Czech Republic Foodservice: The Future of Foodservice in Czech

Republic to 2019

FS0013MR August 2015

Sample Pages

Single User Price: US$3,200

Summary • With increased urbanization and lifestyle developments, the Czech consumers are increasingly changing their eating habits

and shifting towards healthier food options.

• The Restaurants will remain the dominant channel while the Retail and the Leisure will be the fastest growing channels.

• To compete with the local fast food joints, international fast food chains are introducing the concept of “smaller outlets”.

• Out of the seven Profit channels, the Restaurants remains the dominant channel in terms of sales in 2014, driven by

improving economic conditions and growing tourism market.

• Out of four Cost channels, Healthcare channel will fuel the growth of Cost Sector foodservice sales, driven by growing medical

tourism in the country.

Scope Czech Republic Foodservice: The Future of Foodservice in the Czech Republic to 2019 provides a detailed analysis of macro-

economic factors and the important trends within the market. The report offers detailed analysis of the market in terms of sales,

outlets and transactions. It also covers the major players in the market and regulatory scenario for the foodservice operators.

Get access to:

• Macro-economic analyses and trends: GDP per capita, consumer price index, unemployment rate and age profile, which

impact the foodservice market. Consumer, operator and technology level trends are also covered.

• Foodservice market attractiveness: details and insights into the development of the foodservice sector from 2009-2019.

• Sector analysis: provides in-depth data on the valuation and development of both the profit and the cost sectors, details on the

number of outlets, transactions, average price, foodservice sales, sales per outlet, and transactions per outlet across nearly

50 sub-channels

• An overview of key players, together with insights such as number of outlets, business description and product profiles.

• Regulatory scenario insights for foodservice operators in the Czech market

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This report provides a top-level overview and detailed market and channel insights into the operating environment for

foodservice companies. It is an essential tool for companies active across the Czech foodservice value chain, and for

new companies considering entering the market.

Macro Economic Analysis and Trends

To assess the impact of economic recession and recovery on foodservice market growth. It also identifies the major

trends at consumer, operator and technology level that will shape the foodservice market and will provide a clear

picture about the future opportunities that can be explored, resulting in revenue expansion.

Foodservice Market Attractiveness

To gain the confidence to make the correct business decisions based on a detailed analysis of the Czech Foodservice

market. The report also provides historic (2009-2014) and forecast (2014-2019) view, with a special focus on

foodservice sales, outlets and transactions.

Sector Analysis- Profit Sector and Cost Sector

To have a thorough fact based analysis with information about value of the foodservice market across the channels

and sub-channels in both the sectors and the underlying factors that are driving the channel sales.

Competitive Landscape

Overview of key foodservice companies in the Czech Republic with information about their business description,

product profile and number of outlets wherever available.

Reasons to buy this report

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Macro-economic analysis: Increasing private consumption will boost the GDP per capita

GDP Per Capita

Consumer Price Index

The Czech Republic’s GDP per capita (nominal) fell by

XX.X% annually in 2014 and it has been following a

downward trend since 2009 due to global recession, which

impacted the Czech’s export market. However, the GDP

per capita improved in 2011, registering a growth of XX.X%

during the year followed by XX.X% decline in 2012 due

to reduced domestic demand led by increased goods and

services tax. After a long recession, the GDP of Czech

Republic grew in the first quarter of 2015, at a rate of

XX.X% as compared to fourth quarter of 2014 due to

increasing private consumption driven by improvement in

the labor market and growth in the export market.

The consumer price index (CPI) was XX.X in 2014, up

XX.X% from the previous year. According to Czech

Statistical Office, the CPI increased by XX.X% in March

2015 on monthly basis and XX.X% on annual basis. In

annual comparison, the consumer prices were led by

growth in alcoholic beverages and tobacco prices. The

inflation rate was estimated at XX.X% in March 2015.

