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Pizza and Pasta Restaurants

(and Takeaway), Leisure Intelligence,

January 2010

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Table of contents Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010

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ISSUES IN THE MARKET ...................................................................................................................... 1 Definition ......................................................................................................................................... 1 Consumer research ........................................................................................................................ 1 Abbreviations .................................................................................................................................. 2

FUTURE OPPORTUNITIES.................................................................................................................... 3 Tapping into the snacking mentality ............................................................................................... 3

Better than a sandwich….................................................................................................................................... 3 …and healthy too ............................................................................................................................................... 3 A whole new meaning to efficiency..................................................................................................................... 4

The greys want risotto…and bistecca alla Fiorentina..................................................................... 4 Italian food for grown-ups ................................................................................................................................... 4

MARKET IN BRIEF ................................................................................................................................. 7 Market environment ........................................................................................................................ 7 Impact of the recession on eating out............................................................................................. 7 Price promotions ............................................................................................................................. 7 Going forward.................................................................................................................................. 8

INTERNAL MARKET ENVIRONMENT .................................................................................................. 9 Key points ....................................................................................................................................... 9

Figure 1: Venues eaten at in the last three months, April 2009........................................................................... 9 Restaurant promotions.................................................................................................................. 10 Price promotions ........................................................................................................................... 11

Consumer responses to price promotions ........................................................................................................ 11 Impact of price promotions on market value ..................................................................................................... 13

Nutritional concerns ...................................................................................................................... 13 Figure 2: Salt content (highest and lowest) in survey carried out by Trading Standards Institute, February 2009 ................................................................................................................................................................. 14 Consumers’ laissez-faire attitude towards nutritional content in restaurant meals ............................................ 15 Figure 3: Attitudes towards nutritional labelling, April 2009............................................................................... 15

BROADER MARKET ENVIRONMENT ................................................................................................ 17 Key points ..................................................................................................................................... 17 The recession and consumer confidence ..................................................................................... 17

Figure 4: GDP, PDI, consumer expenditure and savings, at constant 2004 prices, 2004-14 ............................ 17 Figure 5: GDP quarterly percentage change, 2004-09 ..................................................................................... 18 Figure 6: Trends in consumer confidence, January 2008-November 2009 ....................................................... 19 Figure 7: Personal financial situation, February-December 2009...................................................................... 19 Figure 8: Trends in what extra money is spent on, November and December 2009 ......................................... 20 Figure 9: Trends in attitudes towards restaurants and takeaways, 2005-09 ..................................................... 20

Demographic factors..................................................................................................................... 21 Figure 10: Trends in the age structure of the UK population, by gender, 2004-14 ............................................ 21 Figure 11: Forecast adult population trends, by lifestage, 2004-14................................................................... 22

Difficult times to justify the premium on ethical products.............................................................. 22 Figure 12: Trends in ethical products, 2005-09................................................................................................. 22 Figure 13: Trends in attitudes towards diet, 2005-09 ........................................................................................ 23

COMPETITIVE CONTEXT .................................................................................................................... 25 Key points ..................................................................................................................................... 25 Eating out market, by sector ......................................................................................................... 25

Figure 14: Eating out market, by sector, 2004-08 ............................................................................................. 25 Retailers mimicking restaurant innovation – so what’s next for restaurants?............................... 26

New ingredients................................................................................................................................................ 26 Minus the crusts ............................................................................................................................................... 26 Extra thin .......................................................................................................................................................... 28 Recreating restaurant experience..................................................................................................................... 29

In-home pizza/pasta consumption ................................................................................................ 31 Figure 15: Trends in frequency and usage of fresh or dried pasta and noodles, 2005-09................................. 31 Figure 16: Allergies suffered personally, another member in household, November 2009................................ 32


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Figure 17: Trends in frequency and usage of pizza in the last 12 months (excluding takeaways), 2005-09...... 32 STRENGTHS AND WEAKNESSES IN THE MARKET........................................................................ 35

Strengths....................................................................................................................................... 35 Weaknesses.................................................................................................................................. 35

WHO’S INNOVATING?......................................................................................................................... 37 Key points ..................................................................................................................................... 37 Domino’s refit programme: ‘pizza theatre’ .................................................................................... 37 Mobile phone orders ..................................................................................................................... 37 Event management....................................................................................................................... 38 New menu additions ..................................................................................................................... 38 Pregnancy pizza ........................................................................................................................... 40

MARKET SIZE AND FORECAST......................................................................................................... 41 Key points ..................................................................................................................................... 41 Struggling dine in sector drags down overall market value .......................................................... 41

Figure 18: UK pizza and pasta market, 2004-14............................................................................................... 41 MARKET SEGMENTATION ................................................................................................................. 43

Key points ..................................................................................................................................... 43 Figure 19: Forecast of the pizza/pasta market, by segment, 2004-14............................................................... 43

MARKET SHARE.................................................................................................................................. 45 Key points ..................................................................................................................................... 45

Figure 20: Top brands and outlet numbers, 2008/09 ........................................................................................ 45 OUTLET OPENINGS............................................................................................................................... 46

Gondola Holdings ......................................................................................................................... 46 Tragus Group................................................................................................................................ 46 Pizza Hut....................................................................................................................................... 46 Prezzo ........................................................................................................................................... 46 Domino’s ....................................................................................................................................... 47 Papa John’s .................................................................................................................................. 47

COMPANIES AND PRODUCTS........................................................................................................... 49 Key points ..................................................................................................................................... 49 Domino’s Pizza ............................................................................................................................. 49

Figure 21: Financial performance of Domino’s Pizza, 2007-09......................................................................... 49 Papa John’s .................................................................................................................................. 50 Perfect Pizza ................................................................................................................................. 51 Pizza GoGo................................................................................................................................... 51 Pizza Hut....................................................................................................................................... 52

Figure 22: Financial performance of Pizza Hut, 2007 and 2008 ....................................................................... 52 Prezzo ........................................................................................................................................... 53

Figure 23: Financial performance of Prezzo, 2007-09 ...................................................................................... 54 GONDOLA GROUP LIMITED................................................................................................................... 55

Figure 24: Financial performance of Gondola Group, 2002007 and 2008......................................................... 55 ASK Restaurants .......................................................................................................................... 55 PizzaExpress ................................................................................................................................ 56 Zizzi............................................................................................................................................... 57

TRAGUS GROUP LTD ........................................................................................................................... 57 Figure 25: Financial performance of Tragus Group, 2007 and 2008................................................................. 57

Bella Italia...................................................................................................................................... 58 Strada............................................................................................................................................ 58

BRAND ELEMENTS ............................................................................................................................. 59 Key points ..................................................................................................................................... 59 Brand map..................................................................................................................................... 59


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Figure 26: Attitudes towards and usage of pizza and pasta restaurant brands, December 2009...................... 60 BRAND QUALITIES OF PIZZA AND PASTA RESTAURANT BRANDS................................................................ 61

A warm welcome for all the family ................................................................................................ 61 Figure 27: Personalities of various pizza and pasta restaurant brands, December 2009.................................. 61

EXPERIENCE OF PIZZA AND PASTA RESTAURANT BRANDS ....................................................................... 62 Pizza specialists most popular...................................................................................................... 62

Figure 28: Consumer usage of various pizza and pasta restaurant brands, December 2009 ........................... 62 BRAND CONSIDERATION FOR PIZZA AND PASTA RESTAURANT BRANDS..................................................... 63

Mid-market holds appeal, Pizza Hut off-putting ............................................................................ 63 Figure 29: Consideration of various pizza and pasta restaurant brands, December 2009 ................................ 63

BRAND SATISFACTION FOR PIZZA AND PASTA RESTAURANT BRANDS........................................................ 64 PizzaExpress best rated ............................................................................................................... 64

Figure 30: Satisfaction with various pizza and pasta restaurant brands, December 2009................................. 64 BRAND COMMITMENT TO PIZZA AND PASTA RESTAURANT BRANDS........................................................... 65

Pizza Hut has most loyal customers ............................................................................................. 65 Figure 31: Commitment to various pizza and pasta restaurant brands, December 2009 .................................. 65

BRAND INTENTIONS FOR PIZZA AND PASTA RESTAURANT BRANDS ........................................................... 66 PizzaExpress has best retention, Pizza Hut close behind............................................................ 66

Figure 32: Future usage intentions for various pizza and pasta restaurant brands, December 2009 ................ 66 BRAND RECOMMENDATION FOR PIZZA AND PASTA RESTAURANT BRANDS................................................. 67

Eat-in pizza specialists most recommended................................................................................. 67 Figure 33: Recommendation of various pizza and pasta restaurant brands, December 2009 .......................... 67

PIZZAEXPRESS.................................................................................................................................... 68 What the consumer thinks ............................................................................................................ 68

Figure 34: Attitudes towards the PizzaExpress brand, December 2009 ........................................................... 68 ASK ................................................................................................................................................... 69

What the consumer thinks ............................................................................................................ 69 Figure 35: Attitudes towards the ASK brand, December 2009.......................................................................... 69

DOMINO’S PIZZA.................................................................................................................................. 71 What the consumer thinks ............................................................................................................ 71

Figure 36: Attitudes towards the Domino’s Pizza brand, December 2009......................................................... 71 PIZZA HUT........................................................................................................................................... 72

What the consumer thinks ............................................................................................................ 72 Figure 37: Attitudes towards the Pizza Hut brand, December 2009.................................................................. 72

BRAND COMMUNICATION AND PROMOTION................................................................................. 75 Key points ..................................................................................................................................... 75

Figure 38: Adspend of selected restaurant chains, by channel, 2008/09 .......................................................... 75 The ‘Saturday night effect’ ............................................................................................................ 75

Creating the ‘Saturday night effect’ all year round ............................................................................................ 76 Investment online.......................................................................................................................... 76 What’s in a name? ........................................................................................................................ 76 Who’s better? campaigns ............................................................................................................. 77 Celebrity chefs .............................................................................................................................. 77

PIZZA/PASTA RESTAURANTS VISITED............................................................................................ 79 Key points ..................................................................................................................................... 79

Figure 39: Visited pizza and pasta restaurants in the last three months, November 2009 ................................ 79 FREQUENCY OF VISITING PIZZA/PASTA RESTAURANTS............................................................. 81

Key points ..................................................................................................................................... 81 Figure 40: Frequency of visiting pizza and pasta restaurants, November 2009 ................................................ 81

ATTITUDES TOWARDS PIZZA/PASTA RESTAURANTS.................................................................. 83 Key points ..................................................................................................................................... 83

Figure 41: Attitudes towards pizza and pasta restaurants and takeaways, November 2009............................. 83 Demand for more adult-friendly venues........................................................................................ 84 Impact of age on consumers’ preferences for customisation ....................................................... 84 Retail versus restaurant ................................................................................................................ 84


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Point of order................................................................................................................................. 85 Figure 42: Trends in accessing internet via mobile phone, 2007-09 ................................................................. 85

PIZZA/PASTA RESTAURANTS’ TARGETING OPPORTUNITIES..................................................... 87 Key points ..................................................................................................................................... 87

Figure 43: Pizza/pasta restaurant target groups, November 2009.................................................................... 87 Family Feasters ............................................................................................................................ 87 Pizza No No .................................................................................................................................. 88 Tech-savvy Pizza Enthusiasts ...................................................................................................... 88 On-the-fencers .............................................................................................................................. 88 Supermarket Alternatives.............................................................................................................. 89

APPENDIX – INTERNAL MARKET ENVIRONMENT.......................................................................... 91 Figure 44: Attitudes towards selected lifestyle statements, by detailed demographics, 2009............................ 91 Figure 45: Attitudes towards selected lifestyle statements, by detailed demographics, 2009............................ 92 Figure 46: Attitudes towards selected lifestyle statements, by detailed demographics, 2009............................ 94 Figure 47: Attitudes towards selected lifestyle statements, by detailed demographics, 2009............................ 95 Figure 48: Attitudes towards selected lifestyle statements, by detailed demographics, 2009............................ 97

APPENDIX – PIZZA/PASTA RESTAURANTS VISITED ..................................................................... 99 Figure 49: Most popular visited pizza and pasta restaurants, by detailed demographics, November 2009....... 99 Figure 50: Next most popular visited pizza and pasta restaurants, by detailed demographics, November 2009 ............................................................................................................................................................... 102 Figure 51: Pizza and pasta restaurants visited, by pizza and pasta restaurants visited, November 2009....... 106

APPENDIX – FREQUENCY OF VISITING PIZZA/PASTA RESTAURANTS.................................... 107 Figure 52: Frequency of visiting pizza and pasta restaurants, by detailed demographics, November 2009.... 107 Figure 53: Pizza and pasta restaurants visited, by frequency of visiting pizza and pasta restaurants, November 2009.............................................................................................................................................. 110 Figure 54: Frequency of visiting pizza and pasta restaurants, by visited pizza and pasta restaurants, November 2009.............................................................................................................................................. 111

APPENDIX – ATTITUDES TOWARDS PIZZA/PASTA RESTAURANTS ......................................... 113 Figure 55: Most popular attitudes towards pizza and pasta restaurants and takeaways, by detailed demographics, November 2009...................................................................................................................... 113 Figure 56: Next most popular attitudes towards pizza and pasta restaurants and takeaways, by detailed demographics, November 2009...................................................................................................................... 116 Figure 57: Most popular visited pizza and pasta restaurants, by attitudes towards pizza and pasta restaurants and takeaways, November 2009.................................................................................................. 120 Figure 58: Next most popular visited pizza and pasta restaurants, by attitudes towards pizza and pasta restaurants and takeaways, November 2009.................................................................................................. 121 Figure 59: Frequency of visiting pizza and pasta restaurants, by attitudes towards pizza and pasta restaurants and takeaways, November 2009.................................................................................................. 122 Figure 60: Most popular attitudes towards pizza and pasta restaurants and takeaways, by attitudes towards pizza and pasta restaurants and takeaways, November 2009........................................................................ 123 Figure 61: Next most popular attitudes towards pizza and pasta restaurants and takeaways, by attitudes towards pizza and pasta restaurants and takeaways, November 2009 .......................................................... 124

APPENDIX – PIZZA/PASTA RESTAURANTS’ TARGETING OPPORTUNITIES ............................ 125 Figure 62: Pizza/pasta restaurants target groups, by detailed demographics, November 2009...................... 125 Figure 63: Pizza/pasta restaurants target groups, by pizza and pasta restaurants visited, November 2009... 129 Figure 64: Pizza/pasta restaurants target groups, by frequency of visiting pizza and pasta restaurants, November 2009.............................................................................................................................................. 129 Figure 65: Pizza/pasta restaurants target groups, by attitudes towards pizza and pasta restaurants, November 2009.............................................................................................................................................. 130

APPENDIX: RESEARCH METHODOLOGY ...................................................................................... 133

Issues in the Market Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010

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Issues in the Market As well as battling the recession along with the rest of the eating out market, the pizza/pasta restaurant market has had a number of additional factors to deal with that are either unique to the sector or affect it more specifically, eg nutritional content and limited menu variety.

The sector is also notable for its stronger than average reliance on the discount culture during the recession, arguably making market conditions tougher for itself as the UK looks set for recovery. On the other hand the sector has benefited from some of its unique market conditions, not least through its position as the forerunner in e-commerce revenues in the home delivery market thanks to its limited menu which allows ease of ordering, customising, cooking and transporting.

This report examines the impact of the recession on this specific marketplace whilst also gathering and analysing consumer reactions to government concerns in this area. The report also looks at patterns of usage in the pizza/pasta restaurant market as well as consumer attitudes towards ‘the good, the bad’ and the ugly elements of the pizza and pasta restaurant sector.

• How much of a threat are supermarket-bought alternatives to the pizza/pasta restaurant market?

• How has the recession affected market growth?

• What impact are government drives towards healthy eating having on the market?

Definition This report examines changes and developments in the pizza and pasta restaurant market. Within the scope of the report, takeaway, delivery and sit-down restaurants are considered. The market size comprises turnover from pizza and pasta chains (restaurant and home delivery/takeaway) as well as independents.

The definition does not include either fine dining or formal Italian restaurants. The retail and takeaway sales of pizza and pasta from bakeries and supermarkets are specifically excluded, although some mention is made of these where relevant as they offer both an alternative to pizza/pasta outlet usage and a channel for branded product sales.

Consumer research In addition to quantitative consumer research, Mintel also conducted an online discussion group among a demographically mixed group of around 15 consumers.

This discussion group was asynchronous (ie not run in real time), functioning like a blog or bulletin board, with questions remaining posted for a pre-determined period of time. This method allows participants to respond reflectively, at their leisure, or to log off to think about any issues raised, and return later to respond.

Participants were recruited from Toluna's online consumer panel.

Issues in the Market Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Abbreviations ATM Automated Teller Machine BOGOF Buy One Get One Free CASH Consensus Action on Salt and Health DPG Domino’s Pizza Group FSA Food Standards Agency GAD Government Actuary’s Department GBK Gourmet Burger Kitchen GDP Gross Domestic Product GI Glycaemia Index LED Light-Emitting Diode ONS Office of National Statistics PDI Personal Disposable Income PR Public Relations SMS Short Message Service TSI Trading Standards Institute USP Unique Selling Point WAP Wireless Application Protocol

Future Opportunities Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Future Opportunities The pizza and pasta restaurant industry faces a number of challenges. With the recession affecting families’ dining habits, most operators have seen their core audience dwindle. Meanwhile, the under-35s and empty nesters alike remain loyal to fast casual restaurants, cafés and bars, where they can find flexible meal options, a ‘grown up’ ambience and a more extensive drinks menu. And then there’s the tricky question of pleasing the FSA without alienating a customer base intent on indulging.

Diversifying the menu, introducing different venue formats and breaking free of the fixed mealtime model will be the key to attracting adult audiences. But with over half of their regular customers viewing pizza and pasta restaurants as largely indistinguishable from each other, operators will also have to invest in strengthening their brands’ identity. In this, picking one demographic and really courting it may be the best way forward.

Tapping into the snacking mentality Focusing on convenience, flexibility, versatility and health are central to attracting the custom of young working adults, and increasing footfall during the day. This generation has been brought up on snacks and nibbles, while their working schedules allow little time for proper sit-down meals. Capturing their interest requires meeting them in transit – or ensuring that when they do pause for breath, it’s in an atmosphere that lets them really unwind.

What Mintel Inspire terms the Snack Society and Third Place trends are both at play here: the former has seen the market grow for eating out venues in travel hubs that offer consumers a taste of their favourite flavours while they’re on the move. The latter hinges on providing the type of setting where customers can kick back, open a newspaper (or their laptop) and savour the moment before heading back into the ‘real world’.

In both cases, it’s about fitting a bite-size experience into the customer’s schedule, and turning an occasional treat into a daily one.

Better than a sandwich… The likes of Zizzi, PizzaExpress and Strada already have a reputation for delivering on flavour, so it’s about going one step further, delivering that flavour quickly, and expanding from the traditional dinner hour model to tap into the daytime snacking mentality.

Part stop-off refuelling station, part ‘away from work’ lounge, these urban venues would compete with the standard café or sandwich shop chain by offering what neither market does: from pizza by the slice, mini pizzette and mini calzones to focaccia sandwiches, and regional Italian specialties like Sicilian arancini (fried rice balls filled with Ragù, mozzarella and peas) or Tuscan cecina (flatbread made with chickpea flour and olive oil).

Stick any of these in insulated cardboard cartons (or, in the case of arancini, a mess-free cardboard cone) add a planet-friendly paper carrier bag, and hey presto, you’re as convenient as a Pret A Manger and more accessible during the working day than Firezza or ASK.

…and healthy too Decreasing salt content across the board and emphasising qualities like ingredient freshness and high nutritional content, as well as rolling out a labelling system emphasising dishes which contribute to diners ‘five-a-day’ would be a more subtle way of satisfying both the FSA’s requirements and consumers’ needs than posting actual calorie content (over 30% of diners prefer not to know how many calories they’re consuming).



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At the same time, revamping traditional recipes and highlighting the healthy attributes of less familiar dishes would help attract the most diet-committed customers, eg marketing cecina as a high-protein, wheat-free alternative to focaccia. Or what about offering customers the option of pizza with cecina as a base, the way Italians in Ferrara eat it, or with a spelt flour or wholegrain base? In other words, low on the GI scale and authentic.

Other health options might include anything from cold seafood salads and veg-heavy pasta salads to takeaway hot dishes like minestrone, ciambotta or zuppa di mare with the choice of wholegrain focaccia or a slice of polenta on the side.

A whole new meaning to efficiency In terms of venue formats, think kiosks near key business commuter points (eg, London Liverpool Street, King’s Cross St Pancras), and larger venues with both ‘fast takeaway’ queues and lounging areas with sofas, laptop workstations and long tables for late lunch business meetings.

Introducing these formats onto the urban scene while keeping the standard restaurant model in residential, rural and tourist-driven areas would prevent the fast takeaway and snack menu from cannibalising traditional mealtime profits.

The greys want risotto…and bistecca alla Fiorentina While courting the younger demographics and focusing on daytime trade will go some way to replacing the stagnant family market, the industry also needs to engage with the older population.

Not only are the over-50s the fastest-growing demographic in the UK (ONS) and one of those whose eating out habits have been largely unaffected by the recession, they are also the easiest to reach out via the current venue format and the traditional mealtime model of starter, mains and dessert – as long as this includes more than just pizza and pasta.

Mintel data also indicate that consumers in this group are the most willing to put themselves in the hands of the waiter, but with many consumers holding preconceptions that chain restaurants offer poor customer service, operators will have to invest significantly in marketing promotions which disprove these theories.

Italian food for grown-ups In a sense, it comes down to old-fashioned notions about what constitutes a dining out experience. But it’s also about enjoyment, indulgence (in moderation) and a desire to relish what’s rightfully theirs: peace and quiet now their kids have flown the nest. It’s what Mintel Inspire terms the Living Better, Longer trend, and it’s what is seeing them seek enjoyment (even when their grown children are turning to them for financial support).

In other words, the over-50s won’t be asking to customise their toppings, nibble off a platter of shared antipasti or expect to fit dinner around a complicated schedule of school runs, career training sessions or gym workouts.

What they do want is a drinks offer as extensive as that of their local pub (or their cupboard at home), to be advised on the house’s signature dishes, and for those signature dishes to extend beyond pizza and pasta. Oh, and to eat in the sanctity of a child-free atmosphere.



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While we are seeing a certain amount of diversification, there is ample room for operators to go further. ASK has added a burger option to its menu and Strada has introduced the rustic pasta ai fagioli – but what about introducing polenta or ossobuco as a mains, or adding regional specialties like risotto alla Milanese or Calabrian polpette? With the right marketing, this variety could become not only a selling point in terms of authenticity, but also a way to distinguish the brand as one that caters to adult palates.

Choosing a different region every season and turning that into the brand’s USP (an idea pioneered by PizzaExpress in 2004) could also work well, allowing the likes of Caffè Uno to market itself as serving Italy on a plate – not just pasta.



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Market in Brief Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Market in Brief Market environment • Compared to many other sectors of the eating out market, the pizza/pasta restaurant market has a

number of unique challenges such as a limited menu and the issue of high-calorie content etc.

• On the other hand, the industry does benefit from certain unique market conditions, for example, it is an easy cuisine to order online, making it a frontrunner in terms of e-commerce revenue opportunities and online promotions.

Impact of the recession on eating out • Overall six in ten consumers have changed their eating out habits during the recession, by cutting

down on either frequency of visit, spend per head or both.

• The mid-market eating out sector has been hit particularly hard during the recession by a significant fall in families expenditure on eating out.

• Whilst there has been evidence of some consumers trading down, consumer purchasing behaviour is much more complicated than often portrayed in the press, for example, there’s a limit to the types of venue that consumers will be willing to trade down to. Furthermore, there is little to support the theory that this is becoming a long-term trend.

• The recession has made bargain hunting a more socially acceptable pursuit today, with the days of ostentatious spending now muted as we enter a new decade, being replaced by buzzwords such as value and affordability. As such there is an increasing need for the mid-market venues such as pizza/pasta restaurants to make sure that they have a strong market positioning either as a low-cost/value operator or a premium economy choice (eg GBK).

• The period 2008/09 has been filled with peaks and troughs for the pizza/pasta restaurant market in particular: for example, whilst many dine in operators noted a strong start to 2009 led by the abundance of price promotions, the summer holidays saw disappointing sales as families failed to eat out as frequently as expected. The problem for dine in pizza/pasta restaurants was also compounded in autumn 2009 by the strong TV scheduling which led to an increase in takeaway/delivery orders.

Price promotions • The pizza/pasta restaurant sector has arguably been discounting more aggressively than the rest of

the eating out market, which has been enabled by the dominance of big brands in this sector which have the financial clout and economy of scale to support this long period of price-led promotions.

• The problem with relying on the discount culture is that they no longer become a differentiator for consumers choosing venues as they are so widely available.

• There has also been the realisation that operators may be eroding potential profits unnecessarily: this has been described as a fear-led economy with many consumers tightening their belts in anticipation of their personal situation worsening when in fact lower mortgage rates etc mean that many are actually better off.

Market in Brief Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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• Furthermore discounting actively alters consumers’ purchasing behaviour, limiting the opportunity of spontaneous visits as consumers more carefully plan where they will visit according to discounts being offered.

• Whilst 2009 has seen these promotions being honed to target more specific demographics and purchasing styles in order to minimise erosion on potential profitability, the level of price-led promotions has remained high.

Going forward • Weaning consumers off a diet of heavy price-led promotions will be a central concern for

pizza/pasta restaurants in the future.

• As consumers have now become used to paying a lower cheque average for the same products, operators will need to focus on menu innovation and expansion of dishes to meet varying meal occasion types in order to try to claw back profitability. Keeping consumers engaged with the brand will be central to operators’ success post-recession.

• Making the ordering process easier for consumers and procurement more efficient will be a key investment area going forward as takeaway and delivery orders become increasingly important to this increasingly mature market.

• Whilst the growth in emerging sectors such as fast casual dining (eg Nando’s, Wagamama etc) can help the pizza/pasta market in some respects as consumers become increasingly familiar with varied service formats, they also act as direct competition in terms of consumers’ continued demand for convenience.

Internal Market Environment Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Internal Market Environment Key points • Pizza/pasta restaurants continue to be popular with consumers, however, their limited

menus have restricted their potential share of the market at a time when other sectors, such as pubs and fast food outlets, are focusing on widening the breadth of meal occasions they cater for.

• Pizza/pasta restaurants have arguably been the most fervent promoter of discounts during the recession and whilst this may have buoyed footfall in the short term, it is likely to have damaged market value overall with consumers increasingly used to paying lower prices for the same products.

• Nutritional content is of particular concern in the pizza/pasta restaurant market and although many brands in this sector have signed up to the Food Standards Agency’s (FSA) latest healthy eating drive, few, if any, have gone so far as including calorie labels on their main menus for fear of reducing spend per head even further.

FIGURE 1: VENUES EATEN AT IN THE LAST THREE MONTHS, APRIL 2009 Base: 3,752 internet users aged 16+ who eat out

57%

37%

36%

30%

29%

27%

27%

26%

22%

21%

20%

13%

6%

Pub restaurant/bar

Pizza/pasta restaurant

Café/coffee shop

Fish and chip shop/restaurant

Burger/fried chicken bar

British restaurant

Chinese restaurant

Indian restaurant

Other restaurant (eg Italian, vegetarian)

In-store restaurant/cafeteria

Hotel restaurant

Other ethnic restaurant (eg Thai, Mexican)

None of these

SOURCE: GMI/MINTEL – EATING OUT MEAL OCCASIONS – UK, OCTOBER 2009

• Whilst pizza/pasta/Italian restaurants/takeaways continue to be popular amongst consumers, various mid-market brands have begun to widen their menus due to high competition between brands in this sector and the need to create genuine points of differentiation.



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• There is also the issue that limited menus, which are generally evident in this sector, are a direct barrier to entry for many consumers; eg older consumers who don’t tend to eat pizza/pasta or those younger consumers looking to cut down on/cut out wheat etc for personal medical or dietary reasons: wheat-/gluten-free pizzas continue to only occupy a tiny percentage of the market.

• Although these venues are likely to benefit from the wider range of food they are offering (therefore more closely following the success of pub menus), they could still learn lessons from other sectors showing strong growth at present.

• For example, the fast food sector has been profitable during the recession not just because of low price points but also because of the breadth of meal occasions that their menus cater to (eg snack menus, hot beverage offerings as well as main meals) meaning that they have extended their potential peak hours of operation.

Key analysis: Many pizza/pasta restaurants are already well placed to tap into the coffee shop market with their dessert offerings, however, the venues themselves need to be proactive in promoting this as a potential meal occasion at their outlets as, at the moment, they are not synonymous with providing this service.

Restaurant promotions Mintel’s Eating Out Meal Occasions – UK, October 2009 shows that 29% of consumers now eat out in order to make use of a promotional offer and research for this report shows that 16% of all consumers, and a quarter of regular pizza/pasta restaurant users, like to take advantage of special offers at these types of restaurants.

