Success on a plate: The Future of Eating - COVER - HubSpot
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COVER
Success on a plate:
The Future of Eating
A Clarity insight report.Introduction
It’s crunch time for Yet the industry is still valued
at almost £19bn in the UK alone.
the dining sector. Consumers remain hungry for
convenience, great service and
a unique experience. Driven by
Experts predicted that
technology, smart players such
as delivery platforms, subscription
snacking propositions and nimble
in 2019 the industry restaurant chains are innovating
to keep up with demand while
would suffer its fastest simultaneously fuelling changes
in customer habits.
year-on-year decline So what makes the likes of
since the beginning
Jamie’s Italian close its kitchens
while Just Eat and Deliveroo
get on their bikes?
of the last decade 1.In order to uncover the crucial Change is coming faster than
factors that stir a brand to success ever. The sector must adapt
or leave it stale, Clarity has created to consumers’ rapidly shifting
The Eating Index. behaviour, driven by digital.
Using our unique methodology, Digital is allowing habits to change,
we have pinpointed brands’ presenting more choice and driving
progress and pain points across a awareness for smaller players.
range of ingredients far bigger than The Eating Index is our attempt
mere financial indicators. Together to make sense of what’s going on.
they give two key measures of The report reveals ways to embrace
performance: customer centricity disruption, stay relevant and thrive.
and disruptability. There are lessons
to be learned for each type of The findings are useful for start-ups,
brand, whether consumers think chains, independents and investors
they have gone cold or are cooking alike. From upstart disruptors using
up a storm. technology to bring us fast food
in a jiffy to established eateries
struggling to keep up with diners’
restless appetites, we uncover
what’s working, what isn’t, and how
to get ahead in uncertain times.
1
www.bighospitality.co.uk/Article/2019/09/24/UK-restaurant-market-facing-fastest-decline-in-seven-years-according-to-MCA-InsightMethodology
The Eating Index
puts brands
in the dining
sector under the
microscope.
We have included several tech-based
businesses, such as subscription brands,
table reservation platforms and digital
delivery services, to ensure the analysis
captures modern dining options. There
are also a couple of drinks brands
for good measure.We scored 30 attributes for each brand, The results are deliberately
grouped using aspects of the following: bite-size. We chose these brands
because we believe they’re
Financial indicators representative of different
categories within dining. This
Brand strength has allowed us to benchmark
disruption, successes, challenges
and overall performance in a way
Competitive landscape that could easily be applied to
similar brands in each category.
Market performance
We’d happily discuss the
Innovation strategy methodology at greater depth and
can also share further details of
Customer centricity how the brands that appear in the
index performed. Please contact
Internal comms us to find out more about how
Clarity can help your business.
Wellbeing including sustainability
Marketing strategyPRO
Earning a crust:
current dining trends
Many dining businesses will look In response, we saw major chains
including Giraffe, Frankie and Benny’s
back on 2019 as a recipe for and Ed’s Easy Diner downsizing their
disaster. It was a perfect storm estates, while Jamie’s Italian folded.
Total job losses topped 11,000, a rise
of rising costs, market saturation of 8% on 20182.
and economic uncertainty that
made consumers hang on to Yet there is room for optimism.
Overall sales growth at branded
their disposable income. chains grew by 2% in 2019, although
this was in no small part due to
a frenzy of promotions. Low-cost
convenience options including pubs
and fast-food chains also fared
comparatively well.
Understanding consumer behaviour
11,000 2%
and attitudes towards dining can
help the industry start the new
decade on a firmer footing. Let’s take
a closer look at some of the major
of total job losses, overall sales growth trends driving change.
a rise of 8% on 2018 at branded chains
in 2019Start-ups are hot property
million
pound menu
Start-ups are leading change To pick just a couple of examples,
by capitalising on new consumer early in 2020 new chain HôP
trends. There’s no shortage of VC Vietnamese announced a £1.5m
funding being poured into dining crowdfunding target to allow
brands looking to scale up quickly. it to open 20 new sites5.
A report by DealRoom and Meanwhile, street food concept
TechNation found UK tech start-ups chain Mowgli had a stellar first year
garnered a huge £10.1bn investment in 2019, entering the Sunday Times
in 2019. That’s a £3.1bn increase on Fast Track 1006. It’s now aiming to
2018, and much of the cash is being open in most major UK cities in 2020.
poured into food innovation. Out of
697 early-stage VC funding rounds,
91 are in the food tech space3.
