France: A Favourable Balance

 
The foodservice market in France 2006: a widespread sigh of relief all round. It was a good year, especially for quickservice restaurants (+12%) and the leading companies (+7%). Even traditional restaurants noted a small increase in revenues after years of stagnation. Essentials from the annual sales ranking published by the French ‘Néorestauration’ trade magazine.
 

 
A positive result and cautious optimism at the end of 2006: according to surveys conducted by Insee, the French foodservice sector grew by 1.35% in terms of revenues generated. The 80 biggest companies/groups on the restaurant market achieved growth of 7%. Even traditional restaurants noted a positive development (+0.9%) for the first time since2001 (2005: -1.8%). Many people are talking about a turnaround – hand-inhand with a 2.6% increase in purchasing power last year (2005: +1.5%) and a significantly better climate of consumption. In the structured sector of the market (chains and groups), the 80 top companies have cleared the €10 bn hurdle for the first time with total revenues of €10.4 bn. Thus, the leading players have rung up a plus of 30% over the last six years (including expansion), a value that is well above the average for the sector as a whole.
 

 
The driving forces of growth? On the one hand, numerous takeovers, e.g., Flo swallowed Tablapizza while Elior ingested Station Restauration. On the other hand, growth at the top took place at the expense of individual restaurants. Striking, however, is the fact that, although the top 10 players in the ranking accounted for 60% of the revenues of the top 80 in 2006, their contribution to the absolute growth achieved by the leading firms was below average. Indeed, the dominance of the top 10 has fallen somewhat since 2000 when they held 66% of the market. The survey once again documents the almost unstoppable expansion of the quick-service segment, which currently accounts for over 50% of total revenues of the top 80 compared to a third in 2000.
 

 
The background in France is the same as everywhere: increasing consumer mobility and the associated change in eating habits in the direction of speed, price and efficiency. QSR formulas are particularly successful in the lunchtime business. This segment, which has now succeeded in making a good name for itself with regard to quality, is one of the most dynamic in the whole market,especially when it comes to concept innovations, e.g., modern formats with wellness appeal, mixed-service solutions.
 

 
| 25 June 2007 |