Abstract
Why buy this report
- 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
On a slow upswing
In 2005, consumer foodservice made one step on the long road to establishing
its position in Poland. The growth in the number of outlets and transactions,
though consumer foodservice sales were static in constant value terms,
demonstrates that the market is on a slow upswing. Changes to eating habits
caused by longer working hours and more hectic lifestyles stimulated demand
for foodservice. Polish consumers have less time for cooking; they are more
health conscious, and have higher aspirations. These factors translate into
more interest in full-service restaurants, and in particular casual dining
formats. Polish consumers travel more, and following Westernised lifestyles,
which reinforces the popularity of specialist coffee shops. Fast food outlets
remain popular as young consumers show less concern for health issues.
Chained units in the minority
Chained units represent a small percentage of the consumer foodservice market.
Independent players compete mainly on a price basis. Independent players tend
to imitate the ideas of chains. For example, independent outlets such as
Pyramid followed the format of the domestic chain Sfinks Polska SA. Many
independent outlets concentrate on organising weddings and parties. Poles
rarely go outside the home to celebrate, but it is common to hold big
ceremonies such as wedding outside.
Multinationals are the leading players
High brand recognition, large marketing budgets and large scale advertising
campaigns were major reasons for the leading position of multinational brands.
McDonald' s, KFC, Pizza Hut and TelePizza are the leading brands in Poland.
American Restaurants Sp zoo, which owns Pizza Hut, KFC and in Poland, joined
the Warsaw Stock Exchange in April 2005. With investors' money, American
Restaurants plans to transform Pizza Hut into a casual dining outlet.
McDonald' s is also moving closer to casual dining and away from fast food; in
2005 McDonald' s started to offer breakfasts in 15 outlets in Warsaw. Over the
forecast period, the competition will strengthen, and new players are
predicted to enter the market.
Casual dining gains popularity
Casual dining enjoyed fast growth in 2005 since consumers displayed more
appetite for a varied and healthy menu as well as a pleasant ambience and
efficient service. Casual dining attracts consumers who seek alternatives to
fast food, and aspire to eat in higher standard establishments. These
consumers do not wish to eat hurriedly. For 16-39-years-old Polish consumers
with at least average disposable incomes, casual dining is a compromise
between the lack of time for cooking and relatively low purchasing power. This
type of customer makes up the majority of polish consumers who eat out. For
this reason, casual dining will enjoy fast growth over the forecast period.
Casual dining will provide a strong competitive environment. It is easier for
smaller chains and single stores to compete with international chains in
casual dining, as food costs are more manageable and individual restaurants
can distinguish themselves by offering different types of food.
Specialist coffee shops are on the increase
Specialist coffee shops mushroomed across the length and breadth of the
country. However, the impressive growth in terms of the number of outlets is
not accompanied by the same growth in terms of profitability. The first wave
of development is probably complete. The rise in the number of specialist
coffee shops was largely due to the development of new shopping malls. Trade
representatives stress that the development of specialist coffee shops will
follow Western European patterns. The first Starbucks was founded in the
1970s, and it took time to establish a culture of specialist coffee shops in
Western Europe. The same process will develop faster in Poland, though Polish
consumers will also need time to become familiar with this format. Firstly,
the price of products should be more compatible with the purchasing power of
the Polish consumer.