Full-Service Restaurants in Sweden

PROSPECTS

Continued but slower growth, which is expected to continue

Full-service restaurants continued to see current value growth in 2019, although this was slower than seen in all other years of the review period. This was partly due to the slight decline seen in outlet numbers, which also contributed to a decline in transaction volumes.

Catering to demand for ethical and authentic products and special diets

Swedish consumers are increasingly aware of what they eat and drink and the effects on the environment. “Conscious” or ethical food was therefore one of the main trends in full-service restaurants in 2019, relating to the impact food has on the environment and animal welfare, and whether meat should be consumed at all.

Diversified channel, from high-end to more affordable, and ethnic to domestic

Full-service restaurants is a highly diverse channel in Sweden, which includes a wide variety of outlet types. Restaurants specialising in ethnic food from around the world coexist with outlets serving meticulously prepared domestic dishes.

COMPETITIVE LANDSCAPE

O'Learys Trademark leads full-service restaurants but sees a strong decline

O'Learys Trademark continued to lead full-service restaurants in value terms in 2019. The chain was Sweden's first American-type sports bar, and as such benefited from first-mover advantage.

Chained players compete on price and with large screens

Given that chained full-service restaurants are so heavily geared towards casual visits and sports bars, the price positioning amongst players is clearly orientated towards the middle of the market. Having reasonable prices, especially for alcoholic drinks, and large TV screens showcasing the most popular games, is imperative to attract consumers.

Consumers clearly favour independents

Nevertheless, full-service restaurants is highly fragmented in Sweden, with sales and outlet numbers strongly dominated by independents. Most Swedes consider chained establishments to be appropriate for casual visits, and a large proportion are sports bars.

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