Source: Timetric

-20%

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2009 2010 2011 2012 2013 2014

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Emerging concept of small outlets

McDonald’s Czech Republic introduced in 2013 the concept of

small outlets, having no seating areas, to compete with local fast

food joints, such as Bageterie Boulevard and sausage stands at

Wenceslas Square. As compared to the classic restaurants, the

small McDonald’s restaurants offer limited menus such as popular

sandwiches, fries and desserts; and have fast service targeting at

consumers who are short of time and want to take away products to

be consumed in the bus, train or at home. Moving with the trend,

another fast food operator, Subway, plans to open self-service

smaller outlets “Satellite Kiosks” to be set-up at busy locations in

the country .

Ongoing trend of “Lunch specials”

Majority of the Czech employees get meal vouchers as job benefit,

which they can spend at foodservice outlets for lunch. Most of the

full-service restaurants and some pubs also offer “lunch specials”

(special lunch menu at lower cost) that target these meal voucher

holders. Though this has supported the foodservice market during

the economic slowdown but it has contributed to increased habit of

eating out among the Czechs and they have stopped carrying

home-made lunch to workplace. Even some high-end restaurants

such as Aromi and La Finestra also offer lunch specials at

economical prices.

Operator Trends: Emerging concept of small outlets targeting on-the-go consumers

Grand Cru restaurant at Prague offers weekly

lunch specials -three and -two course meals

To cater to on-the-go consumers in shopping

centers, bus and train stations, fast food

operators are opening small type restaurants

with limited menu and fast service

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The Czech Foodservice sales grew marginally at a CAGR of XX.X% during 2009-2014 and valued at CZKXX.X billion

(US$XX.X billion) in 2014. Driven by improving economic conditions, the industry is forecast to grow at a CAGR of

XX.X% during 2014-2019. Number of annual food festivals such as Food Parade (September), Vegefest,(September),

Carp Harvest Festival (October) and Coffee Festival (November) will support the foodservice industry. Furthermore,

meal vouchers, which are given to majority of the employees as a job benefit, will continue driving the foodservice

market.

The Profit sector accounted for the major share at XX.X% of the total Foodservice sales in 2014 and the Cost Sector

accounted for the remaining XX.X% share in 2014.

Foodservice: Improving economic conditions will drive the foodservice sales

Czech Foodservice: Overall Sales (CZK

Million) & Annual Growth (%), 2009–2019

Czech Foodservice: Sales by Sector (%),

2014 vs. 2019

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Profit

Cost

2014

2019

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The Restaurants is the dominant Foodservice channel, accounting for XX.X% of the total foodservice sales in

2014. Although Restaurants channel was adversely affected by the weak economic conditions in the past,

reviving economic activity coupled with growing tourism market will drive the channel sales during 2014-2019.

Welfare & Services will be fastest growing at a CAGR of XX.X% during 2014-2019.

The Restaurants will remain the dominant channel while Welfare & Services will be the fastest growing channel

Bubble size = 2014 Sales

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Sales in CZK Million CAGR (%) 2009-2014

Comparative growth analysis by channels, 2009-2014 vs. 2014-2019

Restaurants

Pub, club and bar

Accommodation

Education

Workplace

Healthcare

Travel

Leisure

Retail

Welfare & services

Military & civil defense

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Profit sector sales by channels: Venue sub channel will drive the growth of Leisure foodservice sales

Accommodation- Sales (CZK) and sales growth (%)

Sales and Sales Growth by Channels, 2009–2019 (in CZK)

Leisure- Sales (CZK) and sales growth (%)

The Accommodation Foodservice sales is

forecast to increase at a CAGR of XX.X% during

2014-2019. The Hotel & Motel is the largest sub

channel at CZKXX.X million (US$XX.X million)

sales in 2014 and is forecast to grow at a CAGR

of XX.X% during 2014-2019. The Bed &

Breakfast will be the fastest growing sub

channel, forecast to grow at a CAGR of XX.X%

during 2014-2019.

The Leisure Foodservice sales is forecast to

grow at a CAGR of XX.X% during 2014-2019.

The Venue is the largest as well as the fastest

growing sub channel at CZKXX.X million

(US$XX.X million) sales in 2014 and forecast to

grow at a CAGR of XX.X% during 2014-2019.

