Horeca

Foodservice was one of the most vulnerable sectors during the former Russian crisis, nevertheless this sector grew  with 2% in 2016.


Key findings

  • Food service sector had difficult period in 2015 and 1st quarter of 2016: about 30% of enterprises were on the bankruptcy levelSpendings of the Russian consumer
  • The market volume in 2016 was 17,5 bln euro and began grow  from  2nd quarter.  The total market grow in 2016 was 2%.
  • There are about 176.500 catering facilities in Russia, most of them are located in Moscow and St Petersburg
  • Fast food takes about 29% of the total catering market share, 25% of the market is for “street food”, 19% – restaurants, 14% are café’s and confectioneries, 7% is ‘take away’ segment and 6% is fast casual segment (fast service and affordable prices)
  • The most popular and growing local foodservice chains are Pel’mennaya Dyuzhina, Shokoladnitsa, Coffe House, Blinoff, Planeta Sushi, Kroshka-Kartoshka etc. They are popular with their assortment of dishes and affordable prices.
  • Large foreign horeca chains are also very popular in Russia  (McDonalds, Subway, Burger King, KFC, PizzaHut, Cinnabon, Starbucks).
  • 70-85% of the products in restaurants are from the local producers. 85% of McDonalds (450 restaurants) products are from the local farmers
  • There are about 200 chain restaurants in Russia
  • 4 of 100 best restaurants in the world are Russian

Tendencies

  • HoReCa segment will grow till 2,5-5% in 2017
  • Main factors of this grow is the re-distribution of costs by the Russian consumer: limitation or refusal of the holiday trips (big short expenses) in favor of more affordable expenses (restaurants, outing). This means that the average bill amount and the number of visits to the café’s and restaurants will increase.
  • The most rapid developing sectors in Russia are the café’s, fast casual and fast food chains, but also drive throw, food court, catering
  • Family cafe is a very new and interesting segment in Russia
  • Eco fast food and healthy menus are the open niche with a huge potential
  • The main investment growth will happen to the segment of small café’s (up to 150 sq.m) and the lower price segment like fast food.

Sources: RBK, Discovery Research Group, Businessstat