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Midland Metro - Operates between Birmingham and Wolverhamption.
Stagecoach Supertram - serves the city of Sheffield with three light rail routes covering 29 kilometres across the city.
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There are about 50,000 restaurants in the United Kingdom. Their turnover amounted to £18.2 billion in 2001. Almost two-thirds of businesses offer takeaway facilities.
The industry is highly fragmented, with low entry barriers. The majority of restaurants are independent small businesses, trading through a single outlet.
In 2002, 93% of VAT-registered firms had a turnover of less than £500,000 (with 43% having sales of under £100,000). Only 3% of VATregistered firms had a turnover of £1m or more. The three largest chains are estimated to account for less than 10% of the market; the leading 40 chains account for less than 15%.
The degree of concentration varies though:
• almost all ‘traditional’ cafes, snack bars and
tearooms are single-outlet businesses
• chains are more prominent in the ‘modern’ fast
food (especially burgers and pizzas) and midpriced
‘family’ restaurant sectors.
Competition takes place in local markets and is strong - major chains are expanding their operations and new entrants continue to be attracted to the market.
The number of VAT-registered restaurant and takeaway businesses has continued to rise over the last five years (at a higher rate than the total number of VAT-registered enterprises which, indeed, fell slightly in 2002) and problems of overcapacity exist in some areas.
Expansion of capacity has been greatest in the low to mid-priced segments of the market, most notably amongst fast food operators and ‘niche’ operators such as coffee bar chains. For example, one estimate suggests that the number of coffee bar outlets has increased by more than 55% over the last four years. Moreover, expansion has been most rapid amongst the leading five coffee bar operators which, collectively, have more than doubled their number of outlets since the end of the 1990s. The two largest coffee bar chains are estimated to account for about 45% of the market.
Expansion has been greatest in London and the south. However, with the capital, in particular, showing signs of market saturation, the leading chains are increasingly seeking to expand in other geographical areas.
The continued expansion in the number of restaurants and takeaways in recent years has been encouraged by a long-term trend towards consumers eating-out more frequently. At the same time, the increasing willingness of consumers to try a broader range of cuisine has encouraged the development of new eating-out concepts (with London remaining a ‘testing ground’ for many).
However, catering’s share of total consumers’ expenditure has declined over the last decade as eating-out has had to compete with other goods and services for a share of consumers’ leisure spending. In 2001, catering accounted for 7.8% of total real consumers’ expenditure compared with 8.1% in 2000 and 10% in 1990.
Certainly, over the last five years, spending on eating-out has risen less rapidly than total consumers’ expenditure, with demand for catering services being particularly weak in 2001. Having increased by 3% in real terms in 2000, spending on eating-out rose by only 0.5% in 2001. Within this trend, demand deteriorated during the course of the year, spending levels being 0.4% lower in the second half of 2001 than in the corresponding period of 2000.
The foot-and-mouth crisis played a role in the deterioration in the industry’s performance in 2001, impacting adversely on independent businesses operating in rural locations, as well as on those dependent on overseas visitors.
In addition to the adverse impact of the foot-and-mouth crisis, some catering businesses dependent on overseas visitors reported a further downturn in trade following the 11th September US terrorist attacks. For example, in October 2001, the Restaurant Association of Great Britain reported that some restaurants had suffered a 20% fall in business since 11th September.
Restaurants located in London have been most adversely affected by the fall in overseas visitor numbers (especially from the United States and Japan).
Real consumer spending on eating-out has shown signs of improving in 2002: in the second quarter of the year, spending levels were 1.2% higher than a year earlier - this compares with a year-on-year increase of only 0.1% in the first quarter of 2002.
Nevertheless, spending on eating-out continues to rise at a slower rate than total consumers’ expenditure: total real consumer spending rose by 3.5% in the first quarter of 2002 and by 4.1% in the second quarter of the year.
Given that the number of restaurants and takeaways has continued to rise but that consumer spending on eating-out has weakened over the last two years, competitive pressures have increased as problems of overcapacity have been exacerbated. In the light of recent trading conditions, some chains have been re-assessing their operations (e.g. concentrating on developing the most successful areas of their businesses, ‘refreshing’ brands and disposing of underperforming areas).
