2008-09
Welcome Break
Figure 23: Welcome break outlets and foodservice brands, May 2010
Figure 24: Key financials for Welcome Break Limited, 2008-09
Roadchef
Figure 25: Roadchef outlets and foodservice brands, May 2010
Figure 26: Key financials for Roadchef Limited, 2007 and 2009
MSAs – Smaller players
Extra Motorway Services Ltd
Figure 27: Extra Motorway Services outlets and foodservice brands, May 2010
Westmorland/Tebay Motorway Services
Non MSAs
Little Chef
OK Diner
Wild Bean Café
Reasons to Stop at Roadside Services
Key points
Reasons to stop at roadside services
Figure 28: Main reasons to stop at roadside services, April 2010
Demographic profiles
What Roadside Services do Consumers Use?
Key points
Figure 29: Roadside services that consumers use, April 2010
Demographic profiles
Appendix – Broader Market Environment
Figure 32: Snacking habits, by demographics, 2009*
Figure 33: Frequency of snacking, by demographics, 2009*
Figure 34: Frequency of snacking, by demographics, 2009*
Appendix – Reasons to Stop at Roadside Services
Figure 35: Most popular main reasons to stop at roadside services, by detailed demographics, April 2010
Figure 36: Next most popular main reasons to stop at roadside services, by detailed demographics, April 2010
Figure 37: Main reasons to stop at roadside services, by main reasons to stop at roadside services, April 2010
Figure 38: Main reasons to stop at roadside services, by next most popular main reasons to stop at roadside services, April 2010
Appendix – What Roadside Services do Consumers Use?
Figure 39: Most popular roadside services that consumers use, by detailed demographics, April 2010
Figure 40: Next most popular roadside services that consumers use, by detailed demographics, April 2010
Figure 41: Most popular main reasons to stop at roadside services, by roadside services that consumers use, April 2010
Figure 42: Next most popular main reasons to stop at roadside services, by roadside services that consumers use, April 2010
Figure 43: Most popular roadside services that consumers use, by roadside services that consumers use, April 2010
Figure 44: Next most popular roadside services that consumers use, by roadside services that consumers use, April 2010

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