A small market primed for growth

Russia's consumer foodservice industry is still relatively immature and, at US$8.1 billion in value sales in 2010, it's much smaller than other similarly developed markets like Brazil, India and China. Russia's Soviet Union-era planned economy, mass early-nineties privatisation and 1998 financial crisis all made the market—up until about 15 years ago—a very difficult place in which to run a business. Many restaurants were forced out of the market during this period, leaving behind a very thin foodservice industry that hasn't yet returned to full-strength.

However, unlike conditions in larger developing markets, where consumers tend to favour full-service dining models, Russian diners love their fast food. In fact, fast food value sales in Russia accounted for 60% of total consumer foodservice sales in 2010, a figure that compares favourably to fast food sales in Brazil (16% of total value), India (12%) and China (23%). This distribution will increase to 64% of total consumer foodservice value sales by 2015, as 84% of total foodservice value growth in Russia will come from the fast food category. Even the fast food-loving US only attributed 39% of value sales to the quick-serve category in 2010, evidence Russia is uniquely fertile ground for fast food expansion.

Russian consumers are getting richer, too. Real per capita disposable income is expected to grow at an average rate of 7% from 2010-2020, and the percentage of middle class households (those earning between 75% and 125% of the median household income) grew 6 percentage points to 30% of total Russian households in 2010. Furthermore, wealth in Russia continues to flow to urban areas, resulting in disproportionately high concentrations of money in areas easily targeted by fast food operators. Urban areas are also seeing a boom in spending on fast-food-friendly highways and commercial centres with food courts that invite sales of quick and convenient fast food. The result is an expanding, urban middle class—all located within a concentrated area with plenty of newly viable outlet locations.

Granted, Russians traditionally prepare their meals at home, and there's a heavy cultural bias toward “from scratch” cooking. However, this growing middle class is made up primarily of young professionals, a group with busy working schedules, increasingly hectic social lives, and, in many cases, no family for which to cook. As a result, these single, urban dwellers are relying increasingly on prepared foods or quick foodservice meals that take little time and effort. Single-person households are actually the most rapidly growing household type in Russia, lending an increasingly large demographic—one with a need for convenience and an open-minded approach to foodservice—to fast food operators' target market.

Дата добавления: 2015-11-16