Consumer Foodservice in Romania

Published: November 2011
No. of Pages:
  

Report Summary

Consumer foodservice declines in 2010

Years 2009 and 2010 witnessed a poor performance of consumer foodservice, due to loss of purchasing power of the population but also to the rapid switch of Romanians from being the most optimistic Europeans in 2008 to the most pessimistic in 2010. Loss of confidence in a swift future recovery had a negative impact on consumption. Painful steps taken by the government to reduce the deficit including reduction of all salaries in the budgetary system by 25% and an increase in the VAT by five percentage points in 2010 also effectively reduced purchasing power to further weaken performance of consumer foodservice as a whole.

Poor performance driven by the economic recession

The economic recession was the main reason for the decline of consumer foodservice in 2010. Reduction of incomes came naturally as result of the austerity measures taken by the government in order to reduce the deficit, impacting on the incomes of employees in the public system as well as in private companies, both categories having to cope with higher taxes and a changing attitudes towards consumption resulting in more focus on saving and caution regarding the future. The effect of the recession on purchasing power resulted in a reduction in dining out and an increase in dining at home, with negative effects especially on price per transaction and number of outlets.

McDonald’s Romania dominates sales in 2010

Chained operators continued to account for a small proportion within total outlets in 2010 but they proved to be more successful despite the poor economic conditions. Multinationals accounted for the majority of chains but their presence remained limited to Bucharest and other larger cities with significant economic activity. In this context, McDonald’s Romania was the leading player in value terms, relying on nationwide presence and strong recognition. On the other hand, the reduction of incomes contributed to the good performance of Fornetti, which led in number of outlets and transactions due to its undisputable domination of street stalls/kiosks.

Negative performance for dominate independents

Consumer foodservice remained highly fragmented in 2010, with many small outlets operated by 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 retained also supremacy in Bucharest and large cities but their share registered a decline to the advantage of chains, which gained recognition through advertising, promotions, word of mouth and strong presence in the food courts of large retailers and shopping malls. Chained fast food and street stalls/kiosks were the most visible, but traditional full-service restaurants and cafés also moved rapidly to achieve strong exposure and important recognition from urban consumers.

Economic recovery will stimulate forecast period growth

Reduced purchasing power will be the main consequence of the economic downturn, with a growing number of Romanians losing confidence in the anti-crisis actions of the government. The effect of the crisis will be seen until the end of the forecast period, when Romanians hope to enjoy higher incomes that could drive bigger expenditure for leisure and tourism. Less affected by the crisis, the population in Bucharest and large cities will continue to change their lifestyle towards the increasing acceptance of concepts such as 100% home delivery/takeaway, specialist coffee shops and foreign cuisine full-service restaurants but will continue to rely heavily on fast food, launched and developed by multinationals and chained operators.

Consumer Foodservice in Romania

Table of Contents

Consumer Foodservice in Romania - Industry Overview

EXECUTIVE SUMMARY
Consumer foodservice declines in 2010
Poor performance driven by the economic recession
McDonald’s Romania dominates sales in 2010
Negative performance for dominate independents
Economic recovery will stimulate forecast period growth

KEY TRENDS AND DEVELOPMENTS
Recession affects purchasing power of the population
Diminished tourism and travel affects consumer foodservice
Tandem food courts – large retailers continue to expand
Franchising is the main expansion tool for chains
Bans on smoking in public places impacts consumer foodservice
Foodservice in rural areas has potential

OPERATING ENVIRONMENT

MARKET DATA

Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2005-2010

Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2005-2010

Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2010

Table 4 Consumer Foodservice by Eat in Vs Takeaway 2010

Table 5 Consumer Foodservice by Food Vs Drinks Split 2010

Table 6 Sales in Consumer Foodservice by Location 2005-2010

Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2010

Table 8 Chained Consumer Foodservice Company Shares 2006-2010

Table 9 Chained Consumer Foodservice Brand Shares 2007-2010

Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2010-2015

Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2010-2015

APPENDIX

Table 12 Consumer Expenditure on Consumer Foodservice 2003-2008

Table 13 Companies in Service to Population –Restaurants, Bars, Canteens, Others 2003-2008

DEFINITIONS

Summary 1 Research Sources

Consumer Foodservice in Romania - Company Profiles
Fornetti Romania SRL in Consumer Foodservice (Romania)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

