While there is a decline in full-service restaurants in Tel Aviv, growth is visible in other areas. Outside of Tel Aviv, full-service restaurants' consumer bases are more loyal.
More regulation makes it difficult to maintain a full-service restaurant as investment is expensive. However, full-service restaurants are benefiting as eating out becomes more habitual, rather than reserved for special occasions.
There is a move towards alternative kosher certificates in foodservice in Israel. While there is a growing demand for kosher full-service restaurants, Rabbinical kosher certificates are very expensive.
Japanika Ltd remains a key company, although it was overtaken by Burgas, which offers more brands, towards the end of the review period. Japanika remained the leading brand in a highly fragmented competitive landscape due to its widespread outlet presence.
Many full-service restaurants are simplifying their menus. As Israeli consumers increasingly seek fresh and natural ingredients, the food in simpler in terms of preparation and presentation.
The online channel is growing as more third parties enter the fray. Wolt and Deliveroo joined existing online and delivery service players Ten Bis and Cibus in 2018/2019.
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This industry report originates from Passport, our Consumer Foodservice market research database.