Cafés/Bars in Latin America

June 2022

Cafés/bars was among the worst-hit consumer foodservice channels when Coronavirus (COVID-19) arrived in the region in 2020, recording a steep sales decline. With outlet closures, home seclusion and travel restrictions still in place at times in 2021, only a partial recovery was seen for cafés/bars in this year. However, further positive growth is expected throughout the forecast period, as sales climb back towards their pre-pandemic levels.

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This report comes in PPT.

Key findings

COVID-19 restrictions still in place in 2021

The pandemic continued to impact consumer foodservice in 2021, meaning that, while positive growth was recorded, and very dynamic growth in some countries, most were still some way short of their pre-pandemic sales levels, given various restrictions remained in place or had to be reintroduced during 2021.

Digitalisation on the rise

The use of digital channels is a growing trend for both cafés/bars and consumers. While this is likely to remain the case, with home delivery/takeaway sales and digital payments remaining well above pre-pandemic levels in the coming years, cafés/bars does not lend itself quite so well to home delivery/takeaway and digitalisation as some foodservice channels, eg LSR.

New stores planned in specialist coffee and tea shops

Coffee shop chains are expected to continue expanding their outlet numbers over the forecast period. Starbucks has already announced plans to return to its pre-COVID-19 pace of opening outlets in Mexico, with Juan Valdez also looking to open around 50 outlets in the coming years in Mexico. Meanwhile, the same players have also been communicating their expansion plans in Chile for the forecast period.

Positive growth expected over 2021-2026

A full recovery for cafés/bars could take a few years, given the size of the decline seen in 2020. However, positive growth is currently being predicted for every year of the forecast period. Digitalisation will continue to seen, likely being driven in Brazil by the establishment of the Open Delivery solution aimed at integrating different delivery apps into one single platform, with a goal of connecting 150,000-plus foodservice players with compatible point-of-sale software.

Scope
Key findings
Latin America records a declining historic period CAGR
Positive growth expected throughout the forecast period
Argentina loses more than half its sales in cafés/bars over 2016-2021
Cafés account for the bulk of historic period losses in Argentina
Bars/pubs dominate the regional losses in Latin America in 2016-2021
Latin American cafés/bars start to recover from 2021
Dominant standalone location weathers the COVID-19 storm best in 2020…
…but leisure, lodging, retail and travel record stronger recoveries in 2021
Cafés/bars very fragmented in Latin America
Starbucks to resume its pre-pandemic rate of outlet openings in Mexico
Starbucks a very visible presence in most markets
Café Martinez moves into the top 10 brand rankings in 2021
While positive growth is expected throughout the forecast period…
…sales are not expected to reach 2019 levels before 2026
Argentina: Market Context
Argentina: Competitive and Retail Landscape
Brazil: Market Context
Brazil: Competitive and Retail Landscape
Chile: Market Context
Chile: Competitive and Retail Landscape
Colombia: Market Context
Colombia: Competitive and Retail Landscape
Mexico: Market Context
Mexico: Competitive and Retail Landscape
Peru: Market Context
Peru: Competitive and Retail Landscape

Consumer Foodservice

Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.

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