This study is based on the sandwich eating house section of the UK nutrient & A ; drink industry. The chief purpose of the study is to look into the current market scenario to finally calculate the factors and schemes that can be implemented to act upon farther hereafter development of this section. The study will analyze the sandwich sector by taking into consideration assorted facets like market size, consumer behavior, companies schemes like invention or new merchandise development, yesteryear and current growing schemes. It will besides seek to analyze external political, economical, societal, technological, environmental and legal factors which can act upon this sector.

Introduction to the sector

Exceeding growing has been witnessed in the sandwich market in last few old ages. Sandwich market is now over ?4 billion industry. Growth has been influenced by assorted factors such debut of specializer sandwich store, rapid gait of opening new concatenation eating houses across the state every bit good as focussed invention and new merchandise development.

The consumer is working for longer hours, working in the metropoliss and has shorter tiffin interruptions. In the busy life style, sandwiches have secured itself as an established lunch period nutrient. Convenience becomes more of import to consumer as they work for longer hours, sandwiches absolutely suits their demands.

Heightened apprehension of consumers sing wellness issues is altering the market basically. Changeless displacement towards all natural and healthy nutrient has been witnessed and will go on to turn in the hereafter.

Current Position:

Analysis By

Features

A sandwich saloon is a eating house or takeout nutrient store that chiefly sells sandwiches.

Basically it has low runing cost due to the decreased sum of service bringing as opposed to the full service hotels.

It has low runing cost monetary value due to the decreased sum of service etiquettes and bringing criterions as opposed to the supermarkets, etc.

It is more profitable from delivered merchandises fundamentally which are operative in presenting to little graduated table concern.

The sandwich store market has experienced a really exceeding growing and rise in gross revenues and is now deserving turnover ?6 billion, a 26 % addition from 2002.

Sandwich market growing in has been encouraged by the rapid addition in the figure of mercantile establishments available.

While nutrient rising prices has helped to heighten the monetary value rise of sandwich higher in recent old ages.

Consumers:

Sandwichs made in forepart of invitee are a agencies to pulling the people ( 17millions ) who prefer on-the-scene having instead than to pre-packed 1s.

Three million of the influenced consumers pay more for the on-the-spot prepared one, as they suggest for a ample niche for premium, hand-made sandwiches.

Sandwichs are more up merchandising in scope of working /corporate consumers who value more for clip preservation.

Advanced merchandises and freshly launched 1s are in more demand even in the price-oriented market: ( eight million ) people in this group like to seek new ingredients, including 2.3m with age scope of 25-34-year-olds.

Cupcakes, cocoa Brownies and many other alluring readyings besides provide add-on to the gross watercourse for sandwich stores: ( 3.3millions ) of age scope 16-34-year-olds.

They buy themselves little dainties, even while they save money and ( 5 million ) by and large buy such extras additions at the same store.

Sandwich repast trades could do good gross revenues among the age scope of 16-24-year-olds consumers.

40 % of this group say they enjoy holding cut back on disbursement on tiffin, and are looking sooner out for meal trades.

Where people buy sandwiches, November 2009

Base: 1,000 cyberspace users aged 16+

Ownership/operators:

Companies

There is broad scope of companies runing in this sector, from big multi subjects to little independent sandwich parlor. However merely big makers and providers are profiled.

Greencore Group Plc

It is Europe ‘s biggest maker and provider of non lone sandwiches but besides other convenience nutrient to industrial sector, nutrient service and retail section.

Greencore was sandwich provider of starbucks, but late they have lost the contract, nevertheless greencore now supplies sandwiches to spur and londis and therefore have minimised their losingss well.

Greggs Plc

Gregg ‘s is the UK ‘s biggest bakeshop retail merchant. It operates more than 1200 shops in the state. Each shop of Greggs prepares fresh sandwich in the several shop. Wide ranges of savory and sweet merchandises are sold every bit good. Local fortes of the part are besides offered.

Greggs have monolithic enlargement programs for the hereafter. Greggs have opened four shops in Belgium every bit good. Greggs is puting ? 150,000 to open a shop at Glasgow airdrome.