SUPPLIERS

COMPETITIVE POSITIONING
Summary 4 Fornetti Romania SRL: Competitive Position 2010

Gregory's Romania SA in Consumer Foodservice (Romania)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
COMPETITIVE POSITIONING

Summary 7 Gregory’s Romania SA: Competitive Position 2010

Snack Attack SRL in Consumer Foodservice (Romania)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

SUPPLIERS

COMPETITIVE POSITIONING
Summary 10 Snack Attack SRL: Competitive Position 2010

Trotter Prim SRL in Consumer Foodservice (Romania)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

SUPPLIERS

COMPETITIVE POSITIONING
Summary 13 Trotter prim SRL: Competitive Position 2010

Trotter Restaurant SRL in Consumer Foodservice (Romania)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

SUPPLIERS

COMPETITIVE POSITIONING
Summary 16 Trotter Restaurant SRL: Competitive Position 2010

Turabo Grup SRL in Consumer Foodservice (Romania)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

SUPPLIERS

COMPETITIVE POSITIONING
Summary 19 Turabo Grup SRL: Competitive Position 2010

100% Home Delivery/Takeaway in Romania - Category Analysis

HEADLINES

TRENDS
Year 2010 continued to witness the negative effects of the financial crisis from 2009, which showed a deep recession. The austerity measures taken by the government at mid 2010 resulted in the reduction of available incomes, especially for the public and office employees who were the main consumers of 100% delivery food. The more intense economic life, and consequently higher available incomes, was characteristic mainly for Bucharest and a few large cities, which limited the development of 100% home delivery/takeaway to these areas. However, the reduction of economic activity had consequences on incomes and busy working hours of office employees, who prefer to leave the office during the lunch breaks and frequent mainly self-service cafeterias or fast foods.

COMPETITIVE LANDSCAPE
The most active player Jerry’s Pizza was the best performer in 2010, operating the same number of outlets as Four Star Pizza but benefiting from better word of mouth and customer loyalty. Its strategy consists of the establishment of outlets in the most developed areas of Bucharest. These are operated by three distinct companies: Jerry’s Pizza Est, Jerry’s Pizza Nord and Jerry’s Pizza Vest, coming closer to the customers with fast order processing and delivery.

PROSPECTS
100% home delivery/takeaway is forecast to record good growth rates over the forecast period. The first years 2011-2012 are not expected to show significant recovery because of the austerity programs imposed by the government in 2010, which mainly affects public employees and pensioners, but the estimated recovery can become a support for the dynamics of 100% home delivery/takeaway. Weekends will continue to show diminished activity for 100% home delivery/take away as people will return to home cooking due to adverse economic conditions. In these conditions, most of the companies involved in 100% home delivery/takeaway will have to close activity on Sunday and reduce opening hours on Saturday.

CATEGORY DATA

Table 14 100% Home Delivery/Takeaway by Category: Units/Outlets 2005-2010

Table 15 100% Home Delivery/Takeaway by Category: Number of Transactions 2005-2010

Table 16 100% Home Delivery/Takeaway by Category: Foodservice Value 2005-2010

Table 17 100% Home Delivery/Takeaway by Category: % Units/Outlets Growth 2005-2010

Table 18 100% Home Delivery/Takeaway by Category: % Transaction Growth 2005-2010

Table 19 100% Home Delivery/Takeaway by Category: % Foodservice Value Growth 2005-2010

Table 20 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2006-2010

Table 21 Brand Shares of Chained 100% Home Delivery/Takeaway 2007-2010

Table 22 Forecast Sales in 100% Home Delivery/Takeaway by Category: Units/Outlets 2010-2015

Table 23 Forecast Sales in 100% Home Delivery/Takeaway by Category: Number of Transactions 2010-2015

Table 24 Forecast Sales in 100% Home Delivery/Takeaway by Category: Foodservice Value 2010-2015

Table 25 Forecast Sales in 100% Home Delivery/Takeaway by Category: % Units/Outlets Growth 2010-2015

Table 26 Forecast Sales in 100% Home Delivery/Takeaway by Category: % Transaction Growth 2010-2015

Table 27 Forecast Sales in 100% Home Delivery/Takeaway by Category: % Foodservice Value Growth 2010-2015

Cafés/Bars in Romania - Category Analysis

HEADLINES

TRENDS
Cafés/bars was negatively impacted by recession again in 2010, after suffering from greatly reduced attendance in the previous year. This situation was mainly obvious in small cities and rural areas but also in large cities, where small bars retained interest only for consumption of alcoholic drinks whilst consumption of coffee remained in most of cases a completion to the drinks. Meanwhile, in Bucharest and other large cities, upscale cafés were increasingly frequented by young professionals, who consider that coffee is an important means for discussions and meeting friends and whose lifestyles were less affected by the crisis.