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Hotel & Motel Guest House Hostel

Bed & Breakfast Holiday Park % Annual Growth

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Venue Visitor Attraction Entertainment % Annual Growth

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Cost Sector outlets by channels: Secondary School sub-channel will drive the growth of Education outlets

Education - Outlets and Sales per Outlet by Channel (CZK)

Outlets and Sales per Outlet by Channel (in CZK)

The number of outlets for the Education channel

is forecast to grow at a CAGR of XX.X% during

2014-2019 while the sales per outlet for the

channel is forecast to grow at a CAGR of XX.X%

during the same period. The children’s Activity

Center sub channel will register highest growth

in terms of sales per outlet at a CAGR of XX.X%

during 2014-2019 while the number of

Secondary School outlets will be fastest growing

at a CAGR of XX.X% during the same period.

Healthcare – Outlets and Sales per Outlet by Channel (CZK)

The number of outlets for the Healthcare channel

is forecast to grow at a CAGR of XX.X% during

2014-2019 while the sales per outlet for the

channel is forecast to grow at a CAGR of XX.X%

during the same period. The Hospital sub

channel will register highest growth in terms of

sales per outlet at a CAGR of XX.X% during

2014-2019 while the number of Residential Care

outlets will be fastest growing at a CAGR of

XX.X% during 2014-2019.

Bubble size = Number of Outlets 2014

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2014-2

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Sales per Outlet by Channel CAGR (%) 2014-2019

Primary School

Secondary School

Pre-School

Tertiary

Training Centre

Children's Activity Centre

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Sales per Outlet by Channel CAGR (%) 2014-2019

Residential Care

Medical Centre

Hospital

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Competitive Landscape – Key players

Leading Foodservice players in the Czech Republic

Company Name 2014 Number

of Outlets Overview Product Portfolio

Mc Donald’s XX McDonald's opened its first

restaurant in the Czech

Republic in 1992.

The product portfolio includes

sandwiches, twisters, salads,

fries, corn, mashed potatoes,

desserts and beverages

KFC XX

Fast food chain KFC is

owned by AmRest

Holdings in the Czech

Republic.

The product portfolio includes

chicken buckets, sandwiches,

chicken strips, wraps, salads,

fries, beverages and desserts.

Starbucks XX Starbucks in the Czech

Republic is owned by

AmRest Holdings.

The product portfolio includes

coffee, smoothies, teas,

pastries, sandwiches, salads,

muffins, pies, wraps, bagels

and yogurts.

Source: Company Websites & Secondary Research

Appendix - Profit Sector Outlets

Channel Sub-Channel 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Accommodation

Bed and Breakfasts

(B&B)

Guest Houses

Holiday Parks

Hostels

Hotels and Motels

Leisure

Entertainment

Venue

Visitor Attractions

Pubs, Clubs and

Bars

Pubs and Bars

Private Member and

Social Clubs

Nightclubs

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Market Data Methodology: Foodservice Market Data is created by the consistent application of robust research across all channels

Creating Robust, Consistent & Comparable Results through:

100% Standardized Definitions 100% Standardized Processes

Phasing work by channel by country Systematic Senior Management Review

1. Baselines Developed using Internal Research Resources

• Socio-economic and demographic databases

• Historic market databases and reports

• Company database and Foodservice database

2a. Industry Research:

Extensive Desk Research (Ongoing)

• Industry and trade research

• Reports published by international

organisations

• National statistics and other publically

available sources

• Expert Opinion: Collation of opinion

taken from journalist interviews of

leading industry figures

Top-down

cross-checks

Bottom-up

data creation

Data

Finalization

3. Marketing Modeling & Analyst

Triangulation

• Modeling of any gaps in data from

previous two research phases

• Consolidation and verification of inputs

for creation of models to benchmark

data across sectors and geographies

• Forecasting

• Triangulation and Conflict Resolution

• Review by Senior Project Managers

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Key Foodservice Definitions

Term Definition

Foodservice

Foodservice is defined as the cost of all food and drink, including on-trade drinks not

consumed with food, for immediate consumption on the premises or in designated eating

areas shared with other Foodservice operators, or in the case of takeaway transactions,

freshly prepared food for immediate consumption. Foodservice is restricted to the sale of

food and drink in specific Foodservice channels defined below and excludes vending

machines.