It’s easy to see why so much is
49%
being invested in dining: they
are best placed for growth and Mainstream TV has picked up ² www.itv.com/news/2020-01-04/thousands-of-restaurant-
commercial success. Back in on this trend, with recently aired jobs-axed-as-high-profile-chains-endured-torrid-2019/
2014, very nearly half (49%) of series Million Pound Menu helping ³ www.foodnavigator.com/Article/2020/01/22/Food-tech-
start-ups-set-to-bloom-as-UK-attracts-record-venture-capital-
UK restaurants were operated by of UK restaurants were to popularise emerging brands. investment
brands with more than 100 sites4. operated by brands with
⁴ www.cga.co.uk/2019/06/28/nine-big-trends-in-casual-
dining/
By 2019, that fell to 43%. Well over more than 100 sites It doesn’t look like funding for new ⁵ www.bighospitality.co.uk/Article/2020/01/07/H-P-
a third (37%) of restaurants are in 2014 tastes will dry up any time soon. Vietnamese-launches-crowdfunding-campaign-on-Crowdcube
now operated by groups with They are the instigators of ⁶ www.hospitalityandcateringnews.com/2019/12/mowgli-
target-growth-multiple-new-openings-2020/
fewer than 25 sites. change, leaving established
players looking over their
shoulders, and struggling
brands lagging further behind.We want it all and we want it now
The UK’s food-to-go sector is predicted to
be worth £23.4bn by 2024, according to IGD7,
increasing by a growth rate double that
of the total grocery market.
More consumers eating on the go Consumers are also seeking
means greater demand for quicker attributes beyond convenience:
availability to make life easier. The high nutritional value, personalised
primary driver of growth is delivery meals and constant quality, for
services, worth £8.4bn in the UK example. So while the likes of Just
alone in 2019 and predicted to Eat and Deliveroo are fuelling a
reach £9.8bn by 2021 (source: new boom in fast food, people are
MCA). According to a report from also looking for healthy options in
Deloitte on behalf of Uber Eats, a quick meal.
dining outlets enjoy an average
£323m
annual revenue increase of £323m Just look at the success of brands
in London alone, purely as a result such as Mindful Chef, All Plant and
of joining delivery platforms8. Vita Mojo which successfully blend
convenience and healthy eating.
These are winning propositions that of annual revenue
give consumers what they want. increase in London
dining outletsDIY with a head start
Bridging the gap between takeaways
£1bn £30m
and remembering to pick up ingredients,
meal kits continue to grow in popularity.
They offer a simple and satisfying cooking
meals kits including is the valuation of
experience with recipes made up online and Gousto and SimplyCook AllPlants, a vegan food
orders sent direct to the customer’s door. already sold delivery service
UK operators - including firms such Look past established brands
as Gousto and SimplyCook - are including HelloFresh and Abel and
believed to be pulling in around Cole, and there’s still room for meal
£1bn sales already. Globally, kit start-ups to bring more growth.
estimates suggest revenues could AllPlants, a vegan food delivery
shatter £7bn in five years’ time9. service, is already valued at £30m
following its launch in 2017, and
recently secured £7.5m funding
to widen its range.
⁷ www.foodbev.com/news/convenience-foods-serving-consumer-demands-for-efficiency/
⁸ www2.deloitte.com/content/dam/Deloitte/uk/Documents/corporate-finance/deloitte-uk-delivering-growth-full-report.pdf
⁹ www.bbc.co.uk/news/business-49988337Coming right up
I NI N GNG
NG
D INI TRENDS
TRENDS
35
Gazing further into the future, three trends
seem set to dominate between now and 2030,
seriously challenging traditional dining.
food tech unicorns have
been created around
the world
The first is consumers demanding Then there are “smart diets”. Finally, food science will play a
a change in corporate attitudes As people dip into their biometric major role in building trust between
towards the environment. Diners data to drive health regimes, consumers and meal providers.
will reward businesses that take brands will need to respond with Already, 35 food tech unicorns
action to improve the world more personalised meal options. have been created around the
around them, demonstrating world with a reported combined
a commitment to sustainability. value of £143bn . Restaurants are
likely to include food tech - the
brains behind healthier, trustworthy
provenance - in their brand stories.
