Abstract
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type;
Consumer foodservice by type and chained/independent
Executive summary
EXECUTIVE SUMMARY
CFS recorded positive growth for the first time in review period
In 2005, CFS recorded positive growth for the first time over the review
period. Increasing purchasing power with improved economic conditions, higher
rates of employment, a young population, and new investments in this market
were all behind the positive growth. The increased number of outlets combined
with greater transaction numbers resulted in higher sales. Availability of
quality food in popular places like areas concentrated with working places and
entertainment centres as well as diversity in the types of food and drinks
attracted consumers. Lower unit prices also increased consumption. Moreover,
the high rate of young consumers positively increased CFS sales, since they
were the main consumers of foodservice. The young population meant a high
number of students with more free time to eat away from home, particularly at
weekends and lunch time and CFS outlets became popular meeting places for
young people.
Chained foodservice outlets saw much higher growth than independents
Chained CFS companies saw higher growth than the independents as a result of
new entries like Duran sandwiches, Pizza House, and Kahve Dünyasi into the
chained CFS market in 2005. Most popular firms, such as Tatlici Tombak, Dome
Pico and Pizza House, started to offer franchises in 2004 and they continued
this giving a higher number of franchises in 2005. The economic environment
was conducive to investment in 2005 which increased the demand for franchise
ownership. Chains offer higher quality food and service because they have to
preserve their company reputations and standardise their production in order
to catch the same quality in every outlet. Since they also launch successful
promotions such as Hacioglu' s ' Peymacun' menu, which was a cheaper menu made
of a cheese version of a famous meat dish, and offer attractive menu options,
consumers tend towards chains.
Chained Pizza full-service restaurants recorded the highest growth
Pizza sales recorded the highest growth in the market in 2005. Pizza has
always been a popular food for consumers, however with increasing competition
in the sector over the review period, the pizza types offered diversified and
new pizza products were launched into the sector. Local chained pizza
companies, especially in the large cities other than Istanbul, started to
produce tasty pizzas like the ones of multinational chains. This led to an
increase in transactions. Therefore, the number of local pizza chains
increased. Some of them started to implement franchising systems. Even though
multinational firms were still dominant in chained pizza full-service
restaurants in 2005, locals recorded fast development.
Specialist Coffee Shop outlets and transactions grew tremendously
Specialist coffee shops, especially chained specialist coffee shops, gained
popularity in a short period of time. The year 2005 was their golden year when
new firms, such as Kahve Dunyasi, started to invest in this sector, and
existing firms considerably increased their sales. Special coffees were
unknown to most people until the 2000s which saw the entrance of Gloria Jeans
and Starbucks. Prior to the popularity of specialist coffee shops, instant
coffees were served in most standard cafés. When specialist coffee shops
opened their outlets on corners and popular places from 2000, consumers
converted to special and aromatic coffees. In 2005, far more people were
interested in these coffee shops and the number of permanent drinkers of these
coffee types increased. Chained specialist coffee shops promoted a relaxing
and comfortable environment in their outlets, where consumers were attracted
by the quality of their service.
CFS market to continue to benefit from positive economic environment
The CFS market is forecast to continue its recovery from the negative effects
of the economic crisis in the forecast period. The positive environment
created by close relations with the EU, declining inflation, positive growth
trends, increasing purchasing power and investments will all continue to
strengthen the Turkish economy.
CFS became more dynamic as a result of increasing consumer confidence in the
economy. Consumer CFS spending increased at the end of the review period and
CFS sales are set to increase further over the forecast period as the economy
recovers. While purchasing power entered a climbing trend in the middle of the
review period, people got used to spending more than they did in the years of
recession. This is expected to continue over the forecast period as purchasing
power is expected to continue to increase along with investment in the market.
The dominance of independent consumer foodservice will mean that the unit
prices in the market will drop over the forecast period, leading to negative
constant value growth. Independent foodservices companies will be pushed to
adopt more competitive pricing strategies in order to compete with the growing
number of chain companies.
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