Summary

"UK Foodservice Industry Outlook to 2010" is a new report published in association with ICD Research that analyzes how profit and cost foodservice operator and caterer companies spend, procurement strategies & practices and business are being affected by the recession. In an uncertain economic climate this report gives you access to the category-level spending outlooks, buyer budgets, supplier selection criteria, business challenges and investment opportunities of leading purchase decision makers. The report also identifies buyers and suppliers future growth, M&A and investment expectations. The research is based on an extensive survey of senior and C-level industry executives from our market leading panels.

Scope

- The opinions and forward looking statements of over 300 industry executives have been captured in our in-depth survey, of which over 90% represent Owner or C-level, Directorial & Managerial respondents
- This report covers data and analysis on buyer spend, procurement and industry developments by foodservice owners, operators, caterers, wholesalers and suppliers across the UK
- The report examines current practices and provides future expectations over the next 12-24 months
- The research is based on primary survey research conducted in association with ICD Research accessing its B2B panels comprised of senior purchase decision makers and leading supplier organizations
- Key topics covered include buyer spend activity, procurement behaviors & strategies and how these have been affected by the recession, threats & opportunities for the foodservice industry, economic outlook and business confidence.
- In the report buyers identify what suppliers need to do to maintain their business and the key actions being taken by industry players to overcome the leading business threats
- The report provides qualitative analysis of the key industry threats and opportunities and contains full survey results
- The geographical scope of the research is UK-wide-drawing on the activity and expectations of leading industry players across the UK

Highlights

- In a positive statement for the UK foodservice industry 56% of foodservice owners/operators expect to increase their procurement spending over the next 12 months
- 29% of industry buyers are seeking to engage in partnerships to optimize working capital and reduce costs-closer cooperation between suppliers and buyers is being sought during this time of market uncertainty
- Only 9% of industry buyers do not regularly evaluate suppliers to ensure they meet high ethical and environmental standards

Reasons to buy

- Drive revenues by understanding future product investment areas and growth regions by leading industry players
- Formulate effective sales & marketing strategies by identifying how buyer budgets are changing and where spend will be directed to in the future
- Better promote your business by aligning your capabilities and business practices with your customer's changing needs during these times of market uncertainty
- Secure stronger customer relationships by understanding the leading business concerns and changing strategies of buyers in the foodservice industry
- Effectively plan your business strategies
- Predict how the industry will grow, consolidate and where it will stagnate
- Uncover the business outlook, key challenges and opportunities identified by suppliers and buyers in the industry

Table of Contents

1.1 List of Tables 4
1.2 List of Figures 7
2 Introduction 9
2.1 What is This Report About? 9
2.2 Methodology 9
2.3 Profile of Survey Respondents 10
3 Executive Summary 14
3.1 The UK Foodservice Operator Industry is Generally Optimistic About the Recovery of the Global Economy 14
3.2 Buyers in the Industry Are More Optimistic About Revenue Growth than Suppliers 14
3.3 The UK Foodservice Operators Companies Will Be Increasing Procurement Spend Over the Next 12 Months 15
3.4 Industry Players Face a Number of Key Challenges Due to the Recession 15
3.5 Suppliers Must Update Their Knowledge of Buyer Needs During the Periods of Recession and Recovery 16
4 Economic Outlook and Confidence 17
4.1 The UK Economy Recovery Expectations 17
4.2 Revenue Growth Expectations 22
5 The UK Foodservice Industry Investment Outlook 28
5.1 Fastest and Slowest Growing Foodservice Products & Services 28
5.2 M&A Activity Predictions 32
5.3 Supplier's Industry Outlook 36
6 Recession and Recovery: Threats & Opportunities for the UK Foodservice   Industry 41
6.1 Leading Business Concerns Due to Recession 41
6.2 Key Actions to Overcome Business Threats 48
6.3 Key Actions to Maintain and Win Buyer Business 52
6.4 Leading Recession Related Business Opportunities 60
7 The UK foodservice operator Industry Buyer Spend Activity 65
7.1 Annual Procurement Budgets 65
7.2 Expected Change in Procurement Spend 68
7.3 Expected Change in Spend by Product and Service Category 70
8 Procurement Behaviors & Strategies and the Impact Of Recession 79
8.1 Critical Success Factors for Supplier Selection 79
8.2 Current Effects of Recession on Procurement Objectives 84
8.3 Expected Future Effects of Recession on Procurement Objectives 88
8.4 The Effects of Recession on Procurement Strategy 91
9 Appendix 99
9.1 Full Survey Results-Closed Questions 99
9.2 Methodology 105
9.3 Contact Us 106
9.4 About us 106
9.5 Disclaimer 106

