Full-Service Restaurants in Colombia

PROSPECTS

Boutique and single outlet brands attract consumers

Full-service restaurants continued to see current value growth in 2019, with the rate of growth surpassing that seen in the previous two years. Growth also continued in transaction volumes and outlet numbers.

Chains of North American full-service restaurants are exiting Colombia

Partly due to the desire for different and memorable experiences described above, brands within chained North American full-service restaurants are struggling in Colombia. They have struggled to compete as their offer is covered more effectively by limited-service restaurants offering burgers and grilled products in more versatile casual outlets such as El Corral.

Middle Eastern and pizza full-service restaurants record the highest growth

In the review period there was lack of competition within Middle Eastern full-service restaurants. This gap was leveraged by a growing number of independent brands, which offer exotic international dishes that increasingly adventurous local consumers are willing to try.

COMPETITIVE LANDSCAPE

Crepes & Waffles continues to lead

Crepes & Waffles, the leading brand in European full-service restaurants, as well as in overall full-service restaurants, has demonstrated itself to be an innovative model. It has gained important recognition over the years, to become a referenced domestic brand within consumer foodservice, whose offering differs from that of any other participants in the channel.

North American full-service restaurant brands are not performing well

Along with the exit of Chili's Grill & Bar and TGI Fridays in Colombia, other North American full-service restaurants such as Hooters, Fuddrockers and Johnny Rockets experienced declining value sales. They are experiencing competition from local brands in the full-service environment and even from limited-service restaurants (burger and Latin American) which offer more attractive menus due to their localisation, simplicity and value for money offers.

Agreements and restructuring will change the competitive environment

An agreement between Spanish Telepizza Group and Pizza Hut means that all Jeno’s Pizza outlets, which were acquired by Telepizza in 2010, will become Pizza Hut in the coming years, which will significantly increase Pizza Hut’s presence in Colombia. This process has already started, with Pizza Hut seeing an increase in outlet numbers in 2019, and Jeno’s Pizza a decline.

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