Limited-Service Restaurants in Bulgaria

PROSPECTS

Demand for convenience drives growth of limited-service restaurants

Limited-service restaurants looks set to perform well over the forecast period. While growth in outlet numbers will be tempered by increasing saturation, overall current value sales and transactions are projected to grow at faster rates than during the review period.

Eating on the go trend benefits pizza full-service restaurants

Amongst the emerging types of limited-service restaurants, chained Asian and chained Middle Eastern limited-service restaurants were the fastest growing in 2019 thanks to their low sales base. Pizza limited-service restaurants posted the fastest growth amongst well-established consumer foodservice categories, benefiting from the significant and growing importance of the convenience trend as consumers increasingly lack time to prepare meals.

Growth of healthier options and home delivery services over the forecast period

Over the forecast period, chains and independents in limited-service restaurants will continue to adjust their menus and business models to keep pace with the changing demands and preferences of consumers. The addition of healthier options, such as salads and juices, to menus is likely to remain one of the most visible trends in this regard, as Bulgarians are becoming increasingly conscious of the role that diet plays in the development of conditions like obesity, diabetes, heart disease etc.

COMPETITIVE LANDSCAPE

McDonald's maintains its lead but faces growing competition

Due to the dominance of independents, the competitive environment within limited-service restaurants remained highly fragmented in 2019. McDonald’s maintained its position as the leading brand in value terms, followed by Domino’s, KFC, OMV Viva and KFC.

Increasing competition to challenge McDonald’s lead

McDonald’s faces increasing competition from the Finnish chain Hesburger, which has pursued an aggressive expansion strategy since entering Bulgaria in early 2017. The company acquired seven outlets previously operated under the Burger King brand and added nine new outlets in 2018 and three in 2019, reaching a total number of 18 outlets operating under the Hesburger brand name.

Subway franchise suspended as company looks for a new representative for Bulgaria

Half of the Subway outlets in Bulgaria are now ?l?s?d, with ?nly a few still operating in major shopping malls in the capital, S?fi?, as Subway’s Bulgarian representative, Ivan Todorov, has been ???us?d of financial wrongdoings through his T?D Group. Th? fr?n?his? is susp?nd?d in the country, d?spit? th? ?nn?un??m?nt ?n th? local website th?t th? company is still l??king f?r tr?d?rs t? st?rt th?ir ?wn busin?ss.

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