Consumer foodservice in Brazil posted a tepid performance in 2018, due to unmet expectations of economic recovery. The effects of the economic crisis continued to be felt, evident in the consumption habits of non-essential and services such as dining out.
Truck drivers held a national strike in late May 2018, causing a fuel supply crisis across most of the country. This shortage resulted in a significant shortage in ingredients and even drinks offered by foodservice players from all channels.
Some consumer foodservice players managed to continue expanding their outlet networks, despite the economic crisis that impacted Brazil from late 2014 and significantly influenced consumers’ expenditure. This was the case for chained players located in shopping centres such as Madero SA.
Independent players continued to dominate consumer foodservice in both value sales and outlet numbers in Brazil in 2018. This was particularly evident in self-service cafeterias and bars/pubs, as these foodservice channels are characterised by lower operational costs.
With the election of Jair Bolsonaro as president, both foreign and domestic investors saw a more positive outlook for economic recovery, with fiscal and social security reforms expected to be approved, which is encouraging to future investors. However, the economy is expected to make a slow return to growth over the forecast period, as consumers’ confidence gradually increases.
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This industry report originates from Passport, our Consumer Foodservice market research database.