GIRA Foodservice - 2009 FOODSERVICE PORTUGAL

GIRA FOODSERVICE published in September 2009 its latest report about the Foodservice Market in Portugal. You can download the table of contents by clicking this links and the detailled proposition by clicking this links

Key Facts & Figures for the Foodservice Market Portugal 2009

A total turnover representing around 3,5% Portugal's GDP

An average expenditure of around € 550 per inhabitant per year

An average of 2,2 meals and snacks consumed per week out of home per inhabitant

Almost 16% of main meals are consumed out of home by Portuguese

Commercial foodservice dominates by far in terms of the number of foodservice outlets, of the volume of meals served and of sales

25-30% of the market in value and in volume is in the hands of foodservice groups which had a total combined turnover over € 1,5 billion ex tax in 2008

The 4 leading foodservice groups share almost 45% of the total turnover of all The foodservice market involved € 2-2,5 billion ex-tax of food purchases made up of two thirds by food products

Trends and Growth in the Foodservice Market in Portugal

2003-2008

Stagnation in volume with a slight increase

Growth in turnover mainly as a result of price increases
At the end of the five year period, the market had increased in value by almost € 600 million

The Social Foodservice Market decreases in volume

B & I: a market falling heavily mainly because of the drop in the number of people in employment
Education: a market on a decreasing trend mainly because of the fall in the birth rate
Healthcare: a market which stagnates mainly because of the fall of the average number of days spent in hospital
Welfare: a sector with good growth (+1,6% per year) with the inevitable ageing of the population and the greater need for care for elderly people
Other Sectors: a market falling in which political decisions have had the effect of reducing the number of people in the armed forces and in the prisons
A strong pressure on prices while aiming to have a high quality

The commercial foodservice market which is slightly increasing in its overall growth rate with different results per market segment:

Table service restaurants had a negative trend over the period
the five other commercial foodservice segments each had positive growth over the period: Self service restaurants, QSR, Hotels & Other Lodging, Transport and Leisure & Event catering
Some examples of the main factors behind the evolution of the commercial foodservice market in Portugal are as follows:

➢ from the second half of 2008 on, several negative factors: the financial and economic crisis, the rise in unemployment, the fall in purchasing power, the behaviour of saving money in time of uncertainty, the closure of less and less profitable foodservice establishments

➢ many consumers are turning more and more towards cheaper products (snacks)
➢ more and more focus on the midday meals than on the meals that are consumed out of home during the evening ("prato do dia" or "diaria") which should be quick and inexpensive
➢ increase for take-away (transport foodservice…), finger food, quality & healthy products…
➢ the increase in food and energy costs.

Key facts & figures are also given for all main foodservice operators in both the social and commercial foodservice sectors (respectively the contract catering companies and the restaurant & hotel chains, transport & other concession sites foodservice operators), for example:

The restaurant chain is a relatively fragmented market:

there are around 30 principal restaurant chains in Portugal and these share a total park of almost 760 outlets (around 25 outlets per chain on average)
5 chains have 50 outlets or more with a combined park of 440 outlets (around 88 outlets per chain)
the other main chain brands have around 12 outlets per chain on average

The chain market is characterised by the following main elements:

a growth market, but based more and more on selective growth, depending on the strength of the brand, its ability to evolve and its financial strength

the main areas of growth are from the QSR chains of all kinds, which continue to be the real motor behind the Portuguese chain restaurant market

restaurant chains have a dominant position in the fast-food segment whereas their impact remain relatively limited on both the table service restaurant and the "other snack based outlets" segments

certain degree of volatility in the market with the creation of new chain concepts set against the disappearance of other concepts.

In the framework of the crisis, GIRA FOODSERVICE gives also precise forecasts in volume of meals and recommandations split by segments up to 2010 and 2012… and explains why it should evolve on these trends…

Forecasts up to 2010 and 2012 are also given for the foodservice groups both in the social (contract catering companies) and commercial foodservice sectors (restaurant & hotel chains, transport & other concession sites foodservice operators) in details by segment…