D 58008 - Food Service Europe

D 58008
INTERNATIONAL TRADE JOURNAL
FOR THE HOTEL, RESTAURANT
AND CATERING INDUSTRY
EDITION 6/2012
www.food-service-europe.com
www.cafe-future.net
Special Features: 13th European Foodservice Summit, Top 99 Operators in Europe

C ONTENTS
4 Editorial
6 Statistics
Europe by Numbers
8 Pan-European Survey
Micro-Breweries and Brew-Pubs: Gaining
Ground in a Declining Beer Market. Part
One: Germany, UK, France – and the US
18 Hot Trend
Artisanal Ice-Cream Concepts (Part Two):
Commitment to Regional Sourcing and
All-Natural Ingredients
page 8 ■ ■ ■
Giving a home to beer: whilst the average
consumption of beer has been
declining in many European countries
in recent years, small, independent
micro-breweries, many of them running
their own F&B outlet or brewpub,
have profited from consumers’
rising demand for new tastes and regionally
rooted specialist beers. Part
1 of our pan-European survey.
Market Analysis
22 Europe
Top 99 Foodservice Operators 2011 Enjoy
Combined Sales Growth of 5.5% to More
than ¤85 bn
38 Interview
Ron Shaich, Chairman/Co-CEO and Prime
Mover of US Fast Casual Pioneer Panera Bread
Middle East Section
46 Fast Casual
BurgerFuel: Gourmet Burgers from Down
Under Set to Conquer the Middle Eastern
Market
■ ■ ■ page 38
At this year’s 13th European Foodservice Summit,
Panera Bread Chairman/co-CEO Ron Shaich told participants
about the importance of a ‘higher purpose’
rather than simply driving short term results. In our
interview, Shaich explains his approach of making a
difference not just to food quality perceptions, but
also to the lives of customers, staff and communities.
front cover ■ ■ ■
Commenting on the gloomy challenges which confront
European business, Stéphane Garelli, professor
at IMD and University of Lausanne and a world authority
on competitiveness, helped the audience to
digest the basically bad news with a catching sense
of humour. Photo: Thomas Fedra
13th European Foodservice Summit
50 Summit Report
In a Nutshell: Key Actors and Key Lessons to
Be Learned
58 Consumer Research
OOH Market in Europe’s Big 6 Countries:
Comparative Insights
60 Management
Securing Growth in Difficult Times: Statements
from Five Foodservice Professionals
63 Contributing Authors
64 Suppliers
MKN, Wolfenbuettel: More Versatile
Equipment to Multiply the Cooking Options
66 Top Trend Products
Supplier Present their Latest F&B and
Equipment Solutions
68 Show Dates
Major Trade Fairs and Events
page 22 ■ ■ ■
Europe’s top 99 foodservice operators
rang up combined sales of more than
¤85 bn (net) in 2011, a growth of 5.5%
(in constant currency) compared to
+4.5% in 2010 – despite a tough economic
climate in most parts of Europe.
Our ranking lists the leaders of the
pack and their facts & figures.
■ ■ ■
Turnover 2011: Top 99 Europe ■
– By Sector –
10.2%
Travel (11)
10.9%
Restaurants
(23)
Verlagsgruppe Deutscher Fachverlag
Mainzer Landstrasse 251 | 60326 Frankfurt/Main | Germany
Phone +49.69.7595-1512 | Fax +49.69.7595-1510
info@food-service-europe.com
10.7%
The Rest (18)
39.8%
QSR (28)
28.3%
Contract
Catering (19)
©FoodService Europe & Middle East
FOODSERVICE EUROPE & MIDDLE EAST 6/12
3

MANAGEMENT
Securing Growth
in Difficult Times
Growing in a diverse economic future: this is how the 13th European Foodservice
Summit defined the present global challenge facing the international professional catering
community. The motto of this year‘s event was ‘Ideas, Visions and Creativity’ –
and they are certainly more in demand than ever. We asked participants from six
countries around the world about the pros and cons of growth for 2012+, about important
steps they have taken over the last year and about their strategies for making
further progress, even under difficult circumstances. Part 1: Foodservice operators
from Finland, Egypt, Greece, Sweden and the USA. ir/MW/JPW
■ ■ ■
Our Questions ■ ■
● Main drivers of growth and
main obstacles – in the past 12
months and for 2013+
● Looking back at 2012: highlights,
challenges and the
general direction taken
● Looking ahead: visions, ambitions,
concerns
Nadine Beshir
Nadine Beshir, Managing Director, Cairo
Kitchen, Cairo (ET)
“Since the revolution, the people of
Egypt are constantly looking for something
new. This applies above all to art,
and I count food as a form of art and creativity.
