Strategic Management and Core Competencies of Hard Rock Cafe - Case Study Example

Chapter- Executive Summary The objective of the report was to perform a strategic review of Hard Rock Café. HRD is one of the well-known and popular theme restaurant chains across the globe. The initial environment analysis revealed as changing trend among customers. People are becoming more health conscious and at the same time, opting to eat out more frequently. Porter analysis revealed that the market for theme restaurants is saturated and overall competition is tough. However, there are numerous growth opportunities in emerging markets. According to the SWOT analysis of HRD, its major strengths, which are brand equity, live music and loyal group of customers, can be utilised to ward off threats and other weaknesses. Strategic group analysis for Hard Rock Café will help in evaluating the firms with similar features, competing on same basis or following similar strategies. Three major direct competitions have been analysed, namely Planet Hollywood International Inc, The Johnny Rockets Group and Landry’s Inc. The value chain analysis of Hard Rock Café has helped in making strategies for better value creation for customers. A SAF analysis was done to identify potential problems, highlight their impact on winning execution and make sure that strategies are properly implemented. VRIN analysis helped in evaluating the core competencies of Hard Rock Café. The various components of the VRIN were further broken down into smaller components and the competency level of each of these components were further analysed. At last, various suggestions were put forward. The final recommendation chosen after the analysis was to expand in new and emerging markets. Contents Chapter 1 – Introduction 4 Chapter 2 - Environmental Analysis 4 2.1 Industry Lifecycle 4 2.2 Porter’s Five Forces 4 2.3 PESTLE 6 2.4 Strategic Group Analysis 8 2.5 SOWT Analysis 9 Chapter 3 - Resources Analysis 10 3.1 Value Chain 10 3.2 Valuable, Rarity, Imitability and Non-substitutability 11 Chapter 4 – Recommendations 12 4.1 TOWS Matrix 12 4.2 Ansoff Matrix 12 Chapter 5 – Conclusions 13 5.1 Suggestions and SAF analysis 13 5.2 Recommendations 14 5.3 Final Recommendation 15 Reference List 17 1. Pestle analysis 19 3. Porter’s five forces 21 4. VRIN Analysis 22 5. Ansoff Matrix 23 6. Value Chain Analysis 23 Picture 1: HRD’s Strategic Group Analysis 25 Picture 2: HRD’s Industry Life Cycle Analysis 26 Picture 3: HRD’s Income Statement 26 Picture 4: Revenue and Operating Profit 27 Table 1: Restaurants sales growth of Hard Rock Café 1970–2005 27 Picture 9: Size of foodservice market in the UK 28 Table 2: Economic Summary of UK food chain 28 Chapter 1 – Introduction Founded in the year 1971, Hard Rock Café (HRD) is one of the finest chains of theme restaurants. It was started by Peter Morton and Issac Tigrett in London as a fast food and coffee joint (Hard Rock, 2014a). Over the years, Hard Rock Café has successfully established itself as a pioneer in theme restaurants. After its successful global expansion into various nations, the retail chain diversified into many new business segments, including hotels, dining restaurants and casinos. In the year 2007, Hard Rock Café was taken over by Seminole Tribe of Florida and the headquarters were shifted to Orland, Florida. As present, there are about 175 Hard Rock Café s located across 53 countries (Hard Rock, 2014b). Chapter 2 - Environmental Analysis 2.1 Industry Lifecycle An analysis of product life cycle of Hard Rock Café will help in understanding the present condition of the retail brand, in terms of its position in theme restaurants industry. Currently, Hard Rock Café is in a mature stage. It has established its base in majority of the prime locations across the globe, including developed as well as emerging nations. Also, there is no growth, in terms of revenue or sales, in the cafe. As a result, the company will have to devise new strategies in order to engage its current customers as well as attract potential customers. 2.2 Porter’s Five Forces The Porter’s five forces will help in analyzing the industry competitiveness of Hard Rock Café. Bargaining power of buyers- High Customers are provided with a lot of choice. Customer concentration is very low. Threat of buyer competition can be considered as high. Threat of new entrants- High Capital requirements are low for setting up a single restaurant. Failure rate is high in this new restaurant or retail outlet business. Economies of scale can be achieved with increase in restaurant business. Most of the developed markets are saturated and brands are opting for international market to enjoy growth and expansion (D. Welch and J. Welch, 1996). Government barriers very low. Differentiation level high among restaurant styles. Industry experience curve not very high. Bargaining power of suppliers- High High competition exists in this fast-food industry. Mature and dying market. Fixed costs can be high, while starting a new restaurant, Variations exist in dining and eating out experience. Threat of substitutes- High The market is filled with indirect substitutes, such as, Pizza Hut, KFC and other local cafeterias and music lounge is also eating away market share. Rivalry within the industry- High Many competitors exist in this sector. Product differentiation is very low. Rivalry for market and customer share is high. Products and service offerings can be replicated. 