However, uptake of these incentives is somewhat limited to the younger age groups with older consumers more concerned with issues such as ambience and service when deciding where to eat out due to the fact that they tend to dine out less for reasons such as personal special occasions (eg birthdays).

“I definitely respond to promotions such as discounts and special offers; it gives me an excuse to eat out on some occasions. I am less likely to use booking websites since me and my other half tend to use chain restaurants and pubs.”

– 16-24-year-old C2DE female

“Yes, I respond very often to restaurant promotions as they are a way to go out and enjoy myself without paying high prices. I do use the website just-eat.co.uk to find local takeaways, and it has been very useful because I can get the cheapest possible prices. I go on money-saving websites to collect vouchers for restaurants as well, and collect loyalty cards for restaurants at every opportunity.”


“No. Advertisements and promotional offers don't influence our choices at all. We know the places where we want to eat and the only time we go somewhere different is when we are the guest of someone else.”

– 35-44-year-old ABC1 male

“Promotions are unlikely to influence my choice of restaurant.” – 35-44-year-old ABC1 male



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“I've looked at promotions but not taken advantage of any for food. Never really thought about looking at restaurant websites, but might now you're mentioned it.”

– 45-54-year-old ABC1 female

Price promotions • Bundling promotions, notably meal deals, are an established discounting strategy in the pizza/pasta

restaurant market, to the point where consumers now expect to be offered them.

• However, the onset of the recession has seen a plethora of promotions hit the market, starting with the reactive discounting such as BOGOF and 50% off, developing into more sophisticated promotions in recent months in order to limit the dilution of these offers and restrict the damage to margins and potential profit that the market’s reliance on discounting during the recession has inevitably led to.

Examples include:

• Classic discounting: Strada Two for One, Pizza Hut 50% dine in food bill, PizzaExpress half-price pizza sale, Papa John’s BOGOF.

• Limited discounting: Pizza Hut buy one get one half price on delivery/collection orders/£10 off when you spend £30, Zizzi buy one main and get another for £1, PizzaExpress two for one plus starter on Wednesdays, Perfect Pizza 20% off when you spend £20 or more.

• Postponed discounting: Perfect Pizza buy one get one later for £3 (within seven days).

• Set prices: PizzaExpress two pizzas for £10/ four classic pizzas for £20/starter and main and glass of wine for £10.

• Off-peak drivers: Domino’s Two for Tuesday, Perfect Pizza Monday-Tuesday Double Up pizza deal, Firezza Eat Early (Monday-Friday 5-630pm buy any 0.5-metre pizza for £14.90)/ buy one get second half price (Monday-Tuesday), Pizza Hut Happy Hour (2-6pm Monday-Friday main and side and drink for £4).

• Internet/mobile ordering incentives: Papa John’s 25% off when you spend £25 or over, Firezza 25% off first-time mobile orders/15% off mobile orders for existing customers.

• Cross-promotions: PizzaExpress £1/£2 money-off vouchers for retail range given to restaurant customers/two for one restaurant voucher on PizzaExpress salad dressing (retail product).

Consumer responses to price promotions

• Consumers are increasingly savvy when it comes to sniffing out genuine discounts, meaning that promotions which are easily translatable into pounds saved (eg BOGOF) are likely to prove more popular than those that diners have to ‘work out’ (eg 20% off).

Discounts “Getting a 20% discount sounds cold and you don't know how much that is going to be before you get there at least buy one get one free is translatable right away and you don't have to fiddle about working out who pays what.”




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“Money off the bill, either a fixed sum or a percentage discount, would be attractive but it wouldn't persuade me to try somewhere new. If we wanted to eat pizza and one outlet had a promotion while another didn't, then it might tip the balance I suppose.”


BOGOF

“The best promotion for me is buy one get one free as I personally feel that this is the best value-for-money promotion. The free drink with a meal is neither here nor there, as the company doesn’t really pay much for the drink and you don’t feel like you are getting much of a bargain whereas with a buy one get one free you feel like you’re getting more of a bargain as the company is helping you to eat out.”


“Buy one get one free meals always attract me to restaurants and pubs. I think discounts off the bills help a lot as well.”

– 25-34-year-old C2DE male

“A buy one get one free would be good and I think we would use it if we were going out in a group setting for example after work as there are a few bargain-conscious eaters who would relish this promotion.”


Free drink “The free drink offer doesn't really entice me as you will need way more than one drink through a meal.”


“A free drink wouldn't make me choose a place unless it was an expensive cocktail!” – 35-44-year-old ABC1 female

• The offer of a free drink fails to resonate with consumers who recognise the fact that they are likely to want to buy more than one drink. Offers like this also fail to tap into consumers’ current demands for visual shortcuts, such as bundled pricing, which get down to bottom line expenditure straight away.

Loyalty cards “They are a good idea – assuming you remember to take them with you. However, I would prefer offers that were open to all diners.”


“Loyalty cards do not entice me, in this day and age with all the choice on offer, we are not loyal to any restaurant. It depends who is offering the best deal who gets our custom. Buy one get one free is always a favourite.”


“An immediate reward is much more appealing than a loyalty scheme.” – 35-44-year-old ABC1 male



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Set meals “We always stick to the set meal as then we know how much to expect the bill to be at the end, this is usually because we have a limited amount of money with us.”


“Often set meal offers are basic and boring, unless you get a creative chef who is wishing to showcase their flair or to highlight local produce. I usually select whatever it is that takes my fancy at the time.”


Impact of price promotions on market value The inherent problem with a sustained period of discounting is that it essentially alters consumers’ purchasing habits and therefore market conditions overall.

For example, vouchers can take the spontaneity out of eating out, with consumers choosing not to go to a venue if they don’t have a voucher on them for that particular brand, in which case the promotion is actually a disincentive to purchase. So although discounting has been necessary to buoy footfall during the recession, particularly for those brands with a debt-laden business structure, it has simultaneously increased the difficulties of trading in the market.

Going forward it will be difficult for operators in this discount-heavy sector to wean both themselves and consumers off these price-led promotions as consumers are now used to spending less per head on the same products.

Key analysis: Operators will need to focus on menu development to ensure that any price increases are reflected in product innovation whilst the experience and theatre of eating out will also need to be emphasised for eat in restaurants if they are to claw back market share from takeaways which allow consumers to keep spend per head down by buying their own drinks more cheaply from supermarkets etc.

Nutritional concerns • High street restaurant chains were criticised for the salt content of some of their products by

campaign group Consensus Action on Salt and Health (CASH) through research carried out by the Trading Standards Institute (TSI) published in February 2009.



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FIGURE 2: SALT CONTENT (HIGHEST AND LOWEST) IN SURVEY CARRIED OUT BY TRADING STANDARDS INSTITUTE, FEBRUARY 2009 Restaurant Main dish Salt per portion (g) Highest salt content: Old Orleans Chicken Fajitas 8.8 Old Orleans Wings and Ribs (with fries) 7.6 PizzaExpress American Hot Classic Pizza 7.5 Wagamama Wagamama ramen 7.2 Zizzi Pizza Sofia 6.7 ASK Fiesta Di Carne Pizza 6.6 Frankie and Benny's Chicken Penne Romana 6.0 Lowest salt content: Beefeater Sirloin Steak 0.4 Harvester 7oz Fillet Steak 1.1 Bella Italia Penne Pollo a Crema 1.3 Café Rouge Steak Frites 2.0 Harvester Flamed chicken: The Original Combo 2.1 SOURCE: CASH

• In May 2009, the FSA also published revised voluntary salt reduction targets for the food industry to be achieved by 2012. The FSA aims to reduce the average daily salt intake of the UK population to 6g. Current average daily consumption is estimated to be 8.6g.

• After previously focusing on the retail sector, in 2009 the FSA turned its attention to the eating out market with the launch of a voluntary code of conduct for a menu labelling trial during the summer. All operators signing up to the scheme are asked to display calorie information on menu boards, paper menus or on the edge of shelves and to ensure that the information is clear and easily visible at the point where people choose their food. A similar scheme in New York in 2008 was said to have decreased average calories per order by 50-100 calories.

• In January 2009, Pizza Hut announced its plans to include the calorie intake for each of its items as part of the FSA trial.

• In May 2009, Domino’s Pizza, Tragus and PizzaExpress were among the mid-market restaurant chains to sign up to the FSA’s drive to provide consumers with a range of healthier options out of home and a focus on nutritional content and labelling in restaurants: each operator committed themselves with providing six-monthly progress updates to the government body. For example, PizzaExpress has pledged to achieve a 5% reduction in salt content of its dough by May 2010, with a further aim to reduce saturates by 5% by the same date.

• In September 2009, a review in the Good Food Guide revealed that many products offered in high street pizza/pasta restaurants chains had poor nutritional value: Pizza Hut margheritas were found to contain 70% (13.99g) of a woman’s daily recommended intake of saturated fat, whilst Zizzi’s contained the highest level of salt and Prezzo’s the highest saturated fat. The Guide rated PizzaExpress margerhita pizzas as the highest in taste and lowest in fat.

Key analysis: Research published by the FSA in 2008 suggested widespread public backing for more nutritional labelling in the eating out market, with 85% of consumers agreeing that restaurants, pubs and cafés have a responsibility to make clear what is in the food they serve. However, Mintel’s Eating Out Meal Occasions – UK, October 2009 shows that in reality consumer intentions and consumer spending behaviour are two very different beasts.



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Consumers’ laissez-faire attitude towards nutritional content in restaurant meals FIGURE 3: ATTITUDES TOWARDS NUTRITIONAL LABELLING, APRIL 2009 Base: 3,752 internet users aged 16+ who eat out

35%

29%

25%

23%

18%

16%

13%

10%

13%

I eat w hat I w ant, w hen I w ant, regardless ofhealth issues

I don’t w ant to know how many calories are ineach dish

I tend to count calories at home but not w hen Ieat out

Know ing the calorie content w as high w ouldprobably put me off ordering certain dishes

I w ould be likely to choose a dish w ith few ercalories over another dish

I w ant to see how many calories are in each dish

I w atch w hat I eat w hen I eat out

I actively look for low -fat etc dishes w hen I eatout

None of these

SOURCE: GMI/MINTEL – EATING OUT MEAL OCCASIONS – UK, OCTOBER 2009

• Despite the efforts of the FSA it would seem that few consumers, particularly men, actually want to see calorie content included on restaurant menus, after all eating out is inherently a leisure activity.

• As such operators have reported that although low-fat cheese alternatives are now menu staples, few consumers choose this option, and if it were any other slow-moving menu item it would be removed but operators feel that they have to at least be paying lip service to the healthy eating trend.

Key analysis: Could there be some longer-term commercial benefit from a brand actively pursuing an essentially un-commercial practice (eg a no-carbohydrate diet menu) as a PR exercise and in order to stand out of the busy high street crowd?

• Mintel’s Eating Out Meal Occasions – UK, October 2009 also shows that men are far less interested than women in calorie counting and nutritional labelling when eating out. Women are much more likely than men to count calories at home, however, only 14% watch what they eat when they dine out and meal occasions retain a strong element of indulgence for both sexes.

• Women aged under 35 and Londoners are the keenest on having calorie information and healthier menu options.



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• That said, Mintel’s Eating Out Meal Occasions – UK, October 2009 also shows that provision of nutritional information is more likely to affect menu choices in pizza/pasta restaurants than in pubs, fast food outlets, Chinese or Indian establishments, making it more of a concern for this sector perhaps than the rest of the eating out market as a whole.

Key analysis: Whilst a variety of restaurant chains have signed up to the FSA’s latest drive, there is little evidence of calorie counts being displayed on main menus at present. As such their commitments to the campaign can be seen as more of a PR exercise (eg improving the image of their products as ‘junk food’) than a genuine attempt to improve consumers’ diets. This is unsurprising as, during this period of economic downturn when consumers are already tightening their belts, risking further cutbacks in sales, however temporary, by displaying calories in this way would seem bold at best.

Broader Market Environment Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Broader Market Environment Key points • Consumer confidence is generally on the up but it stalled in Q3 2009 as the UK failed to exit

recession whilst other European countries did.

• Consumers tightened their purse strings in 2009 even though the effects of the recession have been less than expected.

• Health, provenance and ethical considerations are taking a back seat during the recession as consumers prioritise comfort, affordability and value for money.

The recession and consumer confidence FIGURE 4: GDP, PDI, CONSUMER EXPENDITURE AND SAVINGS, AT CONSTANT 2004 PRICES, 2004-14 GDP PDI Consumer

expenditure Savings Savings ratio

£bn £bn £bn £bn % 2004 1,201 809 776 33 4.0 2005 1,225 833 792 41 4.9 2006 1,260 843 808 35 4.1 2007 1,299 851 834 17 2.0 2008 1,308 854 846 8 0.9 2009 (est) 1,274 854 827 26 3.1 2010 (fore) 1,285 859 830 30 3.5 2011 (proj) 1,305 875 843 32 3.7 2012 (proj) 1,328 892 860 33 3.7 2013 (proj) 1,352 909 869 40 4.4 2014 (proj) 1,376 926 884 42 4.5 % change 2004-09 +6.1 +5.5 +6.6 -19.3 -0.9* % change 2009-14 +8.0 +8.5 +6.9 +58.7 +1.4* * percentage point change SOURCE: OFFICE FOR NATIONAL STATISTICS/GAD/MINTEL

• The prospects for economic recovery look good in the long term, however, the lower-than-expected GDP result in Q3 2009 has curbed the otherwise improving levels of consumer confidence.



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FIGURE 5: GDP QUARTERLY PERCENTAGE CHANGE, 2004-09

0.40.2

0.70.4

0.60.4 0.5 0.4 0.5

0.8 0.7 0.6 0.5 0.5

-0.1

-1.8

-2.5

-0.3-0.6

0.7

-0.7

1.10.9

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

-

0.5

1.0

1.520

04 Q

1

2004

Q2

2004

Q3

2004

Q4

2005

Q1

2005

Q2

2005

Q3

2005

Q4

2006

Q1

2006

Q2

2006

Q3

2006

Q4

2007

Q1

2007

Q2

2007

Q3

2007

Q4

2008

Q1

2008

Q2

2008

Q3

2008

Q4

2009

Q1

2009

Q2

2009

Q3

Qua

rter

ly G

DP

chan

ge (%

)

SOURCE: OFFICE OF NATIONAL STATISTICS/GAD/MINTEL

• As spending patterns are intricately linked to consumer confidence, this unexpected dip in Q3 2009 highlights the fragile nature of the UK’s economic recovery, with operators such as dine in pizza/pasta restaurants noting a drop in trade as consumers reined in their spending in anticipation of the Christmas spending spree.



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FIGURE 6: TRENDS IN CONSUMER CONFIDENCE, JANUARY 2008-NOVEMBER 2009

-13

-17-19

-24

-29

-34

-39-36

-32

-36 -35-33

-37-35

-30-27 -27

-25 -25 -25

-16-13

-17

-45

-40

-35

-30

-25

-20

-15

-10

-5

0Ja

n-08

Feb-08

Mar-08

Apr-08

May-08

Jun-0

8

Jul-0

8Aug

-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-0

9

Feb-09

Mar-09

Apr-09

May-09

Jun-0

9

Jul-0

9Aug

-09

Sep-09

Oct-09

Nov-09

Actual Trend

SOURCE: GFK/MINTEL

• This has been described as a fear-led recession as many consumers have cut back on their personal spending in anticipation of their situation worsening, not as a result of losing their jobs etc. directly. The case in point for this being that around six in ten people state their personal financial situation as either being healthy or OK.

FIGURE 7: PERSONAL FINANCIAL SITUATION, FEBRUARY-DECEMBER 2009 Base: internet users aged 16+ Feb-

09 Mar-09

Apr-09

Jun-09

Jul-09

Sep-09

Nov-09

Dec-09

% point change

% % % % % % % % Feb-Dec Healthy – I have money left at the end of the month for a few luxuries or to add to my savings

20.7 21.9 23.1 23.4 22.8 29.5 24.5 21.9 +1.2

OK – I get by, but there’s not a lot left by the time the basics are taken care of,

41.4 43.0 41.6 42.4 40.8 41.4 42.1 42.2 +0.8

Tight – I’m making ends meet, but only just

27.7 25.5 25.3 23.9 24.9 20.9 24.6 26.3 -1.4

Struggling – I’m in danger of falling behind with bills or loan repayments

8.0 6.8 7.5 7.8 8.2 6.1 6.7 7.6 -0.4

In trouble – I’ve missed loan repayments or household bills

2.3 3.0 2.6 2.6 3.4 2.1 2.3 2.2 -0.1

SOURCE: GMI/MINTEL



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• Mintel’s Eating Out Review – UK, July 2009 found that four in ten consumers haven’t changed their eating out habits during the recession, however, this still leaves the majority who have reduced their frequency and/or spend per head. This has arguably had the greatest impact on the mid-market as it is families who have cut down on their eating out expenditure the most. Whilst consumers are still tightening their belts in 2009, the impact of the recession has been less obvious.

FIGURE 8: TRENDS IN WHAT EXTRA MONEY IS SPENT ON, NOVEMBER AND DECEMBER 2009 Base: internet users 16+ Nov-09 Dec-09 % point change % % November-

December 2009 Dining out 37 35 -1 Going out (eg pub, cinema etc) 37 33 -3 Savings account/emergency/rainy day fund 35 31 -3 Books/DVDs/CDs etc 29 30 +1 Small ‘extras’ for family members 28 27 -1 Food/drink at home for a ‘special’ occasion 23 23 -1 Short break/holiday (1-2 days or weekend) 23 19 -4 Long holiday (3 or more days) 23 19 -5 Sweets/chocolate etc 19 17 -2 Jewellery/clothing/personal items 17 15 -2 Making extra payments off debt/overdraft/mortgage 16 14 -3 Days out (eg leisure park) 17 12 -4 Furniture/home improvements/décor 15 12 -3 Spend it without particularly noticing what it went on 12 12 - Beauty treatment/haircut 12 11 -2 Putting it towards a ‘major’ purchase (like buying a house or car) 13 11 -2 I never have any extra money 11 11 +1 Home electronics/home entertainment systems 11 10 -1 Fragrances/toiletries/make-up 11 10 -1 Investments 10 8 -1 Gambling 5 4 -2 SOURCE: GMI/MINTEL

• Despite consumers cutting back on these areas, dining out and going out remain consumers’ top spending priorities after paying bills, a fact eating out operators are now realising. As such, whilst price promotions may still be rife in the pizza/pasta restaurant market in particular, in recent months operators have been developing more sophisticated promotions aimed at targeting particular demographics while also working on ways to limit the dilution of promotions, eg restricting their usage from any days of the week to specific off-peak durations.

FIGURE 9: TRENDS IN ATTITUDES TOWARDS RESTAURANTS AND TAKEAWAYS, 2005-09 Base: adults aged 15+ 2005 2006 2007 2008 2009 % point change % % % % % 2005-09 I enjoy splashing out on a meal in a restaurant 52.6 52.2 52.5 51.5 49.2 -3.4 In my home we spend a lot of money on food 51.9 50.4 51.1 49.8 48.7 -3.2 I like to eat takeaway meals 50.3 49.2 47.1 45.1 46.1 -4.2 I often eat in good restaurants 29.6 30.8 30.4 30.4 29.1 -0.5 I'm a gourmet 8.7 9.2 8.4 9.5 9.3 +0.6 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2005-09 (APR-MAR)/MINTEL



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• While consumers still want to eat out, they have become less willing to ‘splash out’ during the recession.

• Takeaway lovers tend to be aged 15-34 (propensity to order takeaways decreases with age), C1C2Ds, presence of children under 1 year, single, full-time employment, household size three or more and from the pre-/no family and family lifestages. Convenience and flexible meal sizes appeal to these types of consumers.

• Despite the increased focus on food in recent years, the number of consumers who label themselves as ‘gourmets’ remains at a low base (fewer than one in ten).

• Those that do consider themselves gourmets tend to be men, aged 25-34, AB, single, pre-/no family (family commitments mean that these consumers tend to use restaurants less) and those that live in Greater London (due to the greater range and opportunity of venues to visit).

Key analysis: These consumers may be attracted by a dish which is actually a selection of different speciality pizza slices served for one person and displayed on a wooden pizza peel (paddle) with the offer of wine matching to accompany it.

Demographic factors FIGURE 10: TRENDS IN THE AGE STRUCTURE OF THE UK POPULATION, BY GENDER, 2004-14 2004 2009 (est) 2014 (proj) % change % change 000 % 000 % 000 % 2004-09 2009-14 Male: 0-4 1,738 2.9 1,923 3.1 2,032 3.2 +10.6 +5.7 5-9 1,847 3.1 1,742 2.8 1,929 3.0 -5.7 +10.7 10-14 1,985 3.3 1,853 3.0 1,752 2.7 -6.6 -5.5 15-19 1,989 3.3 2,054 3.3 1,901 3.0 +3.3 -7.4 20-24 1,935 3.2 2,201 3.6 2,216 3.5 +13.7 +0.7 25-34 3,960 6.6 4,040 6.5 4,572 7.1 +2.0 +13.2 35-44 4,546 7.6 4,478 7.2 4,071 6.4 -1.5 -9.1 45-54 3,779 6.3 4,113 6.6 4,455 7.0 +8.8 +8.3 55-64 3,391 5.7 3,577 5.8 3,546 5.5 +5.5 -0.9 65+ 4,078 6.8 4,430 7.2 5,142 8.0 +8.6 +16.1 Total male 29,278 48.9 30,397 49.1 31,615 49.3 +3.8 +4.0 Female: 0-4 1,653 2.8 1,840 3.0 1,945 3.0 +11.3 +5.7 5-9 1,761 2.9 1,661 2.7 1,851 2.9 -5.7 11.4 10-14 1,882 3.1 1,758 2.8 1,660 2.6 -6.6 -5.6 15-19 1,903 3.2 1,914 3.1 1,782 2.8 +0.6 -6.9 20-24 1,882 3.1 2,094 3.4 2,082 3.2 +11.3 -0.6 25-34 3,993 6.7 4,023 6.5 4,470 7.0 +0.8 +11.1 35-44 4,639 7.8 4,549 7.4 4,137 6.5 -1.9 -9.1 45-54 3,855 6.4 4,223 6.8 4,584 7.2 +9.5 +8.5 55-64 3,508 5.9 3,723 6.0 3,693 5.8 +6.1 -0.8 65+ 5,492 9.2 5,675 9.2 6,271 9.8 +3.3 +10.5 Total female 30,568 51.1 31,461 50.9 32,476 50.7 +2.9 +3.2 All 59,846 100 61,858 100 64,091 100 +3.4 +3.6 SOURCE: OFFICE FOR NATIONAL STATISTICS/GAD/MINTEL



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• The UK’s ageing population doesn’t bode well for the pizza/pasta restaurant market as usage in this area decreases with age. As such cultivating loyalty amongst current prolific users (notably 15-24-year-olds) as they will be a key concern for future growth. Widening menus will also be a point of focus for dine in pizza/pasta restaurants in order to broaden their appeal to older demographic groups.

FIGURE 11: FORECAST ADULT POPULATION TRENDS, BY LIFESTAGE, 2004-14 2004 2009 (est) 2014 (proj) % change % change 000 000 000 2004-09 2009-14 Pre-/no family 13,531 14,080 14,357 +4.1 +2.0 Families 13,476 13,766 13,762 +2.2 - Third age 12,442 13,170 13,446 +5.9 +2.1 Retired 9,531 10,065 11,357 +5.6 +12.8 Total 48,980 51,081 52,922 +4.3 +3.6 SOURCE: OFFICE FOR NATIONAL STATISTICS/GAD/MINTEL

• Whilst the predicted rises (albeit at a slower rate than previously experienced) in pre-/no family consumers are good news for the takeaway market, the stagnant families market will continue to add to the tough market conditions for dine in restaurants.

Key analysis: Whilst there are various examples of certain pizza/pasta restaurant brands starting to widen their menus outside of the usual pizza/pasta options, the majority are still failing to create a genuine USP from the rest of the market. Instead of widening menus in a number of areas, operators would be more likely to resonate with consumers if they stick to a particular area of expertise, be it steak or fish dishes, for example. This would ensure that they have a clear market positioning to consumers, an area that is increasingly important for operators to carve out on today’s competitive high street.

“I think it is very good to sell an alternative as there is always going to be one person in the dining party that will prefer the alternative.”


“Diversification is a good thing but only if they can maintain their standards. Jack of all trades, master of none is a sound warning for the over-ambitious.”


Difficult times to justify the premium on ethical products FIGURE 12: TRENDS IN ETHICAL PRODUCTS, 2005-09 Base: adults aged 15+ 2005 2006 2007 2008 2009 % point change % % % % % 2005-09 I would never buy food that has been genetically modified

32.4 32.6 33.4 33.6 31.1 -1.3

I buy free-range products whenever I can 38.1 39.8 42.0 42.3 43.2 +5.1 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2005-09 (APR-MAR)/MINTEL



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• Trends such as health and organic have diminished during the recession as consumers prioritise price, value for money and comfort. However, as ever, whilst consumers continue to be unwilling to pay extra for these products, they can still be a selling point, particularly with products where there is arguably more of a tangible difference in product quality for consumers, eg free-range. Post-recession this trend is expected to continue with consumers more likely to choose the healthier or more ethically robust option only when it is the same price as a similar product.

FIGURE 13: TRENDS IN ATTITUDES TOWARDS DIET, 2005-09 Base: adults aged 15+ 2005 2006 2007 2008 2009 % point change % % % % % 2005-09 I eat a lot of vegetables 70.2 72.4 72.4 72.7 70.7 +0.5 I often eat fresh cheese 66.6 66.9 65.1 63.2 60.8 -5.8 I often read the ingredients on food labels 53.1 52.9 53.8 53.0 51.0 -2.1 I like to treat myself to foods that are not good for me

47.5 46.5 46.7 46.3 47.6 +0.1

I eat a lot of bread 45.2 46.0 43.8 44.0 44.4 -0.8 I avoid fats 41.7 42.1 43.4 42.8 40.4 -1.3 I avoid sugar 37.7 37.5 38.8 39.1 36.0 -1.7 I eat diet/low-calorie products* na na na 35.1 35.5 +0.4 I eat Mediterranean-style cuisine 31.0 31.6 31.6 32.4 32.4 +1.4 I wouldn't let my children eat junk food* na na na 28.4 26.8 -1.6 I eat a lot of desserts 25.6 26.9 25.9 25.0 25.0 -0.6 I always choose light food 19.6 19.6 21.3 20.3 20.1 +0.5 I have health problems and have to watch what I eat

17.4 18.0 18.6 17.7 17.5 +0.1

I tend to eliminate meat from my diet 13.0 13.1 13.7 13.6 12.9 -0.1 I follow a strict diet 7.2 6.8 7.4 7.5 7.3 +0.1 * % point change is for 2008-09 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2005-09 (APR-MAR)/MINTEL



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Competitive Context Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Competitive Context Key points • Although only around one in ten consumers state that they’d rather buy a supermarket

version, retail products still represent a genuine competitor to pizza/pasta restaurants in the respect that innovations in supermarket products can make restaurant offerings look less interesting or special.

• This is especially true given the number of retail products now seeking to mimic those available in the on-trade.

Eating out market, by sector FIGURE 14: EATING OUT MARKET*, BY SECTOR, 2004-08 2004 2005 2006 2007 2008 % change £m £m £m £m £m 2004-08 Fast food: Burgers 2,220 2,306 2,410 2,497 2,547 +14.7 Ethnic takeaway 1,606 1,671 1,748 1,800 1,850 +15.2 Pizza and pasta 1,204 1,278 1,341 1,394 1,420 +17.9 Fish and chips 945 985 1,019 1,000 1,015 +7.4 Fried chicken 908 972 1,044 1,106 1,160 +27.6 Other fast food** 144 152 159 166 170 +18.1 Total fast food 7,027 7,364 7,721 7,963 8,162 +16.2 Restaurants: Pub catering 6,036 6,380 6,808 7,250 7,577 +25.5 Hotel catering*** 4,021 4,121 4,220 4,310 4,136 +2.9 Restaurant meals 3,689 3,916 4,164 4,333 4,354 +18.0 Ethnic restaurants 1,967 2,009 2,071 2,062 2,073 +5.4 In-store 1,259 1,300 1,359 1,406 1,415 +12.4 Roadside 491 507 530 540 537 +9.4 Total restaurants 17,463 18,233 19,152 19,901 20,092 +15.1 Other**** 1,953 2,276 2,556 2,750 2,879 +47.4 Total 26,443 27,873 29,429 30,614 31,133 +17.7 Note: some historical data have been revised * excl. institutional catering and other expenditure on food outside the home ** incl. jacket potatoes, sausages, filled croissants etc *** incl. drinks revenue **** incl. cafés, coffee shops and other retail outlets SOURCE: MINTEL

• Although pizza/pasta restaurants continue to be one of the UK’s most popular eating out options, lack of modernisation in the dine in market compared to that seen in the rest of the eating out industry (think of the emerging fast casual dining sector) means that it is in danger of losing market share. For example, other competitors such as pubs are increasingly encroaching on territory by including pizza/pasta restaurants’ core products on their own menus.



