ReportsnReports.com: Consumer Foodservice in Ukraine

Oct. 25, 2011 - PRLog -- Report Summary
Ukrainian CFS environment still experiences consequences of recession
Consumer foodservice in Ukraine posted slight growth in value sales in 2010. However, this was mainly related to unit price growth due to inflation and overall food price increases. The number of outlets, together with the number of transactions, declined. Generally, unprofitable and luxury full-service restaurants kept closing, being replaced by more moderately-priced foodservice establishments. The total number of outlets decreased slightly due to the on-going opening of chained fast food outlets and street stalls/kiosks, which appeal more to consumers in the post-crisis environment.

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Limited incomes make consumers choosy
Consumer behaviour in 2010 found a new trend in addition to the existing inclination to trade down. In 2009 Ukrainians reduced their propensity to go out, as well as their expenditure in bars and restaurants. Consumer foodservice players in turn tried to use all possible options to attract the remaining customers. The majority tried to keep prices as low as possible despite currency devaluation and strong inflation, at the expense of food quality or profit margin. Therefore, by 2010 consumers could already choose from affordable outlets offering better service and food quality.

Fast food keeps on flourishing
Fast food demonstrated the greatest resistance to the economic recession in the consumer foodservice environment. Over 2009-2010 the category saw even better dynamics than in the pre-crisis period. This was due to the influx of a certain proportion of consumers to fast food from full-service restaurants. With decreased incomes consumers of premium restaurants shifted to lower-price foodservice outlets from 2009. This trend became even more evident in 2010.

Chains steadily erode share of independents
Though the majority of consumer foodservice operators remained independent in 2010, their number declined. In contrast, chained outlets increased in number. Chained outlets also faced positive results in current value sales while independent foodservice establishments experienced a decline. Ukrainian chained operators are traditionally more active in fast food (Pizza Celentano, McDonald’s, Yaponakhata, Burger Club, etc) and street stalls/kiosks (Fornetti, Namynaiko, Chudo-Pich, Star Dogs). The majority of chained brands in 2010 were represented by owned as well as franchised outlets.

Consumer Foodservice is looking forward to Euro-2012
Even more than for economic recovery, consumer foodservice players anchor their hopes in the UEFA Euro 2012 football tournament to be held in Poland and Ukraine. It will be held in a few of the largest cities in Ukraine (Kyiv, Kharkiv, Donetsk, Lviv), and are expected to attract a lot of foreign among fans and tourists. Those in their turn will spend money in Ukraine consumer foodservice market. Although Ukrainian consumers will not be able to return to their pre-crisis eating-out habits, it is likely that foreign visitors will provide a positive contribution to the Ukrainian consumer foodservice environment. The most important consumers for full-service restaurants in 2010 were Russian businessmen. These likely to remain target customers over the forecast period. The main reason for this is the high spending power of Russian businessmen, who patronise the most expensive restaurants of Ukraine.

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