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
Excellent Dynamics in 2006
Although growth was lower in 2006, consumer foodservice continued to see
excellent growth in value, number of outlets and number of transactions. This
was the result of several factors but particularly the improvement of
purchasing power and changes in consumption habits. Business and Leisure
tourism also showed an increasing contribution, also as a result of the
improvement of disposable incomes. Shopping malls and hypermarkets enjoyed the
appreciation of a place appropriate for relaxation and eating out with family
and friends as well as shopping.
Increasing Purchasing Power Sustained the Market Performance
The consumer income growth and busy lifestyles led to important changes in
lifestyle and consumption habits, especially in the capital and large cities.
The increased purchasing power sustained the high growth rates in value sales
and transactions seen over the review period, as consumers had more money to
spend per transaction. As a matter of fact, the improved purchasing power was
the main source for development of foodservice which was greatly influenced by
tourism, shopping and Leisure habits.
Chains Gained Share Although Fragmentation Remained High
Consumer foodservice remained highly fragmented in 2006, with many small
outlets operated within a family business. These small outlets were a familiar
presence in smaller cities and villages and consisted mainly of small
restaurants, bars and kiosks. The small outlets also retained supremacy in
Bucharest and large cities but the share registered a decline as chains grew
and gained recognition through advertising, promotions and word-of-mouth.
Chained fast food and kiosks were the most visible but traditional
full-service restaurants and cafés also made important steps towards the
creation of viable chains.
Expansion of Large Retailers Contributed to Recognition of Chain
Although chained operators continued to account for a small proportion within
total outlets in 2006, they proved to be very successful and represented an
important source of growth in terms of outlets, transactions and value sales.
Multinationals accounted for the majority of chains but their presence
remained limited to Bucharest and other larger cities with significant
economic activity. The development of modern retail channels such as
hypermarkets and shopping malls was carefully considered by multinationals and
domestic chains in their expansion plans and represented a main tool for
market penetration and recognition. Meanwhile, companies wishing to expand
were limited to the large cities as the lower incomes of consumers in
medium-sized and smaller cities were perceived as inadequate to support
investment in these areas by both large retailers and consumer food chains.
Franchising Will Have Substantial Contribution to Forecast Period Performance
The integration of Romania in the EU is likely to be a major contributor to
the growth of consumer foodservice during the forecast period, as consumer
purchasing power will rise. Higher incomes and busier lifestyles made
consumers in Bucharest and large cities more open to the penetration of new
concepts such as 100% home delivery/takeaway, specialist coffee shops and
foreign cuisine restaurants and these urban populations relied heavily on fast
food, launched and developed by multinationals and chained operators.
Consequently, the forecast period is expected to invite development through
franchising of consumer foodservice and chains in particular. Thus,
franchising will become the main tool for nationwide expansion of domestic
companies and multinationals.
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