Consumer Foodservice in Israel
Euromonitor International's Consumer Foodservice in Israel report examine stand-alone restaurants and eating establishments in which the consumer can freely choose to eat. The report looks at market trends by sector (cafes/bars, full-service restaurants, fast food, home delivery and street stalls). It profiles the leading companies in the market and analyses factors influencing eating out patterns. Forecasts illustrate how the market is set to change
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Tables: 108 | Publication date: Sep 2007
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- Get insight into trends in market performance
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Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent
Executive summary
The economic and political performance positively affected Israel’s CFS market in 2006
The economic growth that was shown in 2006 had a positive impact on the performance of the consumer foodservice market. The economic improvement and the stable political situation increased consumer disposable income as well as demand for foodservice products, as consumers felt confident from a personal safety point of view, and able from an economical point of view, to go out and spend their leisure time in foodservice outlets. Overall, several consumer foodservice outlets such as cafés/bars, FSR, fast food channels and convenience stores were positively affected by this economic and political development.
Growing demand for healthy food products moves consumer foodservice channels to alter menus
The growing health awareness in Israel during the last year of the review period moved many consumer foodservice channels to change their menus and to offer several healthy meal options. The ongoing trend in Israel is toward consumption of healthy products such as low calorie/low fat products, organic or vegetarian food, and whole meal products. According to a survey that was conducted by Globes in 2006, more than 60% of Israelis consume low calorie or diet products on a regular basis. As a result, consumer foodservice channels such as Spagetim Ltd, Lechem Erez Ltd, Aroma Espresso Bars Ltd, or even McDonald’s and Burger Ranch started to introduce healthy food products such as Easy Royal from McDonalds, Chef Range from Burger Ranch, healthy salads and whole meal bread from Aroma Espresso Bar Ltd, Lechem Erez and other companies.
Chained outlets are gaining ground
Israeli consumers showed growing interest in chained consumer foodservice channels in 2006. The main reason for this growing popularity is related to the unique services and products offered by these chained channels. Chained channels are based on the success of one model and replicating it in other locations and cities. Chained outlets offer consumers several advantages such as modern design, a large variety of products, unique products that are produced locally such as bread and other bakery products in the case of Lechem Erez.
This development was reflected in the dynamic performance of almost all chained formats, with chained specialist coffee shops and convenience stores fast food, being the two areas where the biggest increase in sales took place. Several specialist coffee shops such as Aroma, Arcafe and Joe Café recognised the strong demand for franchised branches and intensively opened new outlets. In addition, energy companies realised that great revenue can be achieved through developing retail spaces in the premises of their petrol/gas/service stations, and this gave a boost to the number of convenience stores.
Strong competition in the consumer foodservice market
The consumer foodservice market is characterised by strong competition, given that apart from the chained outlets, the market is dominated by vast numbers of independent players. Consumer foodservice is also regarded as one of the most risky markets in Israel, due to the high number of businesses closing down. In particular, the growing popularity of chained specialist coffee shops that was reflected in the increase in the number of outlets, negatively affected independent specialist coffee shops as chained channels, such as Aroma Espresso Bar Ltd, were promoted intensively in different media channels; something that increased consumer familiarity with the brand. This development caused many independent cafés in Israel to close down during the last few years of the review period.
CFS is expected to show positive performance over the forecast period
The expected positive economic performance of the Israeli market and the predicted continuation of political stability are expected to positively affect the performance of consumer foodservice. The growing popularity of chained outlets, mainly cafés/bars and fast food outlets means that they will be the major contributors to growth over the forecast period. In addition, the growing health awareness will lead many players to increase the variety of products and services to meet the growing demand for healthy eating.
