Foodservice

Just Eat Revels Strong Q1 Growth

Just Eat has shown a rapid growth in early 2015 with a 51% rise in orders for Q1. This growth rate only aggravates an already competitive market. Just Eat is based in London and exploded onto the London Stock Exchange in 2014. They are valued at £1.5bn and more than 60% of their orders were placed via the mobile app. It has more than 8 million users, with 45,700 takeaway restaurants signed up to the service. However, pressure is intensifying from competition such as Hungry House whose app allows users to sort not only by rating and alphabetically, but also by distance and minimum order value. Just Eat has processed in an excess of 61 million takeaway orders for 2014 and they charge companies a 10% commission in the UK.

Just Eat optimise a 4 point success based revenue model:

Connection Fee – Restaurant pay a registration fee to be included in the Just Eat network (5% of revenue)

Payment Card/Admin Fee– a fee for when customers choose to pay online (13% of revenue)

Commission Fee– This is deducted when a company has completed a successful order. This differs from country to country and typically averaged to 11.4% (76% of revenue)

Top-Placement Fee– This is optional for establishments where they can choose to pay for additional services such as advertisement. 6% of revenue)

Just Eat operates in the Quick Service Restaurant market. This market is extremely diverse and includes takeaways, coffee shops and other fast food outlets. It is estimated that establishments in this sector produce over 2.5bn meals per annum and the value of this sector is deemed to be worth over 9.5bn.

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Foodservice

Hotel Chocolat De-lists ‘Milk Free’ Milk Chocolate

Hotel Chocolat have recently released a ‘Dairy Free’ chocolate. However, according to the FSA (Food Standard Association) these products have been pulled off the shelves due to the company not complying with the new allergen laws introduced. The infringement was simply that the packaging did not state clear enough that traces of milk potentially can be found in certain products. This carries a major health concern to lactose intolerant individuals. The products recalled are:

  • Hotel Chocolat Milk Free Milk Bunny Lick
  • Hotel Chocolat Milk Free Milk Puddles
  • Hotel Chocolat Milk Free Milk City Bunnies
  • Hotel Chocolat Milk Free Milk Goose Egg
  • Hotel Chocolat Milk Free Milk Scrambled Egg

Hotel Chocolat is a British chocolatier and cocoa grower, with over seventy shops in the United Kingdom. Hotel Chocolat is the only company in the United Kingdom to grow cocoa on its own plantation.

Since this post, Hotel Chocolat has issued this statement which they have now incorporated on their website.

milk fre chocolate

Foodservice

Tesco Reviles Marketing Strategy Using Consumer Data

Tesco, the largest supermarket chain in the UK, is aiming to create a profile of customers by utilising data sourced from shoppers ‘Club Cards’, baskets and trollies to determine the ‘nutritional profiles’ of their customers. Joanne Floyd, part of the senior management team at Tesco, revealed that a pilot study was first used to analyse the nutritional profile of customers shopping basket and over 2 million shoppers have been analysed. The aim is to use this data of shoppers to help support new product development strategies. The pilot study has been in effect as far back as 2013 and appears to have been unfazed by the sudden hit to Tesco’s reputation and financial stability.

The results have shown what you would imagine. The healthier baskets can be found in mid-summer as well as January and the least found in and around the Christmas period. In relation to market strategy, this information can be used to help influence various techniques; the most obvious being pricing structure as Tesco can use this information to help make healthier brands and products cheaper in winter months and more expensive in summer months. Their results have also shown that the healthier baskets are bought online and the unhealthiest baskets are bought in express stores- most likely due to the fact confectionary items, beer, wine, spirits and tobacco products are readily on hand.

Over 2014, Tesco lost around 50% of their market value and this has been associated with a colossal £250m accounting ‘hole’. However, research shows that in early 2015, Tesco lost .5% of the market share but were still leaders in that market with a 12.2% lead over Sainsbury’s who themselves lost .2% of the market share from 2014-2015.

