SECTOR CAPSULE: LIMITED-SERVICE RESTAURANTS IN COLOMBIA

 SECTOR CAPSULE: LIMITED-SERVICE RESTAURANTS IN COLOMBIA

KEY DATA FINDING

* Foodservice value sales grow by 27% in current terms in 2021 to COP6.5 trillion, whilst outlet numbers grow by 6% to 26,461

* Convenience stores limited-service restaurants is the best performing category in 2021, with foodservice value sales rising by 58% in current terms to COP40.3 billion

* IRCC Industria de Restaurantes Casuales Ltda is the leading player in 2021, with a foodservice value share of 9%

* Foodservice value sales are set to rise at a current value CAGR of 8% (2021 constant value CAGR of 5%) over the forecast period to COP9.7 trillion, whilst the number of outlets is expected to increase at a CAGR of 3% to 30,682

Market size Limited-Service Restaurants

Foodservice Value RSP - COP billion - 2007-2026 

6,495

Sales Performance Limited-Service Restaurants

%Y-O-Y Foodservice Value RSP-Growth 2007-2026

27.2%

2021 DEVELOPMENTS

The times when delivery was seen as an additional service are gone, delivery has become the new growth route for most limited-service restaurants operators. With people spending much more time at home during the COVID-19 crisis due to lockdown measures and moves such as the shift to remote working, and restrictions on the operations of physical consumer foodservice outlets, home delivery has become an important area of development for limited-service restaurants players looking to compensate for lost in-store sales.

More and more limited-service restaurants players are redefining their relation to delivery and developing stronger services than last-mile operators, which in some cases operate as marketplaces, charging for appearance on the portal without taking care of the shipping operation. Players are also starting to explore click and collect via app services and developing promises of delivery in 30 minutes or less as the increasingly compettitive environment drives efforts to provide a distinctive offer.

Company Shares of Limited-Service Restaurants

% Share (NBO) - Foodservice Value RSP - 2021

DEFINITIONS AND METHODOLOGY

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.

METHODOLOGY

This report is derived from Euromonitor International’s Passport information system. Industry research is carried out by a global team of more than 600 in-country analysts and is based on a core set of research techniques:

National-level desk research, company research and analysis, store checking, trade interviewing with national players and market analysis.

International-level desk research, multinational company research and analysis, trade interviewing with international players and market analysis.

19 April 2022 - EUROMONITOR INTERNATIONAL