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The UK moto services market is losing out on £11million a year in revenue because so many drivers believe they are too expensive. Millions of motorists prefer to drive past the stop-offs unless they need to use the toilet or fill up with petrol.
Up to 24% of drivers have not made a single stop at a motorway service area in the past three years, whilst only 42% of motorists buy food or drink when they do stop, and for many that is not a fry-up or full meal, but nothing more than a takeaway coffee. For these reasons it has been estimated that the size of the market will fall from £594million in 2005 to £479million a year by 2015 - at today's prices.
Moto services are led by fast food, with leading players including McDonald's, Burger King and Greggs. Cafés/bars are also highly significant, with leading players including Costa Coffee, JD Wetherspoon and Starbucks.
The leading chains across consumer foodservice have scrambled for travel locations over the last few years, with these locations offering high volumes of consumers and also consumers who are often hungry and therefore more willing to spend on consumer foodservice.
There was a particularly strong focus on roadside travel locations, due to the growing number of drivers on UK's roads. Starbucks for example formed an agreement with Welcome Break in February 2010 to open 29 new outlets at the latter's services by mid-2011.
In February 2011, West Cornwall Pasty in street stalls/kiosks meanwhile signed an exclusive partnership with Moto, planning to open at least 28 outlets at Moto over the coming years.
Ongoing economic concerns are expected to impact the UK moto services market most heavily through to 2016. This location is characterised by a higher share of independents, many of whom are likely to struggle to survive given a lengthy period of subdued sales over the coming years.
For more information on the UK moto services market, see the latest research: UK Moto Services Market
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