100% Home Delivery/Takeaway in France

PROSPECTS

Convenience makes 100% home delivery/takeaway attractive

Despite the threat posed by digital platforms that are developing delivery services for full-service restaurants and fast food operators, consumer demand for convenience, busy lifestyles and longer travel time boosted demand for delivery services overall, which also benefited 100% home delivery/takeaway operators. Convenience was the chief driver of sales in 100% home delivery/takeaway in France in 2017, along with the improved economic conditions and higher per capita spending.

100% home delivery/takeaway enjoys stronger profitability

On the supply side, 100% home delivery/takeaway allows operators to open outlets in less visible and smaller locations, which is an important way to reduce the costs linked to real estate, making players more profitable. Moreover, products which are packaged to be consumed later benefit from a special VAT rate of 5.

Significant slowdown in pizza 100% home delivery/takeaway

Whilst pizza 100% home/delivery takeaway accounted for the highest share of value sales in 2017, this category is being challenged by the diversification of foodservice products available with delivery. The strong emergence of digital platforms has led to a significant rise in the number of new concepts available.

COMPETITIVE LANDSCAPE

The surge of digital platforms intensifies the competition

The arrival in France of third party delivery operators profoundly affected the competitive landscape in 100% home delivery/takeaway, accelerating the restructuring of the channel around the most profitable players. This trend is indicated by the decline in outlet numbers recorded in 2017, whilst current value sales continued to increase.

Pizza 100% home delivery/takeaway is highly concentrated

France has one of the highest rates of consumption of pizza per capita globally. Dynamism is largely driven by the success of 100% home delivery/takeaway chains Domino’s Pizza and Pizza Hut.

Sustainable development is a key transversal strategy

Consumers are increasingly choosing restaurants and concepts that match their values to feel good about the dining experience. Local supply chains, no waste and eco-friendly concepts are increasingly popular.

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