COMPETITIVE LANDSCAPE
Bet Arena Café can be considered as the indisputable leading brand in 2010, after the investment made in this new concept by Dinu Patriciu, considered by Forbes as the wealthiest Romanian. The fact that the chain was already operating 140 outlets at the end of 2010 made it the indisputable leader also for transactions and value sales although transactions and value sales per outlet remained under the figures of other chains.

PROSPECTS
The effect of the crisis and austerity measures taken in 2010 on Romanian purchasing power led to slower growth rates for cafés/bars over the review period as a whole. Now that Romania has come through the recession and is expected to witness economic growth starting in 2011, the constant value CAGR of cafés/bars over the forecast period is expected to be higher than the constant value CAGR of the review period, up by 8% compared to the -1% constant value CAGR registered for the review period. The main support should come from chained cafés/bars, supported by high-income young people, who were less affected by the crisis. Leisure will be the main attraction for Romanians when the effects of the economic recovery become noticeable, as Romanians learned during the crisis to be cautious about taking out loans and making high expenditures for the purchase of durable goods and dwellings.

CATEGORY DATA

Table 28 Cafés/Bars by Category: Units/Outlets 2005-2010

Table 29 Cafés/Bars by Category: Number of Transactions 2005-2010

Table 30 Cafés/Bars by Category: Foodservice Value 2005-2010

Table 31 Cafés/Bars by Category: % Units/Outlets Growth 2005-2010

Table 32 Cafés/Bars by Category: % Transaction Growth 2005-2010

Table 33 Cafés/Bars by Category: % Foodservice Value Growth 2005-2010

Table 34 Global Brand Owner Shares of Chained Cafés/Bars 2006-2010

Table 35 Brand Shares of Chained Cafés/Bars 2007-2010

Table 36 Forecast Sales in Cafés/Bars by Category: Units/Outlets 2010-2015

Table 37 Forecast Sales in Cafés/Bars by Category: Number of Transactions 2010-2015

Table 38 Forecast Sales in Cafés/Bars by Category: Foodservice Value 2010-2015

Table 39 Forecast Sales in Cafés/Bars by Category: % Units/Outlets Growth 2010-2015

Table 40 Forecast Sales in Cafés/Bars by Category: % Transaction Growth 2010-2015

Table 41 Forecast Sales in Cafés/Bars by Category: % Foodservice Value Growth 2010-2015

Consumer Foodservice by Location in Romania - Category Analysis

HEADLINES

TRENDS
Reduced purchasing power in 2010 due to the austerity measures and the negative effects of the economic crisis did not impact too strongly on the lifestyle and consumption habits of Romanians, but was noticeable in the dynamics of the outlets, transactions and foodservice value sales. Whilst the number of outlets and transactions registered only small declines as consumers could not entirely renounce eating out, value sales suffered more in constant terms as the same consumers had to adapt to the reduction of incomes and paid less per transaction. According to the new lifestyle dictated by the large retailers, Romanians in large cities remained dedicated to weekend shopping, thus creating a trend for switching from stand-alone outlets to retail outlets. The interest in tourism and leisure also remained significant during weekends.

COMPETITIVE LANDSCAPE
Independent outlets continued to retain the majority of sales in lodging and leisure whilst retail and travel relied on chains like McDonald’s, KFC, Burger King, Spring Time, expanding together with retail chains. Viva and Hei remained the most important in travel, pegged to OMV and PetromV and Rompetrol gas stations, respectively. Domestic chains active in full-service restaurants such as La Mama, City Grill, Pizzeria Bella Italia and Spring Time in fast food developed through stand-alone locations, the same as for City Café, Tempo Café and Turabo Café. Specialist coffee shops, dominated by Starbucks and Gloria Jean’s, have developed through retail. Turabo increased its location areas and entered also in retail whilst Tempo Café was linked to the expansion of Spring Time fast food in retail locations.

