100% Home Delivery/Takeaway in Hungary

PROSPECTS

Outlets with focus on takeaway meals add some limited service element – just to enjoy the lower VAT

The recent reductions in VAT on certain consumer foodservice elements has caused some business to prefer offering food consumption on premises as the two-stage VAT decrease from 27% to 5% is not applicable for takeaway meals and home delivery. The regulation is still often confusing and causes headaches for staff when they issue receipts.

It is not just a pizza any more

Although pizza slices remain the core products of the outlets selling takeaway meals, the outlets often enrich the menu with other affordable, easy-to-prepare items, thus adding some variety for regular customers. Gyros and hamburgers are the most evident options, but fresh coffee and some sweet snacks are offered as an extra.

The concept of 100% home delivery remains unpopular despite lower operating expenses

There are only a few operators and kitchens offering 100% home delivery without any additional foodservice operations on the premises. Although home delivery and online retailing keep booming and represent the most dynamic areas within consumer foodservice, operators prefer the multichannel approach and maintain seating areas with some table service as a further revenue stream and an extra channel for brand building.

COMPETITIVE LANDSCAPE

Local brands dominate

The 100% home delivery/takeaway category is mostly dominated by independent outlets and some local brands – mostly spin-offs of pizza fast foodservice brands and Trio Group. The latter has outlets specialised in takeaway meals at heavy foot-traffic locations of public transportation hubs of downtown Budapest.

Pizza Karaván, the only 100% home delivery brand, focuses on smaller towns

Pizza Karaván, a brand from a mid-sized town, Hatvan, runs only 100% home delivery kitchens and only extends the franchise to mid-sized towns where competitive threats from other large fast food chains are weaker and home delivery is less prevalent. Currently the company is the largest chain within the category in terms of outlet size.

The dilemma around online ordering

Home delivery is getting more cluttered and customers have more and more options to choose from. Fast food restaurants and full-service restaurants are very active and some have more resources to promote themselves.

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