Consumer Foodservice in the Philippines

Euromonitor International's Consumer Foodservice in the Philippines 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.

Buy online to access strategic market analysis and an interactive statistical database of foodservice value market size, company and brand shares and number of outlets and transactions.

Why buy this report

• Get insight into trends in market performance
• Pinpoint growth sectors and identify factors driving change
• Identify market and brand leaders and understand the competitive environment

Product coverage

Consumer foodservice by chained/independent; Consumer foodservice by location; Consumer foodservice by type; Consumer foodservice by type and chained/independent

Executive summary

Franchising has seen chained outlets mushroom across the Philippines

Franchising has become a common business in the Philippines, most especially in the consumer foodservice market. This has been practiced continuously in all the sectors, especially in fast food, cafés/bars and 100% home delivery/takeaway. Conservative companies such as Max’s Inc and The Cravings Group, both of which are 100% Filipino- and family-owned, have also taken the radical decision to open their businesses up to franchisees. “Various franchisees” led consumer foodservice in 2007, and continued to grow over the previous year as chained cafés/bars recorded double-digit growth. Provided with free training, free marketing support and practically everything needed to start a business, the franchising concept has been very appealing to both new and long-standing business people.

Improvement in traditional Filipino food profitable for consumer foodservice

The latest trend in consumer foodservice menus is the enhancement of traditional Filipino foods, either though incorporating modern cooking styles, such as the use of spicy ingredients on ordinary menus, or improving the packaging and presentation. This has proved to be profitable for Max’s with its Bangus Sisig, a finely chopped milkfish fried in oil and spices, for KFC, Jollibee and McDonald’s with their spicy chicken, and for Greenwich with its longanisa-flavoured pizza. Longanisa is a processed meat with rum and sugar. Cravings also offers its Filipino menu with a new twist in style terms while retaining the original flavour.

Local companies performed more aggressively than their foreign counterparts

Local companies performed with a lot more dynamism in the review period than their foreign counterparts. For example, Figaro Coffee increased its value share in 2007, while Starbucks, an international brand, suffered a decline. Jollibee maintained its strong position in fast food, retaining its leadership in spite of the presence of formidable foes in the guise of international brands like McDonald’s and KFC. Other Jollibee Foods Corp brands, Chowking and Greenwich, also protected their shares well.

More chained consumer foodservice outlets opened in 2007

Chained consumer foodservice outlets recorded stronger growth than independent players in 2007. This was largely explained by the popularity of the franchising concept, which practically multiplies the business. Fast food has the greatest number of chained outlets, followed by street stalls/kiosks. Chained cafés/bars and street stalls/kiosks both posted double-digit growth rates and outlet number growth at independents generally lagged behind that of chained players’.

Cafés/bars to top all sectors in sales value in the coming years

Consumer foodservice outlet growth is expected to slow down slightly in the next five years due to saturation in terms of locations, but constant value growth rates are expected to be a little faster than in the review period. Cafés/bars is expected to see strong value growth in the coming years, well ahead of full-service restaurants. This will primarily be supported by the booming sales at specialist coffee shops. Specialist coffee shops registered double-digit growth rates in terms of outlets, transactions and sales in 2007. This trend is expected to continue to 2012. On the other hand, full-service restaurants is forecast to slow down in outlet and transaction numbers, with sales value growth rates remaining at similar levels.

Table of contents

CONSUMER FOODSERVICE IN THE PHILIPPINES : MARKET INSIGHT

EXECUTIVE SUMMARY

Franchising has seen chained outlets mushroom across the Philippines

Improvement in traditional Filipino food profitable for consumer foodservice

Local companies performed more aggressively than their foreign counterparts

More chained consumer foodservice outlets opened in 2007

Cafés/bars to top all sectors in sales value in the coming years

KEY TRENDS AND DEVELOPMENTS

Successive mall openings to further boost consumer foodservice in retail locations

BPO provincial expansion to lift locals consumption of consumer foodservice

Consumer foodservice companies find ways to lure customers by using IT

Health-promoting foods and refreshments offered in consumer foodservice

Domestic companies roused to steal market share from international brands

MARKET DATA

Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2002-2007

Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2002-2007

Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2007

Table 4 Consumer Foodservice by Eat in Vs Takeaway 2007

Table 5 Consumer Foodservice by Food Vs Drinks Split 2007

Table 6 Sales in Consumer Foodservice by Location 2002-2007

Table 7 Chained Consumer Foodservice Company Shares 2003-2007

Table 8 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2007-2012

Table 9 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2007-2012

DEFINITIONS

Source

Summary 1 Research Sources

LOCAL COMPANY PROFILES - PHILIPPINES

CRAVINGS GROUP, THE - CONSUMER FOODSERVICE - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Cravings Group, The: Key Facts

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 3 Cravings Group, The: Competitive Position 2007