10
www.eu-startups.com/2019/10/the-food-of-tomorrow-the-latest-innovations-from-europes-foodtech-sectorFood for thought
Many of these trends are
driven by the will of younger
diners to discover new foods and
experiences. They are also behind
the rapid rise of food delivery
as more people opt to eat at
home thanks to convenience
driven by greater access to -
and proliferation of - services.
It doesn’t matter whether
your brand is a start-up or an
established player. Understanding
all of these trends, knowing the
values different audiences admire
and figuring out how to win their
hard-earned money will be key
future drivers of the sector.
But as we’ll now discover from
our index, there are many other
ingredients that can also deliver
success or failure.Analysis: hungry for success
or feeding on scraps?
As described in our Customer centricity is at its strongest Disruptability is a score that reflects
when a brand has its ear to the not just how adept a brand is at
Methodology each of the ground. Its essence is listening to and navigating change, but also its own
15 brands we put under the attempting to understanding what ability to effect change within the
consumers want, then responding in a sector. Is your brand adapting, or being
microscope were examined way that enthuses them and allows the adapted by others? Customer centricity
through the lens of customer business to stay relevant. and disruptability are the two axes
for the index as illustrated below.
centricity and disruptability.
200
Front Runners
Dominators
Customer Centricity
150
100
Challenged Mainsteam
Ousted
50
50 100 150 200
DisruptabilityIn plotting individual brands on The Eating Index, we also grouped
them into four segments. Here’s a description of each one based
on the common characteristics of brands within them.
Ousted Challenged Mainstream Front Runners Dominators
• Not attuned to market needs • Operating in highly competitive, • Ranging from fresh, cutting-edge • Changed the overall market
often saturated markets; focus propositions to brands that context, setting the new rules by
• Propositionally wide of the mark; on tactics or ‘old ways of working’ have perfected the category which everyone else must abide
little relevance or motivating marketing model; customer
factors for consumers • Customer experience diluted by centric enough to succeed in • Strong innovation with a high
desire to please all audiences a landscape of change level of technical integration
• Lacking customer centricity and
unequipped for agile change • Becoming stale and unappealing • Often entrepreneurial and • Deep pockets; investor backed
to younger audiences accessing great marketing or track record of success in
• Often overstretched and another category
struggling operationally • At risk of being disrupted by talent, they understand how
fresh, more relevant propositions to build a brand • Foot on the gas, prioritising
insight, customer centricity,
testing and remaining relevantThe brands
Now let’s throw the spotlight on brands in each
of the segments with an explanation of why
they’re placed there. Below, we analyse the
disruption facing the sector, and how brands
are - or aren’t - dealing with it.
Ousted
1000
Jamie’s Italian job losses
Jamie’s Italian: It’s easy to see why Jamie’s
suffered when you dig into its index in 2019 with the closure
Easily undercut, scores. Financial marks were as of 22 restaurants
not customer centric bad as they could get, and while it
was on message with a sustainable
We hate to say it, but our analysis approach to sourcing and did well
first rang alarm bells for the for internal comms, the chain had 11
www.mirror.co.uk/money/creditors-jamies-italian-lose-
business a year before its demise. a weak brand and proposition. 80million-21240398
12
www.thecaterer.com/news/restaurant/yo-sushi-earnings-
drop-by-29-across-the-uk
The curtain fell on the venture in Critically, it scored poorly on 12
www.thecaterer.com/news/restaurant/yo-sushi-earnings-
May 2019 when years of money potential to be undercut and drop-by-29-across-the-uk
worries culminated in the closure suffered from the strong presence 13
www.aol.co.uk/news/2019/04/20/pizza-express-boss-
brushes-off-closure-rumours-while-restau-rants/?guce_
of 22 restaurants with the loss of of disruptors in its category. referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_
1,000 jobs. As it stands, creditors A glaring lack of innovation, agility referrer_sig=AQAAADk6Cgt7c4XL9vdzmjMqKw
dPWmpPpAvWI-nC1ByfQvBx7GAsOctbxjmjjliGp
are set to miss out on around £83m and me-too communications were o92CpA9HSfaAceuSAOlXALg3_FpLh7LTlbyaIno
cndzPwK5Bmzd8dGoElBo--IUIsemiTa5rZB5CO_
of debts that can’t be recovered11. sadly the final nails in its coffin. b4vdCJgj6aBFdb3Abj531nozatqIJzDEj&guccounter=2Challenged Mainstream
Yo, Pizza Express, Pizza Express’s recent financial All in all, Pizza Express would Other brands are catching up in
worries are well documented. benefit from a shake-up to realign terms of exciting and unique dining
Strada: Slow to In autumn 2019, hedge funds were with evolving customer demand; occasions: consider experience-
change, poor financials, reportedly circling the chain after it the business claims it’s already based hospitality brands such as
admitted serious problems repaying started on this journey with a Puttshack and Hijingo.