However, a number of chains are continuing to pursue aggressive expansion programmes.
Consequently, there is no prospect of an easing of competitive pressures in the foreseeable future.
There are about 60,000 public houses in the United Kingdom. Collectively, their turnover amounted to £19.1 billion in 2001.
In 2002, 93% of VAT-registered firms had a urnover of less than £500,000; only 2% had sales of £1 million or more.
The ownership structure of the pub trade has changed significantly over the last decade: the 1989 Beer Orders forced the national brewers to reduce the size of their tied estates, providing opportunities for the ‘free trade’ to more than double in size since that time. In particular, ‘newer’ large independent pub chains have been gaining market share at the expense of smaller ‘traditional’ freehouses.
In contrast, the number of brewery-owned pubs fell from about 44,000 in 1989 to just over 10,000 in 2001. However, the major brewers’ share of pub turnover has fallen less rapidly than their share of outlets since 1989: with a limit on the number of tied outlets which they may own, the major brewers have been developing estates of larger outlets.
Following a review of the 1989 Beer Orders, it was announced in December 2000 that the cap on the size of brewers’ tied estates was to be removed.
The removal of the cap could make it easier for the major brewers and larger regional brewers to expand their pubs portfolios. However, those not wishing to incur acquisition costs will still be able to secure outlets for their beer through supply agreements. Indeed, some brewing groups are seeking to dispose of - rather than acquire – pub outlets.
Alcoholic Drink Total Consumer Spending Total consumer spending on alcoholic drink has been weak for much of the last decade.
In 2001, the foot-and-mouth crisis exacerbated problems for some independent pubs in rural locations, as well as those dependent on overseas visitors. In addition, some businesses dependent on overseas visitors reported a downturn in trade following the 11th September US terrorist attacks.
Some improvement in trading conditions was seen in the first half of 2002 with sales being boosted by the World Cup and the Golden Jubilee. However, trading conditions have been mixed subsequently with, for example, poor weather being blamed for a weakening in demand in July.
Moreover, pubs continue to compete with other licensed premises, as well as the take-home trade, for a share of spending on drink. Consequently, many pub operators have been seeking to broaden their customer base by offering a wider range of services and facilities (e.g. placing greater emphasis on food sales, a move which has resulted in the pub trade increasing its share of the eatingout market). However, lower turnover pubs tend to trade through smaller outlets, the physical constraints of which limit their ability to develop new income sources.
Against this background, both brewers and independent pub operators continue to review their estate portfolios. At the same time, industry consolidation is increasing with, in particular, merger and acquisition activity amongst independent pub chains having risen over the last year. The ten largest operators are now estimated to own over 45% of UK pub outlets.
Little improvement in trading conditions is expected in the short term, with total alcohol consumption expected, at best, to rise only modestly over the next twelve months. Pubs will continue to vie with other licensed premises, as well as the take-home trade, in a fiercely competitive market.
Opportunities for some pubs to gain business from nightclubs may arise in the medium term when proposed licensing reforms come into force. Large city centre/high street pubs would be most likely to take advantage of the opportunity to extend opening hours. However, only a very small proportion of pubs would be likely to open 24 hours.
Pubs which offer a wider range of products and services will generally fare better than purely drink-oriented pubs. This trend is unfavourable to small, lower turnover outlets which will remain most at risk of disposal or closure as estate portfolios continue to be reviewed. Given the benefits that can be gained through economies of scale, further industry consolidation is expected.
The Romans founded the city of Londinium in the first century on the banks of the river Thames. They went about their business, building roads and aqueducts, as you would expect. Parts of these roads are still visible today. Amazing.
In 1066 the Normans (Frenchmen) invaded England and London seemed like a good choice as the capital city. Apparently this was the last time the British lost a battle on home soil......don't mess with these guys. By the year 1600 London was home to 200,000 inhabitants and things were going along swimmingly.
This all changed in 1665 with the arrival of the bubonic plague (Black Death), carried by rats, which wiped out half of the population. The next year (1666) marked the Great Fire of London. This had the effect of dealing the death blow to the remnants of the plague, while destroying most of London at the same time. Talk about consecutive action-packed years. The modern city is based upon the subsequent rebuilding of the city.
