Horeca Report 2016: What Comes Next?

Horeca Report 2016: What Comes Next?

Release date: August 15th, 2016 (157 pages)
PDF/Powerpoint format. Price: GBP2,499.00


Is the future of food artisanal, local and unique? Or will it be dominated by chains and be bland, inoffensive and globally recognizable?

There are many pointers that we have reached peak chain. Then again there is still a place for the big corporates, as their business model economics trump smaller indie start ups. Starting from much better supply chain efficiencies and better quality controls, they are especially good at the occasional convenience of not having to cook a meal and not having to argue with fussy kids – or for the business traveler and tourist. But they are very much tied to bricks & mortar.

On the other hand the boom in artisanal, organic, health & wellness, independent, street food, etc shows no sign of slowing down. Clearly the future of food is bifurcating and “average is over”, which is bad news for the undifferentiated middle. It will be either the best value/cheapest options (chains) or the luxurious best. The current middle will get squeezed hard.

Behind this development is that fact that many shoppers are starting to shift their meals to prepared food, either from stores or restaurants. This is where chain restaurants can realize the cost benefits of their industrial scale. It’s also a clear argument to team up with the delivery start ups, from GrubHub to Amazon and UberEats. It should be noted that people who don’t cook at home are going to be more sensitive to pricing.

Those cooking at home will be looking for something special when they dine out at a restaurant. That will imply a cuisine they don’t normally prepare or something that requires a high level of expertise. It’s going to be more artisanal, focused on the craft of cooking. (The high-end Italian, the macrobiotic vegan place, or one of the many family-run ethnic restaurants...)

So what is just around the corner?
With the middle ground being eroded new spaces open up. Especially in large cities, there is an increasing number of new “mini” chains. These tend to edge up the generic chain experience and give shoppers something of a local feel, often with more creative food stylings. Even a handful of locales can reduce operating costs (when food production becomes more centralized) and increase buying power - and of course kitchens can be shared.

The other massive opportunity can be found in the digital transformation and new business model emerging. The digital disruption by meal kits and delivery start ups and the transformation they bring is still poorly understood.

But there are also a number of threats on the horizon:

The trend to unintentionally cloned-yet-unique hipster enclaves that have their own name and menu but are basically interchangeable with a hundred other brick oven pizza, high end coffee roasters etc is fizzling out – because it becomes too mainstream.

The cost structures are changing, especially with rising minimum wages and other regulatory burdens threatening restaurants.