PROSPECTS
The recession can be considered as ended, according to the statements of the government, but the effects of the economic crisis will continue to impact purchasing power in 2011 and onwards. However, the urban population is expected to suffer more than the rural population, which continued to rely on a traditional lifestyle during the crisis but is expected to become busier in terms of shopping in the neighbour cities whilst tourism activity will remain limited due to lower incomes.. Weekends will be less active and the focus will remain on shopping and less on weekend tourism and leisure, which means that the city population will be in search of entertainment but at lower costs.

CATEGORY DATA

Table 42 Consumer Foodservice Sales by Location: Units/Outlets 2005-2010

Table 43 Consumer Foodservice Sales by Location: Number of Transactions 2005-2010

Table 44 Consumer Foodservice Sales by Location: Foodservice Value 2005-2010

Table 45 Consumer Foodservice Sales by Location: % Units/Outlets Growth 2005-2010

Table 46 Consumer Foodservice Sales by Location: % Transaction Growth 2005-2010

Table 47 Consumer Foodservice Sales by Location: % Foodservice Value Growth 2005-2010

Table 48 Consumer Foodservice Sales through Standalone: Units/Outlets 2005-2010

Table 49 Consumer Foodservice Sales through Standalone: Number of Transactions 2005-2010

Table 50 Consumer Foodservice Sales through Standalone: Foodservice Value 2005-2010

Table 51 Consumer Foodservice Sales through Standalone: % Units/Outlets Growth 2005-2010

Table 52 Consumer Foodservice Sales through Standalone: % Transaction Growth 2005-2010

Table 53 Consumer Foodservice Sales through Standalone: % Foodservice Value Growth 2005-2010

Table 54 Consumer Foodservice Sales through Leisure: Units/Outlets 2005-2010

Table 55 Consumer Foodservice Sales through Leisure: Number of Transactions 2005-2010

Table 56 Consumer Foodservice Sales through Leisure: Foodservice Value 2005-2010

Table 57 Consumer Foodservice Sales through Leisure: % Units/Outlets Growth 2005-2010

Table 58 Consumer Foodservice Sales through Leisure: % Transaction Growth 2005-2010

Table 59 Consumer Foodservice Sales through Leisure: % Foodservice Value Growth 2005-2010

Table 60 Consumer Foodservice Sales through Retail: Units/Outlets 2005-2010

Table 61 Consumer Foodservice Sales through Retail: Number of Transactions 2005-2010

Table 62 Consumer Foodservice Sales through Retail: Foodservice Value 2005-2010

Table 63 Consumer Foodservice Sales through Retail: % Units/Outlets Growth 2005-2010

Table 64 Consumer Foodservice Sales through Retail: % Transaction Growth 2005-2010

Table 65 Consumer Foodservice Sales through Retail: % Foodservice Value Growth 2005-2010

Table 66 Consumer Foodservice Sales through Lodging: Units/Outlets 2005-2010

Table 67 Consumer Foodservice Sales through Lodging: Number of Transactions 2005-2010

Table 68 Consumer Foodservice Sales through Lodging: Foodservice Value 2005-2010

Table 69 Consumer Foodservice Sales through Lodging: % Units/Outlets Growth 2005-2010

Table 70 Consumer Foodservice Sales through Lodging: % Transaction Growth 2005-2010

Table 71 Consumer Foodservice Sales through Lodging: % Foodservice Value Growth 2005-2010

Table 72 Consumer Foodservice Sales through Travel: Units/Outlets 2005-2010

Table 73 Consumer Foodservice Sales through Travel: Number of Transactions 2005-2010

Table 74 Consumer Foodservice Sales through Travel: Foodservice Value 2005-2010

Table 75 Consumer Foodservice Sales through Travel: % Units/Outlets Growth 2005-2010

Table 76 Consumer Foodservice Sales through Travel: % Transaction Growth 2005-2010

Table 77 Consumer Foodservice Sales through Travel: % Foodservice Value Growth 2005-2010

Table 78 Forecast Consumer Foodservice Sales by Location: Units/Outlets 2010-2015

Table 79 Forecast Consumer Foodservice Sales by Location: Number of Transactions 2010-2015