FIGARO COFFEE CO - CONSUMER FOODSERVICE - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 4 Figaro Coffee Co: Key Facts

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 5 Figaro Coffee Co: Competitive Position 2007

JOLLIBEE FOODS CORP - CONSUMER FOODSERVICE - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 6 Jollibee Foods Corp: Key Facts

Summary 7 Jollibee Foods Corp: Operational Indicators

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 8 Jollibee Foods Corp: Competitive Position 2007

LOTS'A PIZZA FRANCHISE SYSTEM INC - CONSUMER FOODSERVICE - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 9 Lots’A Pizza Franchise System Inc: Key Facts

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 10 Lots’A Pizza Franchise System Inc: Competitive Position 2007

MAX'S INC - CONSUMER FOODSERVICE - PHILIPPINES

STRATEGIC DIRECTION

KEY FACTS

Summary 11 Max’s Inc: Key Facts

COMPANY BACKGROUND

COMPETITIVE POSITIONING

Summary 12 Max’s Inc: Competitive Position 2007

CONSUMER FOODSERVICE BY LOCATION IN THE PHILIPPINES

HEADLINES

TREND

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 10 Consumer Foodservice Sales by Location: Units/Outlets 2002-2007

Table 11 Consumer Foodservice Sales by Location: Number of Transactions 2002-2007

Table 12 Consumer Foodservice Sales by Location: Foodservice Value 2002-2007

Table 13 Consumer Foodservice Sales by Location: % Units/Outlets Growth 2002-2007

Table 14 Consumer Foodservice Sales by Location: % Transaction Growth 2002-2007

Table 15 Consumer Foodservice Sales by Location: % Foodservice Value Growth 2002-2007

Table 16 Consumer Foodservice Sales through Standalone: Units/Outlets 2002-2007

Table 17 Consumer Foodservice Sales through Standalone: Number of Transactions 2002-2007

Table 18 Consumer Foodservice Sales through Standalone: Foodservice Value 2002-2007

Table 19 Consumer Foodservice Sales through Standalone: % Units/Outlets Growth 2002-2007

Table 20 Consumer Foodservice Sales through Standalone: % Transaction Growth 2002-2007

Table 21 Consumer Foodservice Sales through Standalone: % Foodservice Value Growth 2002-2007

Table 22 Consumer Foodservice Sales through Leisure: Units/Outlets 2002-2007

Table 23 Consumer Foodservice Sales through Leisure: Number of Transactions 2002-2007

Table 24 Consumer Foodservice Sales through Leisure: Foodservice Value 2002-2007

Table 25 Consumer Foodservice Sales through Leisure: % Units/Outlets Growth 2002-2007

Table 26 Consumer Foodservice Sales through Leisure: % Transaction Growth 2002-2007

Table 27 Consumer Foodservice Sales through Leisure: % Foodservice Value Growth 2002-2007

Table 28 Consumer Foodservice Sales through Retail: Units/Outlets 2002-2007

Table 29 Consumer Foodservice Sales through Retail: Number of Transactions 2002-2007

Table 30 Consumer Foodservice Sales through Retail: Foodservice Value 2002-2007

Table 31 Consumer Foodservice Sales through Retail: % Units/Outlets Growth 2002-2007

Table 32 Consumer Foodservice Sales through Retail: % Transaction Growth 2002-2007

Table 33 Consumer Foodservice Sales through Retail: % Foodservice Value Growth 2002-2007

Table 34 Consumer Foodservice Sales through Lodging: Units/Outlets 2002-2007

Table 35 Consumer Foodservice Sales through Lodging: Number of Transactions 2002-2007

Table 36 Consumer Foodservice Sales through Lodging: Foodservice Value 2002-2007

Table 37 Consumer Foodservice Sales through Lodging: % Units/Outlets Growth 2002-2007

Table 38 Consumer Foodservice Sales through Lodging: % Transaction Growth 2002-2007

Table 39 Consumer Foodservice Sales through Lodging: % Foodservice Value Growth 2002-2007

CAFéS/BARS IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 40 Cafés/Bars by Subsector: Units/Outlets 2002-2007

Table 41 Cafés/Bars by Subsector: Transactions 2002-2007

Table 42 Cafés/Bars by Subsector: Foodservice Value 2002-2007

Table 43 Cafés/Bars by Subsector: % Units/Outlets Growth 2002-2007

Table 44 Cafés/Bars by Subsector: % Transaction Growth 2002-2007

Table 45 Cafés/Bars by Subsector: % Foodservice Value Growth 2002-2007

Table 46 Global Brand Owner Shares of Chained Cafés/Bars 2003-2007

Table 47 Brand Shares of Chained Cafés/Bars 2004-2007

Table 48 Forecast Sales in Cafés/Bars by Subsector: Units/Outlets 2007-2012

Table 49 Forecast Sales in Cafés/Bars by Subsector: Transactions 2007-2012

Table 50 Forecast Sales in Cafés/Bars by Subsector: Foodservice Value 2007-2012

Table 51 Forecast Sales in Cafés/Bars by Subsector: % Units/Outlets Growth 2007-2012

