2009-11-04 17:37:04 -

Despite the global economic downturn, the leading 100 U.K. restaurant chains grew sales by 3.4 percent in 2008 to nearly £11 billion, and posted strong unit gains, expanding by 7.6 percent to approximately 15,000 locations.

The limited-service segment, accounting for 60 percent of sales for the leading 100 chains, led the group, up 4.7 percent to more than £6.5 billion, while the full-service segment, representing 40 percent of sales, grew by 1.6 percent to over £4 billion.

“Leaders have focused on strengthening brands and streamlining operations,” says Darren Tristano, EVP at Technomic, a foodservice industry consultant. “Quick-service restaurants put more of an emphasis on fresh and healthy. Full- and limited-service chains modernized outlets, and leveraged Internet presence and social networking forums.
Meanwhile,

the weakened real estate market allowed strong players like Starbucks and Gourmet Burger Kitchen to move into previously unavailable high street locations.”

The findings are part of the new 2009 Technomic Leading 100 U.K. Chains Restaurant Report : , which identifies the largest U.K. chain restaurants and analyzes the top performers within the limited-service and full-service segments. It also examines current trends impacting the U.K. restaurant market and compares that market to those in the U.S. and Canada.

Select findings include.

- U.S. chain McDonald’s led the group with over £1.7 billion in sales, up 4.6 percent from 2007. Second and third were KFC with £555.6 million and Starbucks, at £487.5 million.


- The fastest growing chains were Nicholson’s, up 26.8 percent in sales and 53.6 percent in units, and Giraffe, which grew sales by 23.7 percent and locations by 47.4 percent.


- The recession prompted many chains to introduce value-oriented offerings. Among those were Burger King, with the King Deal, its first-ever value meal; Harvester, who cut prices across all main courses without shrinking portions; and Nicholson’s, promoting classic pub dishes at reduced prices.


- The implementation of the indoor smoking ban in pubs generated new food customers who had previously avoided smoke. Mitchells & Butlers plc attributed its robust food sales to these new patrons.


- Many chains restructured business strategies through moves like reducing debt, selling less-profitable operations and slowing unit expansion.

The 2009 Technomic Leading 100 U.K. Chains Restaurant Report : was designed to help restaurant operators and foodservice manufacturers keep abreast of competition, develop sales and marketing strategies, identify growth opportunities and monitor segment and menu category performances.
Together with Lanbury Associates, Technomic estimated U.K. sales and unit data for many of the chains using their combined years of foodservice industry knowledge and expertise. Public financial records were used when available.

Report appendices provide detailed chain profiles, alpha listings and rankings by sales and units, plus a look at chains by segment and menu category share. Additionally, rankings of the Top 100 U.S. Chains and Top 100 Canadian Chains are included in the appendix.

To purchase or learn more about this and other industry reports from Technomic, please visit www.foodpubs.com : or contact one of the individuals listed below.

About Technomic, Inc. :

Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.



Technomic, Inc.Press Inquiries:Darren Tristano,

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