Full-Service Restaurants in Colombia

PROSPECTS

Boutique and single outlet brands attract consumers

More demanding and informed Colombian consumers are constantly looking for unique and memorable experiences in foodservice, which has led to the emergence of several boutique and single outlet brands that are meeting this need. Seratta Gourmand Market, self-proclaimed as the amusement park of restaurants with more than 10 interactive spaces; fusion restaurants such as Antica Ristorante, which combines Peruvian and Italian cuisine; Mesa Franca, a restaurant focused on meals to share; Ciervo y el Oso, a place where both vegans and non-vegans can socialise, are some examples that are taking share from chained outlets due to their varied and unique offers.

North American chains are leaving Colombia

Brands of chained North American full-service restaurants are struggling in Colombia, forcing some of them to close (TGI Fridays and Chili’s Grill & Bar) while others, including some with international recognition (Hard Rock Café, Hooters) are struggling to reach a critical mass and stable growth. Despite some isolated localisation attempts by Fuddrockers, Colombians are not embracing the offer and the competition is having a strong negative impact on them.

Middle Eastern records highest growth in 2018

While North American full-service restaurants struggled to compete as their offer was covered more effectively by limited-service restaurants (in the case of burgers and grilled products) with a more versatile casual set-up such as El Corral, there was lack of competition within the Middle Eastern format, a gap that has been leveraged by a growing mass of independent brands that are offering exotic international preparations that local consumers are willing to taste. The future of chains is unclear in full-service restaurants as the competition from fast casual brands is strong, with the channel predicted to continue under the domination of independents with very specific and innovative business models.

COMPETITIVE LANDSCAPE

Crepes & Waffles continues to lead in 2018

Crepes & Waffles, the leading brand in European full-service restaurants in addition to the overall channel, has demonstrated itself to be a winning model as it has gained important recognition over the years to become a referenced domestic brand within consumer foodservice. Crepes & Waffles continues to be loyal to its origins, offering affordable food with a very attractive value for money proposal.

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 (burgers and Latin American) which offer more attractive menus due to their localisation, simplicity, and value for money offers.

Jeno’s Pizza to give fuel to Pizza Hut during the forecast period

The agreement between Spanish Telepizza and Pizza Hut means that all outlets from Jeno’s Pizza, acquired by Telepizza in 2010, will become Pizza Hut in the following years, a fact that will significantly increase Pizza Hut’s presence in Colombia. Pizza Hut is small (at six outlets) compared to Jeno’s Pizza which had 45 outlets in 2018.

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