In the back end of 2014, Tesco announced the closure to more than 40 stores, a move that puts more than 2,000 jobs at risk. The ‘Tesco Metro’ stores have stated to close as of the 15th March and Super Stores have started closing as of yesterday, 4th April.

Tesco share price closed at 242.75 which is an increase of 33.9% since January 2015 however a 1.9% decrease since the start of March 2015.

(BBC News)
(FoodManufactor.co.uk)

Foodservice

Foodservice at a Glance

Food-service is worth in excess of £190bn and is primarily split into two sections- this is commonly known as the ‘Iin Home Market’ and ‘Out of Home Market’.

In home Market: Food and drink to be consumed in the home e.g. meals cooked at home

Out of Home Market: Food and drink to be consumed ‘out of the home’. e.g. restaurants and cafes

The biggest market is the In Home Market which is estimated to be worth more than £110bn! This is primarily made up of supermarkets as well as convenience stores. The Out of Home Market consists of locations which sell food for the intended consumption out of the home. A good example of this is petrol stations which include a food forecourt.

A crucial subsection of the Out of Home Market is known as the ‘Foodservice Market’ which is the biggest sector. This is defined to be where both food and drink is purchased for the consumption out of home but the food and drink has gone through a change in either the presentation or the development before it is sold to the consumer. Examfoodwasteples of this can be cooking or preparing the food, Heating the food or simply pouring the drink into a glass. In practice, this would be where a restaurant purchases their food ingredients from a wholesaler (Bookers, Macro, Cosco), cook the food to create a ‘dish’ or ‘meal’ and sell this to the consumer.

In the UK the Foodservice sector is a massive employer and contributes a vast amount to the growing UK economy. Roughly 1/3rd of expenditure of consumers is on food and drink! Alcohol, in particular beer, contributes over £22bn to GDP and houses a whopping 900,000+ jobs. However, it’s not all rainbows and butterflies in this industry. Research from WRAP has found that “600,000 tonnes (41%) of the waste from pubs, restaurants, hotels and quick service restaurants is food waste” and that the “food sector produces 0.4 million tonnes of avoidable food waste per annum, a further 0.2 million tonnes of unavoidable food waste is produced every year”.

Foodservice

*UPDATE* Message from Direct Insight

HELLO AGAIN WORLD 🙂

Welcome to Direct Insight– Your free guide to Foodservice.

Blogging is something I have always wanted to do but I’ve never found anything I wanted to share with the world or to inform people about. That is, until I entered my first job in market research, telesales, and customer service which immersed me in the word of ‘Foodservice’. As a self-confessed foodie I saw this to be the perfect opportunity to share my continual knowledge of the Foodservice industry. I aim to build my knowledge, meet companies and consumers of various brands and, if given the opportunity, to help out on various projects whichever they may be. I love attending expos and events and speaking to likeminded individuals.

My ambition for this blog is to create a site whereby businesses & consumers can receive up to date detailed media reports about the industry. Sourced from a variety of resources and with insight all rolled in. A big task? I don’t think so and it won’t stop there!  I intend to build this opportunity up by using existing experience in Research, Psychology and Customer Service to name a few. Wondering how? Then just send me an email and I would love to discuss ideas over coffee…Man I love coffee!

When I first started this blog I designed it to be a trial pseudo-website, professionally written and attractive to businesses. I soon realised that I was creating a false image and upon reading other people’s blogs and looking more into WordPress I found that I was taking the complete wrong approach. I tried to approach blogging very much from a ‘business’ point of view with professional sounding text and all I achieved was sounding like every other business and, quite frankly, boring…

example

Very boring indeed…

I feel blogging to be a very personal platform for a variety of people and this varies from person to person. Some people invest a lot of time and effort into their blogs and care very much about them. This, in turn, makes them more engaged when people view, comment, like or even visit their blog. Others aren’t so devoted. I want to break down the metaphorical walls build between both ‘businesses’ & everyday folks and connect on a level we can all relate to and that is food and drink! It surprises me how many people are aware of brands but no necessarily the company behind them. For example,Did you know that Millicano, Kenco, Cadburys, Oreo and Belvita are owned by the same company?