marketing myopia loans and other debts. Earlier in the “quality over quantity” approach13.
year, it posted a pre-tax annual loss In summary, brands in this segment
This segment is characterised of £55m leading to doubts about Yo! has happy employees, a need to find ways to freshen up.
by financial strife. Yo! suffered its future. strong sense of purpose and an They’re going stale and drifting
a 29% drop in UK year-on-year
equally strong proposition. The in- towards more financial scares that
earnings midway through 2019 12;
Although it has a strong brand and restaurant experienceFAILING
hasBRANDS
always might eventually leave investors cold.
out of keeping with its strong
proposition - who doesn’t know been its differentiator. However,
global results.
what to expect when someone there’s a new focus on cost for
mentions Pizza Express? - the 2017 the customer rather than value for
Strada had already had a bad Superbrand now seems to have money, and its iconic conveyor belt
2018 when it closed nearly all of gone crusty, suffering from its lack is being removed in some stores.
its estate blaming “an increasingly of innovation, customer connection Upending its USP could prove
competitive market”. Despite and agility. a mistake.
claiming imminent investment at
29%
the time, the chain has offered little
Like many brands in this sector, Yo! needs to remain true to
in the way of a financial update
Pizza Express’s over-reliance on its successful proposition and
since. Although it has a relatively
discounting is a major problem. experience and develop ideas to
clear proposition, contented
Effectively a form of “buying” keep the very thing that makes drop in UK year-on-year
employees and offers convenience,
customers, the practice is a slippery it stand out against rivals fresh earnings at Yo! midway
it falls down on aspects such as
slope and brands that try it can and future-facing. through 2019
investment, innovation and customer
quickly lose their feet.
satisfaction. Perhaps a new focus on
marketing could reignite its fortunes.The brands
Front Runners
Nando’s, Franco Manca, Those brands furthest up the index - Investment is vital. Gousto has
Nando’s, and meal kit gurus Gousto raked in £100m since 2012, is
Hello Fresh, Gousto, and Hello Fresh - will consider achieving similar revenues and
Wagamama, Craft themselves at the tipping point of aims to create hundreds more
market dominance. Each exhibits jobs in 202015. Hello Fresh,
Gin Club, Open Table, strong profits, a clear purpose, a hot meanwhile, says it now accounts
Grubhub: Growing digital strategy and are put on a for 1% of the UK grocery market.
and profitable, strong pedestal by their loyal customers. The personalisation and
convenience factors are fuelling
brands, scalable, well Nando’s scores full marks for a global boom in meal kit orders.
liked, speedy, certain and willingness to act and is bang The stars seem aligned - in the
on the money with the bulk of same way Google and Amazon
digitally savvy but still the customer centricity elements. weren’t first to market but grew
disruptable with disloyal It has always been faithful to its their empires through investment,
clear proposition just as rivals functionality, powerful marketing
customers and indifferent have stretched too far by feeling and word of mouth - and these
employees the need to diversify in the face could easily become Dominators
of changing customer tastes. in the near future.
£100m
This ethos has propelled Nando’s
to the front of the casual dining
chains in the queue of brands
striving for Dominator status.