People want local food, prepared
in a contemporary way and served in a
new environment.
2012 was the year we opened our first
Cairo Kitchen. Subsequently, in September,
we started up a second outlet in a
British school in Cairo. It was a very challenging
and exciting year.
It is becoming more and more difficult to
find good locations at affordable prices.
This is a great obstacle for us. In my country,
with all its political and economic
problems, lots of people invest in restaurants.
The sums involved appear to be
manageable. On the one hand, this is
good for the economy, but it’s bad for us.
Seven restaurant concepts have opened
up in our neighbourhood in the last six
months. I also see the political uncertainty
in my country as another hurdle.
To expand further, we need a stable infrastructure
and reliable laws. Everything
is constantly in a state of flux;
things can change for the better or for
the worse. We just don’t know.
Before the economic and financial crisis,
we weren’t at all fearful. People will always
go out to eat and won’t let that be
taken away from them. Even the rising
cost of raw materials doesn’t cause us
any sleepless nights, because we’ve already
had to cope with that. To a certain
extent, one has to pass the higher costs
on to the customers, but most of them
are understanding about it, since prices
are rising in other areas too.
Our aim is to set profit targets now, at a
level that will allow us to expand in a
sustainable way in the future. We must
always harmonise both short and longterm
aspects. There are two stages
facing our young concept now. The first
step is all about getting our brand sufficiently
well known. In the second phase,
we shall need to increase the number of
our outlets. Our goal for the next ten
years is to have opened one or two units
in every larger city in Egypt. But, our immediate
job is to reach the first milestone.
“ www.cairokitchen.com
Peter Falconer, Advisor to the Management,
Tim Hortons, Oakville (CDN)
“The effects of the global recession continue
to linger. Recovery has been slow
and in some cases sporadic over the past
four years and over different geographic
areas. Still, Tim Hortons remains focused
on continuing to expand its business. In
2012, we expect to open more restaurants
in Canada than any other quickservice
chain, and we recently were
ranked as the fourth fastest growing
chain in the United States. In our international
markets, we continue to open
locations in the Gulf Cooperation Council
region, with an initial target of 120 locations
by 2016. In total, we expect to
open more than 250 new locations in
2012 in North America and Gulf Cooperation
Council.
Our primary driver of growth is our market
differentiation: a stellar brand reputation,
convenience, fast and friendly
service and our always fresh quality
products at affordable prices. Our brand
delivers value in difficult economic
times, and reaps the benefit of unparalleled
traffic frequency in boom times.
Our obstacles to growth are consistent
with those that affect all quickservice
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MANAGEMENT
restaurants: intensified competitive environment
and macro-economic conditions
affecting our customers.
2012 continues a steady string of innovation
throughout the Tim Hortons
chain. We’ve introduced faster, simpler
payment methods to increase speed of
service and convenience for our customers.
On the menu side, we’ve added
new products to maintain or increase
our market share in the breakfast, lunch
and snacking dayparts: products like
grilled paninis, espresso-based lattes
and cappuccinos, specialty bagels and
smoothies. Our challenges have been to
remind our customers of our value
proposition, that we offer high quality
products at reasonable prices. So we’re
competing by offering menu combinations
and introducing more menu options
for greater customer choice at various
price points.
Looking ahead, Tim Hortons is executing
against a four-year strategic plan that
was initiated in 2010. Our ambitions are
to continue to grow in Canada, expand
methodically in the United States, and
Peter Falconer
seed the brand and business model internationally
as the company continues to
grow. We see the same challenges and
headwinds that everyone sees, from the
uncertain macro economic conditions to
volatile commodity prices. Our strategic
business activities help protect our business
and franchisees in times of turmoil,
such as buying six months in advance on
coffee futures to smooth out commodity
spikes. At the same time, our unique
business model also defends against difficult
conditions and allows for an appropriate
pace of growth. For example, our
vertical integration better protects
against supplier disruption.
