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
Fast food leads value sales
In 2006, self-service cafeterias, primarily composed of "kilo" restaurants,
observed the highest unit/outlet growth, while fast food establishments
experienced the fastest value growth during the year, primarily driven by the
expansion of branded chains, in addition to the relatively recent entry and
positive performance demonstrated by Burger King. As expected, full-service
restaurants, demonstrated the least growth in unit/outlet terms in 2006, due
to the higher initial cost structure relative to alternative consumer
foodservice formats. 100% home delivery/takeaway exhibited the lowest growth
in terms of value sales and transactions, confirming the negative impact
caused by the increased delivery options offered by fast food and full-service
restaurants. Despite an overall rise in transactions in 2006, the number of
transactions per unit decreased, most likely caused by the increased
competition, particularly in larger urban areas.
Starbucks settles into Brazil
In November 2006, Starbucks finally established its presence in specialist
coffee shops in Brazil, by introducing two outlets in premium retail
locations. Increased competition, due to the widespread diversification
strategies employed by the major players, resulted in the entry of various
types of consumer foodservice outlets, such as kiosks, selling coffee.
Starbucks is likely to be challenged by these developments.
McDonald' s to invest in Brazil after the sale of its Latin American operations
Despite a declining value share of chained consumer foodservice between 2001
and 2005, and increased problems with its franchisees, McDonald' s improved its
share marginally in 2006, to continue as the leading brand throughout the
review period. McDonald' s conservative efforts to increase the number of its
units/outlets on account of the sales cannibalisation occurring in its
franchised operations, will likely change following the sale of the company' s
Latin American operations. This divestment is expected to provide the company
with renewed investment strength in Brazil.
Chained brands strongest in fast food
Chained operators continued to account for a small share of units/outlets and
value sales, compared to independent consumer foodservice in 2006. Chained
consumer foodservice is essentially driven by high-value international brands
in fast food, which continues to account for the highest number of chained
units/outlets in the country. Overall, chained consumer service registered
faster growth in terms of units/outlets, transactions, and value sales in 2006.
Chained operators to drive unit/outlet growth over the forecast period
Consumer foodservice is projected to continue to demonstrate positive results
over the forecast period. Chained consumer foodservice is also expected to
register the highest unit/outlet growth, driven by increased investment in
chained European, Pizza, and North American full-service restaurants.
Moreover, the growing number of chained street stalls/kiosks, which have
emerged as a result of the widespread diversification strategies in the
country, will significantly boost the performance of chained consumer
foodservice over the forecast period.
Chained fast food is also projected to demonstrate strong growth in terms of
units/outlets, due to the increased presence of "other" fast food, convenience
stores fast food, and Asian fast food. "Other" fast food units/outlets have
evolved over the years and many have attempted to copy the convenient and
full-meal services offered by competing "kilo" restaurants. Similarly,
convenience stores fast food outlets are located in only 10% of all
petrol/gas/service stations in Brazil, suggesting an enormous opportunity for
growth, while Asian fast food gastronomy is directly influenced by the
popularisation of Japanese and Chinese full service restaurants across the
country.
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