2.3 PESTLE Political Different countries have different regulations and rules for foreign establishments. These establishments range from quality, format of establishment and sourcing strategies, to name a few. Economic The overall disposable income levels of consumers have increased. As a result of the exchange rates, inflation and economic growth, emerging nations are becoming top preferences for global establishments for these fast food companies. The economic recession is slowly fading. Social Consumers are becoming more health conscious. As a result, food companies now include healthy food items in their menu. However, attitude towards dining and eating out is also getting fine-tuned. Companies have started targeting even vegetarian population with new offerings in their menus such as, salads and vegan burgers. Technological Specialised equipments and technologically advanced operation system are now used by firms in order to enhance their overall efficiency and performance. Social media has become the new communication platform for enhancing the overall awareness and brand visibility of retail restaurant chains. Environmental Recycling has become a critical global issue. NGOs and other environmental agencies are hammering away on use of biodegradable materials. Legal Brands need to abide by specific rules and regulations, while operating in foreign countries. Meeting of various food standards. Regulation of factors such as, opening hours, taxation and wages. 2.4 Strategic Group Analysis Strategic group analysis for Hard Rock Café will help in evaluating firms with similar features, competing on same basis or following connatural strategies. Hard Rock Café falls in the theme restaurants category and provides offerings, such as, alcoholic and non-alcoholic beverages, fast food and snacks as well as musical ambience. The closest competitors providing similar offerings are Planet Hollywood International Inc, The Johnny Rockets Group and Landry’s Inc. Landry’s restaurants are well-known full service operators. They are also known for their various theme restaurants across the globe (Hoovers, 2013a). Planet Hollywood is regarded for the glamour and glitter and its tasty fries and burgers. The brand also owns various famous casinos in hotspots such as, London, Las Vegas and New York, giving tough competition to Hard Rock Café (Hoovers, 2013b). The company has also partnered with Bay Harbour in order to increase its customer base. Another strategic competitor for Hard Rock Café is The Johnny Rockets Group, also known for its hip and classy dining ambience. The company mostly runs on a franchisee format and is run by Sun Capital Partners. The company operates through its 300 chain restaurants, specialising in classic diners, such as, malts, hamburgers, apple pie and fries (Hoovers, 2013c). From the strategic group analysis, it can be concluded that though Hard Rock Café has established itself as a niche service provider in theme restaurants category, it is still facing stiff competition (David, 2011). The analysis also revealed that overall ambience and live music concerts are still providing competitive advantage to the firm. Apart from the abovementioned direct competitors, Hard Rock Café also faces competition from indirect competitors, such as, KFC, Pizza Hut and McDonalds, who are constantly trying to attract young customers and positioning their outlets as a regular hangout place for college students as well as newly established professionals, apart from their regular customer base (Baker, Jones and Nichols, 1994). 2.5 SOWT Analysis Strengths The top USP of Hard Rock Café is its live music, which is played often in their restaurants. The food variants are well known across cultures. The restaurants are strategically located, inviting greater and more qualitative footfalls. The overall ambience of Hard Rock Café with features such as, Memorabilia collection, give them a competitive advantage. Weakness Most of the times, the restaurant is full and customers need to wait in line or make prior reservations. The restaurants are also perceived as loud. The overall food [products are perceived as expensive. As a result of the high traffic, customers have to wait to receive their order. Opportunities The increasing popularity of Hard Rock Café is an opportunity to launch more outlets and theme restaurants in major locations across the globe (Haberberg and Rieple, 2008). The brand can launch special diet menus for health conscious customers, thereby broadening its customer base. Threats Other theme restaurants are giving tough competition to Hard Rock Café by enhancing their overall product and service offerings. Chapter 3 - Resources Analysis 3.1 Value Chain Hard Rock Café falls under the retail sector and is one of the leading theme restaurants chains in its category. A value chain analysis of Hard Rock Café will help in creating more value for its customers: Inbound Logistics: The inbound logistics include food ingredients