Table 80 Forecast Consumer Foodservice Sales by Location: Foodservice Value 2010-2015

Table 81 Forecast Consumer Foodservice Sales by Location: % Units/Outlets Growth 2010-2015

Table 82 Forecast Consumer Foodservice Sales by Location: % Transaction Growth 2010-2015

Table 83 Forecast Consumer Foodservice Sales by Location: % Foodservice Value Growth 2010-2015

Table 84 Forecast Consumer Foodservice Sales through Standalone: Units/Outlets 2010-2015

Table 85 Forecast Consumer Foodservice Sales through Standalone: Number of Transactions 2010-2015

Table 86 Forecast Consumer Foodservice Sales through Standalone: Foodservice Value 2010-2015

Table 87 Forecast Consumer Foodservice Sales through Standalone: % Units/Outlets Growth 2010-2015

Table 88 Forecast Consumer Foodservice Sales through Standalone: % Transaction Growth 2010-2015

Table 89 Forecast Consumer Foodservice Sales through Standalone: % Foodservice Value Growth 2010-2015

Table 90 Forecast Consumer Foodservice Sales through Leisure: Units/Outlets 2010-2015

Table 91 Forecast Consumer Foodservice Sales through Leisure: Number of Transactions 2010-2015

Table 92 Forecast Consumer Foodservice Sales through Leisure: Foodservice Value 2010-2015

Table 93 Forecast Consumer Foodservice Sales through Leisure: % Units/Outlets Growth 2010-2015

Table 94 Forecast Consumer Foodservice Sales through Leisure: % Transaction Growth 2010-2015

Table 95 Forecast Consumer Foodservice Sales through Leisure: % Foodservice Value Growth 2010-2015

Table 96 Forecast Consumer Foodservice Sales through Retail: Units/Outlets 2010-2015

Table 97 Forecast Consumer Foodservice Sales through Retail: Number of Transactions 2010-2015

Table 98 Forecast Consumer Foodservice Sales through Retail: Number of Transactions 2010-2015

Table 99 Forecast Consumer Foodservice Sales through Retail: Foodservice Value 2010-2015

Table 100 Forecast Consumer Foodservice Sales through Retail: % Units/Outlets Growth 2010-2015

Table 101 Forecast Consumer Foodservice Sales through Retail: % Transaction Growth 2010-2015

Table 102 Forecast Consumer Foodservice Sales through Retail: % Foodservice Value Growth 2010-2015

Table 103 Forecast Consumer Foodservice Sales through Lodging: Units/Outlets 2010-2015

Table 104 Forecast Consumer Foodservice Sales through Lodging: Number of Transactions 2010-2015

Table 105 Forecast Consumer Foodservice Sales through Lodging: Foodservice Value 2010-2015

Table 106 Forecast Consumer Foodservice Sales through Lodging: % Units/Outlets Growth 2010-2015

Table 107 Forecast Consumer Foodservice Sales through Lodging: % Transaction Growth 2010-2015

Table 108 Forecast Consumer Foodservice Sales through Lodging: % Foodservice Value Growth 2010-2015

Table 109 Forecast Consumer Foodservice Sales through Travel: Units/Outlets 2010-2015

Table 110 Forecast Consumer Foodservice Sales through Travel: Number of Transactions 2010-2015

Table 111 Forecast Consumer Foodservice Sales through Travel: Foodservice Value 2010-2015

Table 112 Forecast Consumer Foodservice Sales through Travel: % Units/Outlets Growth 2010-2015

Table 113 Forecast Consumer Foodservice Sales through Travel: % Transaction Growth 2010-2015

Table 114 Forecast Consumer Foodservice Sales through Travel: % Foodservice Value Growth 2010-2015

Fast Food in Romania - Category Analysis

HEADLINES

TRENDS
Fast food is seen as a beneficiary of the negative effects of the recession when compared to other consumer foodservice categories. In fact, one of the main effects of the recession in 2010 was the loss of purchasing power. On the other hand, the expansion of shopping malls and hypermarkets led to the change of Romanian purchasing habits and lifestyles. Shopping in modern retailing was transformed by Romanians into a leisure experience, with an important impact on the growth of foodservice activity, increasingly popular after the shopping was over. Despite the impact of the crisis on the economy, Romanians remained attached to doing weekend shopping in the large retailers, which represented an advantage for fast food chains that normally track the large retailers. It can be said that chains in fact have decided the evolution of fast food as they account for the larger share in terms of value sales and transactions when compared to the number of outlets.