Profit Sector

A number of Foodservice channels have been grouped together to be termed the 'Profit

Sector’. These include Accommodation, Leisure, Restaurants, Retail, Travel, Workplace,

and Pubs, Clubs and Bars. Neither operators nor consumers, or companies in the case of

the Workplace channel, typically receive a subsidy for the Foodservice transaction, and

largely represent non-state Foodservice operations.

Cost Sector

A number of Foodservice channels have been grouped together to be termed the 'Cost

Sector'. These include Healthcare, Education, Military and Civil Defense, and Welfare and

Services. This sector typically represents the state’s Foodservice operations.

Food Transactions

The total number of visits by individuals to Foodservice locations that involve the

consumption of either food, or food and drink. Drink-only transactions are excluded from

transaction data, but covered in sales data; if several people visit one location at once and

there is only one bill, such as a group dining in a restaurant, the number of transactions is

counted as being one for each person in the group. The concept of ‘meals’ is broadly

analogous to transaction data, less a typically very small amount for snack-only

transactions.

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Related Reports

• Japanese Foodservice: The Future of Foodservice in Japan to 2019

• Spanish Foodservice: The Future of Foodservice in Spain to 2019

• French Foodservice: The Future of Foodservice in France to 2019

• German Foodservice: The Future of Foodservice in Germany to 2019

• Chinese Foodservice: The Future of Foodservice in China to 2019

• The UK Foodservice: The Future of Foodservice in the United Kingdom to 2019

• Italian Foodservice: The Future of Foodservice in Italy to 2019

• Turkish Foodservice: The Future of Foodservice in Turkey to 2019

• Austrian Foodservice: The Future of Foodservice in Austria to 2019

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Executive Summary

Macro Economic Analysis and Trends Macroeconomic Analysis

Consumer Trends

Operator Trends

Technology Trends

Foodservice Market Attractiveness Market Size and Forecasts

Market Share split by Profit Sector and Cost Sector

Profit Sector Analysis Profit Sector Analysis by Channels & Sub-channels- Sales Analysis, Outlet Analysis and Transaction Analysis • Accommodation - Bed & Breakfast, Guest House, Holiday Park, Hostel, Hotel & Motel

• Leisure – Entertainment, Venue, Visitor Attraction

• Pub, Club & Bar – Pub & Bar, Private Member & Social Club, Nightclub

• Restaurants - Full Service Restaurant, Quick Service Restaurant & Fast Food, Coffee & Tea Shop, Ice Cream Vendor

• Retail – Baker, Convenience Store, Delicatessen, Department Store, Garden Centre, Other Retail, Service Station Forecourt,

Supermarket & Hypermarket

• Travel – Air, Rail

• Workplace - Government Department & Local Authority, Industrial, Retail, Financial & Office Based

Cost Sector Analysis Cost Sector Analysis by Channels & Sub-channels- Sales Analysis, Outlet Analysis and Transaction Analysis • Education - Children’s Activity Centre, Further Education, Pre-School, Primary School, Secondary School, Tertiary, Training Centre

