Market Analyses: Russia in the Recession Year 2009

 
For some time past Russia has been one of the most dynamic foodservice markets in the world demonstrating 20% unit growth every 12 months. 2009 is the first year that most chain operators have to suspend their unrestrained expansion. Last autumn, the foodservice sector had to face decline in consumer demand, the situation getting even tougher in spring 2009.
 
The habit of eating out is quite new to the Russian people, no wonder it turned out to be the first expense item they were ready to pull in. According to Comcon research group, by November 2008 38% had cut their costs for awayfrom - home consumption, in March 2009 this figure had increased to 54%. The crisis has heavily affected consumers' eating out behavior. However, Moscow and St. Petersburg, their markets having grown extraordinarily fast in the course of the last few years, have proven to be more resistant to the downturn than all other regions. As Comcon reported in spring 2009, only 17% of Moscow's population and 12% in St. Petersburg had completely given up eating out, whereas this figure reached a dramatic 28% in the rest of the country.
 

 
That is the reason why some restaurant chains took the decision to close their regional outlets and concentrate their forces on the two capitals where business turned out to be far more profitable. E.g., the sushi-bar chain Yaposha (part of Ginza Project) has recently closed its units in Samara and Rostov-na-Donu. Shokoladnica took the decision to close same of its regional outlets, e.g., in Novosibirsk, Tolyalti and Samara. Its main competitor Coffee House still is trying hard in the regions, but had to close some outlets in Moscow, the number of Coffee Houses declining from 119 (end of 2008) to 104 (July 2009).
 
Read the whole article and have a look on the two included rankings (Russia: Top 20 Restaurant Operators; Moscow: Top 15 Foodservice Brands)