COMPETITIVE LANDSCAPE
McDonald’s had the largest value share by far in fast food in 2010, with the company concentrating more on modernising its existing outlets than opening new outlets. In fact, year 2010 witnessed the opening of only three new outlets and has succeeded in being present in 21 cities across the country. In fact the expansion tracks mainly the opening of new shopping malls or hypermarkets galleries with food courts whilst the modernisation is focused on stand-alone locations.

PROSPECTS
The presence of large chains and changes in lifestyle are forecast to have the strongest impact on fast food. The busy life in Bucharest and other large cities with strong economic activity are expected to sustain the good growth of fast food over the forecast period. Independent outlets, which are predicted to comprise the majority, will be affected by the slow economic recovery and the diminished purchasing but the fact that they generally target lower-income consumers in the country will reduce the impact, although it will not encourage a significant opening of new outlets. Chains will be the winners of the crisis because they rely on strong brand recognition and Romanians with lower incomes will increase the frequency of patronising the chains at the expense of full-service restaurants due to the perception of fast food as providing cheaper leisure and entertainment after shopping or during weekends.

CATEGORY DATA

Table 115 Fast Food by Category: Units/Outlets 2005-2010

Table 116 Fast Food by Category: Number of Transactions 2005-2010

Table 117 Fast Food by Category: Foodservice Value 2005-2010

Table 118 Fast Food by Category: % Units/Outlets Growth 2005-2010

Table 119 Fast Food by Category: % Transaction Growth 2005-2010

Table 120 Fast Food by Category: % Foodservice Value Growth 2005-2010

Table 121 Sales of Bakery Products Fast Food by Type 2007-2010

Table 122 Global Brand Owner Shares of Chained Fast Food 2006-2010

Table 123 Brand Shares of Chained Fast Food 2007-2010

Table 124 Forecast Sales in Fast Food by Category: Units/Outlets 2010-2015

Table 125 Forecast Sales in Fast Food by Category: Number of Transactions 2010-2015

Table 126 Forecast Sales in Fast Food by Category: Foodservice Value 2010-2015

Table 127 Forecast Sales in Fast Food by Category: % Units/Outlets Growth 2010-2015

Table 128 Forecast Sales in Fast Food by Category: % Transaction Growth 2010-2015

Table 129 Forecast Sales in Fast Food by Category: % Foodservice Value Growth 2010-2015

Full-Service Restaurants in Romania - Category Analysis

HEADLINES

TRENDS
The performance of full-service restaurants in 2010 was strongly affected by the crisis and the austerity measures which had as main effects the reduction of purchasing power, with impact on the frequency of attendance at full-service restaurants. On the other hand, the strong improvement of purchasing power during the period 2006-2008 had an important impact on Romanians’ lifestyles as more money was available for leisure and dining out. Consequently, there was a noticeable trend towards increased sophistication of the outlets, especially as eating out also increasingly became an important part of daily business activity and full-service restaurants represented the destination sought by business people and professionals for a business lunch. In this situation, Bucharest and a few large cities drove the performance of full-service restaurants, benefiting from higher comparative incomes and concentrating almost totally the business tourism due to a more intense economic activity.

COMPETITIVE LANDSCAPE
Pizza Hut retained leadership of full-service restaurants in 2010 in value terms and ranked amongst the top three leaders also in terms of transactions and number of outlets. It accounted for an early presence and a strong development in large cities with good locations in downtown areas and shopping malls. It benefits from the perception of being an excellent place to eat out and entertain. Meanwhile, OMV Viva (Viva) and Hei, operated by OMV Romania Mineraloel and Rompetrol Holding, the largest domestic producers of gas and attached to the largest gas station chains Petrom and Rompetrol, outperformed by far the rest of the chains in terms of outlets and transactions. Organised as full-service restaurants, Viva and Hei restaurants benefit from a strong attendance for 24 hours due to increasing road travel and transportation.