for final products, alcohol and soft drinks, capital, land or property, labour, music merchandise and management of the thematic coordination. The brand has its outlets spread across the globe and majority of these are in franchisee formats. Most of the raw materials are sourced locally. Outbound Logistics: The major outputs from the retail chain are food, drinks and beverages, merchandise such as, clothes, coffee mug, accessories and other trendy items as well as entertainment in the form of live music. Operations: Hard Rock Café has been investing heavily on operational and physical infrastructure for creating a distinct atmosphere and competitive advantage. The operations include inventory management, layout and location management, scheduling as well as product quality and design (Barreto, 2010). Marketing and sales: The brand uses prior sales histories, recent and seasonal trends in sales as well as schedules of local events and functions in order to develop sales forecast. The brand advertises itself through print, television, radio and outdoor advertising channels. Service: The major objective of Hard Rock Café is to provide superior customer service. The staffs and employees are encouraged to provide extraordinary service for ensuring high level of satisfaction among consumers (Ferguson, 2008). 3.2 Valuable, Rarity, Imitability and Non-substitutability VRIN analysis will help in evaluating the core competencies of Hard Rock Café. Valuable: As far as live music and ambience is concerned, Hard Rock Café is the first choice of customers. Also, it is the most popular and valuable hangout place for youngsters and music lovers (Marieke, 2004). Rare: The unparallel atmosphere of the store, presence of accessories and merchandisers for sale are unique and provide a competitive edge to the retail chain. Imitable: It will take more than just money to imitate the cafe. The retail chain has created a high brand value over years, which is inimitable. Non-substitutability: The brand cannot be substituted as no other retail chain can gain HRD’s large presence around the globe (Collis, 1991). Chapter 4 – Recommendations 4.1 TOWS Matrix A TOWS matrix is basically an extension of the SWOT analysis. Here the internal strengths and weaknesses and external opportunities and threats of the company will help in making strategies by utilizing the vantage points. The major advantages of Hard Rock Café are ambience, high brand value and popularity among music lovers. This can be utilized by targeting these customers through other media channels such as, online media, radios, music channels and print magazines dealing in music (Bogner and Thomas, 1995). The present strengths for Hard Rock Café can also be utilized to minimize the threats. The company can invest in enhancing its overall brand equity and brand value by inviting more popular singers and artists in its cafes and including trendy menus and innovative cocktail variants as well as creative merchandise in its outlets. 4.2 Ansoff Matrix Ansoff matrix is an alternative strategy for growth, which is formulated by analyzing the firm’s present as well as potential products in existing and new markets. A strategic view of Hard Rock Café’s product and service offerings reveal that many of its products, such as, Rock Park and Casinos, are in declining phase, which needs diversification (Johnston and Bate, 2003). Other products, such as, accessories and hotels, need overall development. Apart from that, Hard Rock Restaurants, which are working well in their current locations, need further penetration in the market. Chapter 5 – Conclusions 5.1 Suggestions and SAF analysis The various suggestions for growth and sustainable development of Hard Rock Café are as follows: 1. Rebuilding the fast-food brand by generating awareness among existing as well as probable customers. 2. Marketing the product through a complementing and credible source in order to produce strong purchase drives. 3. Introducing new and more effective advertising strategies. 4. Expanding for development across the globe. Penetration into potential and emerging markets through franchisee and joint venture formats. 5. Increasing brand awareness as well as overall brand equity through various online and offline media channels. 6. Enhancing restaurant-level margin and profitability by integrating advanced technology and optimisation of the available services. SAF Analysis SAF or Situational Analysis framework is a planning and analytical method, generally used in communication and marketing development programs for planning as well as implementation. A SAF analysis is done by identifying the potential problems, highlighting their impact on winning execution and making sure that strategies are properly implemented, even with the presence of pressure as well as possible chances of failure (Balmer and Gray, 2003). In other words, it identifies suitability, feasibility and acceptability of the strategies and action plan developed. 