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Hungary - The Future of Foodservice to 2021

Hungary - The Future of Foodservice to 2021

Summary

European Commission expects Hungary’s real GDP growth to reach 3.5% in 2017 (up from 1.9% in 2016). This growth will be driven by government measures to raise the minimum wage, decrease employers’ social security contributions, and cut corporate income tax for companies. Hungary also boasts the third lowest unemployment rate in the EU, at 4.6% as of late 2016 (against a Euro area average of 9.8%).

Sales value in the Hungarian profit sector foodservice market rose at a CAGR of 2.3% from 2014-2016, forecast to expand marginally to 2.5% to 2021. Although the FSR channel leads the profit sector in terms of sales value, it is also forecast to experience some of the weakest growth rates in revenue, transactions and outlets to 2021.

Quick Service Restaurants (QSR) channel is Hungary’s third largest profit sector channel in terms of revenue, worth approximately HUF370 billion and generating a 20.5% share of total profit sector sales value in 2016. Despite Hungary’s positive economic outlook, falling unemployment rates and rising wages, consumers’ financial confidence remains relatively subdued, driving visits to the value-focused QSR channel. Hungarian QSR channel remains heavily fragmented, with chain operators only generating a combined 11.5% share of channel sales value in 2016.

Full Service Restaurants (FSR) channel is Hungary’s largest foodservice channel in terms of revenue, accounting for 24.4% of the profit sector, and for just over half of the restaurant market. Growing wages, falling unemployment and cautiously rising financial confidence will continue to drive steady and moderate revenue growth in the channel, at a CAGR of 1.6% to 2021. Outlet and transaction numbers will, however, both continue to experience stunted growth, at forecast CAGR of 0.5% and 0.9%, respectively.

Hungary’s pub, club and bar channel is highly fragmented, with chains only generating 2.4% of total channel revenue in 2016. 71% of consumers also expressed a general preference for independent operators, valuing these outlets’ ‘familiarity’ and ‘uniqueness’, as well as the availability of more ‘niche’ and ‘craft’ products.

The report Hungary - The Future of Foodservice to 2021 provides extensive insight and analysis of Hungary's foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following analysis -

  • Overview of Hungary’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the Hungarian foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR and Pubs, Clubs and Bars) within the Hungarian foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Hungarian population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the Hungarian foodservice market.
Companies mentioned in this report: Burger King, Don Pepe, Il Treno, KFC, McDonald's, Pizza Forte, Salad Box.

Scope
  • The QSR channel is Hungary’s third largest profit sector channel in terms of revenue, worth approximately HUF370 billion and generating a 20.5% share of total profit sector sales value in 2016. Despite Hungary’s positive economic outlook, falling unemployment rates and rising wages, consumers’ financial confidence remains relatively subdued, driving visits to the value-focused QSR channel.
  • 66% of consumers ‘enjoy experimenting with products from different cultures or countries’, and 61% of FSR consumers strongly agree that ‘they are often more willing to try new things when eating out’. Engaging with experimental and inquisitive consumers has been key to Don Pepe’s growth strategy and successful expansion in a market overwhelmingly dominated by independent operators
  • Value growth in takeaway will outperform dine-in across all restaurant channels from 2016-2021.Takeaway growth will be most pronounced in the QSR and FSR channels, where sales value generated from takeaway is forecast to rise at a CAGR of approximately 5.0% to 2021.
Reasons to buy
  • Specific forecasts of the Hungarian foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR and Pubs, Clubs and Bars) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the Hungarian foodservice market.