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Retailers mimicking restaurant innovation – so what’s next for restaurants?

“I order different pizzas than what I would get from the supermarket, although this is very difficult now as my local Waitrose and M&S offer a large variety.”

– 35-44-year-old C2DE

New ingredients

• Whilst more artisan toppings have increased in both the retail and restaurant arenas in recent years, the recession has pushed consumers towards familiarity and dishes that they know they are guaranteed to like.

• However, although the idea of recession fatigue is yet to affect the pizza/pizza restaurant market tangibly, such ingredients could be used to excite consumers about eating out again (rather than just as a money-saving exercise with price-led promotions).

• Artisan ingredients are likely to do well on ‘create your own’ types of products where consumers can balance their tried and tested dishes with something new without risking not liking the whole dish: in which case, could it be worth dine in restaurants more actively pushing half-and-half pizza options to customers?

Tesco Finest £3.49 chilled

Tesco Finest Pancetta, Chestnut Mushroom & Parmigiano Reggiano Cheese Pizza is claimed to contain authentic Italian ingredients. It is described as an Italian-inspired, hand-stretched pizza base made with Italian '00' flour. This premium product is free from artificial preservatives, flavours, colours and hydrogenated fat. It is suitable for home freezing, and retails in a 428g pack made with fibres sourced from well-managed forests. Also available is Italian Style Sausage Pizza with Chargrilled Artichoke and Italian Ham & Red Onion Chutney Pizzette.

Minus the crusts

• It is increasingly important for restaurants to frequently update innovative product formats not only to keep ahead of advances in retail products but also to hold consumer engagement and interest.

• Pizza Hut first introduced ‘The Edge’ product to US consumers in 1997 whilst it was launched in the UK in 2000.

• Retailer versions which followed include Chicago Town’s new Edge to Edge which was launched in the second half of 2008.



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Aldi £1.69 frozen

This Italian-style product contains no artificial colours or flavourings, and no hydrogenated oils. It retails in a 400g partly recyclable pack. Also available is a Diavolo Edge to Edge Pizza on a thin and crispy base, which consists of a stone-baked pizza base topped with a tomato sauce, mozzarella, minced beef, green peppers and jalapeños. It has no artificial colours, flavourings, preservatives or hydrogenated oils, and retails in a 365g pack.

Tesco £2.99 chilled

Tesco To The Edge Nacho Beef Pizza consists of a pizza base with tomato, coriander, chilli and lime sauce, spicy beef, red peppers, corn tortilla chips and jalapeño peppers. This medium spicy product is suitable for home freezing and retails in a 523g pack. Also available is a Piri-Piri Chicken variety, which contains no added artificial preservatives, flavours, colours or hydrogenated fat, and is retailed in a 556g pack



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Sainsbury’s £3.79 chilled

Sainsbury's offers Double Pepperoni Rip' N' Dip Pizza with a creamy garlic dip. The product comprises pizza base topped with tomato sauce, mozzarella cheese, milk cheddar cheese, mini pepperoni, pepperoni and a chilli topping with a pot of creamy garlic dip. It retails in an 805g recyclable pack. Also available is microwaveable Ham & Pineapple Snack Pizza that Pizza consists of pizza base topped with barbecue sauce, mozzarella cheese, mild cheddar cheese, smoked reformed ham with added water, and pineapple, and retails in a 190g recyclable pack.

Sainsbury’s £3.79 chilled

Sainsbury's has introduced Spicy Meatball Melt Stuffed Crust Pizza topped with spicy tomato sauce, mozzarella cheese, mild cheddar cheese, spicy beef meatballs, red pepper and jalapeño peppers. The product is retailed in a 498g recyclable pack. Also available is a Meat Feast Mammoth Pizza variety. This is a pizza base topped with tomato sauce, mozzarella cheese, mild cheddar cheese, chilli beef, smoked reformed ham with added water, pepperoni and pork sausage. This variety retails in a 990g recyclable pack.

Extra thin

• In a similar vein to PizzaExpress’s stretched Romana base, retail versions of thin base pizzas are also increasing available in supermarkets.



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Aldi £1.99 frozen

Aldi Specially Selected Salmon and Spinach Tarte Fin Pizza features an extra-thin base made from an Alsace recipe. It is smothered in cool crème fraîche sauce then baked in a stone-bed oven and topped off with smoked pink salmon, hand-picked spinach and handfuls of grana padano cheese. This product is available in a 315g pack. Also available in this range is a Romagna Italian Stone Baked Pizza.

Recreating restaurant experience

• Although research for Mintel’s Eating Out Review – UK, July 2009 found that only around one in ten consumers are picking up more in-home meal deals (M&S Dine in for two for £10) now rather than eating out, there has been a strong trend for food retailers to directly try to gain market share in this area with ‘restaurant’-designed meal ranges.

Tesco Finest £5 chilled

Tesco Finest Restaurant Collection Breton Chicken is now available. The Finest Restaurant Collection is said to be crafted by a team of talented chefs using ingredients hand-picked for their quality and flavour, bringing the restaurant experience to the table. It is said the chicken is welfare-sourced and the eggs used in the recipe are free-range. This product is free from artificial colours and flavours and hydrogenated fat and retails in a 550g pack, which serves two. Also available in the range is Tesco Finest Restaurant Collection Chicken with Chorizo & Manchego Cheese, Chicken, Chorizo and King Prawn Paella, Slow Cooked Chianti Beef with Roasted Rosemary Potatoes; Slow Cooked Lamb Shanks with Roasted Vegetables; Slow Cooked Beef Ribs with a Sticky Bourbon Barbecue Glaze; and Roasted Pepper & Cream Cheese Pasta Tartlets with Basil Dressing.

Tesco Finest Restaurant Collection Baked New York Cheesecake with a Summer Berry Compote and Belgian Chocolate Tortes are also available.



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Schwan’s Consumer Brands £3.49 frozen

Chicago Town Takeaway Four Cheese Pizza has been repackaged in a 630g pack with a new convenient 'bake and serve' pan. The pizza contains four delicious cheeses with a tomato sauce-stuffed crust.

Tesco £5 chilled

Tesco Mega Meal Deal Pizza Meal Kit includes a Margherita Pizza, a 210g pack of Tesco Italian Garlic Baguette, Potato Wedges with a Sour Cream Dip and a 180g tub of Creamy Coleslaw. The food in this kit is free from artificial preservatives, flavours or colours and hydrogenated fat. This product is suitable for vegetarians and retails in a 1.02kg carton.

Key analysis: Whilst it is generally recognised that relatively few consumers actively buy retail pizzas instead of eating out in restaurants (due to the treat, relaxing and often spontaneous elements of eating out/ordering takeaways), pre-packed meal deals like the latest offering from Tesco are likely to cause price wars with restaurants’ traditional meal deal offers as they enable consumers to make more direct price comparisons.



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In-home pizza/pasta consumption FIGURE 15: TRENDS IN FREQUENCY AND USAGE OF FRESH OR DRIED PASTA AND NOODLES, 2005-09 Base: main shopper/all users aged 15+ 2005 2006 2007 2008 2009 % point change % % % % % 2005-09 All users 79.5 79.9 80.2 81.1 78.3 -1.2 Heavy users – More than once a week 23.8 22.8 22.6 24.4 25.8 +2.0 Medium users – Once a week 32.8 32.4 33.1 32.2 33.7 +0.9 Light users – 2 or 3 times a month or less* 43.4 44.8 44.3 43.4 40.4 -3.0 Non users 20.5 20.1 19.8 18.9 21.7 +1.2 * Includes not stated Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2005-09 (APR-MAR)/MINTEL

• Whilst dedicated pasta restaurants are no longer commonplace, Pizza Hut’s Tuscani pasta range, for one, is a clear example of how important menu diversification is in the pizza/pasta restaurant market.

• As families are a core target market, these venues need to appeal to a wide number of tastes, including those who don’t like their core product, as there are plenty of alternatives in the eating out market which can catering for multiple tastes eg pub catering. Moreover, as value for money and price comparisons are increasingly commonplace in consumers’ decision-making processes, operators need to ensure that they are offering consumers something more in their pasta dishes than consumers could recreate themselves at home for a quarter of the price the restaurant charges.

“Classics are good especially for children, but sometimes I begrudge paying so much money for something so simple and cheap to make.”


• Whilst overall pasta usage in home has declined, heavy usage has steadily increased with factors such as the recession driving its popularity as a cheap and easy-to-prepare meal. The overall decline, however, is linked to the increasing number of consumers self-diagnosing themselves as allergic to wheat or gluten: whilst it is expected that these people are more likely to be sensitive or intolerant, rather than medically allergic, it hasn’t stopped an increasing number of consumers cutting out these food groups and others such as dairy for personal dietary reasons.



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FIGURE 16: ALLERGIES SUFFERED PERSONALLY, ANOTHER MEMBER IN HOUSEHOLD, NOVEMBER 2009 Base: 1,044 adults aged 16-64 All adults % Hayfever/pollen allergy 26 Asthma 15 Dust/house mites 11 Pets 9 Other allergy (non-food) 8 Mould 4 Other allergy (food) 4 Dairy products (including eggs) 3 Fish/seafood 3 Nuts 2 Rubber 2 Metal 1 None of these 56 SOURCE: IPSOS MORI ONLINE/MINTEL – ALLERGIES AND ALLERGY REMEDIES – UK, FEBRUARY 2010

• Whilst such concerns are often overlooked when eating out (due to the treat element of the occasion), operators would do well to ensure that there are wheat- or dairy-free options for these consumers: these don’t have to be overtly labelled/marketed as such, in fact they are likely to be more appealing if they aren’t, as consumers continue to have preconceptions that free-from foods are bland and uninteresting.

FIGURE 17: TRENDS IN FREQUENCY AND USAGE OF PIZZA IN THE LAST 12 MONTHS (EXCLUDING TAKEAWAYS), 2005-09 Base: main shopper/all users aged 15+ 2005 2006 2007 2008 2009 % point change % % % % % 2005-09 All users 67.4 66.6 68.1 67.7 66.5 -0.9 Heavy users – Once a week or more 26.2 24.7 23.7 25.8 24.4 -1.8 Medium users – 2 or 3 times a month 26.6 27.0 27.7 26.7 27.8 +1.2 Light users – Once a month or less* 47.2 48.3 48.6 47.5 47.9 +0.7 Non users 32.6 33.4 31.9 32.3 33.5 +0.9 * Includes not stated Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2005-09 (APR-MAR)/MINTEL

• Like the pizza/pasta restaurant market, the in-home pizza market is largely promotion-driven, limiting the market’s growth potential as it is difficult to increase prices: Mintel’s Pizza – UK, June 2009 shows that four in ten adults buy pizza (retail) because it is not too expensive.

Key analysis: Whilst in-home pizza is no doubt cheaper than the out-of-home option, it does mean that consumers have to think ahead when making their purchasing decisions and it is this convenience aspect that the takeaway/home delivery pizza/pasta market trades on.

“When we buy pizza it is often the value cheese and tomato which we will then touch up with what extras we would like.”




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“I believe that supermarket pizzas are getting better, though I prefer the experience of going to a Pizza Hut.”


“I tend to eat takeaway pizzas as they are spur of the moment, don't know what to cook and I'm hungry type food for me.”


“The advantage of the takeaway is that you are choosing the topping you want as you are going to eat it but in supermarkets you are choosing in advance and can't predict what you will fancy in three days for example.”


“Supermarkets offer much better value by a long way.” – 45-54-year-old ABC1 male



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Strengths and Weaknesses in the Market Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Strengths and Weaknesses in the Market Strengths • As the recession has made consumers less adventurous in their purchasing decisions, the

pizza/pasta restaurant sector has been in a good position with its obvious menu choices and familiar products.

• The UK continues to be a convenience-driven society with spending priority surveys showing that going out and dining out remain consumers’ top spending priorities after paying household bills.

• Within the eating out market, the pizza/pasta restaurant sector also benefits from elements of theatre not so easily applied to other cuisine types, eg open kitchens to watch dough being tossed and the authenticity of wood-burning ovens as well as interactive and customisable elements such as self-service salad bars.

• The Saturday Night Effect has increased in 2009 with the strong TV scheduling allowing consumers to use the recession as an excuse, not just a genuine reason, to stay in instead of going out. Whilst this is good news for the takeaway/delivery sector, it obviously has more adverse affects for the dine in sector.

Weaknesses • Brand differentiation is a particular problem in the pizza/pasta restaurant market and an area that

needs significant investment going forward.

• Discount culture: Although price-led promotions have been key to maintaining footfall for many pizza/pasta restaurants during the recession, weaning consumers off of these going forward will be difficult as they are now used to paying lower average cheques for the same products.

• Emerging markets such as fast casual dining are an added competitor to pizza/pasta restaurants, and illustrate the fact that the mid-market is an increasingly segmented sector, increasing the need for pizza/pasta brands to reassert their position in the market either as value/low-cost operations or gourmet leisure experiences.

• The issue of nutritional content is arguably more of a concern to the pizza/pasta restaurant sector than many others due to the high fat/calorie content of the products on offer. If calorie labelling is made compulsory, it is likely that consumers will cut back on these restaurants and their products more than others as, for example, pubs offer a greater number of healthier options to balance the calorie content of the whole meal.

Strengths and Weaknesses in the Market Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Who’s Innovating? Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Who’s Innovating? Key points • Functionality is the key to maximising revenue from mobile phone and online orders.

• Many new menu additions demonstrate the demand on brands to focus on creating points of differentiation.

• Bundling launches have been increasingly popular during the recession and have been utilised to tap into consumers’ changing spending behaviour as well as general eating out habits.

Domino’s refit programme: ‘pizza theatre’ • In 2008, Domino’s announced its intention to invest in refitting its franchised stores in order to

make them stand out better on the high street.

• The refit programme employs strategies such as new signage and graphics to promote Domino’s key messages of freshness and quality as well as an increasing emphasis on lighting to ensure that the outlets are bright and welcoming.

• As part of this, illuminated LED ‘open’ signs have also been introduced in order to help communicate to consumers that the stores are open during the day as well as in the evening.

• Yellow is now being used alongside Domino’s traditional red, blue and white corporate colours in the external signage in an attempt to create greater impact, whilst the main entrance doors have been replaced with a new door in the design of a domino.

• Also central to the refit, glass panelling and ‘viewing steps’ have also been added in the customer areas in order to maximise the ‘theatre’ of pizza making and enable consumers to watch the pizzas being made, adding to the sense of transparency, with the intention of proving the quality of the product.

• Around 70 stores were refitted in 2009 with a further 100 outlets planned for redevelopment in 2010.

Mobile phone orders • Whilst various pizza/pasta companies already allow consumers to order dishes via mobile phones

(for example, Firezza offers a 25% discount for first-time mobile phone orders), in late 2009 Papa John’s took a further step to introduce the UK’s first dedicated mobile ordering site.

• The tool is thought to provide improved functionality and therefore efficiency to mobile phone ordering. Latest reports from Papa John’s show that 10% of its sales currently come from mobile phones whilst 26% of sales are made online (up 42% since 2008).

• In 2009 Pizza Hut launched an application in conjunction with Vodafone 360 so that users could download an application that allowed them to order a pizza and track its progress. A similar application has been launched with Pizza Hut and iPhone in the US.



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Event management • In summer 2009, Domino’s introduced its ‘store on wheels’, a new mobile unit designed to bring

the brand into the outdoor events market in the UK. The unit can produce 160 pizzas per hour and serves three topping options (Pepperoni Passion, Hawaiian and Cheese & Tomato) by the slice or as a whole pizza.

New menu additions • In May 2009 Strada introduced two new pizzas (including the Caprese, topped with plum

tomatoes, buffalo mozzarella, Parmesan, Parma ham and rocket).

• It also introduced two new risottos (including Risotto all Zucca – squash risotto with pancetta and spinach – and Risotto Cappesante – a fish-based risotto with pancetta, basil and scallops).

• New desserts included Torta di Ricolla and Cestino di frutti. However, at the start of 2010 Cestino di frutti had been dropped from the menu with further new menu additions including Pizza Bresaola (tomato, mozzarella, ricotta, sliced dry cured beef and rocket), Zuppa Pasta Fagioli (Tuscan soup of beans and pasta), Rigatoni Siciliana (pasta with roasted aubergines), Costata di Manzo (14oz rib eye steak) and Orato al Timo (bream).

• At the start of 2009 PizzaExpress introduced the Plum Baby organic food range on to its menus. However, the biggest launch of the year was its cross-brand development of the Leggera range of pizzas etc in conjunction with Weight Watchers.

• The pizzas are said to contain only around 500 calories and essentially have the middle section of the pizza removed and replaced with salad, therefore the product also benefits from being a bundled price as well as a low-fat option for consumers.

• Other latest additions to PizzaExpress’s menu included Al Tirolo (fontal cheese and mushrooms) on the Romana pizza menu, Contadina (torn chicken breast, spinach, red peppers) to the Leggera pizza menu and Zucchine Funghi (fontal cheese, mushrooms and courgette) to the regular pizza range. New starters/sides included formaggio bread (topped with fontal cheese and carmelised onions), rocket and pecorino salad and Arancini (risotto balls). New desserts included trio of profiteroles and Sotto Zero (low-fat frozen yogurt topped with blackberries). In spring 2009 PizzaExpress also launched the Dolcetti dessert/coffee range: ‘The small, perfectly formed desserts, each served with a choice of coffee, are just the right size for when you haven't quite got room for a full size dessert.’

Key analysis: The Dolcetti range should prove popular during the recession as bundling packages appeal to consumers’ demands for transparent pricing. However, is PizzaExpress making the most of the range? Is there potential to use products such as these as the hook to get consumers in at off-peak times of day and extend their use of the outlets?

• Pizza Hut introduced the £1.49 mini cheesecake range to its menus in 2009, alongside the Tuscani pizza (‘out thinnest, lightest, crispiest pizza base’) complementing the Tuscani pasta range which was launched in 2008.

• A new starter, Three Cheese Melts, was also introduced in 2009 as were main dishes of chicken and mushroom bake and Tori’s Tomato Pasta Bake: the latter was launched following the National Family Week recipe competition, with the winning recipe from Victoria Lester being praised for the hidden vegetable content.



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• In spring 2009 Pizza Hut also launched the new-look salad station, with promotional campaigns including Jean-Christophe Novelli’s limited edition luxury salad dressing (including gold and champagne). The modernised salad bar includes 25 new ingredients such as hummus and Moroccan couscous, and advertises a system of ‘lifestyle salads’: ‘Food For Thought’, ‘Naughty But Nice’, ‘Power Salad’, ‘Well-Being Salad’, ‘Low-Fat’ and ‘Revitalised’.

Key analysis: The use of visual shortcuts with the ‘lifestyle salads’ should prove popular considering the UK’s increasingly time-poor and bite-sized society.

Meanwhile, the introduction of the mini cheesecakes should also prove popular both in terms of it being low cost and low calorie for consumers (due to its size if nothing else). Whilst the ‘mini’ trend has been around for a while now, it is not totally widespread and should still have some potential growth.

However, it does also beg the question of what comes next in menu development if consumers start to acquire ‘mini’ fatigue? For example, whilst there are a number of venues that offer roast main courses to share with the whole table, whether two or 12 people, these are more commonplace as part of event/private dining, however, there would seem to be room in mid-market dining for bundling a package of desserts in this manner, eg apple pie with range of custards and creams for the table to share.

• Firezza has updated its menu with Foraccine (a side dish of homemade soft pizza bread) and the Mediterranea pizza (mozzarella, sun-dried tomato, Prosciutto cotto ham and excludes tomato sauce).

• In 2009 Papa John’s made the move away from frozen to fresh dough products, which fits in with its slogan of ‘Better Ingredients. Better Pizza’.

• Gondola’s 2009 Annual Statement outlined the effect of the ASK Italian trial on the overall menu of the ASK brand: for example, specials boards were introduced across the estate as were fryers in the kitchens to broaden the menus.

• In April 2009 the company also launched the takeaway range ASK to go. Other new menu additions in 2009 included the ASK burger, Rissotto Frutti di Mare, Pollo Marsala, Salmon Rustico and Ciabatta al Petto di Pollo.

• The starter selection was also modified with Antipasti Selezione, cod and pancetta fishcake and insalata pomodoro pesto, together with new salads included king prawn al limone piccante and insalata tricolore. New pizzas included Estiva (topped with baby mozzarella, prosciutto and rocket, the latter of which is added after cooking), Calzone con Carne Piccante, Banoffee pie, lemon tart and Chocolate Nemesis (a hot chocolate pudding were added to the dessert menu).

Key analysis: Menu expansion is a strong trend at present for the sit-down segment of the pizza/pasta restaurant market and understandably so considering the lack of differentiation between many of the brands. However, brands need to be careful not to venture too far into ‘jack of all trades, master of none’ territory.



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Pregnancy pizza • Eco restaurant, Clapham & Chiswick, launched a range of pregnancy pizzas in 2008 after a

number of pregnant women came into the restaurant with unusual requests. The ranges includes:

• Ice cream pizza: Mozzarella, tomato, caramelised banana, honey roast ham, dried sultanas and cranberries, fresh mint and dill and a scoop of pistachio ice cream

• Baked beans and sultanas: Mozzarella, tomato, baked beans, sultanas, okra, prunes, olives, capers, fresh dill, topped with fresh rocket

• Steak and Seeds: Mozzarella, tomato, grilled steak (well done), crispy pancetta, toasted sunflower seed

• Mozzarella and avocado: Bianco – Mozzarella, chopped tomato, fresh coriander, avocado, parsley and pumpkin seeds

• Grilled aubergine and lentil: Mozzarella, tomato, grilled aubergine, broad beans, puy lentils, baby spinach

• Fiorentina: Spinach, egg, onion, olives, mozzarella, tomato sauce, garlic and olive oil

• Fresh salmon and sour cream: Mozzarella, tomato, fresh salmon, sour cream, capers, dill, fresh watercress.

Market Size and Forecast Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Market Size and Forecast Key points • Whilst takeaway/home delivery operators have been posting strong like-for-like sales, dine in

operators have been struggling as families continue to rein in the expenditure on eating out.

• Market growth has slowed in recent years due to a number of factors such as market maturity, the recession and the strong reliance of the sector on the discount culture.

• Going forward market growth, particularly for dine in venues, will require significant investment as brand differentiation and market positioning pose continual problems.

Struggling dine in sector drags down overall market value FIGURE 18: UK PIZZA AND PASTA MARKET, 2004-14 Current prices Index At 2009 prices Index £m £m 2004 1,204 86 1,403 101 2005 1,278 92 1,446 104 2006 1,341 96 1,478 106 2007 1,394 100 1,487 107 2008 1,420 102 1,454 104 2009 (est) 1,394 100 1,394 100 2010 (fore) 1,406 101 1,359 98 2011 (proj) 1,451 104 1,362 98 2012 (proj) 1,501 108 1,378 99 2013 (proj) 1,549 111 1,387 100 2014 (proj) 1,602 115 1,398 100 SOURCE: MINTEL

• Whilst the pizza/pasta restaurant market has shown strong growth in recent years, the market value and operators’ margins have been affected due to the increased use of vouchers/discounts in this sector.

• The sector’s strong reliance on discounts during the recession could also be potentially damaging for future growth as consumers are likely to have become used to the lower costs and may well be unwilling to revert to previous cheque averages post-recession.

Key analysis: In order to combat this, pizza/pasta restaurants will need to focus on menu innovation in order to engage consumers as well as invest in communicating to consumers any price disparities which may have arisen. Menu developments such as more ‘coffee shop-esque’ offerings may also help the market by extending the types of meal occasions for which consumers use the venues (tapping into consumers’ snacking demands) as well as extending peak operating hours.

• In addition to increasing market maturity, the pizza/pasta restaurant sector is also likely to be affected by the government’s mounting focus on the nutritional content of out-of-home meals. Pre-emptive menu engineering will therefore be needed to ensure that consumers have options to balance out the calorie content of pizzas with the rest of their meals if the FSA’s plan for compulsory labelling goes ahead (eg diet drinks and low-fat sides and starters).

Market Size and Forecast Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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• The fact that various brands are now looking to widen their menus (eg the ASK burger) should help to shore up sales by appealing to more consumers (either in terms of age groups – eg older consumers tend to eat less pizza/pasta – or the increasing number of fussy eaters in the UK). However, brands will also need to work on communicating these changes to both current and potential users if the menu developments are to have a significant effect on market growth, after all addressing the problems of brand differentiation and market positioning are key concerns for the industry going forward.

• In the mean time, overall market growth with be driven by the flourishing takeaway/home delivery sector, which continues to gain market share during the recession.

Market Segmentation Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Market Segmentation Key points • A buoyant takeaway/home delivery market continues to overshadow the struggling dine in

sector.

• Whilst increased competition makes trading conditions continually tough for the dine in market, the takeaway/home delivery sector has benefited from being market leaders in online and mobile ordering opportunities compared to the rest of the eating out market.

FIGURE 19: FORECAST OF THE PIZZA/PASTA MARKET, BY SEGMENT, 2004-14 Takeaway/

delivery: Eat in:

Current prices

At 2009 prices

Current prices

At 2009 prices

£m Index £m Index £m Index £m Index 2004 614 83 716 97 590 90 688 105 2005 652 88 738 100 626 96 708 108 2006 690 93 760 103 651 100 717 110 2007 720 97 768 104 674 103 719 110 2008 748 101 766 104 672 103 688 105 2009 (est) 740 100 740 100 654 100 654 100 2010 (fore) 750 101 725 98 656 100 634 97 2011 (proj) 776 105 728 98 675 103 634 97 2012 (proj) 805 109 738 100 697 106 639 98 2013 (proj) 832 112 745 101 717 110 642 98 2014 (proj) 863 117 754 102 738 113 644 99 SOURCE: MINTEL

• As with the overall eating out market, it is the mid-market operators that have suffered the most during the recession, as its main consumers (families) are the demographics most likely to cut down on their eating out habits. Consequently it is expected that the eat in pizza/pasta restaurant sector will be hardest hit and experience contraction in 2009 and 2010.

• A buoyant takeaway market (particularly given the strength of Domino’s recent results) is set to offset some of the contraction in the overall pizza and pasta restaurant market.

• The pizza sector’s status as a leader in e-commerce within the broader eating out market has been central to growth for the market, with online sales now accounting for up to a third of some brands’ home delivery sales.

• The growth of internet portals such as just-eat.co.uk has also helped independent pizza/pasta restaurants enjoy a share of the online market.

• The ‘Saturday Night Effect’ has also helped drive sales at takeaway/home delivery operations as consumers increasingly use the recession as an excuse to stay in. Whilst it is difficult to gauge the potency of this factor going forward (as it is so dependent on TV scheduling), it highlights the fact that dine in operators need to be proactive in giving consumers a reason to eat out of home.

Market Segmentation Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Market Share Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Market Share Key points • Pizza Hut continues to dominate the market with over 700 outlets, although Domino’s isn’t

far behind with over 600.

• Pre-recession there was a strong demand for pizza/pasta restaurants leading to an abundance of supply and consequently resulting in poor brand loyalty during the recession from consumers.

• Most brands, particularly in the dine in sector, have reined in expansion plans during the recession although expansion is still evident with a few players, eg Papa John’s, which appears to have a clear strategy to gain greater market share.

FIGURE 20: TOP BRANDS AND OUTLET NUMBERS, 2008/09 Group Brand 2009 Gondola Group PizzaExpress 420 ASK 120 Zizzi 103 Domino's Pizza Domino's Pizza 608 Papa John's Papa John's 150+ Pizza Hut Pizza Hut Over 700 Prezzo Prezzo 137 Tragus Group Bella Italia 83 Strada 69 Pizza GoGo Pizza GoGo 95 Perfect Pizza Perfect Pizza 110 SOURCE: COMPANIES’ DOCUMENTS AND REPORTS

• The expansive estates of the top players in the market pose significant barriers to entry for new operators or the expansion of other brands already present in the market.

• However, creating genuine points of differentiation and focusing on communicating to consumers a distinct market positioning should help enable growth for these other operators: think of the current identity crisis of Pizza Hut compared to Papa John’s push to be noted for its ‘Better Ingredients. Better Pizza’ backed up by a marketing campaign that focused on highlighting consumers’ preference for its pepperoni pizzas over Pizza Hut’s.

Key analysis: Creating stronger market positionings and USPs is particularly important for ASK, Zizzi, Strada and Prezzo which all have similar outlet numbers and similar menu offerings at present. Whilst ASK, in particular, has attempted to update its menu following the ASK Central trial, the company has at present done little to communicate this to consumers through, for example, an image update, which means that current non-users won’t be aware of these new menu changes, such as the ASK burger, which might appeal to them.



