CONSUMER FOODSERVICE IN 2017: KEY INSIGHTS

AND SYSTEM OVERVIEW

April 2017
 Industry Overview
 Global Value Growth
 Fastest Growing Formats
 Modern Foodservice Experience
 About Our Research
INDUSTRY OVERVIEW

Industry overview
INDUSTRY OVERVIEW

Forecast growth
INDUSTRY OVERVIEW

Top global players ranking by value in 2016

Top 10 Company Ranking Top 10 Brand Ranking
1. McDonald’s Corp 1. McDonald’s
2. Yum! Brands Inc 2. Starbucks
3. Restaurant Brands International Inc 3. KFC
4. Starbucks Corp 4. Burger King
5. Seven & I Holdings Co Ltd 5. Subway
6. Doctor’s Associates Inc 6. 7-Eleven
7. Dunkin’ Brands Group Inc 7. Pizza Hut
8. Domino’s Pizza Inc 8. Domino’s Pizza
9. Wendy’s Co, The 9. Wendy’s
10. DineEquity Inc 10. Taco Bell
 Industry Overview
 Global Value Growth
 Fastest Growing Formats
 Modern Foodservice Experience
 About Our Research
GLOBAL VALUE GROWTH

Steady global value growth expected

In 2016, total Global Consumer Foodservice by Value and Transactions
foodservice value sales 2006-2021
grew by 4.6% with 6.0
(Current vs Constant 2016 Prices)

similar growth expected

for 2017. Expected value
growth through the 5.0

forecast period remains

steady in current prices, 4.0

having long recovered

from the global financial 3.0
crisis when consumers
% y-o-y growth

opted to cut unnecessary

spending on services 2.0

such as dining out.

Even with the effects of 1.0

inflation removed,
transactions and value -
(at constant 2016 prices)
move consistently
forward through the -1.0

forecast period.

Value - Current Prices Value - Constant 2016 Prices Transactions

GLOBAL VALUE GROWTH

Emerging regions driving growth

This suggests the industry is stabilising, meaning consumers remain willing to spend on
foodservice when it is affordable, and more consumers are doing so. With the exception
of the US market, value growth is buoyed by emerging markets.
Over the next five years, consumers are expected to spend nearly twice as much on
foodservice in China as the US. The Chinese market will remain central to many
corporate global growth strategies.
Global Consumer Foodservice Value Sales 2016/2021 and CAGR 2016-2021 by
Region
1,600 4.0

1,400 3.5

% CAGR (constant 2016 prices)

1,200 3.0

1,000 2.5
USD billion

800 2.0

600 1.5

400 1.0

200 0.5

0 0.0
Asia Pacific North America Western Europe Latin America Middle East and Eastern Europe Australasia
Africa
2016 2021 % CAGR 2016-2021
 Industry Overview
 Global Value Growth
 Fastest Growing Formats
 Modern Foodservice Experience
 About Our Research
FASTEST GROWING FORMATS

Chicken fast food enjoys widespread appeal

 The strongest performing format in 2016 was chicken fast food, which grew 8% by value to
reach USD65.6 billion in total global sales. As a menu offering, chicken enjoys universal
appeal, and unlike more region-specific items such as pizza or burgers, chicken can be found
on menus in all world markets and is highly adaptable to local consumer preferences.
 While chicken is a familiar offering, demand for modern chicken fast food concepts is driven
by a set of increasingly influential players. KFC still dominates the global market, but has
consistently lost share to competitors such as Popeyes Famous Fried Chicken, a US-based
chain purchased by Restaurant Brands International in 2016. The acquisition is evidence of
the format’s potential, and RBI will hope to take the concept to new markets where the
demand is high.
Global Chicken Fast Food Rankings by Value 2016
2016 2015 % 2016 % Global 2016 Sales
Brand Name Company Name
Ranking Share Share (USD million)
1 KFC Yum! Brands Inc 39.1 35.4 23,193.0
2 Chick-fil-A CFA Properties Inc 10.7 11.9 7,803.1
Buffalo Wild
3 Buffalo Wild Wings Inc 5.6 5.5 3,622.5
Wings
Popeyes Famous Popeyes Louisiana
4 4.1 4.2 2,757.8
Fried Chicken Kitchen Inc
Ting Hsin International
5 Dicos 2.6 2.5 1,613.3
Group
FASTEST GROWING FORMATS

