The forecast period is expected to see all of Hungary’s limited-service restaurants facing major challenges generating profits due to high inflation and, in particular, rising energy prices. Few outlets in the channel, if any, will be able to escape the grip of high inflation and soaring gas and electricity prices.
It is expected that the cut-throat competition that defined the app-based third party services that offer foodservice home delivery in Hungary during the review period will remain in effect during the forecast period. App-based platforms operated by third party players are emerging as a particularly important aspect of the business models of the country’s limited-service restaurants and this is because few players in the channel have the capacity to achieve the economies of scale that are necessary to justify the investment in setting up an app-based in-house ordering system.
During the forecast period, establishing a value proposition by focusing heavily on one type of cuisine is unlikely to remain as important as it has been in the past in limited-service restaurants in Hungary. While it was once very important to position a limited-service restaurant as specialising in a specific cuisine or type of food, the single-minded focus on a very specific positioning has become much less relevant over the years.
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Limited-Service Restaurants
Limited-Service Restaurants (LSR) combine fast food and 100% home delivery/takeaway outlets. These outlets offer limited menus with items that can be prepared quickly. Customers typically order, pay, and pick up their order from a counter, though some outlets can have limited table service. This also includes 100% Home Delivery/Takeaway which provide no facilities for consumption on the premises. LSR tend to specialize in one or two main entrees such as hamburgers, pizza, or chicken, but they usually also provide drinks, salads, ice cream, dessert, etc. Food preparation is generally simple and involves one or two steps, allowing for kitchen staffs generally consisting of younger, unskilled workers rather than professional chefs. Other key characteristics include: • A standardised and restricted menu • Tight individual portion control on all ingredients and on the finished product • Individual packaging of each item • Counter service • For Chained Limited Service Restaurants, chained and franchised operations which operate under a uniform fascia and corporate identity • Any outlet offering full-service restaurant seating with servers would be excluded, even if delivery service is available.
See All of Our DefinitionsThis report originates from Passport, our Limited-Service Restaurants research and analysis database.
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