Limited-Service Restaurants in Bulgaria

PROSPECTS

Trend towards busier lifestyles bodes well for 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.

Chained pizza limited-service restaurants set to remain the most dynamic category

Chained pizza limited-service restaurants posted the fastest growth in current value sales, transactions and outlet numbers in 2018, and is expected to remain the most dynamic performer in all three respects over the forecast period. Its development will continue to be bolstered by the success of Domino's Pizza, which was the only brand present in the category at the end of the review period.

More players expected to introduce healthier choices and home delivery services

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 2018. McDonald's maintained its position as the leading brand in value terms, followed Domino's, KFC, OMV Viva and Aladin Foods.

Domino's continues to gain ground in 2018

Domino's recorded a healthy increase in its overall value share within limited-service restaurants in 2018, maintaining the upward trend observed throughout the review period. The brand continued to benefit from strong advertising support, and its performance was further bolstered by the opening of new outlets in a number of cities.

Competitive pressures on independent players set to intensify

While independents will remain dominant in limited-service restaurants over the forecast period, their aggregate shares of total current value sales and transactions are expected to decline steadily towards 2023. Moreover, in both respects share declines look set to be larger than those experienced by independents in other foodservice categories.

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