london zurich presentation Sept 16

London – through the roof and still climbing

Presented by Robin Rowland, - CEO Yo Sushi

Compiled by - Ian Dunstall, Brand Consultant

London –through the roof and still climbing

Always unique, sizzling hot and exciting

A global model for restaurant creativity

What makes London a global city? • Population scale &

diversity

• Knowledge economy

• Finance & Business

• International tourism

• Culture & entertainment

• Global wealth

London’s population scale & diversity

• 8.6m population

• 22.7m in SE region

• 37% born outside UK

• 103,000 international students

• 300 languages spoken

• Over 1/3rd population from Black/ Asian/ Minority origin

Knowledge economy

• 1.7m in high skill knowledge based jobs

• 3rd largest start up innovation system ($2.4bn)

• Over 42 Higher Educational Institutes

• Most desired place in world to move to work

• London 16%, NY 12%, Paris 9%

Cultural and entertainment centre

• 300 theatres, 12,000 restaurants, 500 cinema screens

• 240 museums and galleries.

• 40% of city is green space

• Festivals and cultural events

• London 2012 reminded the world it is a cultural powerhouse

International tourist destination

• Over 1m flights per year worldwide

• Over 17m foreign visitors per year to London

• Over 150m passenger movements per year

• Worlds most visited city for international arrivals – 5 international airports

World leading Finance & Business Centre• 40% of foreign equities

traded here• Home to massive

global brands • Home to 33% of

European HQs of Global Fortune 500

• Over 30% of the world's currency exchanges

• Daily global connectivity

20 years of economic growth (minus 1)

Global Wealth centre• London reigns at the top

of global wealth report of High Net wealth Individuals:

1. London2. New York3. Hong Kong4. Singapore5. Shanghai6. Miami7. Paris8. Dubai9. Beijing10.Zurich

Impact of Brexit

?

The London restaurant market – key issues• Culinary freedom• Location hot spots• Growth of entrepreneurial small

scale brands• Venture Capital• Managing the rent bill • Small space innovation• All day trading• Delivery• Shifting consumption trends• The cost of labour

UK Culinary freedom

• UK has less culinary tradition than other nations

• Colonial influence

• Multi nationality

• So earlier freedom/ adoption of new trends

© CACI Ltd, 2016

15

LONDON TODAY| LONDON IN 2025 |

THE F&B CAPITAL | SEVEN DIALS

SEVEN DIALS

2011-201533%

2013-201514%

Sources: CACI; Oliver O’Brien CDRC UCL; Transport for London; Ordnance Survey; OpenStreetMap; CGA Outlet Index

© CACI Ltd, 2016

16


THE F&B CAPITAL | KINGS CROSS

KINGS CROSS

2011-201574%

2013-201543%


© CACI Ltd, 2016

17


THE F&B CAPITAL | LIVERPOOL ST & BROADGATE

LIVERPOOL ST & BROADGATE

2011-201517%

2013-201517%


© CACI Ltd, 2016

18


THE F&B CAPITAL | SHOREDITCH

SHOREDITCH

2011-201552%

2013-201511%


© CACI Ltd, 2016

19


GROWTH: QUALITY, PROVISION & ACCESSIBILITY

Location 2015-2025:

Growth

Earls Court 433%

Elephant & Castle 417%

Kings Cross 198%

Baker Street 119%

Waterloo 117%

Marylebone 60%

Bloomsbury 59%

West End 53%

Victoria 44%

Covent Garden 44%

CGA Outlet Index, March 2016

Year on year % change in number of outlets by estate size

0 – 24 sites 25 – 99 sites 100 + sites

City City City Small town

+10% +16% +0%

A Hungry Private Equity Market

• Low cost of finance and strong health of restaurant sector

• Continual desire for new deals

• New entrepreneurs scaling quickly to attract investors

• 45 leading UK restaurant brandsLeading market brands

Managing the rent bill

• Growing scarcity of affordable sites

• Increasing cost of rent bills

• Demands operators to maximise trading opportunities:• All day/ extended opening times

• Lower cost investments

• Smaller footprints

• Utilisation of additional trading space – basement/ roof top

Low cost innovation in small spaces

• Entrepreneurs seeking ‘cool’ low cost venues in restricted spaces, e.g.

