Full-Service Restaurants in the Philippines

PROSPECTS

Full-service restaurants’ core consumers’ purchasing power proves relatively robust in the face of economic difficulties

While overall consumer foodservice felt the impact of more challenging economic conditions and less favourable consumer sentiment towards the end of the review period, full-service restaurants is in a stronger position to recover than some other categories. This is because its core consumer base is comprised of middle- to high-income consumers, including working professionals, whose purchasing power is more resilient in the face of economic difficulties than that of other consumer segments.

Most categories perform well, but pizza full-service restaurants suffers from increasing competition

Most full-service restaurants categories, including Asian, North American and European, grew strongly at the end of the review period thanks to their focus on relatively affluent consumers who continued to eat out despite a more challenging economic environment. Pizza full-service restaurants was amongst the poorest performers, as it suffered from dampened consumer sentiment and more aggressive competition both from within full-service restaurants and from other formats, most notably pizza limited-service restaurants.

Core consumer base provides platform for growth

Full-service restaurants’ reliance on an affluent consumer base makes it relatively robust and the channel is likely to be amongst the earliest and most prominent beneficiaries of the growing frequency of eating out amongst Filipino consumers. However, competition is set to intensify both from within and beyond full-service restaurants.

COMPETITIVE LANDSCAPE

Neck-and-neck at the top

Max’s Group and Shakey’s Pizza Asia Ventures are neck-and-neck at the top of the rankings in full-service restaurants. In 2019, Shakey’s added a new brand to its portfolio through the acquisition of Peri-peri Charcoal Chicken.

Asian full-service restaurants continue to dominate

Asian full-service restaurants, which covers Korean, Japanese, and Chinese, as well as Filipino, outlets amongst others, will continue to dominate full-service restaurants during the forecast period. Filipino consumers will continue to eat out at restaurants serving traditional local cuisine and those offering modern takes on Filipino food, such as The Moment Group’s fast-growing Asian full-service restaurants chain, Manam Restaurant.

Growing number of foreign brands entering the market

The entry of foreign players served as an important driver of growth in full-service restaurants towards the end of the review period. Bistro Holdings Corp has been a prominent player in this respect.

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