Table of contents
CONSUMER FOODSERVICE IN ISRAEL : MARKET INSIGHT
EXECUTIVE SUMMARY
The economic and political performance positively affected Israel’s CFS market in 2006
Growing demand for healthy food products moves consumer foodservice channels to alter menus
Chained outlets are gaining ground
Strong competition in the consumer foodservice market
CFS is expected to show positive performance over the forecast period
KEY TRENDS AND DEVELOPMENTS
Positive economic and political performance positively affected CFS performance in 2006
Growing demand for healthy food products positively affects CFS performance
Fast-paced lifestyles contribute to the growth of convenience stores fast food at the expense of other fast food outlets
Chained formats contributed significantly to positive performance of CFS market
Growing popularity of retail, travel and leisure outlets
Increased investment in design and innovation is part of the competition strategy
Two consumers groups: young people and tourists have major effect on the CFS market
MARKET DATA
Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2001-2006
Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2001-2006
Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2006
Table 4 Consumer Foodservice by Eat in Vs Takeaway 2006
Table 5 Consumer Foodservice by Food Vs Drinks Split 2006
Table 6 Sales in Consumer Foodservice by Location 2001-2006
Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2006
Table 8 Chained Consumer Foodservice Company Shares 2002-2006
Table 9 Chained Consumer Foodservice Brand Shares 2003-2006
Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2006-2011
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2006-2011
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - ISRAEL
AROMA ESPRESSO BAR LTD - CONSUMER FOODSERVICE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Aroma Espresso Bar Ltd: Key Facts
Summary 3 Aroma Espresso Bar Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Aroma Espresso Bar Ltd: Competitive Position 2006
BURGERANCH LTD - CONSUMER FOODSERVICE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Burgeranch Ltd: Key Facts
Summary 6 Burgeranch Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Burgeranch Ltd: Competitive Position 2006
CAFé HILLEL ISRAEL LTD - CONSUMER FOODSERVICE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Café Hillel Israel Ltd: Key Facts
Summary 9 Café Hillel Israel Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Café Hillel Israel Ltd: Competitive Position 2006
JOE CAFé GOURMET - CONSUMER FOODSERVICE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Joe Café Gourmet: Key Facts
Summary 12 Joe Café Gourmet: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Joe Café Gourmet: Competitive Position 2006
LECHEM EREZ LTD - CONSUMER FOODSERVICE - ISRAEL
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Lechem Erez Ltd: Key Facts
Summary 15 Lechem Erez Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 16 Lechem Erez Ltd: Competitive Position 2006
CAFéS/BARS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 12 Cafés/Bars by Subsector: Units/Outlets 2001-2006
Table 13 Cafés/Bars by Subsector: Transactions 2001-2006
Table 14 Cafés/Bars by Subsector: Foodservice Value 2001-2006
Table 15 Cafés/Bars by Subsector: % Volume Growth 2001-2006
Table 16 Cafés/Bars by Subsector: % Transaction Growth 2001-2006
Table 17 Cafés/Bars by Subsector: % Foodservice Value Growth 2001-2006
Table 18 Global Brand Owner Shares of Chained Cafés/Bars 2002-2006
Table 19 Brand Shares of Chained Cafés/Bars 2003-2006
Table 20 Forecast Sales in Cafés/Bars by Subsector: Units/Outlets 2006-2011
Table 21 Forecast Sales in Cafés/Bars by Subsector: Transactions 2006-2011
Table 22 Forecast Sales in Cafés/Bars by Subsector: Foodservice Value 2006-2011
Table 23 Forecast Sales in Cafés/Bars by Subsector: % Volume Growth 2006-2011
Table 24 Forecast Sales in Cafés/Bars by Subsector: % Transaction Growth 2006-2011
Table 25 Forecast Sales in Cafés/Bars by Subsector: % Foodservice Value Growth 2006-2011
FULL-SERVICE RESTAURANTS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 26 FSR by Subsector: Units/Outlets 2001-2006
Table 27 FSR by Subsector: Transactions 2001-2006
Table 28 FSR by Subsector: Foodservice Value 2001-2006
Table 29 FSR by Subsector: % Volume Growth 2001-2006
Table 30 FSR by Subsector: % Transaction Growth 2001-2006
Table 31 FSR by Subsector: % Foodservice Value Growth 2001-2006
Table 32 Global Brand Owner Shares of Chained FSR 2002-2006
Table 33 Brand Shares of Chained FSR 2003-2006
Table 34 Forecast Sales in FSR by Subsector: Units/Outlets 2006-2011