• Ladies & Gentlemen

• Under Dog Clarendon

• Cocktail Cellar

All day trading• Chameleon brands

• Trading to all day parts• Changing the offer by daypart

guest need• Breakfast becoming the norm• Rapid growth of all day café bar

concepts – Bills, Loungers• Stronger focus on after work

drinking market – Be at One• 24 hr tube to stimulate night

time economy• Fri/ Sat on key metro lines

Example innovator: The Breakfast Club• ‘Family Caf’

• 9 locations in trendy areas

• ‘Banging brunches’

• Lunch & evening meals

• Barista Coffee

• Award winning cocktails

• ‘Secret’ hidden bars• behind a fridge, a

launderette, a kitchen and a Dr’s Waiting Room

Growth of delivery market – race for commission• Deliveroo rapidly growing

• 67% awareness in London• Major brands signing up

• Emerging market entrants:• Uber Eat• Amazon Prime

• Development of delivery kitchens, e.g. RooBox

• Just Eat already established

• Potential for c10% sales volume

• c14% takeaway cannabilises restaurant meal:• London c25%• Highest amongst 25-29 age

Shifting consumption trendsKey trends driven by Millennial behaviour:

• Reduced alcohol consumption

• Weekday modesty/ weekend indulgence

• Increase in healthy eating

• Demand for premium artisan ingredients

• Customisation and sharing

• Smaller tapas style eating

The high compound growth of labour cost

• London now becoming high rent/ high labour cost market• Legislative rise in minimum wage• Growing competition for labour

• National Living Wage increased to £7.20

• Recommended ‘Living Wage’ set at • £8.25 OOL• £9.40 in London (+14%)

• Brexit fear to availability of European employees (50% of payroll)

Key London growth sectors• Coffee shops• London Pubs• Burgers• C-stores• Health food• Fine Dining • Hubs and railways• Cocktail • Street food• Asian• Fast casual

Coffee shops

A way of life in London

• Scale distribution of major brands

• New generation of artisan independents

London pubs

• Major investment in prime London pub estates

• Young’s and Fuller’s key players

• Modern and contemporary refits

• Fresh food with skilled chefs

Burgers• Premium burger market strongly

established in last decade –Byron/ GBK etc..

• Continual new market entrants:

• US imports

• Five Guys (56 locations in 3 years)

• Shake Shack

• New entrants from street food origin

• Bleecker, Honest Burgers

C-stores• Continual innovation

of key brands (Waitrose/ M&S)

• Arrival of Whole Foods Market

• Flex of trading formats and locations

• New product innovation – e.g. Sushi Daily

Health food

• Healthy brands key for business on the go markets

• Scale growth of make your own salad brands – Tossed, Chop’d, Vital Ingredient etc.

• Leon now expanding internationally

• Pret – veggie pop up now a long term brand

Fine dining

• Fuelled by wealth and international diversity of London population

• Not just traditional cuisine – all specialities

• Growth of Casual Fine Dining –without the formality – e.g. Social Eating House, Bread Street Kitchen

• Trend setter and innovation stimulus for casual dining market

Travel Hubs – Airports and railways• Airport market – sophisticated

development of restaurants and bars• Key difference in UK is a

scale central departure lounge area

• LHR T2 re-development the latest showcase

• Fast advance of railway station dining facilities to comparable style

Cocktail culture• Craft cocktail bars with

cool atmosphere and quality bar food

• Specialist brands – e.g. Be at One

• Scale city bars – Drake & Morgan

• Prohibition speakeasy style• e.g. Night Jar, Black Rock, Little

Bat, Doll’s House,

Three segment focus

• Street food

• Asian

• Fast Casual

Street Food focus

• Developed into major leisure / entertainment venues

• Fueled by high rent cost – chefs seeking affordable premises

• Anti establishment culture

• But many street food operators trialing embryos for high street roll out

Street food video

http://vimeo.com/99162488

Fast casual focus

• Focus on high product quality + fast service speed + value pricing

• Variety of (quick) service models• Key categories in scale development

• Pizza• Burger• Sandwich• Burrito• Asian

• Initially UK concept innovation now US entrants (Five Guys, MOD

• Natural migration from street food markets

Fast casual focus• Many emerging entrants, a few

operators achieving scale – incl international expansion. e.g.

• Pret a Manger – Sandwich

• Yo! Sushi – Japanese

• Itsu – Asian

• Five Guys – Burger

• Tortilla – Burrito

• Wasabi- Asian

Asian focus• Asian cuisine has moved from niche

to mainstream• The 21st century pizza

• Fresh & healthy• Low cost (protein light)• Easy eating• Social

• Asian cuisine developed in all sectors of dining market:• Premium dining – e.g. Roka• Casual dining – e.g. Wagamama,

Sticks n Sushi• Fast casual – Pho. Wasabi, Yo!

Sushi

Asian focus• UK has an international cuisine

palate so adopts latest trends• Historically adopted:

• French• Italian• American• Spanish• Mexican• Asian

• Where will the next trends come from?• South American?• Further Asian specialty?

Themes for the future2016 - 2020

• Disruptive technology• Digital & CRM – social/ bloggers• Immigration• Amazon and home delivery• Licensing/ Health & Safety• Innovation from London to provinces• Fast casual • Street food

To conclude: London

• A vibrant, wealthy, multi cultural society

• Strong demand factors +

intense competition

= strength in innovation

• Ones to watch:

• Asian brands

• Fast casual

• Street food ‘stores’

London –through the roof and still

climbing

Contact Details:

Robin Rowland, CEO Yo! Sushi [email protected] Dunstall, Brand Consultant [email protected]

london zurich presentation Sept 16

Documents

Transcript of london zurich presentation Sept 16