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
The economic and political performance positively affected Israel' s CFS market in 2006
The economic growth that was shown in 2006 had a positive impact on the
performance of the consumer foodservice market. The economic improvement and
the stable political situation increased consumer disposable income as well as
demand for foodservice products, as consumers felt confident from a personal
safety point of view, and able from an economical point of view, to go out and
spend their leisure time in foodservice outlets. Overall, several consumer
foodservice outlets such as cafés/bars, FSR, fast food channels and
convenience stores were positively affected by this economic and political
development.
Growing demand for healthy food products moves consumer foodservice channels to alter menus
The growing health awareness in Israel during the last year of the review
period moved many consumer foodservice channels to change their menus and to
offer several healthy meal options. The ongoing trend in Israel is toward
consumption of healthy products such as low calorie/low fat products, organic
or vegetarian food, and whole meal products. According to a survey that was
conducted by Globes in 2006, more than 60% of Israelis consume low calorie or
diet products on a regular basis. As a result, consumer foodservice channels
such as Spagetim Ltd, Lechem Erez Ltd, Aroma Espresso Bars Ltd, or even
McDonald' s and Burger Ranch started to introduce healthy food products such as
Easy Royal from McDonalds, Chef Range from Burger Ranch, healthy salads and
whole meal bread from Aroma Espresso Bar Ltd, Lechem Erez and other companies.
Chained outlets are gaining ground
Israeli consumers showed growing interest in chained consumer foodservice
channels in 2006. The main reason for this growing popularity is related to
the unique services and products offered by these chained channels. Chained
channels are based on the success of one model and replicating it in other
locations and cities. Chained outlets offer consumers several advantages such
as modern design, a large variety of products, unique products that are
produced locally such as bread and other bakery products in the case of Lechem
Erez.
This development was reflected in the dynamic performance of almost all
chained formats, with chained specialist coffee shops and convenience stores
fast food, being the two areas where the biggest increase in sales took place.
Several specialist coffee shops such as Aroma, Arcafe and Joe Café recognised
the strong demand for franchised branches and intensively opened new outlets.
In addition, energy companies realised that great revenue can be achieved
through developing retail spaces in the premises of their petrol/gas/service
stations, and this gave a boost to the number of convenience stores.
Strong competition in the consumer foodservice market
The consumer foodservice market is characterised by strong competition, given
that apart from the chained outlets, the market is dominated by vast numbers
of independent players. Consumer foodservice is also regarded as one of the
most risky markets in Israel, due to the high number of businesses closing
down. In particular, the growing popularity of chained specialist coffee shops
that was reflected in the increase in the number of outlets, negatively
affected independent specialist coffee shops as chained channels, such as
Aroma Espresso Bar Ltd, were promoted intensively in different media channels;
something that increased consumer familiarity with the brand. This development
caused many independent cafés in Israel to close down during the last few
years of the review period.
CFS is expected to show positive performance over the forecast period
The expected positive economic performance of the Israeli market and the
predicted continuation of political stability are expected to positively
affect the performance of consumer foodservice. The growing popularity of
chained outlets, mainly cafés/bars and fast food outlets means that they will
be the major contributors to growth over the forecast period. In addition, the
growing health awareness will lead many players to increase the variety of
products and services to meet the growing demand for healthy eating.
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