We believe success can come from meeting
our guests’ ever changing needs
through a relentless spirit of continuous
improvement and innovation, across our
business and in our restaurants.”
www.timhortons.com
Anu Kokko, Director, Marketing and
Creation, Fazer Food Services Finland,
Helsinki (FI)
“I think that quality, taste and an opportunity
to make individual choices will
still be the key success factors in the
foodservice industry in the future. The
world is now more prosperous than ever
before and the constant need for growth
continues to play a major role. However,
in the future, growth will come more and
more from the service side of the business
and hopefully from those sectors
that use alternative, sustainable sources.
Fazer Food Services is a part of the Finn-
FOODSERVICE EUROPE & MIDDLE EAST 6/12
61

MANAGEMENT
Anu Kokko
ish Fazer Group that was founded as a
family business in 1891 and has, nowadays,
a turnover of ¤1,575.5 m (2011).
More than 50 % of its revenue comes
from outside Finland. Fazer Food Services
is well-known as the leading contract
catering company in the Nordic
countries, with an annual turnover of
¤568 m (2011). Every day, around
400,000 customers visit some 1,100 restaurants
in Finland, Sweden, Norway
and Denmark (mainly staff restaurants,
some of which are also open to the public
– and about 50 open-sector cafés and
restaurants). Furthermore, Fazer has also
established itself as the leading bakery
and confectionery brand in Finland and
one of the leading companies in Russia
and the Baltic Sea countries with 19
large-scale, industrial bakeries in Finland,
Sweden, Estonia, Latvia, Lithuania
and Russia. The bakery and confectionery
business accounts for 64 % of Fazer
Group’s turnover: ¤1,008 m (2011).
When we consider the market in general
and our company in particular, it is evident
that to operate successfully and be
competitive it will be necessary to keep
our two major objectives clearly in mind:
we shall need to continuously develop
our core product, lunch, and to build beyond
it.
Furthermore, we must also be aware of
the obstacles. Over the last twelve
months, we have had to fight against the
overall economic challenges, as well as a
decrease in the number of employees at
our contract clients, and we shall continue
to do so next year as well. The major
achievement of the last three quarters of
2012 has been to lay the necessary foundations
and prepare for growth.
Looking ahead, it will be important for us
to ensure our resilience against a possible
Euro crisis and to continue to listen
to the people who eat in our restaurants
Wilhelm Vintilescu
as well as to our clients, to understand
their needs and wants and to study the
market trends. Moreover, we shall have
to develop further our product ranges
and services in the light of their responses
so that what we offer remains attractive,
relevant and worthwhile. The importance
of new and diverse services in
our company is shown by our idea for
‘Fazer Meetings and Events’. Since May
2012 Fazer has run a sales service specifically
designed for meetings and festivities,
enabling customers to make reservations
and order catering services at
several locations.
Our strategy for the future is based on
four cornerstones:
■ We focus on leading brands.
■ We create an operating model that
supports our goals.
■ We seek growth in higher value products
and services.
■ We expand in growing markets.”
www.fazer.com
Wilhelm Vintilescu, CEO, O’Learys,
Stockholm (SE)
“Providing more and more people
around the world with a restaurant that
has a casual interior design so that does
indeed feel like ‘Your Second Living
Room’, and combining this with tasty,
well-cooked food from good suppliers –
this is our main driver today. Increasing
the number of our restaurants is our key
issue. In doing that, of course, the main
challenge is to grow fast whilst, at the
same time, keeping our unique identity
and maintaining quality in all major aspects
of our concept. Teaming up with
the right international multi-operators is
probably the way forward for O’Learys
Bar&Restaurants.
2012 has certainly been our most successful
year since we started in 1988. In
terms of growth, so far we are up 54% in
chain expansion; like-for-like sales in existing
restaurants have increased by
17%. In June alone, like-for-like sales
were up 44%, owing to the high level of
interest in the European Championship.
As we work closely with Select Service
Partner (SSP), we can see that O’Learys
restaurants in airports and train stations
are picking up significantly. The challenge
is, as I suggested, to grow in numbers
whilst maintaining quality. Our educational
platform, the O’Learys Academy,
and the way we set up our franchisees
are the most important drivers
and also our major challenges.