Table 52 Forecast Sales in Cafés/Bars by Subsector: % Transaction Growth 2007-2012

Table 53 Forecast Sales in Cafés/Bars by Subsector: % Foodservice Value Growth 2007-2012

FULL-SERVICE RESTAURANTS IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 54 FSR by Subsector: Units/Outlets 2002-2007

Table 55 FSR by Subsector: Transactions 2002-2007

Table 56 FSR by Subsector: Foodservice Value 2002-2007

Table 57 FSR by Subsector: % Units/Outlets Growth 2002-2007

Table 58 FSR by Subsector: % Transaction Growth 2002-2007

Table 59 FSR by Subsector: % Foodservice Value Growth 2002-2007

Table 60 Global Brand Owner Shares of Chained FSR 2003-2007

Table 61 Brand Shares of Chained FSR 2004-2007

Table 62 Forecast Sales in FSR by Subsector: Units/Outlets 2007-2012

Table 63 Forecast Sales in FSR by Subsector: Transactions 2007-2012

Table 64 Forecast Sales in FSR by Subsector: Foodservice Value 2007-2012

Table 65 Forecast Sales in FSR by Subsector: % Units/Outlets Growth 2007-2012

Table 66 Forecast Sales in FSR by Subsector: % Transaction Growth 2007-2012

Table 67 Forecast Sales in FSR by Subsector: % Foodservice Value Growth 2007-2012

FAST FOOD IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 68 Fast Food by Subsector: Units/Outlets 2002-2007

Table 69 Fast Food by Subsector: Transactions 2002-2007

Table 70 Fast Food by Subsector: Foodservice Value 2002-2007

Table 71 Fast Food by Subsector: % Units/Outlets Growth 2002-2007

Table 72 Fast Food by Subsector: % Transaction Growth 2002-2007

Table 73 Fast Food by Subsector: % Foodservice Value Growth 2002-2007

Table 74 Sales of Bakery Products Fast Food by Type 2006-2007

Table 75 Global Brand Owner Shares of Chained Fast Food 2003-2007

Table 76 Brand Shares of Chained Fast Food 2004-2007

Table 77 Forecast Sales in Fast Food by Subsector: Units/Outlets 2007-2012

Table 78 Forecast Sales in Fast Food by Subsector: Transactions 2007-2012

Table 79 Forecast Sales in Fast Food by Subsector: Foodservice Value 2007-2012

Table 80 Forecast Sales in Fast Food by Subsector: % Units/Outlets Growth 2007-2012

Table 81 Forecast Sales in Fast Food by Subsector: % Transaction Growth 2007-2012

Table 82 Forecast Sales in Fast Food by Subsector: % Foodservice Value Growth 2007-2012

100% HOME DELIVERY/TAKEAWAY IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 83 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2002-2007

Table 84 100% Home Delivery/Takeaway by Subsector: Transactions 2002-2007

Table 85 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2002-2007

Table 86 100% Home Delivery/Takeaway by Subsector: % Units/Outlets Growth 2002-2007

Table 87 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2002-2007

Table 88 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2002-2007

Table 89 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2003-2007

Table 90 Brand Shares of Chained 100% Home Delivery/Takeaway 2004-2007

Table 91 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2007-2012

Table 92 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Transactions 2007-2012

Table 93 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2007-2012

Table 94 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Units/Outlets Growth 2007-2012

Table 95 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2007-2012

Table 96 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2007-2012

SELF-SERVICE CAFETERIAS IN THE PHILIPPINES

TRENDS

STREET STALLS/KIOSKS IN THE PHILIPPINES

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 97 Street Stalls/Kiosks: Units/Outlets 2002-2007

Table 98 Street Stalls/Kiosks: Transactions 2002-2007

Table 99 Street Stalls/Kiosks: Foodservice Value 2002-2007

Table 100 Street Stalls/Kiosks: % Units/Outlets Growth 2002-2007

Table 101 Street Stalls/Kiosks: % Transaction Growth 2002-2007

Table 102 Street Stalls/Kiosks: % Foodservice Value Growth 2002-2007

Table 103 Forecast Sales in Street Stalls/Kiosks: Units/Outlets 2007-2012

Table 104 Forecast Sales in Street Stalls/Kiosks: Transactions 2007-2012

Table 105 Forecast Sales in Street Stalls/Kiosks: Foodservice Value 2007-2012

Table 106 Forecast Sales in Street Stalls/Kiosks: % Units/Outlets Growth 2007-2012

Table 107 Forecast Sales in Street Stalls/Kiosks: % Transaction Growth 2007-2012

Table 108 Forecast Sales in Street Stalls/Kiosks: % Foodservice Value Growth 2007-2012