1.1 List of Tables
Table 1: Count Of UK Foodservice Industry Survey Respondents By Company Type (Number Of Respondents), 2009 Industry Survey 10
Table 2: Buyer Respondents By Job Role (% Buyer Respondents), UK Foodservice Industry, 2009 11
Table 3: Buyer Respondents By Organisation's Global Turnover (% Buyer Respondents), UK Foodservice Industry, 2009 11
Table 4: Buyer Respondents By Organisation's Total Employee Size (% Buyer Respondents), UK Foodservice Industry, 2009 12
Table 5: Supplier Respondents By Job Role (% Supplier Respondents), UK Foodservice Industry, 2009 12
Table 6: Supplier Respondents By Organisation's Global Turnover (% Supplier Respondents), UK Foodservice Industry, 2009 13
Table 7: Supplier Respondents By Organisation's Total Employee Size (% Supplier Respondents), UK Foodservice Industry), 2009 13
Table 8: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Foodservice Procurement Budget (% Buyer Respondents), 2009 19
Table 9: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Company Type: Profit Sector Foodservice Operators, Cost Sector Foodservice Operators, Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% All Respondents), 2009 21
Table 10: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Profit Sector Foodservice Operators, Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% Respondents), 2009 24
Table 11: Wholesaler/Food & Drink Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Wholesaler/Food & Drink Supplier Respondents), 2009 30
Table 12: Equipment & Other Products & Services Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Equipment & Other Products & Services Supplier Respondents), 2009 32
Table 13: Key Growth Areas In The UK Foodservice Industry (Analysis Of Supplier Respondents), 2009 37
Table 14: Key Growth Areas In The UK Foodservice Industry (Analysis Of CEO/MD/Board Level Supplier Respondents), 2009 38
Table 15: Key Declining Areas In The UK Foodservice Industry (Analysis Of Supplier Respondents), 2009 39
Table 16: Key Declining Areas In The UK Foodservice Industry (Analysis Of CEO/MD/Board Level Supplier Respondents), 2009 40
Table 17: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator Vs. Wholesaler/Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 44
Table 18: Profit Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 46
Table 19: Cost Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 48
Table 20: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry (Analysis Of All Respondents), 2009 49
Table 21: Most Important Actions Being Implemented To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry-Senior Level Responses Only (Analysis Of CEO/MD/Board Level Respondents), 2009 50
Table 22: Most Important Actions Being Implemented By Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry (Analysis Of Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers Respondents), 2009 51
Table 23: Most Important Actions Being Implemented By Profit Sector Foodservice Operators, Cost Sector Foodservice Operators To Overcome Leading Business Concerns In 2009-2010 In The UK Foodservice Industry (Analysis Of Profit Sector Foodservice Operators, Cost Sector Foodservice Operators Respondents), 2009 52
Table 24: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 55
Table 25: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% Buyer Respondents), 2009 57
Table 26: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Analysis Of All Buyer Respondents By Procurement Budget (% Buyer Respondents), 2009 58
Table 27: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Analysis Of All Buyer Respondents By Purchasing Decision Seniority (% Buyer Respondents With Purchasing Decision Influence), 2009 60
Table 28: Leading Business Opportunities During The Recession In The UK Foodservice Industry (Analysis Of All Respondents), 2009 61
Table 29: Leading Business Opportunities During The Recession In The UK Foodservice Industry-Senior Level Responses Only (Analysis Of CEO/MD/Board Level Respondents),2009 62
Table 30: Leading Business Opportunities For Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers During The Recession In The UK Foodservice Industry (Analysis Of Supplier Respondents), 2009 63
Table 31: Leading Business Opportunities For Profit Sector Foodservice Operators, Cost Sector Foodservice Operators During The Recession In The UK Foodservice Industry (Analysis Of Buyer Respondents), 2009 64
Table 32: Annual Foodservice Related Procurement Budgets In GBP In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 66
Table 33: Expected Change In Spend On Products & Services In The UK Foodservice Industry Over The Next 12 Months: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 69
Table 34: Future Change In Spend In The UK Foodservice Industry By Product And Service Category: Profit Sector Foodservice Operator-Expected Increase Or Decrease Over The Next 12 Months (% Profit Sector Foodservice Operator Respondents), 2009 72
Table 35: Future Change In Spend In The UK Foodservice Industry By Product And Service Category: Cost Sector Foodservice Operator-Expected Increase Or Decrease Over The Next 12 Months (% Cost Sector Foodservice Operator Respondents), 2009 74
Table 36: Expected Change In Spend On Products & Services In The UK Foodservice Industry-Expected Increase Or Decrease Over The Next 12 Months By Region (% All Buyer Respondents), 2009 78
Table 37: Critical Success Factors For Selecting A Foodservice Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), UK, 2009 82
Table 38: Critical Success Factors For Selecting A Foodservice Industry Supplier: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator Comparison (% All Buyer Respondents), UK, 2009 84
Table 39: Current Effects Of Recession On Procurement Objectives & Priorities In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 87
Table 40: Expected Changes In Procurement Strategy In The UK Foodservice Industry To Drive Value Across The Business Due To Recession: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 94
Table 41: Expected Changes In Procurement Strategy In The UK Foodservice Industry To Drive Value Across The Business Due To Recession: All Buyers By Foodservice Procurement Budget (% All Buyer Respondents), 2009 95
Table 42: Expected Changes In Procurement Strategy In The UK Foodservice Industry To Drive Value Across The Business Due To Recession: All Buyers By Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 96
Table 43: Profit Sector Foodservice Operator Attitudes & Approaches To Existing Procurement Practices: Level Of Agreement To The Following 5 Statements (% Profit Sector Foodservice Operator Respondents), 2009 97
Table 44: Cost Sector Foodservice Operator Attitudes & Approaches To Existing Procurement Practices: Level Of Agreement To The Following 5 Statements (% Cost Sector Foodservice Operator Respondents), 2009 98

