D 58008

INTERNATIONAL TRADE JOURNAL

FOR THE HOTEL, RESTAURANT AND CATERING INDUSTRY

EDITION 3/2010
www.food-service-europe.com www.cafe-future.net

Special Features: Foodservice Market Germany Coffee Bar Sector in the Middle East

CONTENTS

4 6 8 18

Editorial Statistics
Europe by Numbers

page 8

Pan-European Survey
Juice-Bars: Niche Segment Full of Energy

Hot Trend
Customer Magazines in the Foodservice Industry: Maintaining Good Relations with the Client Base

Juice a veritable summer subject that goes perfectly with the current trends towards wellness and health. As the juice business tends to be seasonal, most juice-bars rely on alternatives to survive the winter months in cooler latitudes at least.
Photo: Le Paradis du Fruit, France

Market Analysis

22

Germany
Top 100 Restaurant Chains/Companies with a 1.1% Increase in Sales in 2009

26 36

Interview
Edward Mohr, Managing Director, Ikea Food Services, Helsingborg/Sweden

page 26

Operations
The Restaurant Managers Bill of Rights

Middle East Section

37 40 42 43 44

Coffee Bars
Portrait: Booming Coffee Sector in the Middle East

Furniture retailing giant Ikea has built up one of Europes largest foodservice businesses. Edward Mohr, Managing Director, Ikea Food Services, discusses the role of foodservice at Ikea, as well as brand management, efficiency issues and best-practice sharing.
Photo: Thomas Fedra, Frankfurt

Istanbul
Casual Dining: The House Caf with Nine Venues in the Metropolis on the Bosporus

front cover

Istanbul
At a Glance: Brasserie Concepts with World Cuisine

Istanbul
Assessing the Citys Foodservice Market: Chilis Franchisee Kagan Sanli

Another way to empty a glass: the spectacular shot comes from the Zielwasser cocktail book by Anika Krause and Miriam Oelmayer, published by Collection Rolf Heyne, Munich/Germany, in 2010. 66 recipes are combined with 66 stunning photos, which capture the very moment of destruction.
ISBN 978-3-89910-453-0, www.collection-rolf-heyne.de

Istanbul
Levent Bykugur, Co-Founder of Istanbul Doors, on Growth Perspectives for the Groups Casual Dining Formats

46

Istanbul
Earth Caf & Restaurant: a Showpiece Family Restaurant as Customer Magnet at Forum Istanbul

page 37

44 48 50

Contributing Authors Ouickservice

McDonalds: Another Strong Year the Global Market Leader 2009

Fullservice
Frankfurt: Zenzakan Pan-Asian Supper Club Striking XXL Basement Venture with a Cosmopolitan Feel

52

In our Middle East Section, we examine the region-wide phenomenon of a strongly growing coffee-bar sector. In addition, the third and last chapter of our threepart report on Istanbuls foodservice market (started in issue 1/2010) focuses on the citys casual-dining scene.
Photo: Midpoint, Istanbul

Fullservice
Munich: Brenner Restaurant Has Conquered the Bavarian Bastion of Huge Traditional Beer Halls

55

Design
Hamburg: Four Hotels, Four Design and Lifestyle Worlds, One Entrepreneur, a Common Message: Please Feel Good! 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

58 62

Supplier
Top Trend Products

Show Dates
Major Trade Fairs and Events

F OOD S ERVICE E UROPE

&

M IDDLE E AST 3/10

om ched inserts fr se see the atta Plea GmbH Mangelberger . fessional S.P.A Electrolux Pro

COFFEE-BARS

Venues for Entertainment and Social Life

To some degree, this is nothing new; coffee has been consumed in the Middle East for centuries, and thriving coffeehouse cultures have long existed in the region. Yet there is no question that the modern coffee shop sector represents something new, providing a social outlet for women, students, and other young people in stark contrast to the maledominated traditional caf sector. Far from a morning ritual, in much of the Middle East coffee drinking is done at night, with scorching daytime temperatures pushing eating out well into the evening. For international coffee chains, the growing importance of coffee shops to young people in the Middle East is a major opportunity, yet one which will require real adjustment to be fully realized. The expansion of the coffee sector in the Middle East is truly a region-wide phenomenon - Egypt and Saudi Arabia alone accounted for around 150 m in spending through modern coffee shops in 2009, while markets like Lebanon,

While coffee shops are now a worldwide growth phenomenon, they have proven especially popular in the Middle East, where they have become an important, and growing part of both the foodservice landscape and social life in general. International chains like Starbucks and Costa Coffee have expanded rapidly, yet face growing competition from local players like Egypts Cilantro or Saudi Arabias Joffreys Coffee and Tea. Michael Schaefer of Euromonitor International reports.