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Outlet openings Gondola Holdings • In May 2008, PizzaExpress increased its portfolio of restaurants with the acquisition of the El

Torito restaurant in Surrey. PizzaExpress opened 12 restaurants in the UK during the six months from July 2008-January 2009.

• ASK Restaurants opened three new stores in the UK between July 2008 and January 2009: at Abingdon, Livingston and Epsom.

• Zizzi opened six new restaurants in the UK during the first half of the 2009 financial year (July 2008-January 2009).

• In its 2009 annual report, Gondola stated that its restaurant openings were sustained in 2009 with a total of 36 outlets (2008: 34), including 20 outlets being PizzaExpress brand, six ASK outlets and six Zizzi outlets.

Tragus Group • In the fiscal year ended November 2008, Pizza Hut opened four outlets, closed 15 and refranchised

11. It also opened 27 and closed eight franchises during the same period.

• For its financial year ending 24 May 2009, Tragus had opened 14 new restaurants (five Café Rouge, five Bella Italia and four Strada outlets) and planned a further 15 new outlets across the three brands in the following financial year, focusing on sites in travel hubs and central London.

Pizza Hut • In March 2009, Pizza Hut relaunched its restaurant in Swindon after investing £200,000 on its

refurbishment, as part of its overall £100 million investment in a six-year redevelopment programme.

• In 2009, Pizza Hut announced that it had put 30 of its high street restaurants up for sale so as to concentrate on its home delivery and retail park-based restaurants. The pizza chain is said to be planning an investment of £24 million to open 25 new branches and renovate 50 existing ones by 2011.

Prezzo • In the first half of 2008, Prezzo launched ten new sites and closed three underperforming stores. In

the second half of 2008, the company opened seven new restaurants and closed one store – totalling 17 new restaurants in the year and four closures.

• Prezzo closed three outlets in 2009 (all of which were subject to an impairment charge since 2008) and combined two branches in Lincoln into one larger venue. As such the brand didn’t open any new outlets in the first half of 2009, which is in line with its intentions outlined in its 2008 trading statement, although it has since opened one further outlet and is thought to be looking for sites for potential new outlets.



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Domino’s • During Q3 2009, the company opened seven new stores in the UK and Ireland bringing the total

number opened since the beginning of the year to 30.

• In February 2009, Domino’s announced that it expected to open 1,000 stores in the UK and Ireland over the next decade.

• In its Q4 2009 trading statement, Domino’s stated that it had opened a record 55 new stores in 2009 (2008: 52) and didn’t close a single outlet during that time. The Chief Executive, Chris Moore, was quoted as saying that: “in 2009, and in particular due to an exceptionally strong final quarter, we have outperformed our predicted like-for-like sales, improved our margins and opened more outlets than anticipated”.

Papa John’s • During the first half of 2009, Papa John’s added 17 new stores and said it planned to open 15 more

during the second half. As part of its expansion plans, the chain is targeting a total of 300 outlets by 2013.

• In its Q3 2009 trading statement, Papa John’s reiterated that it was accelerating its UK expansion going into 2010 following strong sales growth.

Key analysis: It is clear that the eat in segment of the pizza/pasta market has been struggling in recent years, particularly in comparison to the delivery/takeaway segment which, in contrast, has flourished during the recession. Going forward, new openings are likely to continue to revolve around the less costly format of delivery/takeaways as well as moving generally away from the competitive high street – consolidation continues to be a key buzzword in the pizza/pasta restaurants market, particularly for brands struggling to differentiate themselves from their competitors.



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Companies and Products Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Companies and Products Key points • Pizza/pasta restaurants have been particularly frequent distributors of price-led promotions

during the recession, prompting concerns for menu pricing in this sector going forward.

• As a lack of differentiation is a concern in this market, brands are investing in a number of areas to try to improve the situation, for example, Strada and Papa John’s have both launched new and improved websites in recent years.

• Expansion programmes have mostly been curtailed in this market. Even the big players who have continued with long-running openings despite the recession have been more focused on their site locations, for example, in areas of high footfall such as travel hubs, as the high street is an increasingly competitive marketplace.

Domino’s Pizza www.dominos.co.uk

• Domino’s Pizza Group Limited (DPG) is a wholly owned subsidiary of Domino's Pizza UK & IRL plc. DPG operates its own outlets in addition to a network of franchised pizza delivery outlets in the UK and Ireland. Established in the UK in 1985, Domino’s Pizza now operates around 608 outlets.

Financial performance FIGURE 21: FINANCIAL PERFORMANCE OF DOMINO’S PIZZA, 2007-09 System

sales E-commerce

sales Online orders Revenues Operating

profit Nine months ended September:

(m) (m) % of delivered sales

(m) (m)

2009 £294.5 £52.7 27.2 2008 £253.5 £37.6 22.6 % change 16.2 39.9 Year ended December: 2008 £350.8 £55.9 23 £123 £20.8 2007 £296.3 £32.2 16 £102.6 £15.7 % change +18.4 +73.7 +19.8 +32.3 SOURCE: DOMINO'S PIZZA ANNUAL REPORT 2008 AND 3RD QUARTER FINANCIALS PRESS RELEASE

• In February 2009, Domino’s Chief Executive, Chris Moore, stated that online orders had jumped by 74% with an average value 20% higher than for phone orders, which he attributed to a highly targeted online marketing campaign in 2008. Online sales grew to represent 23% of the company’s total orders in 2008 (2007: 17%).

• In October 2009, Domino’s e-commerce sales for Q3 rose 43.1%, similarly rising 39.9% in the first 39 weeks of the year. In the UK, online orders now account for 27.2% of delivered orders (2008: 22.6%).

• In the 13 weeks to 27 September 2009 Domino’s reported a 10.8% increase in year-on-year like-for-like sales, whilst like-for-like sales for the 39-week period rose by 8.3% (2008: 10.5%).



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• Over 2008/09 both sponsorship of TV shows such as Britain’s Got Talent and X Factor, as well as the outlet expansion with 52 new stores, has helped Domino’s achieve these growths in system sales.

Price promotions

• In June 2009, Domino’s Pizza launched a ‘Two for Tuesday’ promotional offer, which on every purchase of a medium or large pizza on a Tuesday gets the customer another of the same for free.

Other market developments/new developments

• In July 2008, Domino’s Pizza introduced a new ‘pizza theatre’ design across stores in the UK and Ireland to highlight the company's handmade pizza production process. The design was to be expanded across its 526 stores over the next two years.

• In February 2009, the company announced that it expected to raise its 2009 advertising budget by over a tenth to £20 million so as to cater to those budget-conscious Britons who expect to eat at home.

• In April 2009, Domino’s Pizza launched a nationwide competition to find a new pizza for its menus in 2010 as part of its sponsorship of ITV’s Britain’s Got Talent show. The winner would receive £10,000 and have their pizza added to the Domino’s menu at its 550 outlets across the country as the official 2010 Britain’s Got Talent pizza.

• In June 2009, Domino’s Pizza launched a new mobile unit to offer fresh and hot pizza at outdoor events across the UK. The mobile food unit is 11.5 meters long and weighs 14.5 tonnes and contains everything a typical Domino’s Pizza store has. The mobile unit has a production capacity of 160 pizzas per hour.

Papa John’s www.papajohns.co.uk

• Papa John’s UK, a subsidiary of Papa John’s International Inc, has around 150 outlets.

Financial performance

• In 2008, Papa John's UK accounted for 55%, or approximately $21.3 million (£11.6 million), of the company’s $38.7 million in international revenues.

• During Q1 2009, Papa John’s online orders were increased more than 55% over the same period in the previous year. During the same period, its like-for-like sales were increased by 8.5%.

Price promotions

• A few of the offers currently available include the following: a 25% discount on purchases of over £25 online; an XL Don Pepperoni pizza for £10.99; a medium pizza for £3 along with any pizza. At select Papa John’s outlets, a free small pepperoni pizza was offered with any pizza.


• In July 2008, Papa John’s announced that it would stop using frozen dough to make its pizzas. The company said it replaced the only pizza on its menu made from frozen dough with a thin crust product.

• In October 2009, Papa John’s announced an investment of £5 million towards a dough manufacturing facility in Milton Keynes in Q1 2010 in order to help with its proposed outlet expansion.



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• In the same month, Papa John’s launched a mobile web ordering, claimed to be the first in the UK. The platform offers features like geo-location, which locates the nearest outlet, and SMS confirmation. This platform was introduced based on changing customer ordering behaviour, with the pizza chain claiming that 10% of orders were from customer phones.

Perfect Pizza www.perfectpizza.co.uk

• Founded in 1982, Perfect Pizza operates 110 stores across the UK.

Price promotions

• In October 2009, Perfect Pizza launched a deal called Buy One Get One Later, as part of the company’s overall rebranding exercise: wherein customers buying one pizza can order a second pizza for £3 within seven days. The offer is said to be open till stocks last.

• When ordering online, the pizza chain’s website automatically lets the customer know when they are getting close to availing of a deal as well as how much they could save. If the customer is eligible for a discount, this is automatically registered as part of the bill. Anything over £20 gets a 20% discount. This feature is part of the company’s ‘Perfect Price Promise’.

• Other recent meal deals include The Big One Pizza Deal, which offers two large pizzas, chicken wings, potato wedges and garlic bread for £20. The Classic Pizza Deal allows customers to create their own pizzas with up to four toppings combined with a drink and side for £12.99.

Other developments

• In October 2009, Perfect Pizza launched after undergoing a rebranding. This new look was reflected on all of its leaflets, posters, point-of-sale material, discount cards, packaging and website.

• The company announced its intentions of introducing what it claimed would be the pizza industry’s first loyalty card. However, there was no mention of when this would be out.

• Introductions to the menu in 2009 included the Pepperoni Overload pizza, in addition to onion rings, Belgian waffles, Ribena, Lucozade Energy and Lucozade Sport. A range of personal pizzas was launched keeping lunchtime and children in mind; these pizzas were in the £3-4.15 price range and included pizza options like Cheese & Tomato and Sheer Perfection (pepperoni, mushrooms, green peppers, onions, sweet corn, ham, spicy pork).

Pizza GoGo www.pizzagogo.co.uk

Founded in 1987, Pizza GoGo operates 95 branches in the UK, which represents a growth of only five outlets since 2007.

• The brand offers fresh pizzas, salads, pastas, dips, drinks and desserts. The company also offers free home delivery service to most urban areas throughout England.



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Price promotions

• Recent special offers centre around meal deals and include, but are not limited to, 2’s Special (two medium, large or super large pizzas for £13.90, £16.90 and £18.90, respectively), Beat The Clock (a large pizza, spicy wings, garlic bread and 1.5-litre soft drink for £11.95 if ordered and delivered before 4pm), Big Deal (the same as Beat The Clock, but at a starting price of £14.95), Family Pack (a large pizza, two personal pizzas and a bottle soft drink, but no free toppings, for £14.95) and Lunchtime Special (available Monday-Thursday from 1130am-430pm and includes a large cheese and tomato pizza, garlic bread, two cans of soft drink).

• Pizza GoGo’s X-tra Value Deal includes a large pizza with free garlic bread and potato twisters for £11.95 and a super large pizza with the same accompaniments for £14.95.

Pizza Hut www.pizzahut.co.uk

• Pizza Hut has over 700 UK outlets.

Financial performance FIGURE 22: FINANCIAL PERFORMANCE OF PIZZA HUT, 2007 AND 2008 Revenues Operating profit/loss Net profit/loss (m) (m) (m) Year ended November: 2008 £358.6 £(8.3) £(11.9) 2007 £379.3 £0.5 £(7.3) % change -5.5 - - SOURCE: PIZZA HUT'S ANNUAL ACCOUNTS 2008 Price promotions

• Pizza Hut has At the Restaurant, Collection from Restaurants and Delivery & Takeaway deals:

• At the Restaurant price deals include a side dish or starter and Tuscani Pizza or Tuscani pasta for £8.99; two starters or side dishes, garlic bread, a large pizza plus either a medium pizza or sharing pastas and a large salad plate for £24.99 (with pizza) or £25.99 (with pasta).

• Its Collection from Restaurants deals include a medium pizza for £7.99 (saving up to £1.50); a large pizza, garlic bread or potato wedges, two sides or a 2-litre drink for £15.99 (saving up to £8.97).

• Delivery & Takeaway deals consist of pizza deals, pasta deals and combination deals. A small-group pizza deal is available for £12.99 for one medium Italian pizza, two side dishes or drinks (saving up to £8.97). The large-group pasta deal offers two Tuscani pastas, two classic sides or drinks for £20.99 (saving up to £10.97).

• Pizza Hut offers a weekday lunchtime buffet at £6.49 for adults and £3.49 for children and provides a side dish for £1.99.


• In 2008, Pizza Hut revamped its children’s menu and introduced dishes containing hidden vegetables in addition to offering a free child’s salad with every meal.



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• In March 2008, Pizza Hut was awarded the Best Family Restaurant by baby charity Tommy’s for the third consecutive year.

• In May 2008, the company introduced an online table reservation tool, making it easier to organise a night out with friends and family.

• In October 2008, Pizza Hut changed its name to Pasta Hut for a three-month period to promote the launch of a range of 12 Tuscani pastas.

• Also in January 2009, the pizza chain introduced the first phase of its menu transition, by introducing pizzas that it claimed were made completely with natural ingredients.

• In April 2009, Sony Pictures entered into a tie-up with Pizza Hut to promote the movie Terminator Salvation with the release of a limited edition pizza called Terminator Pizza, consisting of steak, pepperoni, ham, bacon and chicken. The pizza was available till mid-July.

• In July 2009, Pizza Hut launched a below-the-line promotion using cash machines through cash machine media provider atmAd – the company’s £4 ‘Happy Hour’ menu was printed on the receipts of consumers who withdrew cash around payday.

• In September 2009, Pizza Hut and blinkbox.com, an online film streaming service provider, entered into a partnership to offer a 20% discount on movies with every Pizza Hut Delivery order.

• In 2006 Pizza Hut launched a global sub-brand, PHD, aiming to target market share from delivery-centred brands such as Domino’s. Whilst currently only on trial in the UK and Ireland, globally PHD operates in 11 countries with over 50 outlets. The sub-brand has a more value positioning than its parent company and is aimed at younger clientele, projecting a more modern edge through free web access and iPod docks for customers.

Prezzo www.loveprezzo.co.uk

• Prezzo currently has 137 restaurants in the UK, with limited openings and a number of closures in recent years.

• In September 2009, as part of its interim results announcement, Prezzo claimed it had plans to open several new restaurants. This was after the restaurant chain announced in September 2008 a halt on new outlet openings as a result of the financial crunch. Prezzo also said that if it could find the funding, it would opt for a buyout, although this failed to materialise.



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Financial performance FIGURE 23: FINANCIAL PERFORMANCE OF PREZZO, 2007-09 Revenues Operating profit Pre-tax profit Net profit Half-year ended June: (m) (m) (m) (m) 2009 £43.7 £5.1 £5.1 £3.5 2008 £41.4 £5.1 £5.2 £1.6 % change 5.5 - -1.4 Year ended December: 2008 £85.9 £3.7 £3.9 £1.1 2007 £70.2 £7.3 £7.7 £5.0 % change 22.5 -49.3 -49.4 -78.0 SOURCE: PREZZO ANNUAL REPORT 2008 AND INTERIM PRESS RELEASE

• Interim results for the half-year to 28 June 2009 showed that Prezzo’s gross or restaurant profit was in line with the previous year at £5.9 million, although overall branch profit had decreased to 13.5% (2008: 14.3%).

• Whilst increased promotional activities are thought to have contributed to the brand’s increase in revenues, increased impairment charges and sales and administration expenses have had a negative impact on the company’s operating profit in recent years.

Price promotions

• In September 2009, Prezzo launched discount vouchers offering Christmas party menus for £15.95 and £18.95, an offer that expired on 25 December 2009. As part of these menus, the restaurant is offering the first glass of Prosecco for £1 as well as a discount of £1 per person on the stated menu if the party was planned before 7 December 2009.

• Other price promotions included discount vouchers that offered any two main meals for £10 at Prezzo. The offer expired on 18 October 2009.

Other developments

• In August 2009, BBC Olive Magazine revealed that, according to its study on best-quality pizza brands, Prezzo was rated as best pizza brand and ranked number one in the UK.

Key analysis: The cautious outlook of Prezzo’s management team seems well placed as the brand struggles to differentiate itself from the other big brands in the mid-market restaurant sector.



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Gondola Group Limited www.gondolaholdings.com

• Gondola Group is a UK-based casual dining group that operates the PizzaExpress, ASK, Zizzi, BYRON and Kettners chains as well as a number of smaller brands. The group has around 586 restaurants.

Financial performance FIGURE 24: FINANCIAL PERFORMANCE OF GONDOLA GROUP, 2002007 AND 2008 Revenues Operating profit/loss Net Profit/ loss Year ended June: (m) (m) (m) 2008 £461.7 £44.5 £(56.7) 2007 £228.5 £12.6 £(33.1) % change 102.1 253.2 71.3 Reasons for change Contribution of new openings SOURCE: GONDOLA GROUP 2008 ANNUAL REPORT

• New openings are thought to have contributed to Gondola’s revenue increases in recent years.

ASK Restaurants www.askcentral.co.uk

• ASK is a UK-based casual dining restaurant brand offering a range of pizzas, pastas and salads through its chain of 120 stores.

Price promotions

• ASK offered a main meal for just £1 when customers bought any other main meal in 2009. The offer was available from 13 October to 9 November 2009 and was valid between Sunday and Thursday every week.

• To kick off 2010, the restaurant chain’s new menu offers another deal that gives a main meal for free on the purchase of another main meal.

Other developments

• ASK launched a new menu in October 2008 that included the rollout of specials boards.

• Outlets opened by ASK Central since summer 2009 have been centred on the company’s rebranding strategy to ‘ASK Italian’. The new format is designed to be more flexible and to tap into the all-day dining trend, with new menu additions such as the new ciabatta sandwich range, which are served with chips. There are design changes, too, which aim to make it a more laid-back and personal concept; for example, traditionally ASK’s menus have been laminated, but at the new outlets they are printed on recycled paper. There are currently around 11 outlets of the ASK Italian brand, and it is thought that any new openings by the chain will follow this new branding format.



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PizzaExpress www.pizzaexpress.com

• PizzaExpress offers a range of pizzas, pastas and other food items through a chain of around 420 outlets in the UK.

• PizzaExpress opened 12 restaurants in the UK during the six months from July 2008-January 2009.

Price promotions

• PizzaExpress has launched various restaurant meal deals and two-for-one types of offers to subscribers during the recession. The brand has also implemented various cross-promotions between its retail and restaurant arms, for example, in April 2009, PizzaExpress added ‘two for one’ vouchers on 350,000 bottles of its salad dressing sold in supermarkets. The offer, worth approximately £9, is designed to increase customer numbers at its restaurants and offers two main courses for the price of one.

• During summer 2009 PizzaExpress gave £1 and £2 money-off vouchers to restaurant customers to redeem on its extended ‘At Home’ range of retail PizzaExpress products. In contrast to the brand’s general focus on price promotions during the recession in its restaurant operation, this cross-promotion involving the retail arm was designed to encourage trial and repeat purchases as well as act as a time-limited loyalty reward scheme.

£3.99 pack size 270g chilled environmentally friendly (recyclable) packaging

PizzaExpress Salami Toscana Pizza comprises a typical Tuscan combination of Finocchiona salami, caramelised red onions and Fontal cheese. This product is individually handmade and retailed in a 420g recyclable pack. Also available in this range is a Sienese Pizza with spinach and mascarpone. The product is suitable for vegetarians and is available in a partly recyclable 285g pack.


• In October 2008, PizzaExpress and Jazz FM joined forces to launch a number of jointly branded initiatives. PizzaExpress started broadcasting the Jazz FM radio station at its 300 restaurants effective from October 2008. The companies plan to release jazz compilation albums and stage live music events. The collaboration extends to their respective online platforms – Jazz FM’s music will be streamed live on the PizzaExpress website and each will provide links to the other's website.

• In February 2009, PizzaExpress, in collaboration with an organic food company – Plum Baby – expanded its menu range by adding organic baby food to it.



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• In spring 2009, PizzaExpress launched its new Pizza Leggera (light) range in its first co-branded collaboration with Weight Watchers. Leggera pizzas have around 500 calories and essentially are pizzas with the centre removed and replaced with salad. The range also includes starters and desserts.

• In late 2009 PizzaExpress announced that it planned to introduce a low-calorie wine onto its menus in order to complement its Leggera food range.

Zizzi www.zizzi.co.uk

• Established in 1999, Zizzi is a UK-based restaurant brand offering a range of pizzas, pastas, salads, drinks and desserts through its chain of 103 stores.

Price promotions

• As the part of Zizzi’s ten-year celebrations, the company is offering two main courses at £10 until 15 November 2009 and valid from Sunday-Thursday. The main course includes pizza, calzone, pasta, risotto and specials but excludes dishes from the mains section and takeaway.

Other developments

• In September 2009, Zizzi’s Extra Virgin Olive Oil was awarded a gold star at the 2009 Great British Taste Awards.

Tragus Group Ltd www.tragusholdings.com

• Established in 2002, Tragus Group is an independent restaurant operator in the UK with 275 outlets. Its portfolio of brands includes Café Rouge (106 outlets), Bella Italia (83 outlets) and Strada (69 outlets). Tragus Group is majority owned by private equity firm The Blackstone Group.

• Tragus opened 14 new openings in the year ending May 2009, including five Café Rouge, four Strada and five Bella Italia.

Financial performance FIGURE 25: FINANCIAL PERFORMANCE OF TRAGUS GROUP, 2007 AND 2008 Revenues Operating profit/loss Net profit/loss Year ended May: (m) (m) (m) 2008 £247.8 £0.2 £(35.9) 2007 £148.7 £2.9^ £(9.8) % change 66.7 Reasons for change Acquisition of the Italian restaurant group

Strada, with 55 sites including five Belgo restaurants

SOURCE: TRAGUS GROUP 2008 ANNUAL REVIEW AND 2008 ANNUAL ACCOUNTS

• Tragus’s Annual Report 2009 stated that the group had increased revenues to £ 261.9 million (2008: £247.8 million), however, like-for-like sales at its key brands were down 2.3%.



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Bella Italia www.bellaitalia.co.uk

• Bella Italia is an Italian restaurant brand offering classic pizzas and pastas as well as a range of grills, main courses, sandwiches and salads. Bella Italia operates around 83 restaurants in the UK.

Price promotions

• Bella Italia restaurants at York and Hatfield offer students a 50% discount on the food bill every Monday after 6pm. Bella Italia at Norwich Exchange Street offers the same discount for students on Monday and Wednesday nights.

• The Oxford branch of Bella Italia offers Oxford Council Employees a 20% discount on the food bill all day from Monday-Thursday.

Strada www.strada.co.uk Outlet numbers

• Strada is an Italian restaurants brand offering hand-stretched pizzas, fresh pastas, risotto and grilled meat and fish dishes through a network of 69 restaurants.

• In May 2009, Strada launched two new restaurants, one in Cobham, Surrey, and the other one in Stratford upon Avon, Warwickshire.

Price promotions

• In February 2009, Strada announced that it would be offering its customers dining vouchers for £5, £10 or £25 through its website. The company marketed these vouchers as ideal gifts.

• In October 2009, Strada launched a two-for-one promotion wherein customers could order two main courses for the price of one. Customers could obtain this deal, subject to certain conditions, by downloading the voucher from the website.

Other developments

• Strada launched a new website in February 2009, making the claim that it was more user-friendly and easier to navigate.

• In March 2009, Strada was placed top with a four-star rating out of five stars in pizza taste test organised by The Guardian. In the same month, the company’s recently launched website received four stars out of a possible five in Web User magazine's latest review.

• In May 2009, the company introduced its new menu with 12 new dishes. The new dishes include two pizzas, of which one is the Caprese (with a topping of plum tomatoes, buffalo mozzarella, Parmesan, Parma ham and rocket).

• BBC Olive Magazine named Strada as the UK’s second-best pizza chain after Prezzo in 2009.

Brand Elements Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Brand Elements This section analyses rational and emotional characteristics of pizza and pasta restaurant brands, from a consumer perspective, within their competitive context. Mintel also comments on the performance of selected brands which best illustrate the scope of the market.

Mintel has drawn insight from an independent survey, conducted by GMI on behalf of Mintel during December 2009, using a GB sample of 2,033 internet users, aged 16+. The survey examines seven main elements of brand evaluation (usage, consideration, satisfaction, commitment, loyalty, engagement and image). Further details are available on request through your account manager.

Key points • Half of consumers have been to pizza or pasta restaurants in the last 3 months, and these outlets

are generally popular as convenient, reasonably priced casual dining venues.

• Negative feeling is minimal – tackiness is the worst personality trait, and even then it is generally not a view held by many more than one in ten.

• Loyalty could be stronger, and is probably tied to the widespread perception that there is little differentiation between brands and menus. This is a concern that needs to be tackled above all.

• In general, younger consumers are more likely to use pizza and pasta restaurants, but more sophisticated mid-market brands do hold some appeal to older age groups.

• However, these are also the brands especially likely to lack differentiation – promoting different product propositions (particularly different menus between brands in the same group) is probably the best way to address this, and initiatives attracting the over-45s, in particular, are worth using.

Brand map The Mintel Brand Elements Map below illustrates a three-dimensional brandscape based on:

• Differentiation: an indication of vitality and profitability. Derived from agreement with the statement ‘a brand that has a distinctive image.’

• Trust: an indication of brand integrity and stature. Derived from agreement with the statement ‘a brand that I trust.’

• Experience: consumers who have ever used the brand, an indication of presence in the category.

This map gives a snapshot of the current strength and quality of selected pizza and pasta restaurant brands, where they are in their growth and how healthy they are.



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FIGURE 26: ATTITUDES TOWARDS AND USAGE OF PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: all internet users aged 16+ who have heard of the brand

Pizza Hut

Domino’s Pizza

PizzaExpress

Bella ItaliaASK

Zizzi

Strada

0102030405060708090

100

0 20 40 60 80Trust

Diff

eren

tiatio

n

Source: GMI/Mintel, December 2009

%

Bubble size: % ever visited

Big advertising budgets have much to do with distinctiveness in this market, with the two highest promotional spenders also the most differentiated. The sector as a whole is characterised by a perception of sameness according to Mintel’s consumer research (45% of pizza and pasta restaurant visitors feel there isn’t much between them), and this can be seen by the flatlining lack of differentiation between the smaller, arguably slightly less casual brands at the lower end of the chart. However, the most popular brands are reasonably well trusted, so the industry is not without affection.



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Brand qualities of pizza and pasta restaurant brands A warm welcome for all the family FIGURE 27: PERSONALITIES OF VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Domino’s

Pizza Zizzi Pizza

Hut Bella Italia

ASK PizzaExpress Strada Average

Base: all internet users aged 16+ who have heard of the brand

1,992 1,069 2,019 1,459 1,066 1,865 927

% % % % % % % % Accessible 31 11 37 12 14 21 7 19 Authentic 9 21 12 28 19 22 13 18 Boring 6 3 6 4 3 4 2 4 Convenient 46 7 43 11 12 25 8 22 Efficient 25 14 25 14 17 22 10 18 Family 33 15 59 21 14 30 10 26 Friendly 29 22 43 23 22 31 14 26 Fun 22 13 35 8 10 17 7 16 Healthy 4 8 10 13 10 11 7 9 Impersonal 9 4 9 3 3 4 3 5 Responsive 8 5 10 6 9 10 6 8 Special 7 18 11 22 17 15 11 15 Tacky 11 2 10 2 1 2 2 4 Tired 6 1 8 2 2 3 2 3 Traditional 12 13 21 30 14 22 13 18 Unappealing 11 3 9 4 3 5 4 5 Vibrant 9 19 13 10 15 13 8 12 SOURCE: GMI/MINTEL

• With eating out a universally popular activity, it is no surprise that a friendly atmosphere is of prime concern in this hospitality industry. Top brand Pizza Hut leads here, followed by mid-market major player PizzaExpress.

• Suitability for families is also a strong consideration, and again, casual slap-up specialist Pizza Hut has top spot in this respect. However, Domino’s is also strong at one in three (33%), possibly indicating a perception of particular propriety for in-home social occasions.

• Convenience is also a big driver – this isn’t generally a fine dining proposition, and significant travel to a restaurant is likely to be a negative. Unsurprisingly, delivery specialist Domino’s is best in this respect, allowing customers to stay at home.

• However, with three in ten (29%) consumers indicating a preference for premium genuine Italian influence in their pizza and pasta, the midmarket has at least one competitive edge – Bella Italia is easily the most authentic, followed by Zizzi and PizzaExpress.

