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
Consumer foodservice industry continues to show dynamism
The consumer foodservice industry (CFS) is a dynamic part of the Mexican
economy. According to CANIRAC (the National Chamber for the Food and
Restaurant Industry) it represents 2% of GDP and 23% of tourism GDP.
Independent operators account for the largest share of value sales. This
industry is expected to register healthy growth over the forecast period.
Competition is extremely intense in the industry. Chains are battling to gain
shares, while independent establishments struggle during economic downturns.
Performance is dictated by regional preferences
CFS remains extremely competitive. Mexican cuisine is vast and varied in every
region of the country and is offered in many forms. The number of recipes and
flavours available make it difficult for consumer foodservice providers to
compete and establish loyalty among consumers in a highly fragmented industry
where independent outlets dominated in 2006. Regional preferences in food
encourage foodservice providers to customise menus to compete more effectively
in particular regions.
Foreign brands, major local companies and independent players struggle to capture the attention of consumers
International brands like McDonald' s, Starbucks, KFC and Burger King, are
facing increased competition from large players managing Casual Dining -
full-service restaurant brands like VIPs, Restaurante Sanborns and Toks.
Global brands are using their high brand recognition and financial resources
to increase their presence and to support aggressive marketing campaigns. In
contrast, large local players use a strategy based on long-standing brand
recognition, the optimisation of food distribution and affordable prices to
boost consumption. Franchising continues to be an attractive option to small
business entrepreneurs, many of whom are investing in chains like El Pollo
Feliz, Hawaiian Paradise, Tortas Locas Hipocampo, Las Gaoneras, and Arrachera
House.
A stable economy causes a decline in independent street stalls/kiosks
Value sales of street stalls/kiosks decreased in 2006. A stable economy allows
ordinary consumers to have access to more formal meals in restaurants, thus
causing a decrease in the number of transactions reported by street
stalls/kiosks. Although street stalls/kiosks grew in terms of the number of
units/outlets, the number of transactions declined. The average number of
customers per day at a typical street stall/kiosk decreased in 2006.
Development in small cities changes the competitive environment in CFS
Global and local chained brands are shifting their expansion strategies to
include small cities not previously served by large foodservice companies.
Eating patterns in small cities are different from large cities; as a result
consumer foodservice firms are customising their offerings to include local
flavours and regional dishes. This strategy is not only seen in full-service
restaurants, but also in fast food. Franchising and government-sponsored
programmes that support the activities of small foodservice businesses are
contributing to regional expansion.
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