5.2 Recommendations From the above analysis of Hard Rock Café, various suggestions were developed, which were further evaluated for sustainability, feasibility and accessibility. It was inferred that out of the various suggestions, few could be considered as sustainable, feasible and accessible. This can be attributed to a SAF analysis as well as previous analysis conducted, during the course of study. The various recommendations selected for Hard Rock Café are: 1. Expanding for global development Hard Rock Café is setting up for a widespread geographical development of its chain of restaurants. The purpose will be to boost restaurant numbers for penetration and growth (Fox, 2011). The international expansion will also focus on emerging, but un-penetrated, market. The retail chain of restaurants and cafes has also made fresh investments in joint ventures with the goal of developing regions, such as, Taiwan and Northern China. 2. Enhancing profitability and restaurant-level margin Hard Rock Café is planning to improve its overall margins by strategies, such as, growth initiatives and cost management. With the objective of improving sales in its restaurant and casino business, Hard Rock Café will focus on activities such as, better and faster services, regular feedback system for improved two-way communication, enhancing overall experience of guests as well as regular research in order to evaluate changing trends among target customers. Use of latest equipments and tools should be another strategy used by Hard Rock Café for improving overall profitability of the restaurant business. This can be achieved by reduced labour costs and wastages, improved inventory management and enhanced sales-cash register (Ferrell and Hartline, 2010). They can also install new systems, such as, POS, with facilities, such as, broader menu selection, reduced costs of energy and enhanced cooking abilities. This will also help in improving the overall optimisation of services as well as brand equity. 3. Effective advertising policies Of late, the brand has been facing some serious challenges, in terms of brand popularity and awareness among target customers, which are basically youngsters. This can be attributed to its low level of penetration in advertisements channels, especially those attracting younger generation. In order to redeem this issue, the retail food chain should revamp its advertising strategy. The brand should evolve from traditional advertising format to a more contemporary strategy. Hard Rock Café can broaden its base of target audience and partner with better agencies and media partners, who are more acquainted with current consumer trends. While operating in a foreign land, Hard Rock Café can appoint local agencies and media firms in order to better understand the market as well as prepare better strategies. In order to target young audience, the retail brand should foray into online marketing and social media sites. 5.3 Final Recommendation After analysing the various strategic choices and suggestions, many points can be noted. It has been found out that the major challenge faced by Hard Rock Café was keeping pace with the growing demands of customers. Though the retail brand has established itself in most of the prime global locations, the demand for more outlets is still rising, especially in the emerging markets (Drejer, 2002). Thus, the final recommendation for the company will be to grow its base in emerging and developing markets, such as, China, India, Indonesia and Taiwan. Reference List Baker, H., Jones, W. and Nichols, M., 1994. Using core competences to develop new business. Long Range Planning, 27, pp. 13-27. Balmer, J.M.T. and Gray, E.R., 2003. Corporate brands: what are they? What of them? European Journal of Marketing, 37(8), pp. 972–97. Barreto, I., 2010. Dynamic capabilities: A review of past research and an agenda for the future. Journal of Management, 36, pp. 256-280. Bogner, W. and Thomas, H., 1995. Competence-based competition. Chichester: Wiley. Collis, D., 1991. A resource-based analysis of global competition: The case of the bearings industry. Strategic Management Journal, 12(5), pp. 49-68. David, F., 2011. Strategic management: Cases and concepts (13th ed.). Florence, South Carolina: Pearson. Department for Environmental, Food and Rural Affairs, 2012. Food Statistics Pocketbook. [online] Available at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/183302/foodpocketbook-2012edition-09apr2013.pdf [Accessed 29 January 2014]. Drejer, A., 2002. Strategic management and core competencies: Theory and application. Connecticut: Greenwood Publishing Group. Ferguson, R., 2008. Word of mouth and viral marketing: Taking the temperature of the hottest trends in marketing. Journal of Consumer Marketing, 25(3), pp.179 – 182. Ferrell, O. C., and Hartline, M. D., 2010. Marketing strategy. 