Limited-Service Restaurants in Norway

PROSPECTS

Health trend influences limited-service restaurants

In 2018, vegetarian burgers were available in McDonald’s, Burger King and just about everywhere else, with vegan offerings also spreading. The arrival in Norway in June 2018 of the British chain Leon took healthy food to a new level in limited-service restaurants via a switch from butter to olive oil and a preference for spices over salt.

Digitalisation and an enhanced customer experience

Following the late arrival of self-service ordering in McDonald’s in Norway at the end of 2017 and its subsequent table service experiment, limited-self service restaurants are now engaged in trying to enhance the experience of their customers. Apps from convenience store limited-service restaurants are proposing customised offers, faster electric car chargers are being installed in parking lots and double drive-in lines are being added to McDonald’s outlets.

Online ordering and third-party delivery companies to disrupt the channel

Limited-service restaurants are facing an unusual challenge from third-party delivery companies. The convenience of their service is helping other channels to tap into the traditional advantages of limited-service restaurants, among them full-service restaurants, especially during the lunch break.

COMPETITIVE LANDSCAPE

Different strategies in burger limited-service restaurants

Although many players have ambitions to spread across the country and increase their number of outlets, this has proved difficult. For instance, in 2018, only Burger King achieved a significant rise in number of outlets.

The pizza war transcends categories

Domino’s Pizza arrived in Norway in 2014 and has roughly doubled its number of outlets every year since. However, in spite of this, the company’s value sales remain a fraction of those of the two behemoths in pizza in Norway, namely the limited-service restaurant Pizzabakeren and the full-service restaurant Peppes Pizza.

Chained limited-service restaurants dominate the category, led by McDonald’s

Chained limited-service restaurants benefit from a dense network of outlets and strong brand recognition throughout Norway. Their lead in outlet numbers and value sales is expected to continue over the forecast period.

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