Specialist coffee shops growth remains strong

Specialist coffee shops was the Global Specialist Coffee Shops Value Sales by
second fastest growing format in Region 2011/2016
2016 by value. The specialist coffee
shop format continued to perform North America

well in all world regions, evidence

of the format’s increasingly Asia Pacific
universal appeal, but specialist
coffee shops have become
particularly attractive to consumers Western Europe

in emerging markets.
In Latin America and Asia Pacific Middle East and Africa
where the format grew fastest,
demand for specialist coffee shops
is driven by a consumer base with Latin America

greater access to disposable income

who can afford the relative luxury Australasia
of speciality beverages. The
category’s “third place” format
offers additional reprieve for Eastern Europe

consumers in emerging regions

who increasingly lead busier, more 0 5,000 10,000 15,000 20,000 25,000 30,000

urban lifestyles. USD million

2011 2016
 Industry Overview
 Global Value Growth
 Fastest Growing Formats
 Modern Foodservice Experience
 About Our Research
MODERN FOODSERVICE EXPERIENCE

Moving towards a more modern foodservice experience

In 2016, foodservice operators
looked to provide a service that
consumers increasingly need in
addition to the experience they Modern Foodservice Experience
prefer.
Emerging markets are maturing,
technology has forever changed the
consumer landscape, and consumers
are leading faster-paced, busier, and
often more urban lifestyles. Modern
consumption habits have generated
demand for more modern Convenience Accessibility
foodservice occasions.
Delivery, for example, caters to
convenience, and is a service element
more consumers want and can
afford, while digital technology has
provided a new avenue for
convenience by making processes Digital, Online In-Store Delivery
more seamless while increasing Mobile Ordering Technology
opportunities for brand engagement.
MODERN FOODSERVICE EXPERIENCE

Technology enhancing the in-store experience

Any technology that can be used to engage McDonald’s Self-service Kiosk, Hong Kong
consumers has become vital to the
modern foodservice experience that
consumers have come to expect, and this
includes a more modern in-store
experience as well.
Restaurants increasingly offer a more
modern in-store layout with features
modern consumers need such as frequent
charging stations and free Wi-Fi.
Other features enhance the experience by
increasing the level of convenience and
allowing for greater customisation. Self-
service kiosks (shown left), for example,
allow customers to skip queues and to
customise orders. Modern formats offer
digital menu boards and modern payment
terminals.
 Industry Overview
 Global Value Growth
 Fastest Growing Formats
 Modern Foodservice Experience
 About Our Research
ABOUT OUR RESEARCH

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Research expertise
Consumer Products

Alcoholic Drinks Nutrition Supply

Apparel Packaged Food Ingredients

Automotive Personal Accessories Packaging

Beauty and Personal Care Pet Care Economies
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Soft Drinks
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Consumer Health Economy, Finance and Trade
Tobacco
Eyewear Industrial
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Services Consumers
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ABOUT OUR RESEARCH

Our Consumer Foodservice geographic coverage

ABOUT OUR RESEARCH

Our Consumer Foodservice category coverage

ABOUT OUR RESEARCH

New product: Chained operator list

A new detailed list of chained players, large and small, for every market.
Provides a detailed list of chained operators across 54 researched markets.
Designed as a supplement to the extensive brand and company sales data within
Passport Consumer Foodservice.
A tool for building client lists, planning new acquisitions, finding up-and-coming
market players, and more.
ABOUT OUR RESEARCH

New concepts in Consumer Foodservice global content

Analysts in each market researched
the most interesting new concepts in
consumer foodservice in 2016.
Consumer preferences for “better
for you” dining occasions, localised
concepts and social responsibility.
Technology key to engaging
consumers and enhancing
convenience.
Accommodating formats cater to
modern consumer preferences and
emerging lifestyle demands.
CONTACT DETAILS
Michael Schaefer
Global Lead - Food and Beverage
michael.schaefer@euromonitor.com
Twitter: @mschaefer84

Elizabeth Friend
Strategy Analyst - Consumer Foodservice
elizabeth.friend@euromonitor.com
Twitter: @ElizabethF_EMI

Stephen Dutton
Consumer Foodservice Analyst
stephen.dutton@euromonitor.com
Twitter: @EMI_SDutton
CONTACT DETAILS
Read more consumer foodservice research on our blog or
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Blog: http://blog.euromonitor.com/category/consumer-
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