5th ed. Connecticut: Cengage Learning. Fox, K., 2011. Learn to expect the unexpected in global retail expansion. Graziadio Business Review, 14 (4), pp.1-7. Haberberg, A. and Rieple, A., 2008. Strategic Management. Oxford University Press, New York. Hard Rock, 2014a. Hard Rock History. [Online] Available at: http://www.hardrock.com/corporate/history.aspx [Accessed 3 January 2014]. Hard Rock, 2014b. Seminole Ownership. [Online] Available at: http://www.hardrock.com/corporate/ownership.aspx [Accessed 4 January 2014]. Hoovers, 2013a. Landry's, Inc. Company Information. [Online] Available at: http://www.hoovers.com/company information/cs/competition.Hard_Rock_Cafe_International_Inc.2bb24f685b34c136.html [Accessed 4 February 2014]. Hoovers, 2013b. Planet Hollywood International, Inc. Company Information. [online] Available at: http://www.hoovers.com/company-information/cs/company-profile.Planet_Hollywood_International_Inc.1f1f595135331793.html [Accessed 18 January 2014]. Hoovers, 2013c.The Johnny Rockets Group, Inc. Company Information. [online] Available at: http://www.hoovers.com/company-information/cs/company-profile.The_Johnny_Rockets_Group_Inc.f5df8813604e8382.html [Accessed 9 January 2014]. International Markets Bureau, 2013. Market Analysis Report. [online] Available at: http://www.gov.mb.ca/agriculture/statistics/agri-food/uk_foodservice_en.pdf [Accessed 15 January 2014]. Johnston, R.E. and Bate, J.D., 2003. The Power of Strategy Innovation: A New Way of Linking Creativity and Strategic Planning to Discover Great Business Opportunities. American Management Association, New York Marieke, D., 2004. Consumer behaviour and culture: Consequences for global marketing and advertising. Thousand Oaks, CA: Sage Publications. University of Cambridge, 2013. Future Scenarios for UK Food Industry. [Online] Available at: http://www.fdf.org.uk/corporate_pubs/IFM_report2_Sep2010.pdf [Accessed 4 February 2014]. Welch, D. and Welch. J., 1996. The internationalization process and networks.” Journal of International Marketing, 14, pp. 103-124. Appendix I 1. Pestle analysis Political For instance, the government of UK has made it mandatory for food companies to promote quality and healthy eating and as a result, most of the food companies provide calorie information for all products. Hard Rock Café has a stringent policy and it maintains similar ambience and quality policies in its theme restaurants. Global firms dealing with fast food need to comply with various political requirements, especially when they are established in other countries. Quality regulations and hygiene vary significantly and have critical influence on the products quality provided by these restaurant chains. Economical Despite the ongoing economic recession, the average fast food spending of consumers have increased. This can be attributed to low-cost of these foods and convenience. As a result, most of these chains of restaurants have introduced new deals in their menus. Apart from providing quality beverage in affordable pricing, Hard Rock Café is also known for its ambience and distinctive features in its restaurants, providing a competitive edge. Social There has been an increased awareness among consumers about health and this has persuaded many restaurants to offer quality and healthier food selections in their menus. Hard Rock Café now includes various low-calorie options as well as salads, apart from the regular menu. The company also maintains a strict policy for people entering into the restaurants. Technological In order to better connect with consumers, food restaurants and theme restaurants are now relying on channels like, social media and digital marketing activities. For instance, the Facebook page of Hard Rock Café is very popular among youngsters as well as music lovers. This allows the brand to target these customer segments though other channels too. Apart from that, digital displays also allow outlets to alter their menus effectively, suiting various timings in a day. Environmental: Governments and environmental lobbyists are forcing chain restaurants to become more qualitative or green. Recycling is a critical global issue and in response, the brand has adopted various remedial measures such as, recyclable packaging. In order to garner significant customer loyalty, the company is spreading environmental awareness through various campaigns and advertisements. Legal: Brands operating in a global platform must abide by country specific legislation and regulations. This includes taxation, opening hours as well as employment regulations, such as, wages and work hours. Hard Rock Café also needs to meet various food standards in specific nations, where it has established its theme restaurants. 2. Tows Matrix Strengths 1. The brand has established a distinguished power over the years. 2. The brand is known for its effective and efficient managerial experience, sufficient resources and diverse menu across borders. Weaknesses 1. Hard Rock Café is generally perceived as an expensive outlet for hangouts. 2. The cafe is most of the time full and results in customers waiting in line. Customers also need to make prior reservation. 3. The loud ambience of the restaurants deters outsiders and creates nuisances. Opportunity 1. The overall global market is increasing and the economy is also coming out of recession. 2. With technology, the company is discovering new methods of improving its efficiency and competitiveness. 3. The company can launch new cafes in various emerging nations. SO (Strength- Opportunity) 1. The brand should start enhancing its operations in order to save sufficient resources. This can be further utilised to build new cafes across various locations. WO (Weakness- Opportunity) 1. As the global market opportunity is increasing, restaurants are going to be much busier and will cash in more revenues than ever. 2. This will also be an opportunity for the retail chain to establish new outlets in prime as well as emerging global locations. 