PROSPECTS
Improved purchasing power during the booming period 2006-2008 supported changes in lifestyle, which will continue to show effects over the forecast period despite the adverse economic conditions. The recovery of the purchasing power is expected to leave more money in the pockets of Romanians, especially as the demand for dwellings and durable goods will continue to decrease. As a consequence, the surplus of cash will be directed to saving but also to leisure and tourism, with positive impact on full-service restaurants. This is projected to lead to higher expenditure per transaction and a growing number of sophisticated outlets. Additionally, full-service restaurants will continue to be preferred by tourists, domestic and foreign, both for leisure and for business.

CATEGORY DATA

Table 130 Full-Service Restaurants by Category: Units/Outlets 2005-2010

Table 131 Full-Service Restaurants by Category: Number of Transactions 2005-2010

Table 132 Full-Service Restaurants by Category: Foodservice Value 2005-2010

Table 133 Full-Service Restaurants by Category: % Units/Outlets Growth 2005-2010

Table 134 Full-Service Restaurants by Category: % Transaction Growth 2005-2010

Table 135 Full-Service Restaurants by Category: % Foodservice Value Growth 2005-2010

Table 136 Global Brand Owner Shares of Chained Full-Service Restaurants 2006-2010

Table 137 Brand Shares of Chained Full-Service Restaurants 2007-2010

Table 138 Forecast Sales in Full-Service Restaurants by Category: Units/Outlets 2010-2015

Table 139 Forecast Sales in Full-Service Restaurants by Category: Number of Transactions 2010-2015

Table 140 Forecast Sales in Full-Service Restaurants by Category: Foodservice Value 2010-2015

Table 141 Forecast Sales in Full-Service Restaurants by Category: % Units/Outlets Growth 2010-2015

Table 142 Forecast Sales in Full-Service Restaurants by Category: % Transaction Growth 2010-2015

Table 143 Forecast Sales in Full-Service Restaurants by Category: % Foodservice Value Growth 2010-2015

Self-Service Cafeterias in Romania - Category Analysis

HEADLINES

TRENDS
Though popular during communism, self-service cafeterias remained history for years. However, they have started to show a contribution in foodservice due to the activity that occurs during 2-3 months every year in crowded summer seaside resorts that are closed the rest of the year. The fact that this outlet type needs a minimal number of consumers to break even makes it operational in downtown and other office areas. The negative effects of the recession on available incomes and the search of cheaper cooked food, served rapidly, has contributed to the increasing success of self-service cafeterias in large cities as well as in the holiday resorts.

COMPETITIVE LANDSCAPE

IKEA was the leading brand in 2010. Launched in 2007, together with the IKEA store, it is located in an excellent place for entertainment after shopping. Its location in the affluent northern area of Bucharest, developed in the last years as an exclusive neighbourhood as well as a strong office area, has enabled the outlet to perform excellently also during the week, when it is patronised at lunch by office employees and in the evening by the lodgers of the area.

PROSPECTS
Seasonal activity will likely continue to be the most prominent face of self-service cafeterias and summer resorts are expected to continue almost totally representing this business. Meanwhile, fashionable outlets in the downtowns of Bucharest and large cities could lead to good performance of self-service cafeterias over the forecast period.

CATEGORY DATA

Table 144 Self-Service Cafeterias: Units/Outlets 2005-2010

Table 145 Self-Service Cafeterias: Number of Transactions 2005-2010

Table 146 Self-Service Cafeterias: Foodservice Value 2005-2010

Table 147 Self-Service Cafeterias: % Units/Outlets Growth 2005-2010

Table 148 Self-Service Cafeterias: % Transaction Growth 2005-2010

Table 149 Self-Service Cafeterias: % Foodservice Value Growth 2005-2010

Table 150 Global Brand Owner Shares of Chained Self-Service Cafeterias 2006-2010

Table 151 Brand Shares of Chained Self-Service Cafeterias 2007-2010

Table 152 Forecast Sales in Self-Service Cafeterias: Units/Outlets 2010-2015

Table 153 Forecast Sales in Self-Service Cafeterias: Number of Transactions 2010-2015

Table 154 Forecast Sales in Self-Service Cafeterias: Foodservice Value 2010-2015

Table 155 Forecast Sales in Self-Service Cafeterias: % Units/Outlets Growth 2010-2015

Table 156 Forecast Sales in Self-Service Cafeterias: % Transaction Growth 2010-2015

