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 saw slower growth in 2006
Consumer foodservice value sales were still growing positively in 2006, albeit
at a slower rate compared to 2005. However, outlet expansion and transactions
volume growth were both moving forward at almost the same pace in 2006 as they
had been in 2005. Most of the independence foodservice outlets were having a
difficult time compared to the chained establishments. Since independent
establishments account for the majority of consumer foodservice outlets in the
Philippines, the overall performance of the consumer foodservice market in
Philippines was therefore slower in 2006.
VAT increase one of the factors slowing down value growth
A VAT increase was one of the factors resulting in slower value growth in
consumer foodservice in 2006. Consumers in the Philippines were seen to reduce
their patronage frequencies to consumer foodservice outlets. Nevertheless, the
slowdown was kept in check by expansion in outlet numbers, especially by
chained players. This was due to the promotion of the advantages of the
franchise system and support for it by the Association of Filipino Franchisers
Inc (AFFI).
Local brands still dominated consumer foodservice in the Philippines
Jollibee Corp, with its Jollibee, Chowking, Greenwich, Délifrance and Red
Ribbon brands, held the biggest share in consumer foodservice in the
Philippines. It continued to lead sales in consumer foodservice by widening
the gap with the big multinational franchise brands, such as McDonald' s, KFC
and Pizza Hut, in the consumer foodservice market in the Philippines. The
Chowking and Jollibee brands were the major contributors to Jollibee growth in
2006. Chowking was Jollibee' s best-performing brand in terms of outlet
expansion during the review period.
Chain outlets expanding thanks to AFFI
With the strong promotion of and education about the benefits of the franchise
system by AFFI, chained franchised brands' consumer foodservice outlets were
increasing in presence and visibility across the Philippines in 2006. This
outlet expansion by the chained players was also impacting on location
preferences when setting up their outlets, which enabled retail and travel
locations to generate even more revenue compared to 2005. Since chained
outlets usually had access to more financial support they were able to lease
retail space in prime locations.
Positive forecast outlook will sustain similar growth to the review period
Constant value sales in consumer foodservice are expected to continue growing
positively due to the positive economic outlook in the Philippines. For
example, the performance will be boosted by the increasing number of
dual-income households, which will impact positively in terms of raising the
frequency of visits to consumer foodservice outlets. Additional menu items as
well as even trading up to more expensive foodservice outlets are also
predicted to fuel this positive growth. With this positive outlook, outlet
expansion and transaction volumes should also mirror the growth in the review
period.
View Cart
