Insights & Trends

Insights from Peter Martin’s ‘The State We’re In’

October 2023

In the ever-evolving landscape of the UK hospitality industry, adaptability and innovation have become the watchwords for success. At Casual Dining, we had the honour of listening to Peter Martin, an expert in the field, who delivered a compelling presentation titled ‘The State We’re In.’ Martin’s insights provided a deep dive into the challenges and opportunities faced by businesses in the wake of significant market shifts. 

Read on for the key take outs 

The asymmetric market and its challenges 

Since June 2022, the UK saw 5,736 closures of food and drink places, 76.5% of them independent.  This stark reality underscores the immense challenges faced by these ventures, leading to a significant 33% confidence drop. Martin said: “in this asymmetric market, competitors either flourish or find themselves struggling to stay afloat.” 

For independent businesses, survival in such a challenging environment demands a multifaceted approach. Martin highlighted key traits shared by thriving ventures: 

  • Long-term focus: Thriving establishments set their sights on enduring goals, avoiding the pitfalls of short-term thinking 
  • Consistent operating hours: Maintaining regular opening hours is vital, ensuring customers can rely on the business for their needs 
  • Scale: Larger businesses with 50+ sites demonstrate stability, benefiting from their extensive reach and customer base 
  • Strategic investments: Ventures prioritising strategic investments in areas like site expansion, staff engagement, and technology exhibit resilience, highlighting the significance of forward planning 

Understanding consumer behaviour and adaptation 

Despite economic challenges, consumers continue to dine out, highlighting a complex dilemma faced by hospitality businesses: managing costs effectively without compromising customer satisfaction. Martin delved into essential consumer insights, emphasising the need for businesses to understand evolving consumer behaviour for effective adaptation.  

Key takeaways included: 

  • Early dining trends: A surge in early dining between 5-7 PM has been noted, reflecting changing consumer habits 
  • Shift in city centre visits: Fridays witness reduced city centre visits, hinting at altered weekend plans 
  • Global Saturday afternoon outings: A growing global trend of Saturday afternoon outings showcases shifting leisure preferences 
  • Social activity among young adults: Increased social activity among 18-34-year-old males in cities underscores changing social dynamics 

Embracing technology and sustainability 

In the face of these challenges, the integration of technology and sustainable practices has become imperative. Business leaders are increasingly turning to technology, with 21% claiming their technology surpasses the market average. Artificial Intelligence (AI) is now more accessible, empowering businesses to streamline practices, from electric kitchens to automatic restaurants. 

Sustainability remains a pressing concern, especially among younger generations. Martin highlighted significant consumer insights: 

  • Eco-friendly living: 70% of consumers actively pursue eco-friendly living, reflecting a broader societal shift towards sustainable practices 
  • Preference for sustainable brands: 44% consider sustainability in their venue choice, indicating a preference for businesses committed to eco-friendly practices 
  • Willingness to pay more: 34% are willing to pay more for sustainable brands, signalling a willingness to invest in environmentally conscious options 

Consumers’ evolving needs are driving significant trends, including a focus on reduced food waste, effective recycling, eco-friendly packaging, comprehensive staff training, sustainable suppliers, and locally sourced ingredients. 

In Conclusion: Adapting to Thrive 

In summary, the UK’s hospitality sector faces a critical moment, with declining licensed establishments and evolving consumer preferences. Swift adaptation, clear communication, innovation, and sustainability are imperative for businesses to thrive. Resilience and adaptability will distinguish successful ventures in this changing landscape.