100% Home Delivery/Takeaway in Bulgaria

PROSPECTS

Strong growth ahead as businesses expand beyond Sofia

The 100% home delivery/takeaway format is expected to be the most dynamically developing category of consumer foodservice in Bulgaria over the next five years. While in recent years most operators were narrowly focused on a single market, Sofia, going forward they will expand their activity to other large towns such as Plovdiv, Varna and Burgas.

Domino’s and potential new entry seen driving growth in pizza format

Pizza 100% home delivery/takeaway will be the fastest developing format over the forecast period, with growth entirely dependent on the development of chained operations. Domino’s is seen as key driver as it ramps up expansion into Plovdiv, Burgas and Varna.

Modest growth in other delivery formats as sushi hype fades

Other 100% home delivery/takeaway is projected to achieve moderate growth over the next five years. This subcategory includes only independent operators delivering meals from various cuisines.

COMPETITIVE LANDSCAPE

Strong competitive pressure from third party sites and other formats

Players in 100% home delivery/takeaway face intense competition from third party delivery services and other consumer foodservice formats offering delivery. There are four significant third party delivery services in Bulgaria – Amam, Gladen, BGMenu and Foodpanda – which partner with a combined 1,200 establishments on the market.

Lack of external financing undermines independents’ brand-awareness efforts

A key challenge for most 100% home delivery/takeaway operators in Bulgaria is weak brand recognition. This reflects a business model that requires low start-up investment on outlets and equipment, but requires significant investment in advertising.

The average consumer profile takes shape

Operators in the category compete for consumers aged 20-40 years, living in large urban centres such as Sofia, Plovdiv, Varna and Burgas. According to industry sources, these consumers are slightly more likely to be men and in recent years their ordering pattern has become more balanced time-wise with the gap between lunch and dinner purchases narrowing significantly.

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