In the twelvemonth 2006 Greggs launched its Healthier option scope of sandwiches, to aim the portion of wellness witting consumers, as the sale was on diminution in that period. Following the launch steady addition in sale was noted, in merely nine hebdomads strong growing of 3.9 % was seen.

The SUBWAYA®

The metro is a fast nutrient retail merchant with over 28,000 shops in the universe, using more than 150,000 employees. In UK and Ireland subway have more than 1100 shops and is opening about 20 shops every month.

The Subway ‘s ‘under 6gms of fat ‘ sandwiches experiences cult following among consumers because a pupil Jared Fogle lost 17.5 rocks by merely eating Subway ‘s sandwiches for an twelvemonth, combined with exercising.

Pret A Manger ( Europe ) Ltd

It is an independent nutrient and imbibe retail merchant, specializing in sandwiches made from natural and preservative free ingredients. Every twenty-four hours it donates left over sandwiches to charity, and makes sandwiches fresh every twenty-four hours.

Pret A Manger Operates more than 150 eating houses in the UK and have late opened more a twelve eating houses in New York to prove possible enlargement to USA.

Other Big sandwich makers and providers in UK are

Northern Foods plc

Samworth Brothers Ltd

Uniq plc

Buckingham Foods Ltd

Food Partners Ltd

Freshway Foods Ltd

Gibson ‘s Foods Ltd

The Sandwich Factory Ltd

Two companies dominate retail sandwich market of UK, Greggs and The Subway controls more than 60 % of the market portion. Pret A Manger is besides one of the large participants ; apart from these companies the market is extremely disconnected.

Geographic Range:

Compared to the above markets, UK is still a turning market with field for enlargement and development.

The early phase of sandwich markets in UK is shown on its atomization and big figure of little operators.

Largely located on expresswaies are more profitable.

It is more likely to be sold near schools, corporate offices, colleges.

Merchandises:

Basically for the good sell of the merchandises the two chief factors play of import function, specifically harmonizing to Foxley ( 2001 ) is quality of trappings and services every bit good as the location of the belongings

The merchandises are fundamentally divided in to three chief classs: Luxury, Middle scope and Economical.

Small prepacked and economical Merchandises are fundamentally more in regular clients and travelers,

Whereas large repasts and mid scope are celebrated between clients who travel in households or in group of

Market and consumer tendencies:

Three in ten sandwich purchasers seek out such sandwiches, yet, low fat discrepancies accounted for merely 7 % of new launches in 2009. The retail merchants should get down to supply information sing nutrition which could open a immense market to sandwich stores. The market potency of healthy sandwiches is non being to the full exploited. Unlike the supermarkets, there are really few figure of sandwich stores which are presently offering nutritionary information to clients. As per market analysis there is one in four sandwich purchasers seeing it as of import.

During the recession ongoing, many large hotels went in down stage but the fast nutrient sector has performed peculiarly good. Demand for convenience continues to drive this market, while the broad assortment of menu scopes of such mercantile establishments besides meant that they were good placed to transport on with and capitalize on consumer ‘s adaptative behavior during the recession period. The epicure Burger saloon sector, nevertheless, has suffered more from the decrease of household.

Market size

In the last decennary, sandwich sector has grown enormously. The market is now deserving over ?4 billion and still turning at steady gait of around 8 % . The current growing in the sector is drive by enlargement programs of the sandwich ironss. Consumer ‘s desire to eat healthy nutrient is besides a large factor behind the growing of this sector.

?m

Index

?m at 2002 monetary values

Index

a‚¬m

Index

2002

3,318

100

3,318

100

5,279

100

2003

3,532

106

3,487

105

5,106

97

2004

3,595

108

3,528

106

5,299

100

2005

3,645

110

3,534

107

5,332

101

2006

3,791

114

3,600

109

5,561

105

2007 ( est )

4,094

123

3,823

115

6,059

115

Retail gross revenues of sandwiches, 2002-07

Beginning: Mintel

Sandwich sale by specializer sandwich stores have besides increased aggressively, about half of the entire sale of the sandwiches is through these sandwich stores and is tendency is expected to go on and growing of 43 % is expected in the period of 2009-14. Infact the sale of sandwiches from the specializer store has seen more growing than the sandwich sector overall.