Middle East: Coffee Sales

Total Fresh Coffee Volume Sales (t) 1999 Algeria 63,624.3 Egypt 4,543.0 Morocco 5,386.8 Saudi Arabia 13,167.3 United Arab Emirates 1,677.8
*forecast

2004 81,168.4 4,678.5 7,710.2 16,961.0 3,003.1

2009 79,171.0 5,665.2 10,432.2 22,120.2 5,612.3

2014* 88,120.8 7,063.9 13,804.7 29,237.9 10,407.5

Total Instant Coffee Volume Sales (t) 1999 Algeria 2,297.2 Egypt 2,024.0 Morocco 250.1 Saudi Arabia 1,456.8 United Arab Emirates 447.9
*forecast, 1 ton = 1,000 kg

2004 3,221.3 2,216.5 632.6 2,030.3 716.7

2009 3,558.7 2,798.5 1,225.4 2,787.4 1,035.8

2014* 4,068.1 3,577.2 2,130.8 3,710.6 1,569.6

F OOD S ERVICE E UROPE

&

M IDDLE E AST 3/10

37

portant markets boast very young populations indeed. The median age in the countries of the GCC is just 26, while in Egypt it is 24 and in Jordan 22, indicating a large cohort of young people looking for places to socialize and eager to try new international brands Egypt alone is home to over 45 m consumers under the age of 30, while Saudi Arabia boasts more than 15 m under-30 consumers, according to Euromonitor. The social value of new, modern coffee shops should not be underestimated - many traditional cafes in the region, such as Egypts ahwas, tend to serve an older, overwhelmingly male clientele, and out

Saudi Arabia: Top 7 by Sales

Saudi Arabia: Top 7 by Outlets

Top 7 Specialist Coffee Shop chains by total sales (in m) Chain 2005 2007 2009 1 Starbucks 22.8 27.8 36.5 2 Mochachino 18.2 22.4 22.2 3 Seattles Best-Cinnabon 6.7 10.4 13.7 4 Costa Coffee 6.6 9.6 13.4 5 Joffreys Coffee & Tea 4.0 5.3 8.5 6 Seattles Best Coffee 3.7 6.3 8.2 7 Dr. Caf 4.8 5.8 6.7 Top 7 in Total 66.9 87.6 109.2

Top 7 Specialist Coffee Shop chains by number of units Chain 2005 2007 2009 1 Seattles Best-Cinnabon 59 80 95 2 Starbucks 42 54 70 3 Mochachino 30 35 38 4 Seattles Best Coffee 6 20 25 5 Dr. Caf 20 20 24 6 Joffreys Coffee & Tea 17 19 21 7 Costa Coffee 11 16 19 Top 7 in Total 185 244 292

Kuwait, and the United Arab Emirates are all witnessing booming expansion. Overall coffee consumption has moved steadily upwards as well since 2004, volume sales of fresh coffee have grown by 20% in Egypt, more than 30% in Morocco and Saudi Arabia, and a remarkable 85% in the United Arab Emirates, indicating strong demand for both athome and on-the-go coffee drinking opportunities. Surging coffee demand has not gone unnoticed by the worlds largest chains Starbucks now has close to 300 outlets in the Middle East, while Whitbread plcs

ME: Starbucks Outlets

2005 37 38 32 0 10 8 8 4 4 141 2007 47 58 49 9 13 7 9 8 5 205

1 2 3 4 5 6 7 8 9

Markets United Arab Emirates Saudi Arabia Kuwait Egypt Lebanon Bahrain Qatar Jordan Oman Total