1.2 List of Figures
Figure 1: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 16
Figure 2: UK Foodservice Industry Expectations Of UK Economy Recovery Timings (% All Respondents), 2009 18
Figure 3: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Foodservice Procurement Budget (% Buyer Respondents), 2009 19
Figure 4: UK Foodservice Industry Expectations Of UK Economy Recovery Timings By Company Type: Profit Sector Foodservice Operators, Cost Sector Foodservice Operators, Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% All Respondents), 2009 20
Figure 5: Company Revenue Growth Optimism In The UK Foodservice Industry (% All Respondents), 2009 22
Figure 6: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Profit Sector Foodservice Operators, Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers (% Respondents), 2009 23
Figure 7: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Profit Sector Foodservice Operators-By Foodservice Procurement Budget (% Profit Sector Foodservice Respondents), 2009 25
Figure 8: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Cost Sector Foodservice Operators-By Foodservice Procurement Budget (% Cost Sector Foodservice Respondents), 2009 26
Figure 9: Company Revenue Growth Optimism By UK Foodservice Industry Company Type: Suppliers (Wholesaler/Food & Drink Suppliers, Equipment & Other Products & Services Suppliers)-By Company Turnover (% Supplier Respondents), 2009 27
Figure 10: Wholesaler/Food & Drink Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Wholesaler/Food & Drink Supplier Respondents), 2009 29
Figure 11: Equipment & Other Foodservice Products & Services Supplier Industry: Market Predictions Of The Fastest And Slowest Growing Foodservice Products & Services (% Equipment & Other Foodservice Products & Services Supplier Respondents), 2009 31
Figure 12: Merger & Acquisition Activity Expectations Over The Next 12 Months In The UK Profit Sector Foodservice Operator Industry (% Profit Sector Foodservice Operator Industry Respondents), 2009 33
Figure 13: Merger & Acquisition Activity Expectations Over The Next 12 Months In The UK Wholesaler/Food & Drink Supplier Industry (% Wholesaler/Food & Drink Supplier Industry Respondents), 2009 34
Figure 14: Merger & Acquisition Activity Expectations Over The Next 12 Months In The UK Equipment & Other Foodservice Products & Services Suppliers Industry (% Equipment & Other Foodservice Products & Services Suppliers Industry Respondents), 2009 35
Figure 15: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 42
Figure 16: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator Vs. Wholesaler/Food & Drink Supplier Vs. Equipment & Other Products & Services Supplier: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers And Suppliers (% All Respondents), 2009 43
Figure 17: Profit Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 45
Figure 18: Cost Sector Foodservice Operator: Leading Business Concerns For The Period 2009-2010 Among UK Foodservice Industry Buyers By Foodservice Procurement Budget (% Buyer Respondents), 2009 47
Figure 19: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 54
Figure 20: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% Buyer Respondents), 2009 56
Figure 21: The Most Important Actions For Suppliers To Take To Maintain And Secure Buyer Business During The Recession In The UK Foodservice Industry: Analysis Of All Buyer Respondents By Region (% Buyer Respondents), 2009 59
