Fast Food in Bulgaria

PROSPECTS

Moderate growth ahead

Fast food is projected to experience moderate growth over the next five years, slightly underperforming the overall market. The main reason for this positive expectation is the current projection for stronger economic growth over the next five years and significantly lower unemployment.

Convenience performs well in 2017, but burgers expected to perform strongly going forward

Burger fast food is seen as the most dynamic format going forward, reflecting affordable pricing in combination with continued consumer income growth. Pricing is projected to remain affordable in the format mainly due to greater competition, as more international brands enter the Bulgarian market.

Consumer behaviour evolving

Over the forecast period, consumer behaviour is expected to evolve. Health awareness will become an increasingly important factor when choosing where and what to have for lunch or dinner.

COMPETITIVE LANDSCAPE

Category leaders show little dynamism

Fast food is a fragmented category dominated by independent establishments. The leading brand in the category is McDonald’s, followed closely by KFC and OMV Viva.

Strange behaviour of major franchise operator

Outside the top three, Texas Chicken and Dunkin’ Donuts saw poor results in 2017 and shut down two outlets each. Even larger player Burger King disappointed and shut down a key outlet in central Sofia.

Competition in the burger format set to intensify

Developments suggest that competition in the important burger format increased significantly in 2017. In January, the Finnish burger chain Hesburger entered Bulgaria.

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