2009 91 68 62 24 16 11 10 9 7 298

Costa Coffee brand operates more than 150 stores, nearly half of which can be found in the UAE. Canadas Second Cup chain also has a strong presence, joined by smaller players like Tullys and Caribou Coffee, a primarily US-based chain controlled by a division of Bahrain-based Arcapita Bank. At the same time, however, multiple local chains continue to hold their own Egypts Cilantro, for instance, now operates 56 branches there, more than Starbucks and Costa combined, while in Saudi Arabia a number of local operations enjoy a brisk business. Dr. Caf, for instance, has built a strong presence with a heavy emphasis on hospitals, universities, and other non-traditional locations. Such fierce competition has helped fuel an accelerating process of segmentation, as chains look to differentiate their offerings Cilantro, for instance, has moved aggressively towards the high end, investing heavily in distinctive outlet design and promoting a leisurely, relaxed atmosphere. One of the key drivers behind this expansion is a soaring youth population students and young people are a key demographic for coffee chains the world over, and many of the Middle Easts most im-

lets tend to be rather austere, leaving space for chains looking to serve a more mixed group of consumers seeking a more modern, upmarket atmosphere. More broadly, coffee houses occupy, along with foodservice in general, a very important position in terms of entertainment and social life in the Middle East. While one must not overgeneralise, on the whole social and entertainment options in the region tend to be somewhat limited compared with, say, Western Europe or North America. Saudi Arabia represents the most extreme example of this, with alcohol totally illegal and many other social activities either strictly regulated or banned outright, yet conservatism remains the rule throughout much of the region, though exceptions do exist Lebanon, in particular, boasts a thriving nightlife in and around Beirut. On the whole, this means that eating out (along with other activities like shopping) is a major, major social activity in markets like Kuwait, it is coffee shops and other foodservice outlets that see brisk business on weekends and at night, serving a function similar to bars, taverns, and other nightspots in other markets.

38

F OOD S ERVICE E UROPE

&

M IDDLE E AST 3/10

For coffee shop operators, this means that while demand is strong and growing, it is often for a slightly different product and experience than has proven successful elsewhere. The morning rush is limited as a daypart opportunity (even doughnut shops tend to see most of their traffic in the evening), while lunchtime is often spent at home, with businesses often shutting down during the midday heat, particularly in the desert states of the Gulf. Rather than fast, in-and-out service, an emphasis on atmosphere and quality is key,

lets to specific areas and consumer groups. In addition, finding the right local partner is as vital for coffee shop operators as it is for any other foodservice brand looking to make a splash in the Middle East. Besides offering valuable experience navigating a complicated cultural and business environment, scale is important given the powerful brands already present in the region. Whats more, with so much of the regions foodservice found in shopping centres and other airconditioned indoor facilities, com

Egypt: Top 10 by Sales

Top 10 Specialist Coffee Shop chains by total sales (in m) Chain 2005 2007 2009 1 Cilantro 8.3 26.7 36.2 2 Costa Coffee 4.7 19.0 23.3 3 Starbucks 0.0 5.3 19.1 4 Coffeeshop Company 0.0 0.0 5.1 5 Caffee Roastery 1.7 3.2 4.9 6 Harris Caf 1.5 3.3 3.9 7 The Coffee Bean & Tea Leaf 0.0 0.8 3.3 8 Columbus Caf 0.0 2.2 3.1 9 Segafredo Zanetti Espresso 0.4 2.2 3.0 10 Joffreys Coffee & Tea 0.6 1.7 1.9 Top 10 in Total 17.2 64.4 103.6

Egypt: Top 10 by Outlets

Top 10 Specialist Coffee Shop chains by number of units Chain 2005 2007 2009 1 Cilantro 14 40 56 2 Costa Coffee 8 23 23 3 Starbucks 7 21 4 Coffeeshop Company 10 5 Segafredo Zanetti Espresso 2 8 9 6 Harris Caf 5 8 8 7 Columbus Caf 6 6 8 Joffreys Coffee & Tea 3 6 5 9 Caffee Roastery 4 5 5 10 The Coffee Bean & Tea Leaf 2 5 Top 10 in Total 36 105 148

with many guests looking to linger and socialize. Operators should be prepared to adapt their existing models with an eye on the current incumbents - as noted, Cilantro has carved out a strong presence in Egypt by emphasizing outlet design, with an in-house design team allowed considerable leeway in tailoring individual out-

bining with a partner able to negotiate with local property magnates (or with significant real estate holdings of its own) is vital around a quarter of Saudi Arabias 2009 foodservice sales, for instance, came through retail locations, with shopping centres accounting for a large portion of this total. www.euromonitor.com

F OOD S ERVICE E UROPE

&

M IDDLE E AST 3/10

39