• Overall, negativity is low – they may not be the healthiest of leisure options, but pizza and pasta restaurants are an affordable, enjoyable indulgence. None are either especially boring or tired.



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Experience of pizza and pasta restaurant brands Pizza specialists most popular FIGURE 28: CONSUMER USAGE OF VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: 2,033 internet users aged 16+

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Pizz

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Have visited in last 12 months Have visited more than 12 months agoNever visited but have heard of it Never visited and never heard of it


• Casual family brand Pizza Hut is by far the most commonly visited outlet, with more than four in five ever having been to one, well over half of these in the last year.

• Overall, pizza-led and pizza specialist brands are comfortably the most popular, perhaps due the common occurrence and ease of cooking pasta at home compared with scratch-cooking a pizza.

• Domino’s and PizzaExpress have a similar usage profile, although Domino’s has marginally higher penetration. Both are decreasingly popular as consumers age.

• The general Italian restaurants have significantly lower awareness than the pizza specialists and are accordingly less popular. However, this will be much to do with their far lower outlet numbers.



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Brand consideration for pizza and pasta restaurant brands Mid-market holds appeal, Pizza Hut off-putting FIGURE 29: CONSIDERATION OF VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: all internet users aged 16+ who have heard of, but never visited the brand

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I would consider it in the future M ight consider if I knew more about itI would never consider it Don’ t know


• Pizza Hut may be the most popular brand, but it is far more likely than any other brand to be anathema to the uninitiated. A colossal two in five (39%) wouldn’t go near.

• However, this is probably not for reasons of health concerns – Domino’s is noticeably worse in this respect, and Pizza Hut is no worse than average. Yet some do see it as tacky.

• Indicating a fondness for Italian cuisine in general, the mid-market chains all have fair consideration, although on a firm level no more than the mass popular Domino’s.

• That said, the majority of prospective customers for these brands need more information before visiting. Outlet visibility must therefore be improved, and local area advertising will be key.



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Brand satisfaction for pizza and pasta restaurant brands PizzaExpress best rated FIGURE 30: SATISFACTION WITH VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: all internet users aged 16+ who have ever visited the brand

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Excellent Good Average PoorUnsatisfacto ry I hate it Don’t know


• Although less popular through lower awareness, mid-market brands’ customers are most positive about their experiences. Around seven in ten give the thumbs up to PizzaExpress, Zizzi and ASK.

• However, reflecting the perception that most pizza and pasta restaurants are somewhat generic, the majority consider all brands, including these, to be ‘good’ rather than ‘excellent.’

• Though not an especially negative sector, the mass market brands (Pizza Hut and Domino’s) are slightly less warmly reviewed, with around two in five thinking them average or worse.



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Brand commitment to pizza and pasta restaurant brands Pizza Hut has most loyal customers FIGURE 31: COMMITMENT TO VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: all internet users aged 16+ who have ever visited the brand

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only brand I visit main brand, but sometimes visit o thersbrand I visit, but visit others as well only visit when I can’ t get to brands I preferno longer visit Don’ t knowSource: GMI/Mintel, December 2009

• With eating out as popular as it is and a myriad of cuisine and restaurant choices available, it is no surprise that repertoire usage is the norm in this sector.

• However, the pizza restaurants are much more likely to attract loyal custom, with around three in ten considering Pizza Hut a first choice brand, and two in five thinking the same about Domino’s.

• Although they have relatively strong satisfaction, the undifferentiated midmarket brands (Bella Italia, Zizzi, ASK, Strada) are most likely to have been ditched, or to be venues of last resort.

• While customer experience therefore seemingly can’t be a problem, their smaller size and accordingly lower accessibility means they fall down on convenience, a crucial trait in this sector.



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Brand intentions for pizza and pasta restaurant brands PizzaExpress has best retention, Pizza Hut close behind FIGURE 32: FUTURE USAGE INTENTIONS FOR VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: all internet users aged 16+ who have ever visited the brand

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Definitely no t Probably no t M ightProbably will Definitely will Don’t knowSource: GMI/Mintel, January 2010

• Matching its fair loyalty, PizzaExpress is marginally ahead of others in customer retention – seven in ten expect to go back.

• Meanwhile, reflecting its high popularity, Pizza Hut – as well as mid-market general Italian restaurant Zizzi – has next best retention, but more than one in ten have also been put off.

• A similar proportion doubt they’d go back to Domino’s – between these two brands, this suggests that the less ‘frilly’ dining experience is less likely than the mid-market to appeal universally.



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Brand recommendation for pizza and pasta restaurant brands Eat-in pizza specialists most recommended FIGURE 33: RECOMMENDATION OF VARIOUS PIZZA AND PASTA RESTAURANT BRANDS, DECEMBER 2009 Base: all internet users aged 16+ who have ever visited the brand

0102030405060

Domino’s Pizza

Zizzi

Pizza Hut

Bella ItaliaASK

PizzaExpress

Strada

Category average Recommendation

SOURCE: GMI/MINTEL



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PizzaExpress Background First started by Peter Boizot in 1965 when he took over the management of sole London

mozzarella maker Margaret Zampi’s restaurant, PizzaExpress, after lamenting that there were no good pizzas in the city following visits to Italy and Germany, where they were far more established. The brand also covers retail pizzas and salad dressings. Part of Gondola Holdings since 2003, alongside ASK and Zizzi.

Market positioning

Claimed to be ‘the nation’s favourite pizzeria,’ with well over 350 outlets across the UK. However, this is far fewer than dominant chains Pizza Hut and Domino’s.

What the consumer thinks FIGURE 34: ATTITUDES TOWARDS THE PIZZAEXPRESS BRAND, DECEMBER 2009

Brand attitudes towards PizzaExpress

01020304050607080

Worth paying more for

Trust

Socially responsible

Innovative

Great customer service

Good value

Good reputation

Distinctive image

Consistently high quality

Cares for the environment

Average PizzaExpress

Source: GMI/MINTEL, December 2009 Base: 1299 GB internet users 16+ w ho expressed a view

\

Personality: one of the more authentic brands, along with Zizzi, seen as such by 22%, but behind Bella Italia, but no more traditional than Pizza Hut.

Strengths

• One of the best reputed brands and almost half (49%) think it excels at customer service, although in both respects it is matched by the more casual Pizza Hut.

• Is overall the second most popular eat-in chain with 57% having visited (three in ten in the last year), though well behind Pizza Hut, and also slightly below Domino’s overall.

• One of the three best reviewed by customers (with Zizzi and ASK), although PizzaExpress has noticeably the highest rating of excellence.

• Similarly, PizzaExpress has top retention, at seven in ten, although a matching proportion of Pizza Hut customers definitely plan to return. Recommended by half of consumers.

• Women are much more likely to have visited recently than men (33% against 27%), the biggest margin of any brand. This may reflect the early 2009 launch of the healthier Leggera ‘diet’ pizza.



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Room for improvement

• PizzaExpress is eclipsed by the much more prevalent Pizza Hut, despite it being far more authentic, which is a significant concern for almost three in ten pizza/pasta consumers.

• The brand can is seen as one of the healthiest in a sector not associated with this attribute, and is correspondingly popular with women, who are most likely to look for low-calorie foods.

• This should give it a point of difference from Pizza Hut in traditional, quality ingredients and fresh cooking, compared with a perhaps perceived ‘processed’ image for the market leader.

• Currently, Pizza Hut is seen as equally traditional despite a much more casual proposition and atmosphere. PizzaExpress is a strong brand in the sector, but though perceived sameness is endemic, these two very different propositions should be better recognised, and this may need attention. However, it is not causing fundamental problems, and PizzaExpress’ place is secure.

ASK Background First launched by Adam and Sam Kaye in 1993, and expanded to nine outlets before being

listed on the AIM in 1995. It now has almost 120 restaurants in the UK, and has been owned by Gondola Holdings since 2004.

Market positioning

Midmarket ‘general Italian’ restaurant – ‘freshly prepared quality food in stylish and comfortable surroundings with friendly, efficient service.’

What the consumer thinks FIGURE 35: ATTITUDES TOWARDS THE ASK BRAND, DECEMBER 2009

Brand attitudes towards ASK

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Trust


Innovative


Good value

Good reputation

Distinctive image



Average ASK


Personality: comparatively vibrant, according to 15%, though not as much as sister brand Zizzi. 17% view it as a special brand, but it is neither especially convenient nor perceived as a family brand.



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Strengths

• Befitting its positioning, consumers see it as one of the more premium brands in the surveyed set, alongside Zizzi and just behind Bella Italia.

• 37% think it is worth paying more for, and almost three in five (58%) feel it offers consistently high quality.

• This is especially the case with consumers aged over 45, around two thirds of whom see it as high quality, and trust it. This is the strongest showing of any brand surveyed among this age group.

• With older consumers generally less likely to visit pizza and pasta restaurants than younger, this is key – visitors in this age group are also most likely to thumb ASK up than any other brand.

• Its sophisticated positioning is especially appropriate to the over-45s, and appealing to this group is a definite competitive advantage, well worth pursuing. Wine tasting and food matching evenings, or even a child-free night once a month, could do wonders.


• ASK’s chief issue is its comparative lack of awareness relative to the bigger brands, leading to much lower perceptions of accessibility and convenience, but this is inevitable with its size.

• Seen as a premium brand, it’s more of an occasional visit venue than a regular haunt, but with its apparent strongest appeal to the over-45 audience, this isn’t necessarily a bad thing.

• The challenge is to turn this to advantage and encourage brand loyalty in local catchment areas, maximising potential custom, which may best be done through reward schemes, or simply keeping menus and wine lists refreshed with new dishes or guest drinks. The industry-wide problem of lacking differentiation is a problem, but raising awareness of unique product offers could help.



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Domino’s Pizza Background Initially founded in the US by Tom Monaghan in 1960, who opened a family-run pizza

delivery business in Michigan state. Expanded rapidly, and first reached the UK in 1985, then Ireland in 1991. Across both the UK and Ireland, there are now more than 570 outlets.

Market positioning

Claims to be recognised as the world’s leading pizza delivery company. Specialises in ‘delivering hot and fresh pizzas’ but also cooks to order for takeaway.

What the consumer thinks FIGURE 36: ATTITUDES TOWARDS THE DOMINO’S PIZZA BRAND, DECEMBER 2009

Brand attitudes towards Domino’s Pizza

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Trust


Innovative


Good value

Good reputation

Distinctive image



Average Domino’s Pizza


Personality: most convenient, in line with its delivery business model (46%), and one in four think it is efficient. However, one in ten think it is both tacky and unappealing, and it is the least healthy.

Strengths

• Second most distinctive after Pizza Hut (64%), and also second best value. The only delivery specialist surveyed, but beating other eat-in venues suggests it is seen as leading this segment.

• One of the most prominent in mindshare – more than one in three (36%) who haven’t yet tried it would actively consider it, putting it alongside mid-market, very different eat-in brand Zizzi.

• Highly popular, with one in three having used it in the last year three in five overall. Especially keen are the 16-24 year-olds (54% within 12 months) and men (36% against 33% of women).

• Domino’s biggest emotional pull is on fun – one in five (22%) make this association, rising by ten percentage points among 16-24s, also probably attracted to some extent by its perceived value.

• The brand’s strength is on its convenient, sociable slap-up meal proposition, needing minimal planning to slot in as part of a casual evening with friends. It has long used this in its advertising strategy, and while it lacks sophistication, it knows its audience. Very strong in its area.



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• By nature, Domino’s can’t compare with the eat-in brands, and so it cannot be judged too harshly. However, there is an element of negative customer reaction, with 12% unlikely to use it again.

• It isn’t seen as healthy, and is probably tarred with a ‘junk food’ brush to a greater extent than many of the other brands in this market. Accordingly, it is unappealing for some – especially the over-45s (14%), but surprisingly more men than the typically more diet-conscious women.

• Domino’s is squarely aimed at younger, less health-conscious consumers who aren’t necessarily restaurant visitors, and its current strategy of regular special offers and advertising in relation to social occasions is sound. It does its job perfectly, and is in no danger at all.

Pizza Hut Background First opened in Wichita, Kansas, by Frank and Dan Carney in 1958, expanding to 1,000

outlets by 1972. Arrived in the UK (along with Japan and Canada) in 1973, with its first British outlet in Islington, North London. Has changed ownership several times through PepsiCo and Whitbread in the UK, but became part of Yum! Brands in 2006. Now has over 700 outlets (including franchises) nationwide.

Market positioning

Claims to be ‘the biggest pizza company on the planet,’ and the largest pizza restaurant chain in the UK.

What the consumer thinks FIGURE 37: ATTITUDES TOWARDS THE PIZZA HUT BRAND, DECEMBER 2009

Brand attitudes towards Pizza Hut

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Trust


Innovative


Good value

Good reputation

Distinctive image



Average Pizza Hut


Personality: most accessible and convenient (46%), most fun, friendly and best for families (33%). However, seen as tacky by one in ten.

Strengths

• Easily the strongest brand overall – most trusted, best value with best reputation and customer service. Recommended by over half of its customers, the most in the sector.



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• Has been visited by 85% of people, with well over half of these having been in within the last 12 months.

• The most loyal customers – 68% intend to return, half of these definitely, and relative to the rest of the sector it has quite strong commitment. Almost one in four (24%) consider it their main brand.

• The strongest difference in opinion of any surveyed brand between those with children under 16 at home than and those who don’t, especially in relation to friendliness, fun and, logically, family.

• As with Domino’s, particularly well-endorsed by the 16-24 year-old age group, within which there are also none who think it is unsatisfactory. However, its value perception is very similar across all age groups.

• Pizza and pasta restaurants are an affordable indulgence and one of the most definitively casual dining options available. Pizza Hut ticks all these boxes, and while slightly tacky, it does no harm.


• Pizza Hut’s key customers are under 25, and also parents with children at home. It’s not the choice for a smart dinner, and has historically been marketed on the basis of family sharing.

• Consequently, it doesn’t appeal to all, and a sizeable proportion (two in five) of those who haven’t been (84% of whom have no children at home) wouldn’t consider it.

• 2008 saw a slight blip in its partial rebranding in some areas to Pasta Hut, trying to promote its food offer and product range rather than its atmosphere and character. This isn’t what Pizza Hut is about, or at least not what it is perceived to be about – it represents a fun, affordable meal out for an exuberant crowd, and while it sticks to serving this audience, it can’t go far wrong.



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Brand Communication and Promotion Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Brand Communication and Promotion Key points • The first reaction of many companies across all consumer markets when the recession struck

was to reduce spending on all areas, including advertising. However, many soon reversed this decision after realising the importance of brand saliency during a recession.

• The ‘Saturday Night Effect’ increased in 2009 as consumers used the recession as an excuse to stay in.

• Frequently used marketing campaigns include competitions for diners to design a new dish, as well as ‘Who’s Better?’ campaigns that highlight the results of consumer taste tests.

FIGURE 38: ADSPEND OF SELECTED RESTAURANT CHAINS, BY CHANNEL, 2008/09 Direct

mail Door drops

Internet Outdoor Press Radio TV Grand total

£ £ £ £ £ £ £ £ ASK Restaurants - - 3,527 - 8,631 - - 12,158 Bella Italia - - - - 1,366 - - 1,366 Domino’s Pizza 3,417,459 3,160,492 108,211 105,144 840,249 125,938 2,747,778 10,505,271 Perfect Pizza Ltd 63,002 236,506 - - 20,178 744 - 320,430 PizzaExpress Ltd - - 7,860 16,632 88,299 708 - 113,499 Pizza GoGo - - - - 916 1,081 - 1,997 Pizza Hut (UK) Ltd

345,003 825,206 618,729 1,864,478 1,370,249 404,437 4,409,437 9,837,539

Prezzo - - - - 2,135 - - 2,135 Strada Restaurants

- - - - 6,040 - - 6,040

Zizzi – Pizza & Pasta Restaurants

- - - 707 1,653 - - 2,360

Grand total 3,825,464 4,222,204 738,327 1,986,961 2,339,716 532,908 7,157,215 20,802,795 SOURCE: NMR

• The first reaction of many companies across all consumer markets when the recession struck was to reduce spending on all areas, including advertising. However, many soon reversed this decision after realising the importance of brand saliency during a recession.

• For example, in February 2009 Domino’s announced its intentions to boost its advertising budget by over 10%: £15 million in 2007, £18 million in 2008 and £20 million in 2009). In part, the company has benefited from the recession in the sense that advertising rates have dropped.

• In summer 2009 Pizza Hut launched its latest below-the-line advertising campaign to promote its £4 ‘Happy Hour’ menu, through printed receipts from ATMs around payday.

The ‘Saturday night effect’ • The ‘Saturday night effect’ is thought to have grown in 2009 compared to 2008 in the delivery

market as the recession is used as an excuse to stay in. Delivery operators in particular have pointed to popular shows such as Strictly Come Dancing and The X-Factor as key factors in boosting sales during autumn 2009.



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• This effect was particularly welcomed by delivery operators as many families continued to rein in their expenditure on dine in restaurants during the summer holidays, resulting in lower-than-expected sales.

“At the moment my biggest time is spent at home chilling out and catching up with my TV shows.”


“Since the recession we have eaten out less…we prefer to eat in more now and buy ourselves a nice bottle wine from the supermarket.”


Creating the ‘Saturday night effect’ all year round

• In autumn 2009 Pizza Hut and blinkbox.com, an online film streaming service provider, launched a cross-brand development promotion which offered consumers a 20% discount on movies with every Pizza Hut delivery order. The promotion was launched with a co-branded site and with online advertising methods aimed to appeal to 18-30-year-old film and game enthusiasts.

Investment online • Engaging with consumers online has become increasingly important as takeaway/home delivery

builds its share of the market and ease of procurement becomes a key selling point for brands in this area. Whilst some brands, such as Strada, have relaunched websites in order to maintain a modern image in such a digital age, others have increased investment in technology-enabled ordering systems such as online portals and mobile applications in order to maximise e-commerce revenues.

What’s in a name? • Globally Pizza Hut appears to be undergoing something of an identity crisis in recent years: in

2008 there was the infamous ‘rebranding’ to ‘Pasta Hut’ (which turned out to be a temporary PR stunt to advertise the new pasta dishes), which was followed, in 2009, by tentative steps towards adopting the secondary branding mark of ‘The Hut’ in the US.

• Representatives for the US arm of the company claim that by encouraging the phrase to become part of common vernacular they are aligning the brand to today’s mobile generation and creating an emotional expression for the brand.

• However, the move has been widely lambasted as not only failing to increase brand saliency but also increasing the risk of consumer confusion over the brand’s identity: it’s particularly dangerous to move away from a long-established brand name during a recession which has driven consumers towards well-known branding as safe bets to spend their strictly budgeted money on. Furthermore, how far can Pizza Hut expect to take this ‘secondary branding’? After all, web domain names for ‘the hut’ have already been taken.



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Who’s better? campaigns • In the eating out market in general there appears to be a trend towards ‘who’s better?’ style of

advertising (sometimes referred to as ‘knocking’ campaigns): for example, Costa’s 2009 promotional material which centred around a survey which found that seven out of ten people preferred Costa Coffee to Starbucks.

• Such campaigns are also evident in the pizza/pasta market, for example, in September 2000 Papa John’s stores offered free Papa’s Pepperoni pizzas to all customers with a receipt proving that they’ve tried Pizza Hut Pepperoni Feast pizzas. This was to promote the results of an independent taste test which was said to show that Papa John’s version was better.

• This style of advertising was also utilised by the grocery brand Chicago Town which launched a £2 million marketing campaign in 2009 named ‘Tuck in Tonight’ with the aim of taking market share from delivery brands such as Pizza Hut and Domino’s. During the promotion, the brand’s previous tagline of ‘most people prefer’ was replaced with ‘voted tastier than Domino’s and Pizza Hut’ and was supported by a 100% money-back guarantee on over 1.2 million packs if customers disagreed. The national TV campaign ran for eight weeks.

Celebrity chefs • In 2008/09 the latest winner of Celebrity MasterChef, ex-Atomic Kitten singer Liz McClaron, was

drafted in to create a bespoke dish which hit Pizza Hut menus in January 2009. A percentage of the proceeds from the dish were donated to the United Nation’s World Food Programme.

• This use of celebrity was repeated by the brand later in 2009 when chef Jean-Christophe Novelli created a time-limited luxury salad dressing to promote the launch of the new-look salad station at Pizza Hut.

• PizzaExpress has used the notion of celebrity to boost its brand image twice in recent years: for the 2008 autumn menu head chef of the InterContinental hotel, Theo Randall, created a range of four speciality pizzas for the brand, whilst in 2009 Francesco Mazzei, proprietor of L’Anima, became the latest guest chef of the brand, creating two starters, a pasta dish and three pizzas inspired by the Calabria region in Southern Italy.

Key analysis: It is a sign of the times that PizzaExpress, which traditionally eschewed mainstream promotional strategies until 2001 and instead relied on word of mouth, is now one of the most active brands when it comes to innovative new advertising strategies – be it guest celebrity chefs or its latest venture with fashion powerhouse Betty Jackson which saw the brand net £80,000 for its chosen charity, Dress For Success.



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Pizza/Pasta Restaurants Visited Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Pizza/Pasta Restaurants Visited Key points • Usage declines with age, socio-economic group and lifestage.

• PizzaExpress tends to attract wealthier consumers than Domino’s or Pizza Hut.

• Parents with children under the age of 5 like the convenience of Domino’s whilst Pizza Hut appeals to those with children aged 10-15 who are looking for more of an overall leisure experience.

Mintel commissioned Ipsos MORI to conduct an exclusive survey for this report in November 2009. For the purpose of this survey 1,921 adults aged 15+ were interviewed. The first question asked, to determine pizza and pasta consumption patterns, was:

“Which of the following pizza and pasta restaurants, if any, have you eaten in or bought a takeaway or home delivery from in the last three months? If you don’t use pizza or pasta restaurants or takeaways at all, please also say so.”

FIGURE 39: VISITED PIZZA AND PASTA RESTAURANTS IN THE LAST THREE MONTHS, NOVEMBER 2009 Base: 1,921 adults aged 15+ % Pizza Hut 21 Domino's Pizza 14 PizzaExpress 12 General Italian restaurant 9 Other restaurant selling pizza/pasta (eg pub, sandwich bar) 6 Other specific pizza outlet 6 Zizzi 3 ASK 3 Bella Italia 3 Prezzo 2 Other specific pasta outlet 2 Papa John’s 2 Caffè Uno 2 Pizza GoGo 1 Strada 1 Perfect Pizza 1 Have eaten at pizza restaurants/takeaways but not in the last 3 months 6 Have eaten at pasta restaurants/takeaways but not in the last 3 months 5 Do not use pizza restaurants/takeaways 19 Do not use pasta restaurants/takeaways 24 None of these 18 Don’t know 1 SOURCE: IPSOS MORI/MINTEL

Pizza/Pasta Restaurants Visited Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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• Pizza/pasta restaurant usage declines with age, socio-economic group and lifestage: for example, Pizza Hut and Domino’s usage peaks amongst 15-24-year-old, C1 and pre-/no family users, whilst PizzaExpress users tend to be wealthier (ABs earning £50K+) aged 15-24, pre-/no family users.

• Usage is also influenced by the presence of children with Pizza Hut users having children aged 10-15 and Domino’s users having children in the household aged 0-4: the family-oriented nature and meal deals associated with the former are likely to be the appeal for those with older children, enabling the pizza/pasta restaurant to be a leisure activity in itself or as part of an outing to the cinema.

• Meanwhile the delivery and therefore convenience aspect of Domino’s appeals to parents of younger children more as they tend to be more housebound, eg in terms of how early the child needs to be in bed.

• Women are more likely than men to say that they don’t use pizza/pasta restaurants.

Frequency of Visiting Pizza/Pasta Restaurants Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Frequency of Visiting Pizza/Pasta Restaurants Key points • Men are more frequent users of pizza/pasta restaurants than women, whilst the most

frequent users generally are aged 15-24, single and in the pre-/no family lifestage.

• Their limited menus in themselves restrict how frequently consumers use pizza/pasta restaurants: sectors such as pubs garner more frequent visits with menus which are varied in meal type as well as cuisine type eg baked potatoes and sandwiches as well as full main meals.

Respondents were then asked:

“Thinking about how often, if ever you eat in pizza and pasta restaurants, which ONE of these most accurately describes your eating out habits?”

FIGURE 40: FREQUENCY OF VISITING PIZZA AND PASTA RESTAURANTS, NOVEMBER 2009 All Those who have been to pizza/pasta

restaurants in last 3 months Base: adults aged 15+ 1,921 968 % % Most days - 1 At least twice a week 2 3 About once a week 4 7 About once a fortnight 6 11 At least once a month 14 26 At least once every three months 14 25 Less than once every three months 22 21 Never 36 5 Don’t know 1 - SOURCE: IPSOS MORI/MINTEL

• Men are more frequent users of pizza/pasta restaurants than women, whilst the most frequent users generally are aged 15-24, single and in the pre-/no family lifestage.

• The limited menu of pizza/pasta outlets is a barrier for more frequent usage: for example, other sectors, such as pubs, generally achieve more frequent visits due to their diverse menus both in terms of cuisine type and meal occasion range allowing consumers to justify frequent visits more easily, in terms of both price and nutritional value.

Key analysis: Mintel’s Eating Out Meal Occasions – UK, October 2009 shows that nearly a third of consumers have gone to a restaurant/café in the past three months for a coffee/afternoon tea. With products like its new Dolcetti range (dessert and coffee combinations), brands like PizzaExpress are already well placed to take market share from coffee shops and appeal to the yummy mummy and ladies that lunch crowd with their indulgent range of desserts and coffees.

Frequency of Visiting Pizza/Pasta Restaurants Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Attitudes towards Pizza/Pasta Restaurants Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Attitudes towards Pizza/Pasta Restaurants Key points • Pizza/pasta restaurant/takeaway usage declines with age, lifestage and socio-economic status.

• A third of consumers (and nearly half of regular users) think that menus are pretty much the same at all takeaway pizza and pasta places.

• Only one in ten consumers (or a fifth of regular users) view pizza/pasta takeaways as good value for money, while only 16% of consumers (or a quarter of regular users) think pizza/pasta restaurants are good for a special occasion or as a treat.

Finally, respondents were asked:

“Which of these statements about pizza and pasta restaurants and takeaways, if any, do you agree with?”

FIGURE 41: ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, NOVEMBER 2009 All Those who have been to pizza/pasta

restaurants in last three months Base: adults aged 15+ 1,921 968 % % Menus are pretty much the same at all takeaway pizza and pasta places

34 45

I like the flexibility of being able to choose my own toppings when ordering pizza

26 40

I prefer the authentic or premium Italian pizza/pasta 19 29 I like the ‘self-service’ salad bars 18 28 Pizza/pasta restaurants are good for a special occasion or as a treat

16 25

I like to take advantage of special promotions 16 26 I prefer to buy pasta/ pizzas at the supermarket 12 11 Pizza/pasta takeaways are good value for money 11 18 I always look for new types of pizza (eg twisted crust, toppings)

7 12

I have ordered pizza/pasta via digital TV/internet/WAP mobile phone

5 9

None of these 28 4 SOURCE: IPSOS MORI/MINTEL

• Although few people use supermarket products as direct alternatives to pizza/pasta restaurants/takeaways, the fact that relatively few consumers see the foodservice operators as good value is a distinct problem for the market bearing in the mind the vast array of alternative eating out options, particularly with the growing number of fast casual outlets such as Nando’s and Wagamama.

• The sector’s reliance of discounting during the recession will do nothing to help this image of poor value for money as consumers grow increasingly used to paying less in restaurants.



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Demand for more adult-friendly venues • Pizza/pasta restaurants have been criticised for too much of a focus on catering for the masses,

with the result being that around a third of consumers, and nearly half of regular users, think that menus are pretty much the same at all takeaway pizza/pasta places.

• Added to the fact that only 16% of consumers (or a quarter of regular users) think pizza/pasta restaurants are good for a special occasion or as a treat, it would certainly seem that these operators have lost their shine other than as a meal replacement exercise.

“Absolutely good spacing is necessary, and very controversially I would love to be able to go to an adult-only section. Children are wonderful but not when they are running around all over the place when I am trying to eat and have a conversation. I am an old fuddy duddy and have this strange notion that mealtimes are not play time.”


“Me too…although I have children, who I do not let run around, my husband and I like to have some me time now and again, so we do not want to be squashed next to someone else's children. Restaurants should be more considerate to this.”


Key analysis: Whilst much of the pizza/pasta restaurant market has focused on capturing the family market over a number of years, this pool of potential diners has been drying up during the recession as families make the most cutbacks. As such operators may do well to re-focus their positioning as being more adult-friendly, for example by adding more expansive specials boards which tend to be popular with older consumers (see Mintel’s Menu Flavours – UK, December 2008).