A UK gross revenues ofA sandwichA stores, at current and changeless monetary values, 2005-14

Current monetary values

Annual alteration

Index

At 2009 monetary values

Annual alteration

Index

?m

%

?m

%

2005

1,115

sodiums

60

1,327

sodiums

72

2006

1,290

+15.7

70

1,503

+13.3

81

2007

1,488

+15.3

80

1,658

+10.3

90

2008

1,709

+14.9

92

1,743

+5.1

94

2009 ( est )

1,851

+8.3

100

1,851

+6.2

100

2010 ( proj )

2,013

+8.7

109

1,977

+6.8

107

2011 ( proj )

2,142

+6.4

116

2,063

+4.3

111

2012 ( proj )

2,300

+7.4

124

2,176

+5.5

118

2013 ( proj )

2,462

+7.0

133

2,283

+4.9

123

2014 ( proj )

2,642

+7.3

143

2,397

+5.0

130

Beginning: Mintel

Between 2003 and 2004 limited growing was seen in the section, but industry has recovered by quickly implementing different schemes like concentrating on new merchandise development.

The concatenation sandwich eating houses have influenced growing enormously by opening new shops quickly.

The sale has been revitalised by offering immense scope assortment and pick to the consumer.

The market is now deserving over ?4 billion, witnessing 8 % growing since 2006, after retrieving from a period of stasis, between 2003 to 2004, as other tiffin clip options grew in popularity.

The current growing in the market has been driven by the enlargement of sandwich bars and the consumer ‘s desire to eat healthily.

Competitive merchandises like sushi have non effected market gross revenues, but have fuelled an involvement in out of place lunch period purchase, as the consumer finds adequate assortment to prosecute them.

The market looks set to turn for the following twosome of old ages. However, in the long term, volume gross revenues may brace and manufacturers will necessitate to concentrate on increasing monetary value to turn value

The sandwich market is now deserving merely over ?4 billion, an addition of 23 % since 2002.

Retail gross revenues of sandwiches,

?m

Index

?m at 2002 monetary values

Index

a‚¬m

Index

2002

3,318

100

3,318

100

5,279

100

2003

3,532

106

3,487

105

5,106

97

2004

3,595

108

3,528

106

5,299

100

2005

3,645

110

3,534

107

5,332

101

2006

3,791

114

3,600

109

5,561

105

2007 ( est )

4,094

123

3,823

115

6,059

115

Beginning: Mintel

The strong growing witnessed in the sandwich sector is set to go on in the close hereafter. The sale is expected to traverse ?5 billion by the twelvemonth 2012.

Personal disposable income is set to turn in following five old ages but slower than the last few old ages, so the lower priced sandwiches will hold competitory border over others.

two companies dominates retail sandwich market of UK, Greggs and The Subway controls more than 60 % of the market portion. Pret A Manger is besides one of the large participants, apart from these companies the market is extremely disconnected.

Greggs have late lost some market portion due to slower enlargement rate and on the other manus The Subway has been quickly deriving the market portion

Consumer is progressively going aware of the fact that white staff of life is non good for wellness. The consumer is deriving more and more information on what is healthy for the human organic structure and what is non. Number of consumers claiming who eats batch of staff of life declined from about 50 % to 43 % in the twelvemonth 2003. As consumer ‘s apprehension of healthy and unhealthy nutrient is increasing this tendency of diminution could go on.

Consumer is besides going aware of the sick effects of additives and preservatives on wellness. Consumers are looking for options which are prepared utilizing natural ingredients and are preservative free.

Healthy feeding options are widely offered to the consumers. 25 % of the consumers are ever looking for lite/diet versions of the popular nutrients and drinks. Healthy fillings, low fat dressings, whole wheat staff of lifes etc are incorporated so as to aim these consumers.

