No longer on a roll
The UK sandwich market had a good run throughout the 1980s and into the early 1990s, when sales saw average growth of 5.6% a year. But the last few years have brought an unwelcome change in its fortunes.
The market for sandwiches was worth over £1.4b in 1993, making it the largest single sector of the UK fast food industry. Its nearest rival
TABLE: Sandwich Retailers' Market Share
Outlet 1992 1994
% %
Staff canteen 21 25
Sandwich bar/deli 20 19
Baker's shop 18 14
Marks & Spencer 10 7
Convenience store 5 3
Café 3 3
Garage shop 3 5
TABLE:
Item/year 1989 1990 1991 1992 Growth%
Average sales (£000s) 17,045 18,878 21,085 21,829 8.6
Inflation-
adjusted sales (£000s) 17,045 17,463 18,544 18,802 3.3
Pre-tax
profits (£000s) 1,317 1,049 997 927 (11)
Profit margin (%) 7.7 5.6 4.7 4.2 (18.3)
Return on capital (%) 22.2 10.9 12.9 5.8 (36.1)
Bank rate of interest 14.5 14 12 9 (14.7)
