Market Analysis on Proposed

8/3/2019 Market Analysis on Proposed

1/12

MARKET ANALYSIS ON PROPOSED:MARKET ANALYSIS ON PROPOSED:

DOLCELATTE OSTERIA E PASTICCERIADOLCELATTE OSTERIA E PASTICCERIA

(FAST CASUAL RESTAURANT AND(FAST CASUAL RESTAURANT AND

PASTY SHOP)PASTY SHOP)

.


2/12

Industry Outlook

Foodservice Sector:

The Philippine foodservice market continues to expand in response to growing demand for convenience. Fast-food restaurants account for

the great majority of the market. Upscale restaurants and cafes (known locally as the 'casual dining' market) in Metro Manila present awide range of sales opportunities for U.S. foods and beverages. Restaurants located in five-star hotels and upscale malls are important

outlets along with popular western-style chains. All use imported ingredients, including meats, wine, seafood, dairy products, sauces, and

fresh produce. While restaurant managers will be price-sensitive when considering new ingredients, this is balanced with a need to

present new menu items to attract the notoriously fickle upscale Filipino consumer.

The Philippines has a young population, ages 1-29 comprise about 64% of the total population, which heavily favours dining in fast food

and casual/family restaurants. Purchases of food away from the home continue to grow steadily, in fact eating out accounts for about12% of the food budget, up from less than 9% in the mid-1990s. Higher consumer standards and concern for food safety are driving

Filipinos toward dining in restaurants and away from traditional food hawkers.

Popular chains led by Jollibee, McDonalds, ChowKing, KFC and Pizza Hut offer attractive menus and fiercely competitive prices, with fullmeals available for as little as $2.00. U.S. products found in these outlets include French fries, processed poultry products, sauces, and

cheese toppings. Foodservice sales are currently valued at approximately US$3 billion, increasing by an estimated 15%-20% per year in

the past decade.

American franchises, which normally require standard or U.S.-approved food ingredients, have encouraged increased imports of food

service products both in terms of volume and variety. Frozen French fries are the single most important product for this sector from the

United States, importing over US$20 million in 2009. There is a growing demand for frozen poultry products, sauces & condiments, andfresh & processed fruits/vegetables.

The number of full service restaurants is also growing. Nearly all the growth in recent years is in fashionable shopping/dining areas in

Metro Manila. With their focus on quality, these restaurants bring in significant amounts of a wide variety of importsspecifically meats,wine, and condiments. Full service restaurants are a good way to introduce high-quality ingredients to the Philippines. Competition in this

segment is keen and restaurant operators are interested in new and exciting menu ideas to attract customers.

http://www.foodexport.org/Reso

urces/CountryProfileDetail.


3/12

Competitive Landscape

Filipino chicken full-service restaurant Maxs Incremained as the largest company in the categoryduring 2010. Generating revenue of Ps2.04 billion, the

company accounted for 2% share of total sales in full-service restaurants. Maxs chicken is iconic in full-servicerestaurants and could be referred to as one of middle-income Filipinos comfort food. Served with local sweetpotato fries, Maxs fried chicken often evokes childhood

memories. The strength of Maxs Inc in the Philippines ismainly due to this image and the sentiment thatcustomers associate with the brand.

http://www.euromonitor.com/full-service-restaurants-in-the-

philippines/report


4/12

Industry Trends

Companies in full-service restaurants hope to leverage on a pool ofcustomers by opting to increase sales value through loyalty cards.During 2010, Pancake House, Inc which is a listed player in full-service restaurants launched its Orange Card which could be used inits brands Pancake House, Teriyaki Boy, Sizzlin Pepper Steak,

Dencios and Le Coeur de France. The goal of Orange Card is four-pronged: connect to customers in new ways; retain and turnpassionate customers into brand advocates; reward loyal ones; andreach out to other guests who have not tried the specialties of otherbrands. On the same note, Racks and Gerrys Grill also unveiledtheir loyalty cards while Shakeys upgraded its Pizzanatic Card. The

new Shakeys Pizzanatic Supercard gives customers usual benefitssuch as buy-one-take-one and free drinks as well as 10% discountfor credit card and cash purchases.


philippines/report


5/12

Prospect

During the forecast period, full-service restaurants isexpected to capitalise on the predicted strongereconomic performance in the Philippines. Business

process outsourcing hubs and shopping centres beingbuilt in the fast developing cities in the country isprojected to provide a fertile ground for growth ofchained full-service restaurants over the forecastperiod. It is also expected that as the pool of higher

income consumers widens and interest in moreinnovative food concepts heighten, sales from thesechannels will continue to grow.


philippines/report


6/12

Target Market

Dolcelatte Osteria e Pasticceria: will target the mid-

to high-income consumers who want to have a high

quality food, bakery products, and beverage at a

very reasonable prices. This group will see a largegrowth in their numbers over the next decade(NSO-

FIES 2009) If we can continue to meet and exceed

their expectations, we will expect sales growth over

time period. We just have to stay focused on their

changing needs to maintain their loyalty.


7/12

Target Market Segment Overview

Demographics of Primary Target Market:

Social Class A, B, and upper C income Group

Age Group: 25 to 45 years old

Profession: Officials of the government, Corporate

Executive/Managers/Supervisors/Professionals/Clerks/

Services Workers & Shop & Market Sales workers.

Education: Mostly College Graduates and Masters

Degree

Activities: Eat-out/Meetings


8/12

Statistics


9/12

Statistics


10/12

Statistical Data


11/12


Filipino chicken full-service restaurant Maxs Incremained as the largest company in the categoryduring 2010. Generating revenue of Ps2.04 billion, the

company accounted for 2% share of total sales in full-service restaurants. Maxs chicken is iconic in full-servicerestaurants and could be referred to as one of middle-income Filipinos comfort food. Served with local sweetpotato fries, Maxs fried chicken often evokes childhood

memories. The strength of Maxs Inc in the Philippines ismainly due to this image and the sentiment thatcustomers associate with the brand.


philippines/report


12/12


Price Point:

Very Low

(99-down)

Low

(100-299)

Mid

(300-499)

High (500-

699)

Very High

(700-up)

7-11 Jollibee Pizza

Hut/Shakeys

Cyma Spiral

Ministop KFC Bizu Italiannis Lemuria

Dunkin Donuts Greenwich Caff Dolce Burgoo Bistro Filipino

Mister Donut Starbucks Cafe Breton

Cafe Mary

Grace

Cibo

French Baker Bizu

Cafe France Delifrance

Documents

Market Analysis on Proposed