The health debate has gone quiet recently, but don’t be lulled into complacency, it remains very much on the Government’s agenda. However, instead of talking about voluntary agreements the new rhetoric from the powers-that-be centres on the possibility of regulation and the UK’s eating-out sector could find itself right in the firing line.
As with the tenanted pub sector, its looks like the Government has tired of seeing if self regulation will work and is ready to step in make sure the job is done.
Last week, the bones of new research from the Institute of Fiscal Studies, which will be published in full next month, found that consumers are eating 600 fewer calories a day than they were 30 years ago, with calories consumed at home down by a quarter.
Over the period of the study, from 1980 to 2010, calories from alcohol fell by 25%. However, it found that calories from eating out, takeaways, soft drinks and snacks consumed on the go had increased by c.15%.
The Government’s Responsibility Deal, the voluntary agreement, which aims to promote calorie labelling on menus, provide alcohol unit information on drinks, and reduce salt and remove trans fats from food items, has signed up c200 companies and organisations, including leading operators from the pub and restaurant sectors, since its launch at the end of 2010. However, it seems the Government is running out of patience over its effectiveness.
Last month, a report commissioned from the London School of Hygiene & Tropical Medicine for the Department of Health found that there was “little evidence” voluntary deals achieved better results than regulation. It also called for sanctions against companies that miss targets and action against those that fail to tackle health issues.
The report said: “Some of the most effective voluntary agreements include substantial disincentives for non-participation and sanctions for non-compliance. Many countries are moving towards these more formal approaches to voluntary agreements.”
It is thought that health minister Anna Soubry is under increasing pressure to introduce some sort of regulation against food and drink companies unless some significant progress is produced by the Responsibility Deal.
As is the way the Government has first turned to the retail sector, and supermarkets in particular, to see what they are prepared to do to ramp up their attempts to get the health message across, although it is thought that meetings are due to take place with the drinks and food industries this summer.
In turn, market leader Tesco seems to have placed itself at the front of the agenda with the announcement that it intends to use its Clubcard loyalty programme to help combat the UK’s obesity problem.
Chief executive Phil Clarke recently told <i>M&C Report’s</i> sister title <i>The Grocer</i>: “Our customers have told us they’d like help in choosing healthy options, so on an individual level, we want to see whether customers would welcome tailored suggestions for how they could shop more healthily.
“Customers would need to opt in of course, but we think it could be a really innovative way of highlighting those healthier options.” He also said that the company would not be afraid to remove items deemed not to meet its “health drive”.
With dust just about settling on its near £50m acquisition of Giraffe, with the first site in the partnership set to open in Tesco’s Watford Extra store this summer, it will be interesting to see if this new health drive tips over in to the restaurant chain’s operational thinking.
One thing is clear though, the Government has tried nudging the sector in the right direction on health, and it is now gearing up for the push.
Shaking it up
Gourmet Burger Kitchen chief executive Alasdair Murdoch has said that the brand could eventually triple in size in the UK to 150 sites. Byron is off the market and looking to prove outside-London credentials through further expansion. Unfortunatley for both, the UK’s better burger scene is about to get a whole lot more competitive thanks to the long overdue US invasion.
Five Guys and Shake Shack are confirmed for openings over the next month, and in Five Guys case a detemination to become a national presence. Behind them a number of their national rivals, such as Smashburger, Fatburger, Steak ‘n’ Shake and now Jake’s Wayback Burgers, are all in talks with franchisees and investment partners to also make the leap across the pond.
They all see a market that against their own is far from maturity and one that offers plenty of potential room for growth.
But rather than be in awe of our US cousins, should we not start celebrating the success GBK and Byron have already achieved in this space? What’s to say that most of the brands looking to come here are better than what we already have?
As Loungers managing director Alex Reilley put it over the weekend maybe the “UK’s great burger concepts should start storming the US”.
While that proposition may be some time off, it will be interesting to hear legendary New York restaurateur and Shake Shack founder Danny Meyer’s take on the issue, when he talks at the latest R200 event, in association with M&C Report, on 3rd July, at Hutong at The Shard.
Meyer and Shake Shack chief executive Randy Garutti will reveal why and how they are bringing their New York burger-and-shakes concept to London, while Meyer will also outline his vision of running forward-thinking hospitality businesses.
If you would like to attend this not-to-be-missed event, please get in contact (mark.wingett@wrbm.com), as you can imagine there might be a bun fight for seats!