Our vision is to be one of the leading
brands in the food industry. By establishing
O’Learys in new markets, we want to
expand the brand into several other
countries and to become a role model
within the industry with profitable,
proud and happy franchisees.
We are certainly humble enough to understand
that there may be obstacles to
growth over time. One main issue at the
moment is whether customers will
change the behavior they adopted when
the Euro crisis hit … On the other hand,
we must believe that we can attract customers
whatever the climate. I am convinced
that O’Learys will be attractive to
many generations to come. ‘Your Second
Living Room’ will always be a place to
meet. www.olearys.se
Magda Bresta, Strategy Director, Gregory’s
Food Service Group, Athens (GR)
“Like almost every other market, the
Greek take-away food & coffee sector has
been ‘traumatized’ by the severe economic,
political and social crises of the
past five years. Gregory’s, currently Europe’s
8th largest coffee bar chain, entered
this difficult period as the market
leader in Greece (260 Coffeeright outlets,
the majority of which are in Greece).
First we re-evaluated our situation at
home and afterwards we looked at the
European food & coffee market. Using
these evaluations as a basis, we endeavoured
to find the drivers behind potential
growth and possibilities for entering
new segments of our local market in
Greece (e.g. bakery & patisserie products).
Apart from that, we explored our
chances of further expansion outside
Greece (e.g. with a new store in the Bahamas).
Besides the crisis-related changes in
consumer behaviour we had to contend
with the market’s low entry barriers, the
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MANAGEMENT
low initial investment proposed by some
competitors or independent operators
(it is fairly easy to enter the take-away
food & coffee market), the new government
regulations for the industry and
the revised taxation laws.
We consider 2012 to be a very difficult,
but surprisingly rewarding year for
Gregory’s. Coping with the turbulent environment
in Southern Europe has been
a demanding task for every company.
Nevertheless, we have been able to
achieve positive results during the last
three quarters. The driving force behind
Gregory’s is our strategic plan, focusing
on continued support for our franchisepartners,
investing further in R&D and
promoting product categories and services
that add extra value to everyday
transactions.
At the beginning of 2012, Gregory’s introduced
a bold pricing strategy: we
were the first company to reduce the
price of all coffee-based beverages, as a
‘Thank you’ to our guests. The new pricing
policy was backed by an extensive
promotional campaign and strengthened
further by below-the-line activities.
The message of the campaign: great value
for money, affordable for everyone.
Thus, Gregory’s was able to keep customers
happy, while increasing the
number of visits.
We realized from the very beginning of
the crisis that all the variables had
changed. The consumers’ behavioural
patterns had changed, the average ticket
was lower, and overall spending decreased
significantly. People not only
became more pessimistic about their future,
they also saw their current income
shrinking.
Given the nature of our products (low
price vs. high perceived value), we succeeded
in preparing our partners for the
deployment of strategies that might
change the course of the market. By lowering
operating costs and improving efficiency,
Gregory’s successfully overcame
some of the biggest risks. We also
managed to lower the initial investment
needed to open up a new store.
Magda Bresta
Keeping up with an environment that is
constantly changing is in itself a very difficult
task. Coming up with new ideas,
recognizing opportunities as they arise,
improving existing practices, educating
partners and associates, expanding into
new markets and overcoming obstacles,
all within an unstable environment, will
be the challenges that determine the
market winners in the near future.”
www.gregorys.gr
■
INTERNATIONAL TRADE JOURNAL FOR THE HOTEL, RESTAURANT
& CATERING INDUSTRY 6/12
Published by: Deutscher Fachverlag GmbH
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Contributing Authors
Lydie Anastassion, Paris, France
Katie Dunne, Elliott Marketing & PR, Great
Horwood, UK
Doris Evans, Titirangi, Auckland, New Zealand
Puck Kerkhoven, Hilversum, New Netherlands
Sofia Selberg, Conceptuelle, Stockholm,
Sweden
Bruce Whitehall, Wallington, UK
Translation Richard Hockaday, Frankfurt (M),
Germany
FOODSERVICE EUROPE & MIDDLE EAST 6/12
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