Limited-Service Restaurants in Germany

PROSPECTS

Average spend at chains grows owing to digital and delivery strategies

2018 was another solid year for limited-service restaurants, as transaction volume continued to grow and higher spend per transaction led to further value growth. In 2018, many of the leading chained limited-service players embraced digital strategies to increase average spend per transaction.

Room for growth in healthy and vegetarian options

One of the leading current foodservice trends is for healthier offerings. 10% of German consumers claimed to be vegetarian in 2018, while another 2% claimed to be vegan, according to recent reports, and more restaurants are trying to cater specifically to this large and growing consumer segment.

Bakery products chains diversify menus and expand in travel locations

Bakery products limited-service is one of the most dynamic categories. Despite relatively mature market conditions, chained players have found room for growth by expanding in travel locations in and around train stations and airports, and by diversifying menu offerings.

COMPETITIVE LANDSCAPE

McDonald’s still leads, while Domino’s Pizza expands via acquisition

McDonald’s continues to lead in Germany by both number of outlets and total value sales. The chain, however, has limited plans to expand in Germany, while competing multinational chains, in contrast, have announced aggressive expansion targets.

Smaller chains outperforming big chains and independents

2018 was a notable year for limited-service chains in Germany, which collectively outpaced the industry. Smaller, more niche chains generally performed best.

Yum! Brands expands with KFC and Pizza Hut Express

Yum! Brands Inc, the multinational operator of KFC and Pizza Hut in Germany, shifted gear in 2018 to compete more strongly with other leading chained players in the market. Pizza Hut, for instance, aims to expand in Germany with a strong focus on delivery and takeaway dining occasions: a clear shift away from the full-service dining formats that still make up the majority of existing locations.

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