Impact of age on consumers’ preferences for customisation • A quarter of all consumers, and four in ten regular users, like the flexibility of ‘create your own’

style dishes in pizza/pasta restaurants.

• Demand for dish flexibility and customisation decreases with age, socio-economic group and lifestage, reflecting how older, more experienced diners place their trust in the establishment’s skills at picking the best dish compositions.

• The popularity of self-service salad bars also decreases with age and lifestage (preferred by 15-24-year-old C1s) for similar reasons.

Retail versus restaurant • Whilst supermarket ready meals etc do act as alternatives to eating out for some consumers

(notably families with 10-15s – Pizza Hut’s core demographic – and third age singles), the majority of consumers don’t compare the two, with the whole point of eating out or ordering a takeaway being the convenience and leisure factors.

• This is in line with findings from Mintel’s Eating Out Review – UK, July 2009, which shows that only around one in ten consumers buy in-home meal deals (eg M&S Dine in for Two for a Tenner) instead of eating out, suggesting that these in-home retail options tend to be used as a way of consumers upgrading their usual grocery shopping rather than replacing their leisure habits.



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“I love these offers for the wine...We do not use these as an alternative to our weekend takeaway, but use them in the week and store the wine away to have with our takeout.”


Point of order FIGURE 42: TRENDS IN ACCESSING INTERNET VIA MOBILE PHONE, 2007-09 Base: adults aged 15+ 2007 2008 2009 % point change % % % 2007-09 Through a mobile phone: Any 8.7 9.9 12.1 +3.4 Regularly 1.6 1.5 3.1 +1.5 Occasionally 7.2 8.5 9.0 +1.8 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2007-09 (APR-MAR)/MINTEL

• Although at present online and mobile ordering remains relatively niche, as consumers become increasingly used to accessing the internet via mobile phones, delivery operators will need to ensure that the functionality of their sites ensures that tech-savvy consumers do not find it laborious and switch to another operator. Therefore, investment in this area should be a key area for delivery-focused brands.

• Domino’s trading statements are evidence of the importance of the e-commerce channel to the takeaway market in particular.



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Pizza/Pasta Restaurants’ Targeting Opportunities Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Pizza/Pasta Restaurants’ Targeting Opportunities Key points • A fifth of consumers are On-the-fencers when it comes to pizza/pasta restaurants, using

pizza/pasta restaurants but showing little enthusiasm for them as they think their menus are all the same.

• As such the market will struggle to achieve significant growth rates in the future if they remain little more than cheap meal replacements for consumers when the discount vouchers are circulating.

• Family Feasters are a hot target market for pizza/pasta restaurants, however, venues will need to ensure that they offer flexible menus to give opportunities for more frequency usage: eg think of how pub menus offer light dishes such as jacket potatoes and sandwiches in order to appeal to those eating outside of the traditional lunch/dinner hours.

Mintel created five target groups based on their attitudes towards pizza/pasta restaurants: FIGURE 43: PIZZA/PASTA RESTAURANT TARGET GROUPS, NOVEMBER 2009 Base: 1,921 adults aged 15+

Family Feasters 14%

Pizza No No28%

Tech-savvy Pizza Enthusiasts

12%

On-the-fencers20%

Supermarket Alternatives26%

SOURCE: IPSOS MORI/MINTEL

Family Feasters (14% of respondents) Usage of pizza/pasta restaurants: Mainly visit PizzaExpress and general Italian restaurants, they also show the highest use of Zizzi compared to the other target groups.



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Attitudes towards pizza/pasta restaurants: Majority of this group eat in pizza/pasta restaurants less than once every three months, although they are also the group most likely to say that they eat in these venues about once a week.

Demographic characteristics: Aged 35-44, AB, living as married, family lifestage, Wealthy Achievers and Comfortably Off, working mothers.

Marketing message: Nutritional information and quality ingredients will be the key to targeting this group, with a strong children’s menu a must.

Pizza No No (28% of respondents) Usage of pizza/pasta restaurants: The majority of this group never use pizza/pasta restaurants.

Demographic characteristics: Over-65s, socio-economic group E, retired, no children in household.

Marketing message: This is a cold target group.

Tech-savvy Pizza Enthusiasts (12% of respondents) Usage of pizza/pasta restaurants: Group most likely to use Pizza Hut and Domino’s.

Attitudes towards pizza/pasta restaurants: Strongest response to all statements eg group most likely to have ordered via digital TV/internet/WAP mobile phone and are particularly fond of promotions and self-service salad bars.

Demographic characteristics: Aged 15-24, ABC1, pre-/no family, single.

Marketing message: Continual promotions and innovations will be the key to holding the attention of these novelty-hungry consumers. With their familiarity with technology, these consumers are likely to be drawn to promotions such as offering free music or game downloads as part of a loyalty scheme (an extension to the idea of toys in Happy Meals etc).

On-the-fencers (20% of respondents) Attitudes towards pizza/pasta restaurants: All of these consumers agree that menus are pretty much the same in all pizza/pasta restaurants.

Demographic characteristics: Aged 15-24 and 35-44, pre-/no family and family lifestages, Moderate Means and Hard Pressed.

Marketing message: These consumers use pizza/pasta restaurants but they’re certainly not enthused about them due to the lack of differentiation between brands in the market at present. Operators need to start targeting particular demographics more specifically in order to ensure that they are not in the situation where they are trying to appeal to so many different demands that in reality they are pleasing no one.



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Supermarket Alternatives (26% of respondents) Attitudes towards pizza/pasta restaurants: This is the group most likely to buy supermarket alternatives although they also show strong responses to statements such as the fact that they like the flexibility of being able to choose their own toppings and that they view pizza/pasta restaurants as a treat/special occasion.

Demographic characteristics: Aged 15-34, pre-/no family single, part-time employment.

Marketing message: Communicating the experience and theatre of eating out will be the key to attracting these consumers. Mintel’s The Theatre of Eating Out – UK, April 2009 shows that these younger age groups are attracted to the entertainment value of eating out venues such as displaying food preparation, live music and personal touches such as meeting the chef for personal recommendations.



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Appendix – Internal Market Environment Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Appendix – Internal Market Environment FIGURE 44: ATTITUDES TOWARDS SELECTED LIFESTYLE STATEMENTS, BY DETAILED DEMOGRAPHICS, 2009 Base: adults aged 15+ I wouldn't

let my children eat junk

food

I don't have time to spend preparing

and cooking

food

I like to eat

takeaway meals

I like to treat

myself to foods that

are not good for

me

I like to try new recipes

I would never buy food that has been

genetically modified

% % % % % % All 26.8 14.2 46.1 47.6 61.9 31.1 Gender: Men 26.8 16.6 49.4 46.5 58.0 28.0 Women 26.8 11.9 43.0 48.7 65.6 33.9 Age group: 15-24 24.0 19.3 66.5 62.8 67.4 21.0 25-34 29.4 16.6 62.8 62.3 72.1 27.6 35-44 25.0 16.0 58.0 53.6 65.7 31.7 45-54 21.8 13.9 46.3 44.5 62.4 33.3 55-64 29.5 11.4 30.7 35.5 57.3 35.8 65+ 30.7 8.9 16.5 29.5 49.0 36.0 Socio-economic group: AB 31.5 13.3 43.7 46.6 66.9 34.8 C1 26.7 13.9 47.4 49.6 63.9 31.7 C2 25.0 16.0 48.8 49.0 61.4 29.1 D 23.4 15.0 47.8 46.1 54.6 27.2 E 22.9 12.7 39.6 43.1 53.9 28.4 Presence of children: Under 1 year 37.0 16.9 72.3 65.2 67.9 24.0 1-4 years 27.7 14.6 63.1 61.8 70.4 27.9 5-9 years 25.0 14.1 61.3 52.9 66.7 29.2 10-15 years 20.7 16.5 57.5 50.4 64.0 28.8 No children in household 27.5 13.7 39.4 43.7 59.5 32.4 Marital status: Single 22.3 18.0 57.2 55.5 63.6 25.3 Married/living as married 28.7 13.1 45.5 46.5 63.2 32.2 Separated/divorced/widowed

26.4 12.6 29.3 38.5 53.5 36.2

Working status: Full-time 25.9 19.0 56.2 54.0 65.2 28.9 Part-time 26.5 14.2 50.3 50.9 66.4 32.1 Not working 27.6 10.7 37.1 41.7 58.0 32.4 Household size: 1 person 24.9 14.6 32.2 42.5 54.1 34.2 2 persons 28.8 12.0 37.3 42.5 60.5 33.5 3 persons 28.2 15.4 53.2 51.5 65.3 29.2 4 persons 25.1 14.7 60.4 55.8 65.9 27.5 5 persons+ 23.1 18.7 59.0 50.8 65.6 27.8



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Region: Greater London 31.4 13.7 43.7 43.8 66.1 31.9 South East/East Anglia 26.4 13.9 45.6 48.3 63.5 32.0 South West 30.8 12.9 41.7 46.5 64.0 34.1 Wales 27.5 13.2 47.4 45.6 59.8 31.5 East and West Midlands 24.6 15.4 46.1 48.2 59.0 30.2 North West 27.9 17.3 46.0 50.7 61.4 31.4 Yorkshire and Humberside 24.7 14.2 48.7 48.8 62.0 30.0 North 24.1 14.5 50.9 46.8 58.0 27.0 Scotland 23.5 11.7 49.5 48.0 59.4 28.7 Lifestage: Pre-/no family 25.2 18.9 62.1 59.7 67.6 25.9 Families 26.7 15.0 59.9 56.2 68.2 29.5 Third age 25.7 12.6 37.0 39.4 59.0 34.4 Retired 30.7 8.9 16.5 29.5 49.0 36.0 Special Groups: ABC1 pre-/no family 26.5 18.1 60.7 62.2 70.5 26.6 ABC1 family 30.3 13.8 58.4 56.2 71.0 34.3 ABC1 third age 27.5 11.9 36.8 38.8 62.8 35.8 ABC1 retired 32.3 9.0 17.1 28.7 53.0 37.6 Two full-time earners 26.2 15.5 56.6 54.1 69.0 30.0 One-person households under 65

23.5 18.4 45.2 50.9 60.1 32.3

Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2009 (APR-MAR)/MINTEL FIGURE 45: ATTITUDES TOWARDS SELECTED LIFESTYLE STATEMENTS, BY DETAILED DEMOGRAPHICS, 2009 Base: adults aged 15+ I buy free-

range products whenever

I can

In my home we spend a

lot of money on

food

I avoid sugar

I avoid fats

I always choose

light food

I tend to eliminate meat from

my diet

% % % % % % All 43.2 48.7 36.0 40.4 20.1 12.9 Gender: Men 38.2 47.9 32.6 36.3 13.3 9.8 Women 48.0 49.5 39.2 44.3 26.5 15.9 Age group: 15-24 31.9 50.5 18.8 24.5 16.2 12.5 25-34 43.7 52.3 26.2 31.5 17.3 13.1 35-44 43.9 52.6 33.1 36.8 14.6 12.5 45-54 41.6 51.2 41.0 44.0 18.7 12.5 55-64 47.2 45.0 46.4 50.8 21.7 14.0 65+ 50.0 41.5 48.5 53.2 30.4 13.0 Socio-economic group: AB 53.5 54.2 40.8 45.2 19.1 13.7 C1 43.7 47.8 35.0 40.0 20.2 13.1 C2 38.6 49.3 34.9 38.6 19.5 12.1 D 33.3 44.3 30.5 36.4 20.5 11.5 E 38.5 40.4 36.3 38.1 23.5 14.5



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Presence of children: Under 1 year 36.6 64.3 24.8 33.1 12.6 7.8 1-4 years 41.1 60.4 27.6 31.6 15.0 11.3 5-9 years 37.6 58.2 29.6 33.9 15.2 10.7 10-15 years 36.4 57.9 29.4 33.7 16.2 11.7 No children in household 45.4 44.1 39.6 43.8 22.3 13.7 Marital status: Single 36.7 42.4 26.2 30.5 18.5 14.2 Married/living as married 45.1 55.6 37.7 42.2 18.7 11.8 Separated/divorced/widowed 46.6 30.1 45.5 49.8 28.7 15.2 Working status: Full-time 41.0 50.9 32.8 36.9 14.8 11.3 Part-time 45.4 48.9 33.2 38.5 19.7 14.2 Not working 44.2 47.0 39.3 43.7 24.1 13.7 Household size: 1 person 47.5 26.1 43.6 47.6 26.7 16.2 2 persons 47.5 47.9 40.3 44.4 20.9 12.4 3 persons 42.0 52.2 31.6 36.9 18.4 11.6 4 persons 38.1 58.5 30.2 33.6 16.3 12.6 5 persons+ 33.1 63.0 27.9 34.5 17.0 12.4 Region: Greater London 44.5 49.9 34.4 40.5 22.6 16.8 South East/East Anglia 45.3 47.9 36.4 42.6 20.0 11.7 South West 48.6 44.4 38.3 43.7 19.5 11.2 Wales 43.4 49.1 38.0 41.7 23.6 12.2 East and West Midlands 39.6 49.0 36.2 39.9 19.3 12.7 North West 44.2 47.3 36.8 40.4 21.3 13.5 Yorkshire and Humberside 41.1 50.0 34.8 36.9 16.0 13.2 North 38.6 49.1 31.5 35.2 19.7 12.0 Scotland 41.0 52.9 35.6 37.6 19.7 12.5 Lifestage: Pre-/no family 39.4 46.5 24.7 29.1 16.4 14.1 Families 40.8 58.7 30.1 34.9 15.8 11.6 Third age 44.7 45.6 44.6 48.4 20.7 13.1 Retired 50.0 41.4 48.5 53.2 30.4 13.0 Special Groups: ABC1 pre-/no family 46.1 49.4 26.3 31.7 15.8 15.2 ABC1 family 46.9 60.4 32.3 37.4 15.3 12.1 ABC1 third age 49.5 47.8 47.8 51.0 20.1 13.9 ABC1 retired 52.5 42.9 49.1 54.2 30.8 12.1 Two full-time earners 44.9 55.6 34.3 38.2 15.8 11.0 One-person households under 65 44.1 26.8 39.0 42.4 19.8 15.9 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2009 (APR-MAR)/MINTEL



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FIGURE 46: ATTITUDES TOWARDS SELECTED LIFESTYLE STATEMENTS, BY DETAILED DEMOGRAPHICS, 2009 Base: adults aged 15+ I eat a lot

of bread I eat

diet/low-calorie

products

I get a lot of

pleasure out of food

I have health

problems and have to watch what I eat

I eat a lot of

vegetables

I often eat fresh cheese

% % % % % % All 44.4 35.5 60.4 17.5 70.7 60.8 Gender: Men 53.1 26.8 62.2 15.7 67.0 61.6 Women 36.1 43.7 58.7 19.2 74.2 60.0 Age group: 15-24 54.3 26.0 60.9 8.2 54.2 51.0 25-34 52.2 33.6 66.2 9.7 68.3 57.3 35-44 45.6 36.6 60.5 12.0 69.5 61.5 45-54 40.8 39.5 59.5 17.7 72.5 64.6 55-64 41.4 39.8 59.1 26.1 78.5 64.7 65+ 34.1 37.1 57.2 30.0 80.2 64.9 Socio-economic group: AB 41.2 37.5 71.2 16.7 77.4 65.5 C1 43.4 37.0 62.4 16.3 72.8 61.9 C2 48.3 34.9 56.3 16.8 67.6 59.3 D 45.8 31.9 50.9 17.9 63.0 55.2 E 45.9 31.6 46.4 26.0 64.1 55.5 Presence of children: Under 1 year 54.1 31.6 60.8 5.8 65.0 57.6 1-4 years 51.3 33.6 62.0 8.7 67.2 59.1 5-9 years 48.8 34.5 56.4 9.4 67.0 55.6 10-15 years 46.4 34.2 55.9 11.6 68.9 57.8 No children in household 42.5 36.2 61.1 21.0 72.3 62.4 Marital status: Single 51.5 29.3 59.1 12.1 59.5 53.5 Married/living as married 43.4 37.3 62.5 17.5 74.6 63.1 Separated/divorced/widowed 36.3 38.4 54.1 27.2 73.5 63.7 Working status: Full-time 48.8 34.0 64.4 11.8 68.6 62.4 Part-time 43.3 38.8 61.8 13.0 71.8 59.9 Not working 41.4 35.4 57.0 23.4 72.0 59.9 Household size: 1 person 39.9 37.3 57.5 24.8 69.9 63.7 2 persons 41.2 37.0 62.9 22.2 76.3 63.6 3 persons 47.0 34.6 61.2 13.8 68.0 59.3 4 persons 48.9 33.2 61.4 9.5 67.5 57.0 5 persons+ 49.3 33.0 52.5 12.2 63.5 56.0



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Region: Greater London 43.6 31.8 61.7 16.0 66.6 55.1 South East/East Anglia 42.4 36.7 62.0 17.2 75.1 64.4 South West 40.1 35.0 61.8 18.0 77.3 63.9 Wales 47.4 39.2 59.7 19.0 71.2 56.0 East and West Midlands 44.5 35.6 58.2 17.2 69.4 61.4 North West 45.2 35.5 59.1 18.6 68.3 60.9 Yorkshire and Humberside 48.0 33.4 61.7 17.9 69.8 61.0 North 46.3 37.0 58.2 18.4 67.3 58.3 Scotland 47.5 36.8 59.4 17.9 66.4 58.9 Lifestage: Pre-/no family 52.3 29.9 64.2 10.6 61.3 56.5 Families 47.7 35.6 60.2 10.5 68.9 58.6 Third age 40.4 39.9 59.3 23.0 75.4 64.5 Retired 34.1 37.1 57.1 30.0 80.2 64.9 Special Groups: ABC1 pre-/no family 50.5 32.3 70.3 10.1 66.9 59.5 ABC1 family 46.1 38.3 67.1 10.0 74.3 62.8 ABC1 third age 37.6 41.7 66.3 21.6 78.4 66.6 ABC1 retired 31.5 37.1 61.2 28.3 83.0 66.9 Two full-time earners 46.2 37.3 66.3 12.6 72.4 63.6 One-person households under 65 45.0 38.4 61.5 20.5 65.3 62.6 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2009 (APR-MAR)/MINTEL FIGURE 47: ATTITUDES TOWARDS SELECTED LIFESTYLE STATEMENTS, BY DETAILED DEMOGRAPHICS, 2009 Base: adults aged 15+ I often eat

mature cheese (not

including Parmesan)

I follow a strict diet

I often eat in good

restaurants

I like to try new food products

I'm a gourmet

% % % % % All 50.8 7.3 29.1 54.6 9.3 Gender: Men 53.4 6.7 30.2 53.6 11.2 Women 48.4 7.8 28.1 55.5 7.6 Age group: 15-24 43.2 8.3 36.1 60.1 10.9 25-34 49.2 7.3 33.8 65.3 12.2 35-44 50.3 5.8 26.2 59.1 9.6 45-54 54.4 6.8 28.3 55.9 8.2 55-64 53.4 8.2 26.0 49.7 7.7 65+ 54.0 7.4 25.2 39.9 7.6 Socio-economic group: AB 56.0 6.6 38.5 58.0 13.1 C1 51.1 6.6 31.0 56.6 9.1 C2 49.5 8.3 26.2 53.2 8.0 D 45.3 7.7 21.0 50.1 6.2 E 46.1 8.2 14.0 48.0 7.0



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Presence of children: Under 1 year 47.2 5.2 25.5 66.4 7.3 1-4 years 49.5 5.2 25.3 61.6 9.6 5-9 years 45.8 5.1 22.2 59.1 7.5 10-15 years 47.8 5.4 26.3 58.2 8.3 No children in household 52.3 8.1 30.9 52.0 9.7 Marital status: Single 45.2 8.8 33.0 57.2 11.3 Married/living as married 52.6 6.4 28.9 55.6 8.9 Separated/divorced/widowed 52.8 8.1 23.2 45.7 7.6 Working status: Full-time 53.1 6.4 34.1 60.0 11.0 Part-time 49.7 6.2 27.3 56.6 8.8 Not working 49.5 8.3 26.0 49.8 8.2 Household size: 1 person 53.0 8.2 26.4 46.2 9.7 2 persons 54.6 7.1 31.5 52.5 9.1 3 persons 49.0 8.2 29.9 59.4 9.7 4 persons 47.2 6.2 27.5 59.7 9.2 5 persons+ 44.2 6.6 26.4 55.9 9.0 Region: Greater London 47.3 9.8 32.9 57.5 14.1 South East/East Anglia 56.8 6.6 30.5 55.3 10.3 South West 55.5 5.6 25.5 51.9 8.3 Wales 44.9 8.9 24.6 51.7 6.6 East and West Midlands 53.6 6.9 28.2 54.0 7.9 North West 44.8 7.3 28.6 55.0 8.3 Yorkshire and Humberside 44.9 6.6 29.3 52.6 7.7 North 41.8 8.1 24.3 52.0 7.9 Scotland 52.0 6.9 31.0 56.9 8.8 Lifestage: Pre-/no family 48.1 8.6 38.8 62.1 13.0 Families 48.6 5.4 24.1 59.7 8.1 Third age 53.7 7.8 27.4 52.4 8.1 Retired 54.0 7.4 25.1 39.9 7.6 Special Groups: ABC1 pre-/no family 49.5 7.6 45.5 65.7 14.4 ABC1 family 52.1 4.6 28.6 62.0 9.8 ABC1 third age 56.2 7.4 33.8 55.0 10.0 ABC1 retired 57.5 7.3 29.1 41.5 9.3 Two full-time earners 52.3 6.1 34.8 62.0 11.1 One-person households under 65 52.4 9.1 28.1 52.7 10.7 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2009 (APR-MAR)/MINTEL



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FIGURE 48: ATTITUDES TOWARDS SELECTED LIFESTYLE STATEMENTS, BY DETAILED DEMOGRAPHICS, 2009 Base: adults aged 15+ I eat a lot

of desserts

I eat Mediterranean-

style cuisine

I often read the

ingredients on food labels

I enjoy splashing out on a meal in a

restaurant % % % % All 25.0 32.4 51.0 49.2 Gender: Men 26.3 33.0 44.2 47.2 Women 23.8 31.9 57.6 51.1 Age group: 15-24 37.2 27.4 38.9 41.1 25-34 29.0 39.1 50.9 52.6 35-44 22.6 38.3 52.6 50.4 45-54 18.3 36.6 51.5 50.9 55-64 18.6 33.4 54.2 51.3 65+ 24.4 21.8 57.0 49.2 Socio-economic group: AB 22.4 48.6 58.8 61.4 C1 26.6 34.2 53.5 52.3 C2 25.8 25.9 46.2 45.2 D 24.6 18.5 42.5 35.8 E 26.6 15.8 45.3 33.6 Presence of children: Under 1 year 36.9 32.6 50.1 48.0 1-4 years 28.3 33.5 49.8 47.9 5-9 years 25.0 32.0 50.4 46.0 10-15 years 24.2 30.4 46.8 44.8 No children in household 24.4 32.5 52.1 50.2 Marital status: Single 31.6 30.9 45.6 41.4 Married/living as married 22.9 34.3 52.4 53.1 Separated/divorced/widowed 22.8 27.3 54.4 46.0 Working status: Full-time 24.9 37.9 47.8 54.4 Part-time 23.9 36.4 53.3 50.0 Not working 25.5 27.0 52.6 45.1 Household size: 1 person 22.6 29.1 54.5 46.1 2 persons 23.5 33.3 53.3 53.5 3 persons 27.2 33.6 48.8 48.3 4 persons 25.8 35.3 47.2 49.6 5 persons+ 28.6 26.3 49.0 39.0



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Region: Greater London 24.8 39.7 58.9 47.1 South East/East Anglia 25.0 35.8 52.0 52.4 South West 23.5 31.7 52.5 51.3 Wales 23.1 27.8 47.7 45.6 East and West Midlands 25.9 28.5 48.5 47.7 North West 24.9 31.9 48.7 46.6 Yorkshire and Humberside 28.8 31.4 46.4 48.5 North 25.6 25.9 45.0 46.4 Scotland 22.3 29.1 53.3 52.0 Lifestage: Pre-/no family 32.3 37.0 45.9 48.1 Families 24.7 33.8 50.9 48.7 Third age 18.2 34.3 52.1 50.9 Retired 24.4 21.8 57.0 49.2 Special Groups: ABC1 pre-/no family 33.1 46.1 50.5 56.3 ABC1 family 22.9 43.0 56.9 56.6 ABC1 third age 17.4 43.2 57.5 58.7 ABC1 retired 24.3 28.7 60.8 54.7 Two full-time earners 23.2 39.7 49.6 58.9 One-person households under 65 20.9 35.6 52.8 45.5 Taken from the TGI survey of around 25,000 adults SOURCE: GB TGI, Q3 BMRB 2009 (APR-MAR)/MINTEL

Appendix – Pizza/Pasta Restaurants Visited Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Appendix – Pizza/Pasta Restaurants Visited FIGURE 49: MOST POPULAR VISITED PIZZA AND PASTA RESTAURANTS, BY DETAILED DEMOGRAPHICS, NOVEMBER 2009 Base: 1,921 adults aged 15+ Do not use

pasta restaurants/ takeaways

Pizza Hut

Other pizza and pasta outlets*

Do not use pizza

restaurants/ takeaways

Domino's Pizza

% % % % % All 24 21 20 19 14 Gender: Male 24 21 22 17 15 Female 25 21 19 21 14 Age: 15-24 14 35 28 11 33 25-34 13 32 26 10 24 35-44 14 24 29 10 15 45-54 25 20 21 17 10 55-64 33 14 12 26 5 65+ 46 5 6 37 2 Socio-economic group: AB 20 20 23 16 15 C1 20 25 23 13 16 C2 27 21 20 21 12 D 32 21 13 26 13 E 37 11 13 29 13 Lifestage: Pre-/no family 14 33 28 11 28 Families 15 27 27 10 17 Third age 30 15 15 24 6 Retired 46 5 6 37 2 Current marital status: Married/living as 23 17 21 17 12 Married 24 16 20 19 10 Living as married 14 22 26 12 19 Not married/living as 27 27 20 21 18 Single 19 33 25 14 24 Widowed/divorced/separated 40 17 10 31 8 Presence of children: Aged 0-4 12 27 29 6 21 Aged 5-9 12 26 30 11 16 Aged 10-15 11 32 25 9 15 Any children 15 27 27 10 17 No children in household 28 19 18 22 13 Special Groups: ABC1 pre-/no family 10 32 33 7 30 ABC1 families 12 27 30 10 17 ABC1 third age 25 19 14 19 9 ABC1 retired 39 5 11 29 2 One-person households under 65 24 28 17 17 17



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Working status: Working 17 26 25 13 16 Full-time/self-employed 17 26 26 13 17 Part time 16 29 23 16 11 Not working 21 25 23 15 23 Retired 45 5 6 35 2 Household income: Under £15,500 30 20 15 22 14 £15,500-24,999 23 22 17 18 9 £25,000-50,000 19 27 23 15 15 £50,000 or more 15 17 41 14 24 Don't know 30 23 17 20 16 Refused 24 19 19 19 11 Region: London 16 27 23 10 15 South 23 15 22 15 11 Anglia/Midlands 26 20 23 22 13 South West/Wales 36 15 13 29 11 Yorks/North East 26 22 25 24 9 North West 20 30 23 13 23 Scotland 27 19 11 17 16 Household tenure: Own home 33 14 12 27 7 Buying home 16 25 27 12 16 Renting 24 26 20 18 21 ACORN: Wealthy Achievers 23 20 18 17 14 Urban Prosperity 16 24 24 11 19 Comfortably Off 26 20 22 23 11 Moderate Means 23 24 17 15 15 Hard Pressed 30 21 19 21 16 Things own: Credit card 19 23 23 15 15 Debit card 22 22 22 18 15 Digital camera 19 24 26 16 17 MP3 player 13 28 29 10 22 Car 21 23 22 17 14 PC/laptop 19 24 23 15 17 Car status: 1 car 25 19 18 20 14 2+ cars 18 26 26 14 15 No car 33 17 16 24 15 Communication: Internet users 18 25 24 13 17 Broadband users 18 25 24 13 18 Mobile phone users 22 22 22 17 15 Terrestrial TV 33 18 12 20 9 Freeview TV 26 18 19 20 14 Cable/satellite/digital TV 24 22 21 19 15 Cable/satellite TV 20 26 24 16 17 Internet access: Home 18 25 24 14 18 Work 10 31 31 10 22 Total 18 25 24 13 17 None 44 10 10 35 5