Figure 22: Annual Foodservice Related Procurement Budgets In GBP In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 66
Figure 23: Annual Foodservice Related Procurement Budgets In GBP In The UK Foodservice Industry By Company Turnover (% Profit Sector Foodservice Operator Respondents), 2009 67
Figure 24: Expected Change In Spend On Products & Services In The UK Foodservice Industry Over The Next 12 Months: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 68
Figure 25: Expected Change In Spend On Products & Services In The  UK Foodservice Power Industry Over The Next 12 Months By Company Turnover (% All Buyer Respondents), 2009 70
Figure 26: Future Change In Spend In The UK Foodservice Industry By Product And Service Category: Profit Sector Foodservice Operator-Expected Increase Or Decrease Over The Next 12 Months (% Profit Sector Foodservice Operator Respondents), 2009 71
Figure 27: Future Change In Spend In The UK Foodservice Industry By Product And Service Category: Cost Sector Foodservice Operator-Expected Increase Or Decrease Over The Next 12 Months (% Cost Sector Foodservice Operator Respondents), 2009 73
Figure 28: Future Change In Spend In The UK Foodservice Industry By Product And Service Category: Expected Increase Over The Next 12 Months Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 75
Figure 29: Future Change In Spend In The UK Foodservice Industry By Product And Service Category: Expected Increase Over The Next 12 Months Among All Buyers By Company Turnover (% Profit Sector Foodservice Operator Respondents), 2009 76
Figure 30: Expected Change In Spend On Products & Services In The UK Foodservice Industry-Expected Increase Or Decrease Over The Next 12 Months By Region (% All Buyer Respondents), 2009 77
Figure 31: Critical Success Factors For Selecting A Foodservice Industry Supplier: Difference In Views, Buyers Vs. Suppliers (Net Difference In Ranking), UK, 2009 80
Figure 32: Critical Success Factors For Selecting A Foodservice Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), UK, 2009 81
Figure 33: Critical Success Factors For Selecting A Foodservice Industry Supplier: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator Comparison (% All Buyer Respondents), UK, 2009 83
Figure 34: Current Effects Of Recession On Procurement Objectives & Priorities In The UK Foodservice Industry (% All Buyer Respondents), 2009 85
Figure 35: Current Effects Of Recession On Procurement Objectives & Priorities In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 86
Figure 36: Current Effects Of Recession On Procurement Objectives & Priorities In The UK Foodservice Industry By Foodservice Procurement Budget (% All Buyer Respondents), 2009 88
Figure 37: Likelihood Of Future Change In Procurement Objectives In The UK Foodservice Industry (% All Buyer Respondents), 2009 89
Figure 38: Likelihood Of Future Change On Procurement Objectives In The UK Foodservice Industry: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 90
Figure 39: Likelihood Of Future Change On Procurement Objectives In The UK Foodservice Industry By Foodservice Procurement Budget (% All Buyer Respondents), 2009 91
Figure 40: Expected Changes In Procurement Strategy In The UK Foodservice Industry To Drive Value Across The Business Due To Recession (% All Buyer Respondents), 2009 92
Figure 41: Expected Changes In Procurement Strategy In The UK Foodservice Industry To Drive Value Across The Business Due To Recession: Profit Sector Foodservice Operator Vs. Cost Sector Foodservice Operator (% All Buyer Respondents), 2009 93