Limited-Service Restaurants in Germany

PROSPECTS

Growing demand for convenience boosts limited-service restaurants

In 2019, limited-service restaurants continued its strong performance in terms of value growth, increasing at a similar rate to the previous year, thereby remaining the highest growth category and main driver in consumer foodservice overall. This is being driven by overarching societal trends, including growing mobility, increasingly blurred lines between work and leisure time, and consequently a shift away from traditional eating behaviour towards greater demand for convenience.

Store modernisations and digital upgrades attract consumers

In view of the growing demand for limited-service restaurants, companies are not only looking to expand their presence in the market but are also focusing increasingly on store modernisation. This is evident throughout limited-service restaurant categories, including in major chains, like McDonald’s, Subway and Backwerk.

Store location increasingly critical to success

As German consumers increasingly prefer away-from-home consumption in consumer foodservice, competition for lucrative store locations is intensifying. This is especially the case for highly frequented travel locations, which are becoming more profitable, fuelled in part by the rise of away-from-home breakfast in terms of both transactions and spend per transaction.

COMPETITIVE LANDSCAPE

McDonald’s ongoing innovation initiative fuels growth

In 2019, McDonald’s further extended its already significant lead in limited-service restaurants. Its focus on modernisation and digitalisation are particularly noteworthy.

New market entrants reflect further growth potential of chains

In limited-service restaurants, independent players accounted for the majority of outlets in 2019, while chained restaurants recorded higher value sales and transactions, as well as higher growth in both measures. In view of the greater growth potential for chained players in the years ahead, new players are seeking to take advantage of this upward trend.

Competition among cuisine types intensifies

The modernisation and expansion efforts of chained limited-service restaurants are leading not only to growing competition within categories but also increasingly between them. This is particularly evident regarding chained bakery product outlets, which have seen a significant shift towards bistro-restaurants.

Files are delivered directly into your account within a few minutes of purchase.