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Internet frequency: Daily 17 28 26 13 20 Weekly 20 15 16 16 12 Web use: Email 18 25 24 14 18 Search for info 17 25 25 14 18 Buying 16 27 26 12 18 Bank online 13 28 27 11 20 Download games 12 30 31 11 23 Newspaper readership: Broadsheet 20 15 23 16 20 Mid-market tabloid 26 26 16 20 13 Popular tabloid 28 24 15 22 16 Household size: 1 person 38 18 12 28 10 2 people 28 14 15 24 8 3 people 18 25 29 13 20 4 people 14 30 28 9 20 5+ people 16 27 25 10 23 Education: Low 42 12 9 29 5 Medium 20 27 24 17 21 High 18 19 24 13 12 Supermarkets used: Asda 25 26 19 20 16 Co-op 27 15 20 24 9 Iceland 23 22 24 19 17 Marks & Spencer 29 18 20 24 10 Morrisons 29 19 19 24 10 Sainsbury's 20 25 22 15 17 Somerfield 32 16 15 25 8 Tesco 22 24 24 19 15 Waitrose 14 17 31 12 15 Any discounter 28 22 15 22 7



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Detailed lifestage: ABC1 15-34 11 33 31 8 30 ABC1 35-54 15 24 27 11 14 ABC1 55+ 34 11 12 25 4 C2DE 15-34 16 34 23 13 26 C2DE 35-54 24 18 24 17 10 C2DE 55+ 48 7 5 40 2 Pre-/no family 14 33 28 11 28 Pre-/no family single 15 37 29 12 32 Pre-/no family couple 11 25 26 7 20 Pre-/no family working 12 33 28 9 24 Family 15 27 27 10 17 Working mother 9 29 29 9 14 Family under-10s only 13 23 29 9 20 Family 10-15s 11 32 25 9 15 Parent under 35 16 31 24 13 21 Parent 35+ 14 25 28 9 14 Third age 30 15 15 24 6 Third age single 35 22 8 23 8 Third age couple 28 12 18 24 6 Retired 46 5 6 37 2 Retired single 53 6 6 40 2 Retired couple 40 4 7 33 1 * Net of ‘Other specific pizza outlet or ask or Zizzi or Bella Italia or Papa John’s or Prezzo or Caffè Uno or other specific pasta outlet or Perfect Pizza or Pizza GoGo or Strada’ SOURCE: IPSOS MORI/MINTEL FIGURE 50: NEXT MOST POPULAR VISITED PIZZA AND PASTA RESTAURANTS, BY DETAILED DEMOGRAPHICS, NOVEMBER 2009 Base: 1,921 adults aged 15+ PizzaExpress General

Italian restaurant

Other restaurant

selling pizza/

pasta (eg pub,

sandwich bar)

Have eaten at pizza


but not in the last 3 months

Have eaten at pasta


but not in the last 3

months*

% % % % % All 12 9 6 6 5 Gender: Male 12 9 6 6 5 Female 12 10 6 7 5 Age: 15-24 17 11 12 6 4 25-34 11 11 6 6 1 35-44 20 12 10 8 7 45-54 11 9 4 9 8 55-64 8 9 5 6 7 65+ 5 5 1 3 3 Socio-economic group: AB 19 17 8 9 6 C1 15 10 5 6 6 C2 8 5 7 5 4 D 5 4 5 6 4 E 4 1 4 4 3



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Lifestage: Pre-/no family 19 12 10 6 3 Families 14 11 8 9 6 Third age 8 8 5 7 7 Retired 5 5 1 3 3 Current marital status: Married/living as 12 9 6 8 5 Married 11 9 6 7 6 Living as married 16 9 6 12 4 Not married/living as 12 9 7 5 4 Single 15 10 9 5 4 Widowed/divorced/separated 7 8 4 4 4 Presence of children: Aged 0-4 14 10 7 9 4 Aged 5-9 12 8 7 5 4 Aged 10-15 15 12 10 9 8 Any children 14 11 8 9 6 No children in household 11 9 6 5 5 Special Groups: ABC1 pre-/no family 23 16 11 6 4 ABC1 families 22 16 7 11 7 ABC1 third age 10 12 5 6 8 ABC1 retired 8 8 2 4 4 One-person households under 65

14 10 5 3 6

Working status: Working 16 11 8 8 5 Full-time/self-employed 16 11 8 8 5 Part time 15 9 8 8 7 Not working 9 8 7 6 5 Retired 5 7 2 3 4 Household income: Under £15,500 10 6 4 5 4 £15,500-24,999 9 4 6 8 5 £25,000-50,000 14 11 7 8 8 £50,000 or more 24 23 9 11 7 Don't know 9 9 6 6 4 Refused 10 7 7 4 3 Region: London 16 7 6 7 5 South 17 12 6 6 7 Anglia/Midlands 11 9 7 7 5 South West/Wales 9 5 2 7 5 Yorks/North East 6 12 9 7 5 North West 15 10 8 4 4 Scotland 7 11 6 5 3 Household tenure: Own home 8 10 4 6 5 Buying home 17 12 8 7 6 Renting 11 5 6 5 3



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ACORN group: Wealthy Achievers 11 14 8 8 9 Urban Prosperity 22 9 6 8 4 Comfortably Off 12 11 6 7 6 Moderate Means 7 4 5 3 1 Hard Pressed 8 6 7 5 3 Things own: Credit card 16 13 8 8 6 Debit card 14 10 7 7 6 Digital camera 15 14 8 8 6 MP3 player 18 16 10 8 7 Car 14 11 7 7 6 PC/laptop 14 11 8 7 5 Car status: 1 car 11 8 5 6 5 2+ cars 16 14 10 8 7 No car 7 3 4 3 2 Communication: Internet users 15 11 8 7 5 Broadband users 15 12 8 7 5 Mobile phone users 13 10 7 7 5 Terrestrial TV 7 6 2 4 4 Freeview TV 14 9 6 7 6 Cable/satellite/digital TV 13 10 7 7 5 Cable/satellite TV 11 11 8 7 5 Internet access: Home 15 12 8 7 5 Work 22 17 11 7 5 Total 15 11 8 7 5 None 4 3 3 3 3 Internet frequency: Daily 16 12 9 7 5 Weekly 11 8 5 10 8 Web use: Email 15 12 8 7 6 Search for info 15 12 8 7 6 Buying 17 13 8 7 5 Bank online 19 16 8 8 6 Download games 18 15 10 8 4 Newspaper readership: Broadsheet 24 14 6 8 4 Mid-market tabloid 11 6 6 8 6 Popular tabloid 6 4 4 7 5 Household size: 1 person 9 8 3 4 5 2 people 10 8 6 6 5 3 people 14 8 7 7 4 4 people 16 12 8 7 5 5+ people 13 13 9 9 5 Education: Low 2 2 2 5 4 Medium 12 9 7 5 5 High 22 16 8 10 7



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Supermarket used: Asda 6 9 8 6 4 Co-op 13 9 6 6 5 Iceland 7 9 7 8 4 Marks & Spencer 15 15 3 6 6 Morrisons 8 9 6 9 6 Sainsbury's 19 12 5 7 5 Somerfield 13 4 7 7 5 Tesco 14 11 7 8 6 Waitrose 28 14 5 9 8 Any discounter 12 11 10 7 6 Detailed lifestage: ABC1 15-34 18 16 9 7 3 ABC1 35-54 22 15 7 10 9 ABC1 55+ 9 10 3 4 5 C2DE 15-34 10 5 9 4 1 C2DE 35-54 6 3 8 7 6 C2DE 55+ 3 3 2 4 4 Pre-/no family 19 12 10 6 3 Pre-/no family single 20 12 11 4 3 Pre-/no family couple 18 11 7 10 4 Pre-/no family working 23 13 9 7 2 Family 14 11 8 9 6 Working mother 17 12 9 11 7 Family under-10s only 14 10 6 8 4 Family 10-15s 15 12 10 9 8 Parent under 35 8 8 7 6 2 Parent 35+ 17 12 9 10 8 Third age 8 8 5 7 7 Third age single 6 6 4 3 7 Third age couple 8 9 6 8 8 Retired 5 5 1 3 3 Retired single 3 5 1 4 4 Retired couple 6 4 1 3 2 * low response rate (75-100) SOURCE: IPSOS MORI/MINTEL



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FIGURE 51: PIZZA AND PASTA RESTAURANTS VISITED, BY PIZZA AND PASTA RESTAURANTS VISITED, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Pizza

Hut Domino's

Pizza PizzaExpress

General Italian

restaurant

Other restaurant

selling pizza/

pasta (eg pub,

sandwich bar)

Other pizza and

pasta outlets*

% % % % % % % Pizza Hut 21 100 43 32 28 32 26 Domino's Pizza 14 29 100 25 23 24 21 PizzaExpress 12 18 21 100 21 16 25 General Italian restaurant 9 12 15 16 100 31 17 Other restaurant selling pizza/pasta (eg pub, sandwich bar)

6 10 10 9 21 100 13

Other specific pizza outlet 6 4 6 3 5 6 30 Zizzi 3 3 7 10 9 8 15 ASK 3 4 4 9 5 3 14 Bella Italia 3 7 7 5 11 13 13 Prezzo 2 3 4 6 6 5 11 Other specific pasta outlet 2 3 3 2 6 8 9 Papa John’s 2 3 3 4 1 4 8 Caffè Uno 2 2 2 5 4 1 8 Pizza GoGo 1 2 2 3 3 1 7 Strada 1 1 3 7 5 2 6 Perfect Pizza 1 3 3 2 1 1 6 Have eaten at pizza restaurants/takeaways but not in the last 3 months

6 2 3 2 10 11 4

Have eaten at pasta restaurants/takeaways but not in the last 3 months

5 2 2 2 6 8 3

Do not use pizza restaurants/takeaways

19 - - - 2 1 1

Do not use pasta restaurants/takeaways

24 1 1 1 2 - 1

None of these 18 - - - - - - Don’t know - - - - - - - * Net of ‘other specific pizza outlet or ask or Zizzi or Bella Italia or Papa John’s or Prezzo or Caffè Uno or other specific pasta outlet or Perfect Pizza or Pizza GoGo or Strada’ SOURCE: IPSOS MORI/MINTEL

Appendix – Frequency of Visiting Pizza/ Pizza and Pasta Restaurants (and Takeaway) Pasta Restaurants Leisure Intelligence, January 2010


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Appendix – Frequency of Visiting Pizza/Pasta Restaurants FIGURE 52: FREQUENCY OF VISITING PIZZA AND PASTA RESTAURANTS, BY DETAILED DEMOGRAPHICS, NOVEMBER 2009 Base: 1,921 adults aged 15+ About

once a week or more*

About once a

fortnight

At least once a month

At least once every three

months

Less than once every three

months

Never

% % % % % % All 6 6 14 14 22 36 Gender: Male 8 9 15 14 20 35 Female 5 4 14 14 25 37 Age: 15-24 13 15 23 15 19 15 25-34 8 10 23 13 23 22 35-44 7 8 17 19 25 23 45-54 4 4 9 20 27 35 55-64 4 2 8 11 26 47 65+ 2 - 5 8 16 68 Socio-economic group: AB 6 6 14 20 25 28 C1 7 8 16 15 24 29 C2 5 8 12 13 21 41 D 9 5 13 8 20 43 E 3 3 13 6 14 61 Lifestage: Pre-/no family 11 14 22 14 19 19 Families 7 7 18 19 27 22 Third age 3 3 8 15 26 44 Retired 2 - 5 8 16 68 Current marital status: Married/living as 6 6 13 15 24 35 Married 5 6 12 15 24 37 Living as married 8 8 21 14 23 24 Not married/living as 7 7 15 13 21 37 Single 9 10 20 15 22 25 Widowed/divorced/separated 4 3 7 10 19 57 Presence of children: Aged 0-4 8 9 19 21 27 16 Aged 5-9 7 7 22 14 25 25 Aged 10-15 6 5 18 19 28 24 Any children 7 7 18 19 27 22 No children in household 6 6 12 12 21 41



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Special Groups: ABC1 pre-/no family 10 16 22 18 21 13 ABC1 families 7 7 19 22 25 21 ABC1 third age 4 3 10 15 30 36 ABC1 retired 2 – 8 12 20 56 One-person households under 65

5 5 15 11 28 35

Working status: Working 7 7 16 18 24 26 Full-time/self-employed 7 8 17 18 22 26 Part time 6 3 12 17 36 26 Not working 8 11 18 12 22 29 Retired 2 - 5 7 19 65 Household income: Under £15,500 5 5 12 12 21 44 £15,500-24,999 4 4 13 15 25 39 £25,000-50,000 5 8 16 17 25 26 £50,000 or more 8 6 21 21 26 19 Don't know 11 11 13 8 18 40 Refused 5 4 13 16 22 39 Region: London 7 7 17 18 22 26 South 4 4 13 17 27 35 Anglia/Midlands 4 6 14 15 21 40 South West/Wales 5 3 7 10 27 46 Yorks/North East 5 7 17 12 22 37 North West 7 11 14 15 21 32 Scotland 7 5 10 10 27 37 Household tenure: Own home 3 2 10 11 22 51 Buying home 7 10 16 18 27 22 Renting 9 7 17 13 18 36 ACORN group: Wealthy Achievers 4 6 10 16 29 34 Urban Prosperity 11 8 17 19 16 28 Comfortably Off 5 4 13 15 24 38 Moderate Means 7 9 20 10 20 33 Hard Pressed 4 8 14 10 21 43 Things own: Credit card 7 7 15 17 26 28 Debit card 6 7 15 15 24 33 Digital camera 7 7 16 18 25 27 MP3 player 8 10 19 19 25 20 Car 6 7 15 16 23 32 PC/laptop 7 8 16 16 25 28 Car status: 1 car 5 6 13 14 21 40 2+ cars 7 8 16 19 27 24 No car 7 6 12 9 18 47



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Communication: Internet users 7 8 16 16 25 27 Broadband users 7 8 16 17 25 26 Mobile phone users 6 7 15 15 24 32 Terrestrial TV 4 3 12 12 18 50 Freeview TV 5 6 13 15 24 37 Cable/satellite/digital TV 6 7 14 15 23 34 Cable/satellite TV 7 9 16 15 22 30 Internet access: Home 7 8 16 16 25 27 Work 8 11 20 22 22 17 Total 7 8 16 16 25 27 None 2 2 8 8 15 63 Internet frequency: Daily 8 10 17 18 24 24 Weekly 6 3 13 14 30 34 Web use: Email 7 8 16 17 25 27 Search for info 7 8 16 17 25 26 Buying 7 8 17 17 27 23 Bank online 7 8 19 19 25 21 Download games 10 12 19 17 23 18 Newspaper readership: Broadsheet 9 6 14 16 25 30 Mid-market tabloid 6 5 13 14 23 37 Popular tabloid 8 9 12 10 20 41 Household size: 1 person 3 3 10 9 23 53 2 people 4 4 12 11 22 45 3 people 8 12 16 19 22 23 4 people 10 8 18 19 23 22 5+ people 10 8 20 19 24 20 Education Low 2 3 6 7 18 63 Medium 8 8 18 15 22 29 High 6 5 15 19 27 26 Supermarket used: Asda 7 8 15 14 21 35 Co-op 4 4 13 13 29 36 Iceland 7 4 17 15 25 32 Marks & Spencer 6 6 11 17 26 34 Morrisons 4 6 13 13 26 38 Sainsbury's 6 7 17 17 21 30 Somerfield 2 5 13 13 22 43 Tesco 7 8 14 15 23 32 Waitrose 10 5 16 23 26 21 Any discounter 5 5 10 15 27 38



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Detailed lifestage: ABC1 15-34 9 14 22 19 20 15 ABC1 35-54 6 6 15 22 28 23 ABC1 55+ 4 2 9 12 25 47 C2DE 15-34 12 11 24 9 21 23 C2DE 35-54 5 7 11 16 23 38 C2DE 55+ 1 - 4 6 16 72 Pre-/no family 11 14 22 14 19 19 Pre-/no family single 11 13 24 15 19 19 Pre-/no family couple 11 16 19 14 18 20 Pre-/no family working 11 11 23 15 19 20 Family 7 7 18 19 27 22 Working mother 6 3 18 20 35 16 Family under-10s only 7 9 19 19 28 17 Family 10-15s 6 5 18 19 28 24 Parent under 35 6 10 21 15 27 21 Parent 35+ 7 5 17 21 27 23 Third age 3 3 8 15 26 44 Third age single 2 3 8 11 25 50 Third age couple 4 3 8 16 27 42 Retired 2 - 5 8 16 68 Retired single 1 - 3 6 16 73 Retired couple 2 - 7 9 17 63 * Net of ‘Most days’ and ‘At least twice a week’ and ‘About once a week’ SOURCE: IPSOS MORI/MINTEL FIGURE 53: PIZZA AND PASTA RESTAURANTS VISITED, BY FREQUENCY OF VISITING PIZZA AND PASTA RESTAURANTS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Pizza

Hut Domino's

Pizza PizzaExpress General

Italian restaurant

Other restaurant

selling pizza/pasta

(eg pub, sandwich

bar)

Other pizza and

pasta outlets*

% % % % % % % Most days - 1 1 - - - 1 At least twice a week 2 2 5 4 3 3 4 About once a week 4 7 9 7 11 10 11 About once a fortnight 6 12 14 11 13 19 14 At least once a month 14 30 35 30 24 24 25 At least once every three months

14 25 20 32 24 27 22

Less than once every three months

22 21 13 16 25 12 15

Never 36 2 4 1 - 5 8 Don’t know 1 - - - - - - * Net of ‘other specific pizza outlet or ask or Zizzi or Bella Italia or Papa John’s or Prezzo or Caffè Uno or other specific pasta outlet or Perfect Pizza or Pizza GoGo or Strada’ SOURCE: IPSOS MORI/MINTEL



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FIGURE 54: FREQUENCY OF VISITING PIZZA AND PASTA RESTAURANTS, BY VISITED PIZZA AND PASTA RESTAURANTS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All About

once a week or more*

About once a

fortnight



months


months

Never

% % % % % % % Pizza Hut 21 35 40 45 38 20 1 Domino’s Pizza 14 34 32 35 20 8 2 PizzaExpress 12 22 20 25 27 9 - Caffè Uno 9 22 18 16 15 10 - Other restaurant selling pizza/pasta (eg pub, sandwich bar)

6 14 18 11 12 3 1

Other specific pizza outlet 6 12 13 11 8 4 2 Zizzi 3 11 8 8 3 1 - ASK 3 8 4 8 5 1 - Bella Italia 3 6 8 5 5 1 - Prezzo 2 10 5 4 3 1 - Other specific pasta outlet 2 4 9 1 4 1 - Papa John’s 2 4 6 3 2 1 - Caffè Uno 2 6 3 3 2 1 - Pizza GoGo 1 3 2 3 3 - - Strada 1 - 2 4 3 1 - Perfect Pizza 1 5 2 3 1 1 - Have eaten at pizza restaurants/takeaways but not in the last 3 months

6 6 6 3 7 16 1


5 2 4 2 7 12 2


19 3 3 2 2 9 44


24 4 6 3 2 13 56

None of these 18 4 5 1 3 22 31 Don’t know - - - - - - 1 * Net of ‘Most days’ and ‘At least twice a week’ and ‘About once a week’ SOURCE: IPSOS MORI/MINTEL



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Appendix – Attitudes Towards Pizza/ Pizza and Pasta Restaurants (and Takeaway) Pasta Restaurants Leisure Intelligence, January 2010


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Appendix – Attitudes Towards Pizza/Pasta Restaurants FIGURE 55: MOST POPULAR ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, BY DETAILED DEMOGRAPHICS, NOVEMBER 2009 Base: 1,921 adults aged 15+ Menus are

pretty much the same at all takeaway pizza

and pasta places

I like the flexibility of being able to

choose my own

toppings when

ordering pizza

I prefer the authentic

or premium

Italian pizza/ pasta

I like the ‘self-

service’ salad bars

Pizza/pasta restaurants

are good for a special

occasion or as a treat

% % % % % All 34 26 19 18 16 Gender: Male 37 26 20 17 16 Female 31 26 19 18 17 Age: 15-24 48 39 18 29 26 25-34 40 35 24 19 18 35-44 44 24 26 16 19 45-54 33 29 22 21 18 55-64 27 20 20 17 13 65+ 14 11 8 8 6 Socio-economic group: AB 36 30 36 18 17 C1 36 28 20 21 18 C2 35 25 11 18 17 D 31 21 10 15 15 E 24 16 4 13 12 Lifestage: Pre-/no family 42 36 24 25 21 Families 44 29 23 18 23 Third age 29 23 19 18 13 Retired 14 11 8 8 6 Current marital status: Married/living as 35 24 22 16 15 Married 33 21 20 15 14 Living as married 44 39 30 20 19 Not married/living as 32 28 16 21 19 Single 38 34 18 23 22 Widowed/divorced/separated 23 19 13 17 14 Presence of children: Aged 0-4 49 32 20 17 19 Aged 5-9 40 26 22 18 21 Aged 10-15 39 33 26 21 28 Any children 44 29 23 18 23 No children in household 30 25 18 18 14



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Special Groups: ABC1 pre-/no family 45 39 32 26 20 ABC1 families 45 31 31 18 26 ABC1 third age 28 26 27 22 13 ABC1 retired 18 17 13 8 6 One-person households under 65

30 28 20 23 18

Working status: Working 40 30 25 20 19 Full-time/self-employed 42 31 26 21 18 Part time 34 22 21 14 22 Not working 38 31 14 22 20 Retired 15 12 11 10 8 Household income: Under £15,500 32 21 13 14 17 £15,500-24,999 33 30 11 24 17 £25,000-50,000 33 29 26 21 22 £50,000 or more 53 39 45 19 21 Don't know 28 23 10 17 12 Refused 33 21 19 17 11 Region: London 36 29 25 24 19 South 37 28 24 23 17 Anglia/Midlands 29 21 16 18 17 South West/Wales 25 26 20 13 16 Yorks/North East 43 24 14 16 17 North West 39 29 18 19 15 Scotland 28 23 25 8 13 Household tenure: Own home 24 19 16 14 10 Buying home 44 32 28 20 21 Renting 33 26 13 18 18 ACORN: Wealthy Achievers 34 29 23 20 18 Urban Prosperity 33 27 24 15 18 Comfortably Off 33 26 21 21 17 Moderate Means 37 22 14 14 12 Hard Pressed 35 25 13 16 16 Things own: Credit card 36 30 27 21 17 Debit card 35 28 22 19 18 Digital camera 39 32 27 21 19 MP3 player 46 37 31 24 24 Car 37 28 23 20 17 PC/laptop 38 29 24 20 19 Car status: 1 car 30 23 18 17 15 2+ cars 44 32 28 21 18 No car 25 22 9 14 16



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Communication: Internet users 39 29 24 19 19 Broadband users 39 29 25 19 19 Mobile phone users 36 28 21 19 17 Terrestrial TV 26 12 11 16 12 Freeview TV 34 27 22 18 18 Cable/satellite/digital TV 35 27 21 18 17 Cable/satellite TV 38 28 22 19 18 Internet access: Home 39 30 25 20 18 Work 46 35 33 23 21 Total 39 29 24 19 19 None 20 16 5 13 10 Internet frequency: Daily 41 31 26 21 19 Weekly 32 24 18 17 20 Web use: Email 39 29 25 20 19 Search for info 39 31 25 20 20 Buying 41 33 28 21 19 Bank online 43 35 30 22 22 Download games 43 39 30 25 23 Newspaper readership: Broadsheet 39 25 34 22 20 Mid-market tabloid 27 27 18 18 15 Popular tabloid 32 23 10 16 16 Household size: 1 person 24 20 15 16 13 2 people 31 22 18 14 13 3 people 44 27 21 19 19 4 people 38 32 23 25 23 5+ people 38 34 23 19 19 Education: Low 21 14 4 10 9 Medium 40 31 19 21 21 High 35 28 34 17 16 Supermarket used: Asda 37 26 14 18 17 Co-op 32 30 25 21 15 Iceland 34 33 11 23 16 Marks & Spencer 31 34 33 19 12 Morrisons 33 24 17 18 18 Sainsbury's 37 30 28 22 17 Somerfield 25 20 18 18 20 Tesco 37 29 22 19 18 Waitrose 36 35 43 24 18 Any discounter 33 25 25 25 16



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Detailed lifestage: ABC1 15-34 46 41 29 25 23 ABC1 35-54 39 28 32 19 21 ABC1 55+ 22 19 21 14 9 C2DE 15-34 42 33 11 23 21 C2DE 35-54 39 24 12 17 16 C2DE 55+ 17 9 5 10 8 Pre-/no family 42 36 24 25 21 Pre-/no family single 40 37 22 27 23 Pre-/no family couple 45 34 28 21 15 Pre-/no family working 40 37 28 25 19 Family 44 29 23 18 23 Working mother 39 27 30 16 27 Family under-10s only 49 28 21 15 19 Family 10-15s 39 33 26 21 28 Parent under 35 44 32 16 16 20 Parent 35+ 44 27 27 19 25 Third age 29 23 19 18 13 Third age single 29 27 14 18 15 Third age couple 29 22 22 19 12 Retired 14 11 8 8 6 Retired single 15 11 9 8 7 Retired couple 13 10 7 8 5 SOURCE: IPSOS MORI/MINTEL FIGURE 56: NEXT MOST POPULAR ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, BY DETAILED DEMOGRAPHICS, NOVEMBER 2009 Base: 1,921 adults aged 15+ I like to take

advantage of special

promotions

I prefer to buy pasta/

ready-made pizzas at the supermarket

Pizza/pasta takeaways are good value for money

I always look for

new types of pizza

(eg twisted crust,

toppings)

I have ordered

pizza/pasta via digital

TV/internet/WAP

mobile phone*

% % % % % All 16 12 11 7 5 Gender: Male 17 12 14 8 5 Female 14 12 9 7 5 Age: 15-24 22 14 18 18 10 25-34 22 10 13 11 7 35-44 21 14 16 8 7 45-54 14 12 13 6 4 55-64 11 15 7 3 1 65+ 4 8 2 1 1 Socio-economic group: AB 20 13 9 8 8 C1 16 12 13 7 6 C2 14 13 14 7 3 D 13 10 12 10 2 E 7 12 6 5 3



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Lifestage: Pre-/no family 23 12 17 16 8 Families 21 13 14 8 7 Third age 11 13 10 4 2 Retired 4 8 2 1 1 Current marital status: Married/living as 16 12 10 6 5 Married 15 11 10 5 4 Living as married 21 12 10 8 8 Not married/living as 16 13 13 10 5 Single 19 13 16 14 7 Widowed/divorced/separated 10 12 8 3 2 Presence of children: Aged 0-4 21 12 11 10 9 Aged 5-9 21 16 14 7 6 Aged 10-15 23 16 19 7 7 Any children 21 13 14 8 7 No children in household 14 11 10 7 4 Special Groups: ABC1 pre-/no family 24 13 17 17 11 ABC1 families 23 10 15 6 10 ABC1 third age 15 14 7 4 2 ABC1 retired 7 10 3 1 – One-person households under 65

18 12 17 5 4

Working status: Working 19 12 15 8 5 Full-time/self-employed 18 11 16 8 5 Part time 20 15 9 10 2 Not working 19 16 13 13 9 Retired 5 9 2 1 1 Household income: Under £15,500 13 12 13 7 4 £15,500-24,999 15 18 16 5 3 £25,000-50,000 19 10 14 8 5 £50,000 or more 31 11 11 7 15 Don't know 11 12 8 10 3 Refused 11 12 8 7 3 Region: London 19 9 12 8 8 South 17 14 7 7 3 Anglia/Midlands 13 9 7 8 4 South West/Wales 13 21 14 6 1 Yorks/North East 12 13 15 5 4 North West 21 13 16 8 6 Scotland 14 11 5 5 8 Household tenure: Own home 9 10 4 5 1 Buying home 22 14 15 9 7 Renting 15 13 13 10 6



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ACORN group: Wealthy Achievers 19 9 11 7 5 Urban Prosperity 12 15 8 11 7 Comfortably Off 19 11 10 6 5 Moderate Means 12 11 9 9 3 Hard Pressed 13 14 17 5 3 Things own: Credit card 20 12 13 8 7 Debit card 18 12 12 8 6 Digital camera 20 13 13 8 7 MP3 player 27 15 15 12 10 Car 18 12 12 7 6 PC/laptop 19 13 13 8 6 Car status: 1 car 14 13 12 7 5 2+ cars 21 11 12 8 6 No car 9 11 9 8 4 Communication: Internet users 18 13 13 9 6 Broadband users 19 13 13 9 6 Mobile phone users 17 13 12 8 5 Terrestrial TV 8 12 5 5 2 Freeview TV 18 12 12 7 5 Cable/satellite/digital TV 17 12 12 8 5 Cable/satellite TV 19 12 12 8 7 Internet access: Home 19 13 13 9 6 Work 25 12 15 10 10 Total 18 13 13 9 6 None 7 8 7 4 1 Internet frequency: Daily 20 13 13 9 7 Weekly 16 16 11 6 3 Web use: Email 20 13 13 9 6 Search for info 20 12 13 9 7 Buying 22 13 13 9 7 Bank online 25 12 14 9 8 Download games 26 13 15 12 11 Newspaper readership: Broadsheet 19 14 8 7 9 Mid-market tabloid 14 9 9 7 4 Popular tabloid 16 13 12 7 3 Household size: 1 person 12 9 11 3 3 2 people 13 10 8 5 2 3 people 16 16 12 7 7 4 people 21 13 17 10 7 5+ people 21 17 15 17 10 Education: Low 6 11 7 2 1 Medium 18 13 15 11 6 High 19 12 8 5 6



