According to a report from the United States Department of Agriculture (USDA), it is projected that the sales in the Philippine consumer foodservice industry will experience a 20% growth rate in 2023, marking a decline from the impressive 26.6% growth observed in 2022.
The report highlights that despite limited-service restaurants maintaining their majority share in the food service sector, street kiosks have outpaced limited-service restaurants, full-service restaurants, cafés, and bars in terms of sales growth. The food service industry is anticipated to return to pre-pandemic levels by early 2024, according to estimates.
Last year, it was the pizza restaurants that made the most significant contribution to overall restaurant sales, experiencing a remarkable 24% increase, closely followed by Asian restaurants.
While many food establishments are introducing fresh restaurant concepts, certain restaurant chains accelerated their store openings to fulfill local and international franchise commitments. In 2022, a significant 57% of restaurants were affiliated with a chain, while only 27% operated independently.
“As restaurant chains open more company and franchise-owned stores, they will continue to outpace independent restaurants. Chains have more financial leverage to expand, efficiency in operations, and capacity to order bulk purchases compared to independent stores. Most food chains such as Jollibee and Potato Corner focused on faster store openings locally and abroad,” the report said.
Sales at the café and bar increased by 26% in the previous year.
In 2022, bars and pubs retained their dominant position in the market, accounting for 40% of total sales shares. Cafes and specialty coffee and tea shops both held a 30% share, creating a tie for the second-largest segment.
Starbucks maintains its frontrunner position in cafe sales, commanding a 56% market share with total sales reaching $775 million in 2022. Following closely is Dunkin’ with $142 million in sales, followed by McCafe at $86 million, Mary Grace at $64 million, and The Coffee Bean & Tea Leaf at $62 million.
In the meantime, the USDA predicts that sales from street stalls and kiosks will experience a remarkable 25% growth in 2023, building upon their outstanding performance as the leading category in the previous year.
Nevertheless, the growth rate is more sluggish this year when compared to the previous year, primarily due to the increased cost of raw materials and consumer reluctance to spend.
In 2022, the leading brands among street stalls and kiosks in terms of sales were Angel’s Burger at $134 million, Tender Juicy Hotdog at $110 million, Turks at $93 million, Infinitea at $88 million, and Zagu at $76 million.