London expanded all the while. This was facilitated particularly by the opening of over ground and underground railway systems. The first underground line was opened in 1863 and used steam engines to ferry passengers around. Think about that the next time you're on the tube.
World War II bombing and commercial expansion have changed the face of London. Recently the Docklands area has been rejuvenated and the Millennium Dome (the largest of its type in the world) has been added to Greenwich.
London, an amazing city where the old lives alongside the new.
There are a few obvious things to take care of before you head off to the UK, like buying an air ticket and sorting out your visa. There are a few other factors to consider too that will take care of any hitches that you may experience on your travels.
Travel insurance
Don't take a chance with your health. Foreign doctors bills can be massive when converted into home currency. Also, it is much easier to communicate with medical staff in a non-English speaking country in the foreign backwaters when you flash your medical insurance card.
International drivers licence
You may want to demonstrate your driving prowess on the narrow lanes of the English countryside. You will not hire a car without your international driver's licence. A short visit to your local AA branch with a few passport photos, your licence and an administration fee will get you sorted out. Money well spent.
Car Insurance
You may wish to purchase a runabout while in the UK. The decision on whether you opt for car insurance or not in the UK is made for you. Car insurance is compulsory. Your car insurance should be subjected to a discount if you have a reference letter from your local insurers. This should be on a letterhead and state that you have paid your premiums and what your no claims bonus is.
Photocopy vital documents
Losing your passport in the UK is not a pleasant experience, especially as its loss would typically dawn upon you 2 weeks before you are due to jet off to the holiday destination of your dreams. There is, however, a worse experience and that is losing your passport and not having a photocopy of it. Make a copy of all important pages, including your visa. This will not only speed up the application process, but you may need the photocopy of your UK visa to get back into the UK, if you don't have time to apply for a new one. In fact, photocopying all important documents (ID book, international driver's licence etc.) is highly recommended.
Travellers cheques
Carry most of your cash in travellers cheques. Remember to keep your receipt with the cheque numbers separate from your cheques and keep a list of these numbers in your diary. There are a number of ways of converting these cheques into cash. The best is to put them into the safe haven of a bank account. Alternately, you could visit a branch of your travellers cheque issuer in London and exchange them for cash. The third, and most expensive, option is to exchange them at a Bureau de Change. These places can sting you with commissions and non-favourable exchange rates. Stay away if possible.
International Student Identity Card (ISIC)
A number of discounts are available to these members (youth hostels, transport, cinemas etc.) The ISIC card is available from your student body or selected travel agents.
Passport photographs
Take a few of these with you. You will use them for everything from purchasing travelcards to applying for visas etc. One of those really handy items for the wallet. There are photo machines at most underground stations, but you can't beat having your own stock when it comes to cost and convenience.
For an epidemic which occupied acres of newsprint for several months, the lasting impact of the foot-and-mouth crisis on British tourism seems likely to be somewhat less than apocalyptic.
It was a point well made during the crisis that, while most public attention and sympathy focused on the farmers whose flocks were being culled, the greater impact on the economy was likely to be on the tourist trade.
Tourism is far more important than the foot-and-mouth afflicted parts of agriculture to the UK economy. Agricultural output is only around 2 per cent of the economy, and livestock farming just 0.5 per cent.
Hotels and restaurants alone account for more than this, about 3 per cent of the economy; but the overall importance of the tourist industry is far larger, with knock-on effects on retail and other services spending. The British Tourist Authority calculates that about 7 per cent of gross spending in the economy is done by tourists.
It was with the tourist trade in mind that dire predictions of gloom for the economy were made.
The Centre for Economic and Business Research, a small think-tank, created a splash by predicting that foot-and-mouth would cost the country Ј9bn, about 1 per cent of the UK's annual national income, with Ј6.4bn of this a result of the effect on the tourist trade. This was regarded by many as scaremongering and the overall figure was subsequently revised down to just over Ј6bn.
Fears that the UK was being seen as a disease-ridden hellhole became so bad that Gordon Brown, the chancellor, in New York in May to talk about the global struggle against HIV and other diseases, found time to stop off and plug the UK tourist industry.