3. With operations and inventory system supported by technologically advanced software, companies are now able to reduce their overall operational costs and offer competitive pricings to their customers. Threats 1. Competition from direct as well as indirect competitors is becoming stronger day by day. 2. The brand poses threat of being perceived as overrated because of over the top menus. ST (Strengths- Threats) 1. The brand strength and equity can be utilised for fending off the competitors and customers. It can also be helpful in preparing better marketing strategies. 2. The managerial experience of HRC can be utilised as a USP, apart from its live music ambience. WT (Weakness- Threats) 1. Low prices and easily available technology will make competition tougher and it will be much harder for companies to survive and thrive. 3. Porter’s five forces 4. VRIN Analysis The VRIN analysis of Hard Rock Cafe elaborates the tangible and intangible resources available within the retail chain. The objective here is to analyse the core competencies of Hard Rock Cafe. The financial capacity of HRC includes its borrowing capacity and internal funds. While good brand value and strong investor relationship ensures sustainable competitive advantage while opting for loans, there has been a decline in the capital reserves due to new establishments and product launches. Physical resources include equipments for operations, physical assets, technology and raw materials. While assets and technology provide sustainable competitive advantage, lack of latest equipments and shortage of raw materials might create a negative effect on overall operations and revenues. The financial resources can be considered as sustainable. However, the company will have to constantly update itself and its management in order to stay ahead in the competition. Hard Rock Cafe boasts highly efficient human resources. The competencies include their expertise, skills, adaptability, loyalty and commitment. The retail chain has a sustainable competitive human resource team. Reputation of an organisation is intangible resource and can only be achieved with continuous effort. Reputation of a company can be evaluated through its brand ownership, customer relationship, services and products offered relationship with communities and government authorities, employees and suppliers. While increasing competition and diverting brand loyalty can be threat in future, the company’s relationship with employees and suppliers have ensures that it is equipped with sufficient tangible and intangible resources in order to handle more fierce competition in future. 5. Ansoff Matrix Existing products New Products Existing Market Rock Cafe Restaurants Rock Cafe Hotels Hard Rock Café Memorabilia New Market Hard Rock Café Live Hard Rock Café -Rock Pack Hard Rock Café Casinos 6. Value Chain Analysis Inbound Logistics > Operations > Outbound Logistics > Marketing & Sales > Service > M A R G I N Firm Infrastructure HR Management Technology Development Procurement   The value chain analysis of Hard Rock Café will help in evaluating the primary and secondary value chain activities as well as prepare strategies to enhance those for better performance and results. Primary activities of Hard Rock’s value chain involve: Inbound Logistics: Raw materials such as, food ingredients, meat, alcohol and cold drinks, merchandisers as well as accessories for decoration. Operations: Hard Rock operations mainly include menu preparation, inventory management, staff management as well as daily sales tracking. Outbound Logistics: Outbound Logistics includes distribution of finished goods, which takes places inside the outlet and hotels. Sales and Marketing: Sales and marketing activities include weekly and monthly sales tracking, sales forecast for month and years and promotional activities, such as, billboard advertising, print and radio advertising and social media marketing. Appendix II Picture 1: HRD’s Strategic Group Analysis Picture 2: HRD’s Industry Life Cycle Analysis Picture 3: HRD’s Income Statement Picture 4: Revenue and Operating Profit (Source: International Markets Bureau, 2013) Table 1: Restaurants sales growth of Hard Rock Café 1970–2005 Year Sales Growth 1970 42.8 1985 173.7 1995 295.7 2005 475.8 (Source: International Markets Bureau, 2013) Picture 9: Size of foodservice market in the UK (Source: University of Cambridge, 2013) Table 2: Economic Summary of UK food chain Factors Summary Total UK Customers 70 million people Total Food products exported Highly Processed- 10.6 billion Euros Lightly Processes- 6 billion Euros Unprocessed- 1.6 billion Euros 18.2 billion Euros Total expenditure of consumers on drinks, food as well as catering services 180 billion Euros Consumer Expenditure on Household Drinks and Food 101.5 billion Euros Gross Value of Total Food and Drinks Retailers 26.1 billion Euros Gross Value of UK Food Manufacturing sector 26.4 billion Euros Total Imports 37.5 Billion Euros (Source: Department for Environmental, Food and Rural Affairs, 2012) Read More