Gousto has raked in
since 2012Meal kit value is one
warning sign, reflected
in concerning churn
driven by perceived However, meal kit value is Most operate in segments Regardless of their exact spot
high price points one warning sign, reflected of the market offering growth. on the index, the key challenge
in concerning churn driven by Not so Franco Manca. Entering for brands in this group is to
perceived high price points. As for the struggling pizza market, the grasp the nettle. In most cases a
drinks subscriptions, Craft Gin Club hardest niche within dining, might greater focus on marketing and
scores similarly to meal kits though seem like a hiding to nothing - but communications - amplifying why
lags behind them on growth and the eaterie is carving out its own they have done well so far and
ability to not be undercut. How will successful niche. The cosy and creating more reasons to believe
it stay relevant and fresh within the artisanal feel of its outlets are for diners - will turn the dial up
limitations of its proposition? working as it looks to expand, but still further.
it still might have an issue with
Brands in this segment have loyalty and strategy. We might Overall, these brands would do
common strengths. Impressive expect to see next-gen chains like well to monitor rivals, scouring the
financials are a given. Brand and Pizza Pilgrims in this segment, too. market for the latest innovation in
proposition are generally strong. technology and customer service
They pay close attention to that will protect them against
rivals, are digitally mature and are disruption and propel them forward.
prepared to invest in innovation.
1%
Hello Fresh’s share of the
UK grocery market
14
www.foodserviceequipmentjournal.com/yo-sushi-to-
remove-iconic-conveyor-belt-in-some-stores/
15
www.bbc.co.uk/news/business-49988337The brands
PEOPLE AND PROPS
Dominators
Just Eat, Deliveroo: More than any other type of Just Eat is also locked in deal All of these factors raise the
business in the index, delivery talks. Operating globally, the brand prospect of market consolidation
Game-changing innovators brands are changing the face of looks set to join forces with Dutch as delivery brands jostle for
with a clear purpose, dining. Deloitte recently found that delivery firm Takeaway.com in a position. This really could be a
a third of Western consumers use £6.2bn merger18. Little wonder - winner-takes-all segment in years
proposition and plan with meal deliveries, with 7% doing it’s already the number one with to come. Don’t underestimate
the financial clout to stay so at least once a week. 94% brand awareness. reputation and ethical factors;
ahead - the ones to catch Deliveroo scored poorly for
No wonder Just Eat and Deliveroo It’s interesting to compare the sustainability in comparison to
are hot properties for investors. The might of Deliveroo and Just Just Eat, which is proving its green
latter received an investment boost Eat with the presence of US chops by partnering with Eskuta,
from Amazon in 2019. The £442m competitor Grubhub, which sits the e-scooter brand.
injection of cash - which would further down the index in Front
mark an important move for the Runners. The Dominators have got
ecommerce giant into yet another digital spot on, whereas Grubhub’s
new market by giving it a 16% platform still needs some work.
stake - is under investigation by Meanwhile, Grubhub failed to
the UK’s Competition and Markets react to the threat of disruption -
Authority for the deal’s “possible where the Dominators now have
effect on prices and quality”. But a stranglehold - and its purpose
Amazon’s interest underscores the and proposition have consequently
growing importance of tech-based suffered in the scoring.
takeaways. 16
www.foodbev.com/news/convenience-foods-serving-
consumer-demands-for-efficiency/
17
www.theguardian.com/business/2019/dec/27/amazon-
deliveroo-inquiry-regulator-london-food
18
www.theguardian.com/business/2020/jan/10/just-eat-
shareholders-approve-merger-takeawaycomFood for
thought
Whether the index leaves brands
cold or warm, it’s wise to note the
results are just current indicators.
Where will they be in a few years’ time?
The full version of our lens can provide
a greater understanding.
The index shows it’s not enough to know a rival is doing
‘well’ or ‘badly’. It’s the ‘why’ that matters. Because once
you’re aware of that, you can start to turn up the heat on
ingredients that will take the business from disruptable
to disruptive.Recipe for success: what brands
can learn from the index
Hopefully The Eating Index has given
you plenty of food for thought.
As disruption inevitably comes to the
sector, what can your brand do to
move up, not slide down, the scale?
Here are some things to consider,
correlating to three different stages
of organisational maturity.Start-ups and scale-ups
These are organisations Yet we’ve seen how unforgiving Reaching a sustainable size at the Meanwhile, don’t assume you
the market can be. Not all start- right speed and developing a cult know best. The industry is awash
at an early stage of ups make it: witness the demise culture, with the right people, will with brilliant minds, from young
their journey. They of Honest Burger Co - once cited help maintain the integrity of the innovators to experienced stars
as a scale-up standard bearer offer during scale-up; investment in who’ve been there and worn
have little historical - at the beginning of 202019. pocket, it’s all too easy for brands the apron. And if you still can’t
OP baggage
L E A NDandPR OP S
benefit to over-reach. Jamie’s Italian had a find a winning team, take a look
strong core business at the outset. at external experts who excel
from the ability to learn When a brand has only humble
financial backing, it’ll need to Once it got too big, culture and in brand proposition, marketing
from other brands. learn fast to achieve the optimal experience took a back seat and and communication strategy.