Traveling out for tiffins requires trim clip and most consumer are clip hapless these yearss, this means consumer are exchanging to other options like take away. Consumers have limited clip to move and make up one’s mind and appreciate the trade name they could place gives them selected pick option. For illustration, a trade name with lone wellness friendly merchandises, gives consumer assurance to consumer to take anything from their scope.

Consumer is progressively wishing to cook at place. The figure of Television nutrient shows and books which introduce consumer on how to cook quality speedy nutrient at place are one of the biggest ground behind this rise.

As more people cook at place they leave more leftovers which can be consumed as a tiffin on the following day.Health concerns besides play large function in make up one’s minding what consumer is holding for tiffin. Consumer make certain they are holding either healthy sandwich or choosing for other healthy tiffin option.

Consumers are going more ethical by the twenty-four hours in footings of environment and animate being public assistance. Consumer are looking for boxing which does non harm the environment, and in fillings they are looking for free scope meats and eggs. Companies will to hold to see these facets so as to do sandwich an mundane option. Sourcing local merchandises may fulfill some clients ethical duty sing CO2 footmarks of a merchandise. Inflation of nutrient monetary values has great impact on the sandwiches, as monetary values of meat, staff of life and dairy merchandises rises.

Although sandwiches are non high priced nutrient points, but if purchased on a regular basis it accounts important cost and consumer may look out for option of conveying jammed tiffin from home..

Takeaway sandwich dominates the market wholly, with over 90 % of the portion. Time hapless consumers drives takeaway section as they are looking for something that can be taken back to their desk and eaten rapidly.

Takeaway section has evolved a batch and now offer merchandises which were available merely in eat-in. consumers view eating-in as expensive option. As the clip force per unit area additions, takeaway section of sandwiches is bound to increase.

Consumer is going cognizant of the assorted culinary arts and spirits that it come with. And these options can now be seen in the market such as oriental manner sandwiches, felafel sandwich, and chicken tikka sandwich.

25 % of consumers think about the Calories in their nutrient. The possible market of healthy sandwiches is non targeted by the companies. Almost 1 in three sandwich consumer expressions for healthy sandwich option but still merely about 10 % of the new launches were targeted towards these clients.

Strengths:

Peoples working for longer hours may choose to eat sandwich on more than one juncture.

The assortment of stuffing and fillings makes it more attractive. Hot and cold option fills the spread in between.

Shorter tiffin times means limited consumers traveling out to eat, means they need something that can be eaten on the desk.

Sandwichs are portable and can easy be eaten on the spell.

Three out of four people in UK bargain sandwiches, which make it, established portion of their day-to-day nutrient.

Merely 25 % of peoples think that eating sandwiches daily are non good for wellness, which means it enjoys healthy and wholesome image.

The figure of people working is on the rise, this provides the base for an enlargement.

Failings:

Inflation of nutrient monetary values means rise in the monetary value of the natural stuff.

Sandwichs can be perceived as unhealthy, incorporating batch of salt, fat and simple saccharides.

Rise in other lunch period options such as ready repasts, soups and sushi are going front-runners.

Rise in place cookery means consumer fixing their ain tiffin.

As the monetary values rise, consumer might desire to salvage money by doing sandwiches themselves, as it is non really hard to fix them. 40 % of people feel that it is unpointed to purchase a sandwich because they can do it at their place.

Shorter tiffin interruptions may coerce consumer to either skip tiffin or acquire their ain tiffin from place.

Merely one 4th of the consumer is ready to pay more for the seamster made sandwiches, which makes it hard to make concern for the forte sandwich retail merchants.

Economic downswing and limited handiness of recognition is coercing little sandwich stores to shut the concern.

Popularity of sandwiches lessening with age, and as the population of retired people is on the rise, it may take to less concern.

Product invention and developments:

Innovation will go on to play a of import cardinal function in keeping market portion and keeping value. For illustration, Ginsters in 2009 has revamped its scope of sandwiches with newly-designed packaging that emphasises its British heritage and local ingredients.