Table 157 Forecast Sales in Self-Service Cafeterias: % Foodservice Value Growth 2010-2015

Street Stalls/Kiosks in Romania - Category Analysis

HEADLINES

TRENDS
The still positive growth rates in 2010 for transactions and value sales of street stalls/kiosks at the national level was the result of the continuous preference of Romanians for pastries and pies sold fresh and eaten on the go or at home. The convenience of kiosks can be translated into their being highly available places to buy cheaper, fresh bakery products and this perception has not changed for decades. The popularity of kiosks remained practically unaltered in 2010, despite the negative effects of the economic crisis on the incomes of the majority of the population. The decline of the number of outlets was the consequence of the closure of such small businesses in small cities and the countryside.

COMPETITIVE LANDSCAPE
Fornetti was by far the indisputable leading brand in 2010. It was also the largest franchised business in Romania in terms of opened outlets. It continued its expansion by its own investment and by franchising. On the other hand, the main domestic chains, Gogoasa Infuriata, Gogoasa Yami, Auguri and Fitosica, developed first through their own investment which was followed by franchising the concept. Nevertheless, even with franchising, they ranked far behind Fornetti.

PROSPECTS
The negative effects of the recession are estimated to have positive impact on kiosks in 2011, after purchasing power registered a significant drop, and especially after the decision of the government to reduce the salaries for public employees by 25% and the pensions by 15%. In fact, for the low-incomes segments of the population, kiosks are perceived as providing good food at affordable prices and rapid service. The price for a complete meal can be considered lower than similar offerings in a fast food or full-service restaurant.

CATEGORY DATA

Table 158 Street Stalls/Kiosks: Units/Outlets 2005-2010

Table 159 Street Stalls/Kiosks: Number of Transactions 2005-2010

Table 160 Street Stalls/Kiosks: Foodservice Value 2005-2010

Table 161 Street Stalls/Kiosks: % Units/Outlets Growth 2005-2010

Table 162 Street Stalls/Kiosks: % Transaction Growth 2005-2010

Table 163 Street Stalls/Kiosks: % Foodservice Value Growth 2005-2010

Table 164 Global Brand Owner Shares of Chained Street Stalls/Kiosks 2006-2010

Table 165 Brand Shares of Chained Street Stalls/Kiosks 2007-2010

Table 166 Forecast Sales in Street Stalls/Kiosks: Units/Outlets 2010-2015

Table 167 Forecast Sales in Street Stalls/Kiosks: Number of Transactions 2010-2015

Table 168 Forecast Sales in Street Stalls/Kiosks: Foodservice Value 2010-2015

Table 169 Forecast Sales in Street Stalls/Kiosks: % Units/Outlets Growth 2010-2015

Table 170 Forecast Sales in Street Stalls/Kiosks: % Transaction Growth 2010-2015

Table 171 Forecast Sales in Street Stalls/Kiosks: % Foodservice Value Growth 2010-2015

Published By: Euromonitor International
Product Code: Euromonitor International4030


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  • Consumer Foodservice in Saudi Arabia

    Report SummaryStrong growth slows only slightly towards end of review periodConsumer foodservice saw strong sales growth in Saudi Arabia throughout the review period. Growth at the start of the revie...

  • Consumer Foodservice New Product Development: Maximising Traffic and Broadening Appeal

    In 2010, new product innovation in consumer foodservice centred around broadening consumer appeal and driving traffic across all dayparts. These two goals were pursued through improvements in both in-store and out-of-store technology; upgrades to the

  • Consumer Foodservice in Italy

    Report SummaryThis Euromonitor market report provides market trend and market growth analysis of the Consumer Foodservice by Location industry in Italy. With this market report, you’ll be able to explore in deta...

  • Consumer Foodservice in Argentina

    Report SummaryThis Euromonitor market report provides market trend and market growth analysis of the Consumer Foodservice by Location industry in Argentina. With this market report, you’ll be able to explore in ...

  • Consumer Foodservice in Austria

    Report SummaryEXECUTIVE SUMMARYStagnation of consumer foodserviceIn 2010, consumer foodservice experienced stagnation in both value and outlet terms whilst the numb...

  • Consumer Foodservice in Australia

    Report SummaryEXECUTIVE SUMMARYConsumers upgrade during economic slowdownAlthough performing far better than other economies around the world, the Australian econom...


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