proposition. That said, taking it was diluted, with fatal effect.
time to reflect on how to truly Conversely, Franco Manca and Pizza Finally, always have one eye on the
differentiate the brand is crucial. Pilgrims have created a culture for future to stay relevant. Any brand
How will it be built to challenge the colleagues to coalesce around. that waits for this fast-moving
norm, to be different and better? sector to be disrupted and hopes
What’s the one story you want to ride on rivals’ coat tails will
Whatever area of dining a brand to tell, the hero narrative? It be left behind. Look at Grubhub
operates in, giving diners a great works in other sectors: witness and Zomato compared to our
experience is fundamental - and the IKEA ‘pilgrimage’ to its Dominators, Just Eat and Deliveroo.
that comes in many guises. Sweden HQ employees are Keep one eye on the customer,
It’s a chance to reimagine and desperate to visit20. A happy but the other on innovation.
redesign what best-in-class and team brings happy customers. Traditional thinking has created
fresh experiences look like. a messy kitchen for the industry;
disruption is the way forward.
19
www.thetimes.co.uk/article/reality-bites-a-second-time-for-handmade-burger-co-kglm57c8v
20
www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9643153/Journey-to-the-centre-of-the-Ikea-flatpack-planet.htmlEstablished brands
Just because a brand may enjoy high awareness
doesn’t mean that enough volume and profit will
follow to sustain it. In essence, this is the reason
chains like Ed’s Diner and Frankie & Benny’s
have had to shutter branches. They have a
broad proposition and have suffered from
the effects of trying to appeal to everyone.
This is where a market focus is It’s crucial to be open-minded to Of course, there’s always a balance
crucial. The age-old adage “put the new and better ways of operating. between having a brave new model
customer first” couldn’t be more apt. This means driving true change and maintaining elements customers
What do people actually want? and innovation that goes beyond a have always devoured. Don’t be
quarterly menu refresh to embrace afraid to revisit the fundamentals
Working to an existing - often the whole dining experience. that many brands drift from: serving
successful - formula might feel safe, hot food within acceptable times
but blocks the change necessary There is no harm in taking learnings and using attentive service, for
to remain relevant and embrace from innovation by the newer example. Domino’s, for instance,
bigger opportunities that emerge breed of digital native scale-ups. reconnected with consumer
from new technology, or a trend They are bringing convenience and appetites by getting back to basics:
propelled by other brands. personalisation to customers, and making great-tasting pizza21.
doing well because they know what
works. Competitors should use some
of those ingredients to grow, too.
21
www.inc.com/cynthia-than/dominos-admitted-their-pizza-tastes-like-cardboard-and-won-back-our-trust.htmlInvestors
Clarity’s approach uses a lens to The methodology is highly relevant
for funding rounds, using lean
For a business that is four to five
years into its journey, looking to
consider the role of brand for investment testing to prove objectively in accelerate growth and scale, is the
prospects or those that are already part each area and build index scores; brand well defined? Does it have
reducing risk and increasing the a clear articulation of its vision,
of the stable. It qualifies and advises prospect of delivering greater values and beliefs, and how those
on specific areas where disruption can returns in the process. are expressed to make scaling
effective? Can it prove it provides
best be anticipated or driven, and how For instance, when a business a consistent experience for
a customer-centric focus can deliver is at the earliest stage of its consumers and employees alike,
ongoing relevance to the market, development seeking seed funding, or has it already lost its way?
does it have a proposition that
with a value that reflects this. is future proofed to adapt to the These are just some of the
changing consumer trends around questions that should be asked -
it? How does it plan to develop its and answered.
digital ecosystem to make best
use of customer data, and offer
more relevant and personalised
experiences?A brand perspective
A scale-up view of
investment strategy -
Stephen Finch,
Founder and MD,
Vagabond Wines“A bottle of wine is an unusual “Angel investors liked the idea There are a whole range of investor
high-street product: you don’t know as it demonstrated a market types but the sophisticated ones
what it is until you’ve paid for it. inefficiency and a credible way to have due diligence frameworks,
It’s not an insignificant purchase, so solve it. You absolutely need to so you need a credible path to
it’s understandable that people stick identify those things, whatever your profitability and exit. The other
to what they already know or turn brand is in this area. I was able to key thing is that if you come
to promotions to make a choice. demonstrate the Vagabond concept up with something cool it can’t
was scalable and easily rolled easily be copied by others.