It is besides establishing a scope of large-format axial rotations in cheese salad, poulet and bacon, and jambon salad fillings.

Assorted planetary factors have led to increase in monetary value of wheat. Turning populations of developing universe are devouring more grains and some proportions of harvests are kept apart for bio fuels have led to the addition.

As meat and dairy animate being are fed on grains so increase in the monetary value of grain will take to increase in the monetary value of meat and dairy merchandises every bit good.

The proportion of population above the age of 65 is increasing. As consumer retires they will hold more clip to cook so the sale of sandwiches will worsen.

The alteration in the employment in the working population have been noticed, now more occupations are based in the offices situated in the metropoliss, which are in the easy range of sandwich retail merchants.

Consumer is besides working longer, this gives a possible advantage to sandwich section, as consumer become hungry more than one time and will be looking for speedy repast to make full up until they reach place.

One of the biggest rivals of sandwich section is soup, particularly in winter months. Soup section has shown considerable growing since 2002. Soup is seen as a healthy option. Key invention in this section includes chilled and frozen soups in pouches and cups. In add-on to that increasing figure of restaurants are selling soups at tiffin clip.

Selling little parts of soup with little sandwiches for tiffin will assist in retaining the sale of the sandwiches. Offering soup as an concomitant with sandwiches in the shops may take to sandwich purchase and may besides promote non-sandwich consumer to see the shop.

Portraying that soup and sandwich combination is healthy eating option. Informing consumer that vegetables from soup, protein and saccharides from sandwich makes for an ideal repast, will take to higher gross revenues.

Ready repasts have grown 30 % from 2002-2007 and are now ? 1.5 billion dollar industry. It is a large competition to sandwich section. Though ready repasts are convenient but can non ever be consumed as they are hard to eat in office desk, and sometime hold strong odor.

Salads have shown enormous success as consumer expression out for healthier feeding options. Salads could be combined with sandwiches to do a lunchtime solution.

New tendency that is in its growth phase is Sushi, with its debut to the supermarket shelves and growing of few ironss like Yo! Sushi. However this tendency has non affected sandwich sector a batch but in the hereafter it can be a menace.

Assorted retail merchants lead NPD, invention in these classs is led by Marks and Spencer ‘s, accounting for about 40 % of the new merchandise development in the twelvemonth 2008. Somerfield and Waitrose have besides been demoing steady growing in merchandise development.

Activity in NPD in sandwiches and wraps, % by company, 2006-08

Beginning: GNPD/Mintel

During the period of 2006-08, healthy merchandises were showcased in different ways ; turning away of preservative and additives is the most popular manner, followed by usage of wholesome ingredients. The usage of no/less fat or Calorie claims has non been really important during this period.

Health oriented positioning in new launches for wraps and sandwiches, 2006-08

Beginning: Mintel

The usage of limited edition claim has been popular during this period, though growing in premium sandwich sector is on diminution. Limited edition sandwiches provide consumer new spirits and combinations, most of the clip utilizing seasonal ingredients.

% of limited-edition and premium placement in new launches for sandwiches and wraps, 2006-08

Major addition has been seen in where new launches of sandwiches and wraps are positioned as holding environment friendly packing. These claims are based on the usage of reclaimable stuff. Sandwichs have been long criticised for the stuff and the sum of packaging used.

% of new sandwich and wrap merchandises with environment friendly packaging, 2006-08

Beginning: Mintel

Consumer purchase form

Mintel commissioned research in November 2009 reveals that three one-fourth of the people bought sandwiches in the last three months. Sandwich purchasing lessenings with the addition in age and rises with household income.

Following are the socio-economic who are more likely to purchase sandwiches:

Nine out of 10 pupils are likely to purchase sandwich followed by eight people who are working.

82 % Parents, peculiarly with a child under the age of five are likely to buy sandwich.

Eight out of 10 singles.

More than 80 % of cooperative and Markss and Spencer ‘s shoppers.