Table 35 Forecast Sales in FSR by Subsector: Transactions 2006-2011
Table 36 Forecast Sales in FSR by Subsector: Foodservice Value 2006-2011
Table 37 Forecast Sales in FSR by Subsector: % Volume Growth 2006-2011
Table 38 Forecast Sales in FSR by Subsector: % Transaction Growth 2006-2011
Table 39 Forecast Sales in FSR by Subsector: % Foodservice Value Growth 2006-2011
FAST FOOD IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 40 Fast Food by Subsector: Units/Outlets 2001-2006
Table 41 Fast Food by Subsector: Transactions 2001-2006
Table 42 Fast Food by Subsector: Foodservice Value 2001-2006
Table 43 Fast Food by Subsector: % Volume Growth 2001-2006
Table 44 Fast Food by Subsector: % Transaction Growth 2001-2006
Table 45 Fast Food by Subsector: % Foodservice Value Growth 2001-2006
Table 46 Sales of Bakery Products Fast Food by Type 2006
Table 47 Global Brand Owner Shares of Chained Fast Food 2002-2006
Table 48 Brand Shares of Chained Fast Food 2003-2006
Table 49 Forecast Sales in Fast Food by Subsector: Units/Outlets 2006-2011
Table 50 Forecast Sales in Fast Food by Subsector: Transactions 2006-2011
Table 51 Forecast Sales in Fast Food by Subsector: Foodservice Value 2006-2011
Table 52 Forecast Sales in Fast Food by Subsector: % Volume Growth 2006-2011
Table 53 Forecast Sales in Fast Food by Subsector: % Transaction Growth 2006-2011
Table 54 Forecast Sales in Fast Food by Subsector: % Foodservice Value Growth 2006-2011
100% HOME DELIVERY/TAKEAWAY IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2001-2006
Table 56 100% Home Delivery/Takeaway by Subsector: Transactions 2001-2006
Table 57 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2001-2006
Table 58 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2001-2006
Table 59 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2001-2006
Table 60 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2001-2006
Table 61 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2002-2006
Table 62 Brand Shares of Chained 100% Home Delivery/Takeaway 2003-2006
Table 63 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2006-2011
Table 64 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Transactions 2006-2011
Table 65 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2006-2011
Table 66 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2006-2011
Table 67 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2006-2011
Table 68 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2006-2011
SELF-SERVICE CAFETERIAS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 69 Self-service Cafeterias by Subsector: Units/Outlets 2001-2006
Table 70 Self-service Cafeterias by Subsector: Transactions 2001-2006
Table 71 Self-service Cafeterias by Subsector: Foodservice Value 2001-2006
Table 72 Self-service Cafeterias by Subsector: % Volume Growth 2001-2006
Table 73 Self-service Cafeterias by Subsector: % Transaction Growth 2001-2006
Table 74 Self-service Cafeterias by Subsector: % Foodservice Value Growth 2001-2006
Table 75 Forecast Sales in Self-service Cafeterias by Subsector: Units/Outlets 2006-2011
Table 76 Forecast Sales in Self-service Cafeterias by Subsector: Transactions 2006-2011
Table 77 Forecast Sales in Self-service Cafeterias by Subsector: Foodservice Value 2006-2011
Table 78 Forecast Sales in Self-service Cafeterias by Subsector: % Volume Growth 2006-2011
Table 79 Forecast Sales in Self-service Cafeterias by Subsector: % Transaction Growth 2006-2011
Table 80 Forecast Sales in Self-service Cafeterias by Subsector: % Foodservice Value Growth 2006-2011
STREET STALLS/KIOSKS IN ISRAEL
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 81 Street Stalls/Kiosks by Subsector: Units/Outlets 2001-2006
Table 82 Street Stalls/Kiosks by Subsector: Transactions 2001-2006
Table 83 Street Stalls/Kiosks by Subsector: Foodservice Value 2001-2006
Table 84 Street Stalls/Kiosks by Subsector: % Volume Growth 2001-2006
Table 85 Street Stalls/Kiosks by Subsector: % Transaction Growth 2001-2006
Table 86 Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2001-2006
Table 87 Forecast Sales in Street Stalls/Kiosks by Subsector: Units/Outlets 2006-2011
Table 88 Forecast Sales in Street Stalls/Kiosks by Subsector: Transactions 2006-2011
Table 89 Forecast Sales in Street Stalls/Kiosks by Subsector: Foodservice Value 2006-2011
Table 90 Forecast Sales in Street Stalls/Kiosks by Subsector: % Volume Growth 2006-2011
Table 91 Forecast Sales in Street Stalls/Kiosks by Subsector: % Transaction Growth 2006-2011
Table 92 Forecast Sales in Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2006-2011