“It’s a needlessly inefficient process. out, and would be attractive to They need convincing there is a
So I thought, if you can allow subsequent buyers of the business. reasonable element of sustainable
people to sample the wine before competitive advantage and
making a purchase, they would be More recently we took on Imbiba your business won’t get easily
more adventurous and willing to investment. They chose us and we copied, let alone disrupted.
spend more. Ten years in, I am glad chose them. They have a great
to say that has been borne out. network of property contacts - Ultimately, in a commoditised
that’s how we grow. They’re also sector, you will have to stand out,
Back then, seeking start-up wet led specialists, so they are differentiate and find competitive
funding was such a different better positioned to provide useful advantage - and that invariably
time and it was difficult to raise advice on issues we encounter means having a strong brand.”
funds. Crowdfunding didn’t yet than more generalist backers.
exist and we had a massive
recession. I managed to get some
angel investment and a small
loan from one major bank.”
Stephen Finch
Founder and MD, Vagabond WinesBrand case study | Vagabond:
Defining a brand for successful expansion
Ensuring growth
doesn’t dilute
Vagabond’s
uniqueness An impressive
selection of over
100
unique wines by the glass
at an attainable priceClient challenge Moment of Clarity Activation Results
Vagabond was founded with Rapid expansion creates its During the brand immersion stage Early signs point to a brand set for
a vision to be the place where own set of challenges, with more of ‘The Lens’ process, we examined phenomenal success as each site
everyday consumers could enjoy venues, more people to train and the audience, their experience of launch has been more effective
an impressive selection of over more brand moments to bring life. the brand and the market context. than the last. We are in the process
100 unique wines, by the glass These insights were used to develop of defining opportunities for more
and at an attainable price. We needed to distil what it was an evolved brand framework and a refined targeting, lowering cost
that made Vagabond, Vagabond. set of guidelines to help the brand per acquisition and raising lifetime
Between 2014 and 2019 the brand Once we’d bottled this magic we live and breathe at each moment customer lifetime value and
experienced great success, its could ensure the brand could be of a guests journey. These included overall brand equity.
growth attracting venture capital scaled up effectively, maintaining a new on-site experience, digital
investment. Clarity’s task was to and enhancing those qualities eco-system and ‘branded moments’,
help supercharge the next stage that make the brand unique. such as the explainer – making the
of that invested growth. experience intuitive for those coming
to the brand for the first time.The Clarity Lens
Clarity’s Our process has been designed to
help brands transform with confidence.
navigation
We’ve helped clients work through disrupted
markets to a good place by guiding them
through the stages of navigation...
process
TROPSNART What trends are
affecting a category
and business, how
they’ll converge and
What does the state
of the market mean
to a brand, and how
should it position,
play out. differentiate and
communicate?
What these trends
mean to a brand’s
competitors.How we work
Our lens – the tool through which we glean
the vital insight that informs the most effective
articulation and delivery of your revitalised brand.
Experiential
Advertising
Team Engagement
MOMENT
OF CLARITY Digital Communications
Context and
Opportunity Clear Path Plan® Brand Development
Social Content
Branded Interiors
Film and Animation
Merchandising
IM M ERS IO N C R E ATIO N AC TIVATIO N
Seeing how your Defining how the world Bringing your brand
brand fits into the will see your brand. possibilities to life.
bigger picture.Recipe for success.
The facts.
35 food tech unicorns
founded in 2020 worth
£143bn
£23.4bn Eating out market 10.1bn
by 2024 investment
£30m
in start ups
in 2019
NEW
Valuation of
AllPlants
h
o
t
on
fire
The rise of
Cool The Smart
Diet
Biometric informed
nutrition plans
11,000 1%
Hello Fresh’s
100m
share of the UK Investment
Job losses in 2019 grocery market in GoustoLike to learn more? Download this report at: http://wecreateclarity.com/eatingreport Contact henrietta@wecreateclarity.co.uk to discuss your brand. Or visit Clarity at Aspen Farm, Woburn, Bedfordshire. © Clarity 2019. All rights reserved.
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