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Supermarket used: Asda 15 13 13 8 5 Co-op 17 14 15 6 5 Iceland 15 10 16 9 5 Marks & Spencer 11 8 8 5 3 Morrisons 13 13 11 8 6 Sainsbury's 21 11 13 8 7 Somerfield 13 12 11 6 3 Tesco 19 11 11 8 6 Waitrose 19 14 10 4 8 Any discounter 16 17 13 7 4 Detailed lifestage: ABC1 15-34 25 12 16 14 12 ABC1 35-54 19 12 12 6 8 ABC1 55+ 10 12 5 2 - C2DE 15-34 19 12 15 14 4 C2DE 35-54 16 15 18 8 3 C2DE 55+ 3 9 4 1 1 Pre-/no family 23 12 17 16 8 Pre-/no family single 22 13 17 18 9 Pre-/no family couple 23 10 17 12 7 Pre-/no family working 23 10 16 14 5 Family 21 13 14 8 7 Working mother 20 12 15 5 5 Family under-10s only 20 12 10 8 8 Family 10-15s 23 16 19 7 7 Parent under 35 19 12 12 10 8 Parent 35+ 22 14 15 7 7 Third age 11 13 10 4 2 Third age single 10 16 12 4 1 Third age couple 12 12 9 4 2 Retired 4 8 2 1 1 Retired single 6 6 3 1 1 Retired couple 2 9 1 1 - * low response rate (75-100) SOURCE: IPSOS MORI/MINTEL



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FIGURE 57: MOST POPULAR VISITED PIZZA AND PASTA RESTAURANTS, BY ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Do not use

pasta restaurants/ takeaways

Pizza Hut

Other pizza and

pasta outlets*

Do not use pizza


Domino's Pizza

% % % % % % Menus are pretty much the same at all takeaway pizza and pasta places

34 19 47 46 20 51


26 6 43 37 7 45

I prefer the authentic or premium Italian pizza/pasta

19 4 22 33 5 27

I like the ‘self-service’ salad bars 18 6 37 27 6 27 Pizza/pasta restaurants are good for a special occasion or as a treat

16 5 29 24 6 26

I like to take advantage of special promotions

16 2 29 31 3 33

I prefer to buy pasta/ready-made pizzas at the supermarket

12 12 10 11 12 16


11 3 21 19 3 20

I always look for new types of pizza (eg twisted crust, toppings)

7 2 17 11 1 19


5 1 9 11 1 19

None of these 28 60 3 4 61 2 * Net of other specific pizza outlet or ask or Zizzi or Bella Italia or Papa John’s or Prezzo or Caffè Uno or other specific pasta outlet or Perfect Pizza or Pizza GoGo or Strada’ SOURCE: IPSOS MORI/MINTEL



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FIGURE 58: NEXT MOST POPULAR VISITED PIZZA AND PASTA RESTAURANTS, BY ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All PizzaExpress General

Italian restaurant

Other restaurant

selling pizza/

pasta (eg pub,

sandwich bar)

Have eaten at pizza

restaurants/ takeaways but not in the last 3 months

Have eaten at pasta

restaurants/ takeaways but not in the last 3 months*


34 39 51 54 47 43


26 44 44 49 44 41


19 40 56 38 36 38

I like the ‘self-service’ salad bars

18 29 25 32 21 27

Pizza/pasta restaurants are good for a special occasion or as a treat

16 26 26 30 24 27


16 28 31 35 24 25


12 11 10 13 21 23


11 21 13 28 10 12


7 15 11 16 7 8


5 9 13 12 8 5

None of these 28 2 5 2 9 10 * small sub-sample (75-100) SOURCE: IPSOS MORI/MINTEL



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FIGURE 59: FREQUENCY OF VISITING PIZZA AND PASTA RESTAURANTS, BY ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All About

once a week or more**

About once a

fortnight



months


months

Never

% % % % % % % Menus are pretty much the same at all takeaway pizza and pasta places

34 41 43 50 46 42 16


26 43 36 37 43 34 6


19 34 24 25 31 31 3


18 18 25 30 28 24 5


16 18 23 28 21 25 4


16 21 33 29 23 17 3


12 12 13 8 12 18 10


11 22 24 19 15 12 3


7 13 15 12 14 8 1


5 10 12 8 7 4 1

None of these 28 4 2 5 3 10 64 * small sub-sample (75-100) ** net of ‘Most days’ and ‘At least twice a week’ and ‘About once a week’ SOURCE: IPSOS MORI/MINTEL



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FIGURE 60: MOST POPULAR ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, BY ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Menus are

pretty much the same at all takeaway

pizza and pasta places

I like the flexibility of being able to choose my own toppings

when ordering

pizza

I prefer the

authentic or

premium Italian pizza/ pasta

I like the ‘self-

service’ salad bars

Pizza/pasta restaurants are good for

a special occasion or

as a treat

I like to take advantage of

special promotions

% % % % % % % Menus are pretty much the same at all takeaway pizza and pasta places

34 100 42 43 45 41 54


26 32 100 46 57 46 53


19 24 35 100 32 31 38


18 24 39 30 100 39 41


16 20 29 26 36 100 30


16 25 32 30 35 28 100


12 12 13 14 15 15 11


11 17 24 20 25 20 26


7 10 16 8 16 15 17


5 7 12 8 10 9 14

None of these 28 - - - - - - SOURCE: IPSOS MORI/MINTEL



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FIGURE 61: NEXT MOST POPULAR ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, BY ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS AND TAKEAWAYS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All I prefer to buy

pasta/ready-made pizzas

at the supermarket


I always look for new types of pizza (eg

twisted crust, toppings)

I have ordered

pizza/pasta via digital

TV/internet/ WAP mobile

phone* % % % % % Menus are pretty much the same at all takeaway pizza and pasta places

34 33 50 45 48


26 28 55 57 62


19 23 35 21 33

I like the ‘self-service’ salad bars 18 23 40 38 35 Pizza/pasta restaurants are good for a special occasion or as a treat

16 21 29 34 32


16 15 35 36 44


12 100 11 18 14


11 11 100 22 20


7 11 15 100 21


5 6 9 14 100

None of these 28 - - - - * small sub-sample (75-100) SOURCE: IPSOS MORI/MINTEL

Appendix – Pizza/Pasta Restaurants’ Pizza and Pasta Restaurants (and Takeaway) Targeting Opportunities Leisure Intelligence, January 2010


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Appendix – Pizza/Pasta Restaurants’ Targeting Opportunities FIGURE 62: PIZZA/PASTA RESTAURANTS TARGET GROUPS, BY DETAILED DEMOGRAPHICS, NOVEMBER 2009 Base: 1,921 adults aged 15+ Family

Feasters Pizza No

No Tech-savvy

Pizza Enthusiasts

On-the-fencers

Supermarket Alternatives

% % % % % All 14 28 12 20 26 Gender: Male 14 26 13 21 26 Female 15 29 11 18 26 Age: 15-24 9 8 24 27 32 25-34 16 17 16 20 31 35-44 22 15 13 26 25 45-54 17 24 12 19 28 55-64 16 35 9 16 25 65+ 7 63 3 11 17 Socio-economic group: AB 27 24 15 14 20 C1 15 22 14 22 28 C2 7 28 11 24 30 D 6 36 10 22 27 E 4 45 5 19 27 Lifestage: Pre-/no family 15 12 21 22 30 Families 17 15 14 26 27 Third age 15 32 9 17 26 Retired 7 63 3 11 17 Current marital status: Married/living as 17 27 10 21 25 Married 16 30 9 21 25 Living as married 23 13 17 24 24 Not married/living as 11 29 16 18 27 Single 11 19 19 21 30 Widowed/divorced/separated 10 46 9 13 23 Presence of children: Aged 0-4 14 12 18 28 28 Aged 5-9 16 17 15 23 30 Aged 10-15 19 13 15 22 31 Any children 17 15 14 26 27 No children in household 13 33 12 17 25 Special Groups: ABC1 pre-/no family 20 9 22 22 27 ABC1 families 25 14 17 22 22 ABC1 third age 22 27 11 13 27 ABC1 retired 11 56 4 11 18 One-person households under 65 14 27 17 15 28



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Working status: Working 19 18 15 22 26 Full-time/self-employed 19 19 15 23 24 Part time 18 14 10 22 37 Not working 8 18 16 24 34 Retired 9 59 4 10 18 Household income: Under £15,500 10 33 10 23 25 £15,500-24,999 6 28 15 18 33 £25,000-50,000 21 23 13 17 27 £50,000 or more 32 11 24 20 12 Don't know 7 32 9 21 32 Refused 14 31 9 20 25 Region: London 15 25 19 16 25 South 18 26 12 20 24 Anglia/Midlands 13 32 10 18 27 South West/Wales 16 32 11 14 27 Yorks/North East 12 21 9 31 28 North West 11 23 15 24 27 Scotland 22 31 7 14 26 Household tenure: Own home 13 43 6 16 22 Buying home 21 15 18 22 24 Renting 8 26 12 22 32 ACORN: Wealthy Achievers 17 31 15 18 19 Urban Prosperity 18 25 12 18 28 Comfortably Off 15 29 14 16 26 Moderate Means 11 27 8 25 29 Hard Pressed 9 27 10 25 29 Things own: Credit card 20 22 15 18 25 Debit card 17 25 14 19 26 Digital camera 20 19 16 20 25 MP3 player 22 10 21 22 24 Car 17 24 14 21 25 PC/laptop 17 20 15 21 27 Car status: 1 car 13 31 11 18 26 2+ cars 20 17 17 23 23 No car 7 38 7 18 30 Communication: Internet users 18 20 15 21 27 Broadband users 18 19 15 22 26 Mobile phone users 16 24 14 20 26 Terrestrial TV 8 43 6 17 27 Freeview TV 16 28 14 19 23 Cable/satellite/digital TV 15 26 13 20 26 Cable/satellite TV 15 22 15 21 27 Internet access: Home 18 19 15 22 27 Work 25 13 20 21 22 Total 18 20 15 21 27 None 4 53 6 15 23



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Internet frequency: Daily 20 17 16 22 26 Weekly 13 25 12 20 30 Web use: Email 19 19 15 21 26 Search for info 18 19 16 21 26 Buying 20 17 17 21 25 Bank online Download games 22 15 19 22 23 Newspaper readership: 20 11 21 21 27 Broadsheet 25 23 14 18 20 Mid-market tabloid 14 34 12 14 26 Popular tabloid 6 33 13 20 29 Household size: 1 person 10 45 11 13 21 2 people 15 36 8 19 22 3 people 16 17 13 25 29 4 people 17 14 18 22 29 5+ people 13 12 18 21 36 Education: Low 3 48 3 19 28 Medium 13 21 17 22 28 High 28 22 13 17 21 Supermarket used: Asda 9 25 12 25 29 Co-op 19 28 15 16 23 Iceland 6 24 12 25 33 Marks & Spencer 25 31 11 11 22 Morrisons 13 28 11 19 29 Sainsbury's 20 24 18 17 22 Somerfield 12 37 13 15 24 Tesco 16 25 13 22 24 Waitrose 35 19 17 10 20 Any discounter 15 27 16 15 27



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Detailed lifestage: ABC1 15-34 17 11 23 22 27 ABC1 35-54 27 16 14 20 23 ABC1 55+ 17 42 7 13 22 C2DE 15-34 7 14 17 26 36 C2DE 35-54 8 23 10 28 30 C2DE 55+ 4 61 3 13 20 Pre-/no family 15 12 21 22 30 Pre-/no family single 13 11 23 20 32 Pre-/no family couple 20 13 16 25 26 Pre-/no family working 19 15 20 20 26 Family 17 15 14 26 27 Working mother 23 14 11 24 27 Family under-10s only 17 15 15 29 24 Family 10-15s 19 13 15 22 31 Parent under 35 12 17 14 27 30 Parent 35+ 20 14 15 26 25 Third age 15 32 9 17 26 Third age single 9 34 15 16 27 Third age couple 18 31 7 18 26 Retired 7 63 3 11 17 Retired single 7 66 4 10 14 Retired couple 7 61 1 11 20 SOURCE: IPSOS MORI/MINTEL



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FIGURE 63: PIZZA/PASTA RESTAURANTS TARGET GROUPS, BY PIZZA AND PASTA RESTAURANTS VISITED, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Family

Feasters Pizza No No

Tech-savvy Pizza

Enthusiasts

On-the-fencers


% % % % % % Pizza Hut 21 21 2 45 24 28 Domino's Pizza 14 18 1 32 15 17 PizzaExpress 12 28 1 19 11 13 General Italian restaurant 9 26 2 17 9 4 Other restaurant selling pizza/pasta (eg pub, sandwich bar)

6 10 - 17 7 5

Other specific pizza outlet 6 5 1 11 9 8 Zizzi 3 10 1 5 2 2 ASK 3 8 1 5 2 2 Bella Italia 3 6 1 7 2 1 Prezzo 2 4 1 4 2 2 Other specific pasta outlet 2 1 - 5 3 2 Papa John’s 2 2 - 3 2 2 Caffè Uno 2 3 1 2 2 2 Pizza GoGo 1 1 - 3 1 2 Strada 1 4 - 3 1 1 Perfect Pizza 1 1 - 3 1 2 Have eaten at pizza restaurants/takeaways but not in the last 3 months

6 11 2 9 7 6


5 9 2 9 3 5


19 4 41 6 15 12


24 4 53 6 20 18

None of these 18 12 33 4 13 13 Don’t know - - 2 - - - SOURCE: IPSOS MORI/MINTEL FIGURE 64: PIZZA/PASTA RESTAURANTS TARGET GROUPS, BY FREQUENCY OF VISITING PIZZA AND PASTA RESTAURANTS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Family

Feasters Pizza No No

Tech-savvy Pizza

Enthusiasts

On-the-fencers


% % % % % % Most days - - - 1 - 1 At least twice a week 2 2 - 3 2 2 About once a week 4 10 1 7 3 5 About once a fortnight 6 7 1 11 10 8 At least once a month 14 16 2 25 18 17 At least once every three months 14 23 2 22 17 17 Less than once every three months 22 37 8 27 24 26 Never 36 4 83 5 26 25 Don’t know 1 1 3 - - - SOURCE: IPSOS MORI/MINTEL



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FIGURE 65: PIZZA/PASTA RESTAURANTS TARGET GROUPS, BY ATTITUDES TOWARDS PIZZA AND PASTA RESTAURANTS, NOVEMBER 2009 Base: 1,921 adults aged 15+ All Family

Feasters Pizza No

No Tech-savvy

Pizza Enthusiasts

On-the-fencers



34 28 - 82 100 -


26 31 - 85 9 36


19 100 - 41 - -

I like the ‘self-service’ salad bars 18 15 - 66 8 23 Pizza/pasta restaurants are good for a special occasion or as a treat

16 17 - 45 7 27


16 16 - 68 7 14


12 12 - 17 8 25


11 11 - 38 9 13


7 4 - 24 5 11


5 5 - 19 2 5

None of these 28 - 100 - - - SOURCE: IPSOS MORI/MINTEL

Appendix: Research methodology

Appendix: Research Methodology Pizza and Pasta Restaurants (and Takeaway) Leisure Intelligence, January 2010


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Appendix: Research Methodology Mintel International Group Ltd is an independent market analysis company that prides itself on supplying objective information on a whole range of markets and marketing issues. There are three main sources of information and research stages used in the compilation of Mintel reports: • consumer research, where exclusive research – both quantitative and qualitative – is

conducted for individual reports as well as drawing upon non-exclusive large scale surveys • interviews (usually conducted by telephone), both formal and informal, with relevant

members of the trade • Mintel Information Consultancy and market size and economic database. Reports are written and managed by analysts with experience in the relevant markets. Consumer research Exclusive and original quantitative consumer research is commissioned for almost all Mintel reports. In addition, qualitative research is also undertaken for a large proportion of reports in the form of online focus groups. Mintel invests a considerable sum each year in consumer research, and the purchaser of a Mintel report benefits, as the price of an individual report is less than the cost of the original research alone. The research brings an up-to-date and unique insight into topical issues of importance. Consumer research is conducted among a nationally representative sample of either adults or internet users and is generally carried out by BMRB (including BMRB Online), Ipsos Mori, GMI or Toluna. Other suppliers are used on an ad hoc basis as required. The results are only available in Mintel reports. Sampling and weighting BMRB OMNIBUS Face to Face Surveys BMRB Face to Face Omnibus samples 2,000 adults weekly using a random location sampling technique. This is a single-stage sample design, taking as its universe Sample Units, a bespoke amalgamation of Output Areas (OAs - the basic building block used for output from the 2001 Census) in Great Britain. Sample units have an average size of 300 households. OAs are grouped into Sample Units by CACI within ward and taking account of their ACORN characteristics. This sampling system is as current as it could be in terms of the characteristics of the areas selected and the people within them. There are additional quota controls on age - 15-34, 35-54, 55+ - on men - working full-time, not working full time – on women - working full or part time, not working full or part time. Interviewing is in home, face-to-face using CAPI (laptop computers). Data are weighted to the correct population proportions to match both the TGI survey and the National Readership Survey. A rim weighting technique is used in which target profiles are set for eight separate demographic variables.



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Online Surveys The sample is drawn from the Lightspeed Research (a sister company of BMRB) online access panel that has over 180 000 members in Great Britain. The online panels are recruited and maintained according to rigorous standards to ensure quality and representative sampling thus allows for 1000 nationally representative online adults aged 16-64 to answer weekly online questionnaires. . A section of the Lightspeed panel can be drawn and invited by email to complete the weekly survey. Quota controls are placed on the survey to ensure that there is no demographic skew in the sample. Quotas are set to achieve a sample that represents the population of GB. Smaller sub-samples within the overall sample can be achieved. A variety of recruitment methods are used to build the Lightspeed panel. Panel recruitment is achieved through multiple sources, although online is the main vehicle for acquiring panellists. Lightspeed Research uses a variety of web portals and sites to ensure a balanced panel. The panellists are incentivised by receiving Lightspeed Points every time they participate in surveys. Once a panellist has earned 500 Lightspeed Points they can redeem them for £5 gift certificates. Panellists can also allow their Lightspeed Points to build up and redeem them for bigger prizes. Careful panel management is undertaken to ensure a responsive panel with 30-50% completion rates being achieved through removal functions for panellists, proactively removing no longer valid e-mail addresses; panel categorisation to identify ‘loyal’ and ‘inactive’ panellists so that panel attrition can be reduced. In addition to this, panellists are not invited to complete surveys more than once a month and not more than one topic per quarter. IPSOS MORI Ipsos MORI Capibus uses a two-stage random location sample design which generates a very high quality sample representative of the Great Britain adult population. Interviews are sampled from 145 Output Areas, randomly selected every week, and MOSAIC is employed to set interlocking quota controls specific to each interviewer location. This ensures consistent accurate representation of the locations interviewed every week. By using this proven sample design, all sub-sectors of the population are represented –at a national and regional level. All information collected on Capibus are then weighted to reflect the known profile of the adult population in Great Britain. Capibus uses a rim weighting system which weights to mid 2007 census and NRS defined profiles for age, social grade, region and working status - within gender. Additional profiles used include tenure and car in household, for example.

Because the sampling process is repeated every week, the Capibus sample is matched wave on wave, making it ideal for taking successive measurements on the same issue.



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GMI GMI’s global online panels represent a community of high-quality, highly profiled, double opted-in consumers and specialty panelists who are actively managed to specifically serve the sample needs of the market research industry. GMI has its own proprietary panel, which, combined with the panel of its approved network of vendors, provides reach to 10 million households around the world. For general population research studies, GMI draws a sample from its global consumer panelist base that is in proportion with the general population. Then, GMI sends an invitation to request panelist participation in the survey. For clients with specific criteria, GMI pulls the sample based on the filters set, and then distributes invitations on a random basis. Panelists are typically invited to take part in a survey via an email invitation. At the client’s request, panel members can also be directed to a client portal to complete a study, and then be passed back into the GMI database to ensure Marketpoints are awarded directly to the panel member’s individual account. This transfer is always encrypted to protect the respondent’s personal information. Toluna Toluna has embraced the social media concept and has developed ‘panel communities’, in order to maximise member engagement and overcome the common industry problem of declining survey response rates and multi-panel membership. Today, Toluna’s unique online community consists of over 3.7 million consumer and business-to-business panelists covering 33 countries. All of Toluna’s 33 proprietary panel communities around the world are actively managed panels. Members are recruited from a broad array of online and offline approaches that best represent the online community as a whole in each country. With stringent panel quality policies, Toluna ensures that all its panelists are recruited via a double opt-in email process; daily checks are carried out for hard bounce emails and duplicates; and panelists who provide inconsistent responses are removed from the database. Confidence levels Statistical confidence levels of + or – 2% or 3% can be applied to the data, depending on sample size and percentage of respondents. For example, if 20% of a total sample of 1,000 adults say that they do something, you can be 95% certain that the figure for the population lies between 17% and 23%. For a sample of 2,000 adults, you can be 95% certain that the figure lies between 18% and 22%. Consumer research is stored in a database supervised by Mintel's statisticians. Additional analysis of information too abundant to be included in published reports may be available for an additional charge. Additional quantitative data are taken from BMRB's Target Group Index surveys. The main TGI survey used is a continuous self-completion survey among a representative sample of around 25,000 adults throughout Great Britain.



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Unless otherwise stated, consumer research data are presented as penetration, ie as a percentage of demographic sub-groups (usually in rows) such as age, eg 71% of 15-24-year-olds are moisturiser users. Profiles are represented as proportions of the population, eg 8% of moisturiser users are aged 15-24 and, therefore, total 100%. Population profile GB population profile, by demographic group, 2009 Base: adults aged 15+ % Total 100 Men 49 Women 51 Age group: 15-19 8 20-24 8 25-34 16 35-44 18 45-54 16 55-64 14 65+ 20 Socio-economic group: AB 27 C1 29 C2 21 D 15 E 8 Television regions: London 24 South 11 Anglia/Midlands 27 South West/Wales 12 Yorkshire/North East 17 North West 13 Scotland 8 Working status: Working 52 Not working 23 Retired 25 Marital status: Married 61 Not married 39 Presence of children: Children 0-15 33 No children 67 SOURCE: TGI/MINTEL Some reports contain qualitative research, either focus groups or in-depth interviews. Qualitative research normally takes the form of an online focus group. Participants are mainly recruited via Toluna’s online panel, although sometimes other sources are used.



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Definitions of the main consumer classification systems used in the report are shown at the end of this appendix. Trade research Informal trade research is undertaken for all reports. This involves contacting relevant players in the trade, not only to gain information concerning their own operations, but also to obtain explanations and views of the strategic issues pertinent to the market being researched. Such is Mintel’s concern with accuracy that draft copies of reports are sent to industry representatives, to get their feedback and avoid any misrepresentation of the market. These comments are incorporated into reports prior to final publication. Formal trade research is conducted in two ways, and are not necessarily mutually exclusive: Internally, the Trade Insights Team undertakes extensive trade interviews with selected key experts in the field for the majority of reports. The purpose of these interviews is to assess key issues in the market place in order to ensure that any research undertaken takes these into account. In addition, using experienced external researchers, trade research is undertaken for some reports. This takes the form of full trade interview questionnaires and direct quotes are included in the report and analysed by experts in the field. This gives a valuable insight into a range of trade views of topical issues. Desk research The Mintel Information Consultancy, which contains virtually all the raw material for desk research work, comprises: government statistics, consumer and trade association statistics, manufacturer sponsored reports, annual company reports and accounts, directories, press articles from around the world and online databases. The latter are extracted from over 280 publications, both British and overseas. All information is cross-referenced for immediate access. Data from other published sources are the latest available at the time of writing the report. This information is supplemented by an extensive library of Mintel’s reports produced since 1972 and added to each year by the 400+ reports which are produced annually. In addition to in-house sources, researchers also occasionally use outside libraries such as the British Library or the Department of Trade and Industry. Other information is also gathered from store and exhibition visits across Europe, as well as using other databases within the Mintel Group, such as the Global New Product Database (GNPD), which monitor new FMCG launches around the globe. All analysts have access to Mintel’s Market Size and Economic Database – a database containing all areas of consumer spend and retail sales as well as macroeconomic and demographic factors which impinge on consumer spending patterns, going back some 20 years. The database is used in conjunction with an SPSS forecasting program which uses weighted historical correlations of market dynamics, with independent variables, to produce future spending scenarios.



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Sources Where data are provided by a particular source then this is accredited at the foot of a figure. Often figures are sourced "Mintel". This means that information is derived from a variety of points, such as desk research and trade interviews, with the experience and expertise of a writer filling in any information gaps or interpreting data, so that it gives an accurate representation of the market and ensuring the data are consistent, both with other data in the report and between the whole array of Mintel’s data. With over 400+ reports produced annually, the resources and knowledge at the writers' disposal allow for informed estimations of some market parameters, which are then checked for their validity with the trade. Data which are estimated have this reference because the original source data are only at the estimated stage and are not finalised or, as is often the case, where they refer to updates of government data, "est" denotes that they were not available from the original source at the time of publishing. Definitions

Socio-economic group Socio-economic groups are based on the head of household or chief income earner and are defined as follows: Socio-economic group Occupation of chief income earner A Higher managerial, administrative or professional B Intermediate managerial, administrative or professional C1 Supervisory or clerical, and junior managerial, administrative or professional C2 Skilled manual workers D Semi and unskilled manual workers E All those entirely dependent on the state long term, through sickness,

unemployment, old age or other reasons

Retired persons who have a company pension or private pension, or who have private means are graded on their previous occupation.

Students in higher education living at home are graded on the occupation of the head of the household. Students living away from home are graded C1 (no account is taken of casual or vacation jobs).

Lifestage and Special Groups

In addition to the standard breaks, Mintel also analyses the consumer research in the following manner.

Lifestages are derived from analysis of the exclusive consumer research and are split into four main groups, as follows. The following percentages are nationally representative. Internet representative would differ slightly.

% of population Pre-family/no family aged under 45 who are not parents 26 Family any age with at least one child aged under 16 still at home 29 Third age aged 45-64 with no children aged under 16 26 Retired aged over 65 with no children aged under 16 20



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As part of an ongoing policy to find new ways of analysing data, Mintel has created Special Groups of consumers to typify consumer habits in the early years of the 21st Century. Unlike the lifestage groups, these groups represent only sections of the population and do not account for all adults.

% of population ABC1 Pre/no family ABC1 Socio-economic group and in the pre/no family

lifestage 15

ABC1 Families ABC1 Socio-economic group and in the family lifestage 17 ABC1 Third Age ABC1 Socio-economic group and in the third age lifestage 14 ABC1 Retired ABC1 Socio-economic group and in the retired (65+)

lifestage 10

Two full-time earners couples where both partners work full-time 16 One person households under 65

aged under 65 and living alone 10

Internet users all Internet users at home, work or elsewhere 73 Broadsheet readers read Daily Telegraph, Financial Times, Guardian,

Independent or the Times 15

Mid-market tabloid readers

read Daily Express or Daily Mail 16

Popular tabloid readers

read Mirror, Daily Sport, Daily Star or Sun 24

Satellite/digital TV viewers

have satellite/cable/digital TV 82

Mobile phone users have a mobile phone 82 ACORN Some reports also use consumer research analysed by ACORN category. ACORN is a geo-demographic segmentation method, using census data to classify consumers according to the type of residential area in which they live. Each postcode in the country can, therefore, be allocated an ACORN category. The classification is a more powerful differentiator of consumer behaviour than traditional socio-economic and demographic indicators. The categories, and their components, are as follows: ACORN category ACORN group % of population 2009 22.4 Wealthy Achievers – Category 1 A – Wealthy Executives 6.8 B – Affluent Greys 6.8 C – Flourishing Families 8.9 8.9 Urban Prosperity – Category 2 D – Prosperous Professionals 2.2 E – Educated Urbanites 3.1 F – Aspiring Singles 3.5 31.5 Comfortably Off – Category 3 G – Starting Out 4.2 H – Secure Families 18.1 I – Settled Suburbia 6.9 J – Prudent Pensioners 2.2



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15.4 Moderate Means – Category 4 K – Asian Communities 0.9 L – Post Industrial Families 5.6 M – Blue Collar Roots 8.9 21.6 Hard Pressed – Category 5 N – Struggling Families 15.2 O – Burdened Singles 3.9 P – High Rise Hardship 1.0 Q – Inner City Adversity 1.5 SOURCE: TGI/MINTEL

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