Overview of the UK in-store market

A snapshot of the UK in-store market, based on the publication CaterFile Market Reports 2006.

Cafés and restaurants within retail stores were valued at £1.41b during 2005, an increase of 51% since 1999. Group-owned outlets make up the vast majority (96% by value).

Of the group-owned outlets, catering within department stores was worth £734m, while within supermarkets, it was worth £495m. Within other retailers, such as garden centres and bookstores, the value was £121m.

The average annual turnover for a group site is £451,505, while the average number of meals served is 1,724 a week. Average customer spend is £5.04.

Key trends

The past few years have seen an escalation in the number of third-party operator brands within high street stores, notably coffee shops. We have also seen the opening of a small number of flagship department stores with accompanying, much-improved catering outlets.

The trend is now to make in-store cafés and restaurants higher-profile, improving both ambience and quality, in order to add value to the retail experience.

The growth of customers preferring quick and informal dining has made the eating-out decision more spontaneous, which has worked in favour of in-store catering.

In-store catering works best in retail outlets with a long dwell time, such as department stores, or with high browsing potential, such as bookshops. Health & beauty, hardware and sports retailers are the least likely to offer in-store catering.

Value, outlets and number of meals have all grown significantly in recent years, outperforming the out-of-home market as a whole.

Traditionally, most in-store catering was run in-house. Now brands within retail outlets include Starbucks, Yo! Sushi and Wagamama, while a number of contract caterers also manage and operate contracts for leading retailers.

This information is taken from the publication CaterFile Market Reports 2006, produced by Dewberry Redpoint. The full report is available to purchase at £695. For further details, visit the website www.caterfile.co.uk