Fast food set for real-term growth
The fast food market is set to grow by 3% in real terms during 1996, according to researchers at Marketing Strategies for Industry (MSI).
And thanks to a predicted increase in consumer spending and the spread of outlets throughout the country, growth is set to continue beyond the year 2000.
In its report, Fast Food UK 1995, MSI estimates that in 1994 the total number of catering businesses (as opposed to outlets) in the UK increased by 4% to more than 115,000 and total turnover was up by 3% to £34.2b.
Fast food took a sizeable slice of this business, with total sales up 6% to £5.1b in 1994, a market share of about 15%. In the report, fast food outlets are defined as those selling prepared food partly or wholly for consumption off the premises. The other categories in the catering market are: pubs, hotels, restaurants (outlets selling food only for consumption on the premises), clubs and catering contractors.
During the recession there was minimal growth in fast food sales in real terms. But as other sectors of the catering market contracted, fast food took an increasing share.
Sandwiches will remain the largest single category within the fast food sector, with sales during 1995 predicted to rise by 6% to £1.91b. Thereafter, as shown in the table below, sandwich sales are likely to see a steady increase (figures are given in 1995 prices).
Between 1991 and 1995, sandwich sales grew by 48%, more than any other category. This is a result of the trend towards healthy eating and the demise of the working lunch, according to MSI.
In addition, the improvements in packaging have led to an increase in the number of outlets offering sandwiches.
Hamburgers remain popular and are predicted to see a similar level of growth as sandwiches. Aggressive marketing and the spread of outlets throughout the country are expected to stimulate demand, although the falling numbers of people in the 15-24 age group is expected to limit the rise.
Heavy discounting in the pizza and pasta market will continue to hold back this sector, although there will be some growth driven by chains such as Pizza Hut, which wants to double the number of its outlets by 1999.
The one fast food category which will suffer falling sales is fish and chips, says MSI. Competition from other categories where there are large chains in operation is expected to have an adverse impact.
Fast Food UK 1995 costs £236 from MSI. Tel: 01244 681457.