• Healthcare – Hospital, Medical Centre, Residential Care

• Military & Civil Defence - Military Overall, Police & Emergency Service

• Welfare & Service - Other Welfare & Service, Prison, Welfare Meal

Competitive Landscape Company Overview , Product Portfolio and Number of Outlets

Regulatory Scenario

Appendix

Table of Contents

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Appendix

Profit Sector Outlets

Cost Sector Outlets

Profit Sector Transactions (Million), 2009-2019

Cost Sector Transactions (Million), 2009-2019

Profit Sector Sales (CZK Million), 2009-2019

Cost Sector Sales (CZK Million), 2009-2019

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List of Figures

Figure 1: GDP per Capita, 2009-2014 Figure 2: Consumer Price Index, 2009-2014 Figure 3: Unemployment Rate, 2009-2014 Figure 4: Age Profile, 2014 Figure 5: Czech Republic Foodservice: Overall Sales (CZK Million) & Annual Growth (%), 2009-2019 Figure 6: Czech Republic Foodservice: Sales by Sector (%), 2014 vs. 2019 Figure 7: Comparative Growth Analysis by Channels, 2009-2014 vs 2014-2019 Figure 8: Profit Sector: Channel share (%), 2014 vs. 2019 Figure 9: Profit Sector: Average Transaction Price (CZK), 2009-2019 Figure 10: Profit Sector: Comparative Growth Analysis by Channels, 2009-2014 vs 2014-2019 Figure 11: Accommodation- Sales (CZK) and sales growth (%), 2009-2019 Figure 12: Leisure- Sales (CZK) and sales growth (%), 2009-2019 Figure 13: Pub, Club & Bar- Sales (CZK) and sales growth (%), 2009-2019 Figure 14: Restaurants - Sales (CZK) and sales growth (%), 2009-2019 Figure 15: Retail - Sales (CZK) and sales growth (%), 2009-2019 Figure 16: Travel - Sales (CZK) and sales growth (%), 2009-2019 Figure 17: Workplace - Sales (CZK) and sales growth (%), 2009-2019 Figure 18: Profit Sector: Comparative Growth Analysis by Channels, Sales per Outlet & Number of Outlets, 2009- 2014 vs 2014-2019 Figure 19: Accommodation - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 20: Leisure - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 21: Pub, Club, and Bar - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 22: Restaurants – Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 23: Retail – Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 24: Workplace - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 25: Profit Sector: Comparative Growth Analysis by Channels, Transactions per Outlet & Number of Transactions, 2009- 2014 vs 2014-2019

List of Figures

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List of Figures

Figure 26: Accommodation - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 27: Leisure - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 28: Pub, Club, and Bar - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 29: Restaurants - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 30: Retail - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 31: Workplace - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 32: Cost Sector: Channel share (%), 2014 vs. 2019 Figure 33: Cost Sector: Average Transaction Price (CZK), 2009-2019 Figure 34: Cost Sector: Comparative Growth Analysis by Channels, 2009-2014 vs 2014-2019 Figure 35: Education- Sales (CZK) and sales growth (%), 2009-2019 Figure 36: Healthcare- Sales (CZK) and sales growth (%), 2009-2019 Figure 37: Military & Civil Defense - Sales (CZK) and sales growth (%), 2009-2019 Figure 38: Welfare & Services - Sales (CZK) and sales growth (%), 2009-2019 Figure 39: Cost Sector: Comparative Growth Analysis by Channels, Sales per Outlet & Number of Outlets, 2009- 2014 vs 2014-2019 Figure 40: Education - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 41: Healthcare - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 42: Military & Civil Defense - Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 43: Welfare & Services – Outlets and Sales per Outlet by Channel (CZK), 2009-2019 Figure 44: Cost Sector: Comparative Growth Analysis by Channels, Transactions per Outlet & Number of Transactions, 2009- 2014 vs 2014-2019 Figure 45: Education- Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 46: Healthcare - Transactions and Transactions per Outlet by Channel, 2009-2019 Figure 47: Welfare & Services - Transactions and Transactions per Outlet by Channel, 2009-2019

List of Figures

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List of Tables

Table 1: Leading Foodservice players in Czech Republic, 2014 Table 2: Profit Sector Outlets, 2009-2014 Table 3: Cost Sector Outlets, 2009-2014 Table 4: Profit Sector Transactions (Million), 2009-2014 Table 5: Cost Sector Transactions (Million), 2009-2014 Table 6: Profit Sector Sales (CZK Million), 2009-2014 Table 7: Cost Sector Sales (CZK Million), 2009-2014 Table 8: Key Foodservice Definitions Table 9: Profit Sector Definitions Table 10: Cost Sector Definitions

List of Tables