Attitudes towards purchasing sandwich,

Base: 1,000 cyberspace users aged 16+

%

Shop-bought sandwiches are over-priced

42

There ‘s no point purchasing a sandwich I could do at place

39

I have cut back on disbursement on tiffin

30

Low monetary value does n’t be good value

27

I seek out meal trades

20

I merely buy sandwich as a dainty

18

I buy myself little dainties even if I ‘m salvaging money

17

Good-quality ingredients are deserving paying more for

16

I have switched to a less expensive mercantile establishment for tiffin

7

Sandwichs/wraps are n’t make fulling plenty for tiffin

5

It ‘s expensive to do shop-style sandwiches at place

3

I cut back on my tiffin disbursement for a piece, but it ‘s now back to ‘normal ‘

2

None of these

9

Beginning: Toluna/Mintel

Attitudes towards purchasing sandwich, by demographics,

Base: 1,000 cyberspace users aged 16+

Shop-bought sandwich are over-priced

There ‘s no point purchasing a sandwich I could do at place

I have cut back on disbursement on tiffin

Low monetary value does n’t be good value

I seek out meal trades

%

%

%

%

%

All

42

39

30

27

20

Gender:

Male

38

36

29

27

19

Female

47

42

32

27

20

chink here to shrivel tabular array

* little sub-sample ( 75-100 )

Beginning: Toluna/Mintel

chink here to shrivel tabular array

Attitudes towards purchasing sandwiches, by mercantile establishments

All

Have bought at any

Any sandwich concatenation

Any food market shop

Greggs

Metro

Base: cyberspace users aged 16+

1,000

731

521

446

349

260

%

%

%

%

%

%

Shop-bought sandwiches are over-priced

42

47

47

48

48

48

There ‘s no point purchasing a sandwich I could do at place

39

27

25

27

26

21

I have cut back on disbursement on tiffin

30

37

39

37

39

42

Low monetary value does n’t be good value

27

32

33

36

32

34

I seek out meal trades

20

26

29

29

29

37

I merely buy sandwich as a dainty

18

22

20

25

22

19

I buy myself little dainties even if I ‘m salvaging money

17

21

23

22

24

24

Good-quality ingredients are deserving paying more for

16

19

20

20

18

20

None of these*

9

7

5

6

5

5

PESTLE Analysis:

Political

Economic

GM nutrient

Planing Policy Guidance ( PPG )

EU Competition jurisprudence, employment jurisprudence

Competition Commission

Tax, licences

Market value

Relative recession cogent evidence industry

Credential handiness

Addition in GDP

Social

Technological

Organic nutrient

Healthy restaurant

Eating out and take away

Environment witting

3/4th shoppers travel by auto

Communication / IT

Supply concatenation optimisation

Transport / cool storage

Bar codification / stock direction

FORCAST FOR Future Developments:

Sandwich research proposing that the salt, sugar and fat degrees in assorted prepared sandwiches were really high, a individual sandwich providied more than half of an grownup ‘s guideline day-to-day consumption of these.

Consensus Action on Salt and Health ( CASH ) voiced similar unfavorable judgments refering the high salt degrees in seasonal sandwiches and sweet dainties offered by assorted grocers and java and sandwich ironss in the runup to Christmas 2009.A

Meanwhile, a figure of the largest sandwich store ironss, including Greggs, Pret, Subway and EAT, have committed to working with the Food Standards Agency ( FSA ) to promote and enable healthier eating out of place, the committedness assisting to advance their public wellness image.

Enterprises vary by concatenation, and include stairss to cut the degrees of salt, sugar and saturated fat in their merchandises and to include fruit and salads and accessibly priced smaller parts in their merchandise offer.

Pret A Manger and Subway have besides committed to developing a voluntary calorie-labelling strategy, together with 19 other foodservice operators, where they display calorie information on the bulk of their merchandises in-store, at the point of pick.

Sandwichs made in the store that sells them are presently non tied to the same labelling regulations as prepackaged nutrients. Notably, they do n’t hold to be labelled with a full ingredients list. Non-prepacked nutrient sold at a catering constitution does non necessitate to transport any nutrition labelling.