So, what can I do for you?

Well, as a Psychology Graduate I am well versed in the world of research. Throughout my time at university I completed two pieces of research which gave me great exposure to crucial and complex statistical analysis as well as construction of surveys, questionnaires and other varied research methods. I have over 6 year’s customer service experience and this is continually being built by my current occupation. I am ever expanding and exploring the world of Foodservice and I am always willing to learn when given the chance.

Please feel free to let me know your views about my blog or ideas. Is red and orange a good choice? Should I move the contents of the right hand side of my page around? Should I get a better picture and invest in a nicer picture? I appreciate any comments good or bad and would be happy to talk about any ideas you have or are planning on working on. This is a Free service to which I would be happy to provide.

A journey of 1000 miles starts with a single step and this… is step 1.

Foodservice

Kraft Foods & Heinz to Merge in 2015

Earlier it was announced that Heinz will be merging with Kraft Food Group and market reaction has been positive with an increase in Kraft Shares by 40%

The deal is worth £68bn and will in turn create the 5th largest Food and Beverage Company behind Nestle. The company will then re-brand from ‘Hienz’ to ‘Kraft Heinz Company’. It will be run by the former Brazilian tennis player Jorge Lemann who is estimated to be worth £25bn. He made his name in the beer business and owns other iconic brands such as burger king.

Kraft Food is the unknown owner of the well-known brands such as, Capri Sun, Tassimo and Philadelphia to name a few. However, a subsidiary company, Mondelez International, was established to look after the UK brands of various confectioneries and coffee to allow Kraft to focus more on the US market. Brands include: Kenco, Millicano, Cadburys, Carte Noire and Oreo. Unlike Kraft Foods, Heinz is well known for their HP sauce, beans and of course their tomato Ketchup.

However, it isn’t all good news as this move has meant fear of further existing redundancies as well as putting 50,000 jobs at risk. If this forecast is true, this figure will not please the statistics which will show a significant increase in unemployment in the US.heinx

The deal is aimed at improving sales as both brands suffered from the slowdown in sales over 2014. The deal is anticipated to be finalised later this year with approval from US regulators.

Foodservice

Cuts on Beer & Cider for the 3rd Successive Year

Earlier today the Chancellor of the Exchequer, George Osbourne, announced in his budget that beer duty will be cut by a further 1p a pint, cider by 2p and a 2% cut in excise duty on scotch whisky and other spirits while wine duty frozen. However, what do these pennies actually equate to? Does this make a big difference to the economy and jobs?

As a matter of fact, it makes a huge difference. The beer industry is responsible for providing £22b to GDP as well as housing over 900,000 jobs and over 80% of the beer sold in Britain is brewed in Britain. This isn’t the first time there has been cuts on beer duty. This decision follows on from both 2013&14 beer duty cut where we saw a 25% increase in production and over 1,500 new jobs created in the sector. Independent research by CEBR forecasts that the price of a pint in the pub  will now be more than 20p cheaper than it would have been had the beer duty escalator remained in place. Under the beer duty escalator, implemented in 2008-2013, beer tax rose by 42%. During this period, 7,000 pubs closed and 58,000 jobs were lost.

The latest budget is set to see an increase in over 3,500 jobs in the sector and put an estimate £180m back into the pockets of pub goers. The market has reacted positively to this news as popular pub group ‘JD Weatherspoon’s’ saw trading up by 2% at 79.1p a share.

With a history of pub closures and falling beer sales, it is encouraging to know that a couple of pennies goes a long way in this sector to contribute to the rise in British jobs, British economy allowing the average Joe to enjoy a refreshingly cheap pint!

beer dinking