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
Another Year of Growth
Consumer foodservice was able to post significant growth again in 2006. This
was mostly a consequence of higher disposable income and higher employment
rates, which allowed Argentineans to go out more frequently. It also increased
the number of people having lunch outside of home, due their working
schedules. Tourism, with a record number of tourists, also served to boost
consumer goods sales, especially in the country' s interior.
Consumers Demand More Sophisticated Dishes
Consumers are becoming increasingly sophisticated and demand more
sophisticated dishes. For example they go more frequently to Asian
restaurants. Another indicator is the fact that consumers are ordering
desserts or wines more frequently than in previous years. The average
transaction value is higher.
High Prices for Rent and Salary Increases Inhibit Outlet Growth
The high prices of rent, as well as salary increases inhibited outlet growth,
as they both hurt profitability. This is because consumer foodservice
companies cannot raise prices at the same rate as costs and expenses increase
without losing a significant share of customers, especially during lunch.
Chains Gain Share at a Slow Pace
Chains is slowly gaining share at the expense of independents, as it is a more
profitable channel than independents due to economies of scale and therefore
can afford to expand. This higher profitability allows chains, such as Havanna
Café Solo Empanadas or Café Martínez to open new outlets and gain share. It
must be noted, however, that Argentineans still show a strong preference
towards independents, as they consider high-priced independents to be of
higher quality and more sophisticated than chained outlets.
Strong Growth Anticipated
As a consequence of a projected booming economy with high levels of employment
and increases in disposable income, consumer foodservice sales are expected to
perform very well during 2006-2011. Tourism is also estimated to play a key
role, as companies working in tourism planned investments for the forecast
period, which is predicted to improve the infrastructure of tourism and
contribute to increased consumer foodservice sales.
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