For more insights and recommendations dive into our latest report…

Table of contents

Executive summary p8
Data p17
Data: US spend on foodservice and retail 2016, the foodservice opportunity p18
Data: fresh prepared data, grocers in the US 2016 p19
Retailers - Hyper and supermarket innovations around fresh and fresh prepared p20
Retail: introduction foodservice and retail 2016 p21
Jumbo: sales figures, omnichannel strategy, Foodmarkt concept p22
Jumbo: the Breda store, dishes at different stages of preparation p23
Jumbo: Foodmarkt - the focus on foodservice p24
Jumbo: NL, sampling and tasting sessions, retail theatre p25
Jumbo: NL, no non food, 36k footfall per week, Nijmegen up next p26
E.Leclerc: the pizza and sushi drives, updating and combining the offer, highways p27
Tesco: Was selling off Giraffe and Harris + Hoole a good idea? p28
Kroger: ramping up the foodservice proposition and selling through Instacart p29
Kroger: Main & Vine, follow through with dedicated standalone format p30
Walmart: updating its food-to-go and in-store dining services p31
IKEA: the leading non food retailer in foodservice terms p32
IKEA: the city centre store, smaller but taller, Hamburg Altona p33
IKEA: City Centre store Hamburg, food service a run away success, a store visit p34
IKEA: among top 5 of most visited German stores, but basket sizes down p35
IKEA: foodservice at the heart of US store strategy, seafood sustainability p36
Foodservice-retail hybrids p37
Foodservice-retail hybrids: introduction foodservice and retail 2016 p38
Whole Foods: struggling against a multitude of new challengers p39
Whole Foods: interest in meal kits p40
Whole Foods: 365, responding to the challenge from Trader Joe’s, Sprouts et al p41
Whole Foods: 365, first store opened in Silver Lake, LA p42
Whole Foods: 365, partnering with on trend food service partners and Instacart p43
Whole Foods: 365, Portland partnering with local foodservice heroes p44
Eataly: a spectacular hybrid concept, blend of retail, craftsmanship and foodservice p45
Eataly: the trendsetter, slow food and upmarket p46
Eataly: how the concept expands internationally, adopting to cultural exceptions p47
Eataly: exporting Italian food and prestige, innovating on the staples p48
Eataly: NY flagship and the economics of the Munich store, data p49
About Life: Australia’s best fresh specialist – incorporating FS and delivery p50
Kochhaus: a true hybrid and innovator p51
Waitrose: new thinking in King’s Cross, focus on foodservice p52
Waitrose: launches sushi bar Sushi Daily p53
Sushi Daily: Kelly Deli to expand its sushi bars in EU grocers p54
Sushi Daily: new dim sum concept trialed in France p55
Deli de Luca: Norway’s convenience-deli hybrid p56
Foodservice players – How to use online and innovate in restaurants p57
Introduction: innovations in foodservice p58
McDonald’s: adding convenience, tablets, kiosks, table service, customization p59
McDonald’s: all day breakfast in the USA and Australia p60
McDonald’s: McCafé self-service coffee machines p61
McDonald’s: the bull versus the bear case, the positive case p62
McDonald’s: the bull versus the bear case, another Kodak? p63
Burger King: delivery in house and partnering with deliveroo, Hungryhouse p64
Hans im Glueck: premiumising burgers in Germany p65
Hans im Glueck: premiumising burgers in Germany, stats & data p66
Quick serves: Akindo Sushiro sushi chain’s innovative data use part I p67
Quick serves: Akindo Sushiro sushi chain’s innovative data use II, IPO? p68
Quick serves: Itsu delivery app and grocery range p69
Quick serves: Itsu delivery app and grocery range, latest trading data p70
Quick serves: Veggie Pret pop-up shop p71
Le Pain Quotidien: leading fast casual player, app innovation p72
Panera Bread: Panera 2.0, digitizing the restaurant experience p73
Panera Bread: Panera 2.0, delivery service roll out sped up p74
Panera Bread: removing artificial flavours, incredible US$ sales per outlet p75
Pizza Express: updated retail range p76
Pizza Express: signs up with Deliveroo p77
Starbucks: the best mobile payments operator in the world p78
Starbucks: the stats behind the app, driving ATV higher, data insights p79
Starbucks: reshaping the stores, digital spending, licencing the success? p80
Starbucks: opens first express store in the UK p81
Starbucks: Tie-up with Italian boutique bakery, premiumisation p82
Meal Kits and Delivery – How online is disrupting foodservice p83
Introduction: online disruption in foodservice p84
Introduction: demand for higher quality food p85
Linas Matkasse and the copycats – recipe bag providers tackling delivery costs differently – the subscription solution and unique product p86
Linas Matkasse: Swedish innovation, the recipe bag provider p87
Linas Matkasse: curated shopping in online grocery, skills enhancer p88
Linas Matkasse: innovative loyalty generation, the data p89
Linas Matkasse: foreign expansion, cooperation with an omnichannel grocer? p90
Linas Matkasse: latest developments, stretching the offer p91
Linas Matkasse: selling out? Hercules invests, breaking the SEK1.0 billion barrier p92
Meal Kits: some background data USA, main points of player differentiation p93
Blue Apron: 8m meals per month, rethinking the supply chain, eliminating waste p94
Blue Apron: “selling recipes not ingredients”, pushing unconventional produce p95
Blue Apron: the big data approach to customisation, adding more choice p96
Blue Apron: planning meals a year out p97
Blue Apron: Preparing for the IPO, or to be bought out? p98
Plated: venture funding, positioning itself as more premium than the competition p99
Plated: investing in choice mechanics p100
HelloFresh: explosive revenue growth and widening losses, the data p101
HelloFresh: Active subscribers and servings delivered, the data p102
HelloFresh: Rocket’s Global takeaway group, the strategy p103
HelloFresh: expanding the FC footprint in the US and pulling the IPO p104
HelloFresh: Strategic Partnership with Jamie Oliver, DC in Germany p105
Amazon: Meal kits to be launched in autumn in partnership with Tyson Foods p106
Kochzauber: Lidl buys recipe bag provider Kochzauber p107
Chilled delivered meals: heat up at home, EatFirst, Bonapeti, Pure Package et al p108
Online delivery platforms p109
Just Eat: GMV of £1.7bn, highly profitable, Europe’s largest player p110
Just Eat: pureplay marketplace operator without a logistics set up p111
Just Eat: consolidating different orders into a single delivery, big data consulting p112
Just Eat: online data for offline restaurants, trialing delivery robots p113
Just Eat: divesting out of Benelux, Takeaway.com takes over p114
Deliveroo: partnering with premium restaurants, providing the delivery capabilities p115
Deliveroo: fund raising, the Pizza Express partnership, alcohol deliveries p116
Deliveroo: investing in its own decentral kitchen spaces – “RooBox” p117
Deliveroo: the challenge from Uber and Amazon p118
UberEATS: launches in London, signs up 150 restaurants, undercuts deliveroo p119
UberEATS: will Uber cab customers migrate to UberEATS? p120
Amazon: Amazon Restaurants to come to the UK p121
Amazon: Amazon daily dish p122
Amazon: taking on and copying Peach p123
Maple: a fully integrated operation, the online only restaurant p124
Maple: 30 de-central kitchens across NY, delivery within 15m, 1,100 meals per hour p125
Postmates: Starbucks and Pop express delivery service p126
Foodstalls – The street food revolution p127
Introduction: renewed vibrancy, DIY spirit and social media p128
London Union: Changing London’s food landscape, looking for shed space p129
London Union: London Union, the boom in street food p130
London Union: street food vendors in Trinity Leeds p131
StreetDots: Street food vendor platform p132
Enterprise Street Food app: innovative technology p133
Torvehallerne, Copenhagen: Food service and retail mix p134
Torvehallerne, Copenhagen: €30,000 per sq m, incredible sales density p135
Torvehallerne, Copenhagen: reasons behind the success, food service p136
Torvehallerne, Copenhagen: the inspiration behind Markthal Rotterdam p137
Technology – Break through innovations p138
Introduction: innovative technology and restaurant use cases p139
App based innovations: Starbucks, Levi Roots Caribbean Smokehouse, Google p140
Delivery innovations: Pizza Hut, Domino’s p141
Virtual reality innovation: McDonald’s, M Restaurants p142
Digitising the in store experience: McDonald’s p143
Automation innovation: Tossed’s self serve kiosks, cashless & automated stores p144
Automation: Tossed expansion plans and online delivery p145
Recommendations – Foodservice and retail players p146
Recommendations: for foodservice operators, go multichannel in store, blur formats p147
Recommendations: what is the right offer? which are the right trends? Use online p148
Recommendations: for retailers, offer FS and combine with click & collect p149
Recommendations: for retailers, use local catchment know how and differentiate p150
Recommendations: for cash & carry/wholesalers, vertical integration with farms? p151
Recommendations: for cash & carry/wholesalers, education p152
Outlook – Foodservice and Retail 2016 and beyond p153
Sources p157
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