  • Introduction
    • Report Guide: Main Sections
    • Report Guide: Sub-Sections
    • Executive Summary
    • Executive Summary: Consumer Trends
  • Macroeconomic context
    • Macroeconomic Overview
    • Demographic Overview: Population
    • Demographic Overview: Income Bands
  • Introducing consumer segments
    • Introducing Consumer Segments: Constructing the Segments
    • Introducing Consumer Segments
    • Introducing Consumer Segments: Frugal Convenience-Seekers
    • Introducing Consumer Segments: Time-Poor Experimenters
    • Introducing Consumer Segments: Sporadic Splurgers
    • Introducing Consumer Segments: Regimented Routiners
    • Introducing Consumer Segments: Inbetweeners
    • Introducing Consumer Segments: Key Channel Overview
  • Profit sector
    • Profit Sector Metrics
      • Table Rising wages and falling unemployment drive value and transaction growth across channels
    • Profit Sector: Value and Share by Channel
    • Profit Sector: Value Growth by Channel
    • Profit Sector: Outlets and Growth by Channel
    • Profit Sector: Transactions and Growth by Channel
    • Profit Sector: Operator Buying Volumes and Growth by Channel
    • Profit Sector: Channel Historic Growth Dynamics
    • Profit Sector: Channel Future Growth Dynamics
    • Profit Sector: Restaurant: Outlet-Type Growth Dynamics
      • Table Restaurant outlet types 2016 value growth
    • Profit Sector: Restaurant: Type of Ownership Growth Dynamics
      • Table Restaurant owner types 2016 value growth
  • Quick service restaurants (QSR)
    • QSR: Summary
    • QSR: Metrics: Growth Dynamics
      • Table Despite promising economic outlook, Hungary's aging consumers will limit growth in the channel
    • QSR: Key Players
    • QSR: Key Consumers: Segment Overview
    • QSR: Key Consumers: Frugal Convenience Seekers
    • QSR: Key Consumers: Time-Poor Experimenters
    • QSR: Key Consumers: Sporadic Splurgers
    • QSR: Key Consumers: Regimented Routiners
    • QSR: Key Consumers: Inbetweeners
    • QSR: Key Consumers: Opportunity Areas
    • QSR: Why?
    • QSR: What?
    • QSR: What: Salad Box Case Study
    • QSR: What: Trends Targeted
    • QSR: What: What did the brand/company do to target this?
    • QSR: What?: Food and Drink Splits
      • Table Operator Buying Price (OBP) value HUF million (USD$ million)
    • QSR: Where?
    • QSR: What Next?
  • Full service restaurants (FSR)
    • FSR: Summary
    • FSR: Metrics: Growth Dynamics
      • Table Hungary's largest channel in value terms also sees the weakest growth in outlets and transactions
    • FSR: Key Consumers: Segment Overview
    • FSR: Key Consumers: Frugal Convenience Seekers
    • FSR: Key Consumers: Time-Poor Experimenters
    • FSR: Key Consumers: Sporadic Splurgers
    • FSR: Key Consumers: Regimented Routiners
    • FSR: Key Consumers: Inbetweeners
    • FSR: Key Consumers: Opportunity Areas
    • FSR: Why?
    • FSR: What?
    • FSR: What: Don Pepe Case Study
    • FSR: What: Don Pepe: Trends Targeted
    • FSR: What: Don Pepe: How
    • FSR: What?: Food and Drink Splits
      • Table Operator buyer product value HUF million (USD$ million)
    • FSR: Where?
    • FSR: What Next?
  • Pubs, clubs, and bars
    • Pubs, Clubs & Bars: Summary
    • Pubs, Clubs & Bars: Metrics: Growth Dynamics
      • Table Pubs, clubs and bars lead Hungarian profit sector in terms of outlet numbers
    • Pubs, Clubs & Bars: Key Consumers: Segment Overview
    • Pubs, Clubs & Bars: Key Consumers: Frugal Convenience Seekers
    • Pubs, Clubs & Bars: Key Consumers: Time-Poor Experimenters
    • Pubs, Clubs & Bars: Key Consumers: Sporadic Splurgers
    • Pubs, Clubs & Bars: Key Consumers: Regimented Routiners
    • Pubs, Clubs & Bars: Key Consumers: Inbetweeners
    • Pubs, Clubs & Bars: Key Consumers: Opportunity Areas
    • Pubs, Clubs & Bars: Why?
    • Pubs, Clubs & Bars: What?
    • Pubs, Clubs & Bars: What?: Food and Drink Splits
      • Table Operator buyer product value HUF million (USD$ million)
    • Pubs, Clubs & Bars: Where?
    • Pubs, Clubs & Bars: What Next?
  • Cost sector
    • Cost Operator Trends: Historic Growth
    • Cost Operator Trends: Future Growth
    • Cost Operators: Data Breakdown
      • Table Spending in Hungary's education foodservice far exceeds competing cost sector channels
  • Appendix
    • Trade and Sectors Definitions
    • Channel Definitions
    • Other Definitions
    • Key Components - Market Intelligence

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