Foodservice experienced numerous ongoing challenges in 2018 due to the increasing number of regulations. Regulations caused salary expenses to rise as a result of the foreign worker fee and the tax on waiters’ tips, while business licenses became increasingly difficult to maintain due to numerous health regulations.
Many of the new regulations have impacted manpower costs. A fee makes employing foreign workers more expensive, while the new law regarding paying taxes on tips means that waiters receive less money, unless the restaurant compensates them for this income reduction.
McDonald’s Israel continued to lead consumer foodservice in 2018 through a very strong and widely present chain. The company invests strongly in marketing and promotes numerous campaigns all-year-round.
Foodservice operators, especially independents, are becoming more dependent on third party players, which impose high commissions, yet cannot be objected to, since they attract a large number of a restaurant’s customers. In general, online platforms are growing due to their convenience and speed, and they are accounting for a growing portion of outlets’ traffic.
A return to basic and local ingredients is seeing food become simpler and less tampered with in terms of preparation and presentation. As supply costs increase, many operators are simplifying their menus with fewer options and dishes using fewer or simpler ingredients.
Consumer foodservice is expected to continue to adapt to changing market conditions in the forecast period. The key trends towards the end of the review period are predicted to continue to influence development and the overall performance of the industry.
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Discover the latest market trends and uncover sources of future market growth for the Consumer Foodservice by Location industry in Israel with research from Euromonitor's team of in-country analysts.
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This industry report originates from Passport, our Consumer Foodservice market research database.