2015 was a turbulent year for the Greek socioeconomic environment, with subsequent negative consequences for consumer demand and spending levels. With capital controls having been imposed during summer 2015, many Greek consumers were highly insecure about the future course of developments with regards to the economic and political climate and their disposable income levels, which made them decidedly conservative in their spending habits. By the end of 2015, the rate of VAT levied on consumer foodservice had been returned to 23%, which caused new declines in demand and falling profit margins for businesses in the industry. In general, consumers reduced their visits to full-service restaurants during 2015, instead turning to cheaper consumer foodservices alternatives such as cafés/bars and 100% home-delivery/takeaway.
COMPETITIVE LANDSCAPE
TGI Friday's Inc was the leader in value sales in the category in 2015, with a 1% share of total sales. The company has been the leading player in North-American full-service restaurants with 35% of value sales in 2015. TGI Friday's Inc saw strong demand in 2015 due to having a solid and loyal clientele comprised of young businessmen and businesswomen, as well as foreign tourists.
PROSPECTS
Forecast trends in full-service restaurants are expected to continue revolving around pricing levels, given that the Greek economy is yet to stabilise fully. With consumer confidence remaining low, at least in the short term, Greek consumers are expected to continue basing their decisions on where to dine largely on menu prices.
Source: www.euromonitor.com
