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& Associates
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FRENCH RESTAURANT SECTOR:
Top Line Insights on Chains

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& Associates
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Food service Market in France
Commercial Food Service accounts for more then half of French Food Service, while the highest growth
comes from Alternative Circuits (e.g. Petrol Stations)
Food Service
Commercial
Collective
Alternative
Circuits
Hotels
Vending
Share 2007-12Description
+12.2%
+4.8%
+24.9%
+9%
+0.4%
Independents,
Chains, Groups
Schools, In-
company,
Hospitals
Boulangerie,
Petrol Stations
Hotels
Warm, Cold
Snacks, Pizzas
58%
22%
13%
7%
0,2%
SANITIZED

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& Associates
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Food service Market in France
Food service in France is growing both in volume and in value
'M EUR Mn transactions
# of Outlets Average Ticket (EUR)
+20% +12%
+11%
-3%
• Turnover grew by 20% in
reference period, thanks to:
• 12% increment in the
number of transactions
(e.g. meals)
• 11% increase in the
number of outlets
• Despite the average ticket is 3%
below the 2008 value. Although
it seems to have a positive trend
in the past 3 years
• The number of outlets peaked in
2010 and seems to have
stabilized in the past 3 years
SANITIZED

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& Associates
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Food service Market in France
Four per cent of the transactions (i.e. tickets above 21 EUR) account for 43% of the market value
Super
Eco
(<
10
EUR)
Eco
(11-­‐15
EUR)
Intermediate
(16-­‐20
EUR)
Superior
(21-­‐30
EUR)
Haute
de
Gamme
(31-­‐50
EUR)
Luxe
(>
50
EUR)
Share of Transactions Share of Value
SANITIZED

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& Associates
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The Commercial Food Service
Chains account for a small number of outlets, yet for a high share of the total commercial food service
revenue
Share of Outlets
Independents
Café, Bars, Brasserie
Chains Groups
Share of Revenues
Independents
Chains
CBB
Groups
SANITIZED

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& Associates
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Commercial Food Service France: Price Structure
Average EBIT margin for French commercial service is 6%
• Cost of goods includes
raw and packaging
materials, and other
preparation related
materials, and supply
logistics
• Other purchases
include marketing and
selling expenses, utility
and intra-site logistics
• Labor costs include
both pay slips and
social charges
• D&A include all
depreciation and
amortization charges
• OH is the over head
due to related services
Average Cost Analysis for Companies
operating in the Commercial Food Service
Cost of
goods
Other
purchases
Labour D&A OH EBIT Retail Price
SANITIZED

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& Associates
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Commercial Food Service France: Focus Chains and Groups
Both Chains and Groups are growing in the past 3 years in volume and value
Chains
Groups
Revenues ( Millions EUR)
Chains
Groups
Mn of Transactions
• Chains: overall growth in the segment is driven by the increase in
number of transactions
• Groups: growth is due to both increase in transactions and
revenues per outlet
SANITIZED

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& Associates
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Commercial Food Service France: Focus Chains and Groups
For chains, the reduced growth in ticket and the diminishing capacity per outlet, are lowering the average
transaction per outlet and therefore the average turnover per outlet. For groups the ticket increase sustains the
revenues per outlet
Chains
Groups
Average Ticket (EUR)
Chains
Groups
Seating Capacity per Day per Outlet
Chains
Groups
2010 2011 2012
Revenues per Outlet ('000 EUR)
Chains
Groups
Average Transactions per Outlet
SANITIZED

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& Associates
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Commercial Food Service France: Focus Chains
In the past few years the number of brands in the market has decreased, yet the revenues per outlet and the
revenues per brands soared in the same period
Average Revenues per OutletNumber of Brands Average Revenues per Label
…but… &
-5% +2% +26%
• A Darwinian process of selection is in act, with the strengthening
of stronger brands and the disappearing of weaker chains
SANITIZED

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& Associates
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Commercial Food Service France: Focus Chains
American Fast Food takes the lion’s share in volume and value, although French Fast Food has higher
penetration
Anglo-­‐saxon
French
Fast
Food
Grill
Cafeterias
ThemaKc
Pizza
ThemaKc
Fast
Food
Revenues ('000 EUR) Mn Transactions # of outlets
SANITIZED

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& Associates
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Commercial Food Service France: Focus Chains
Market is very well segmented by type of cuisine
Anglo-­‐saxon
French
Fast
Food
Grill
Cafeterias
ThemaKc
Pizza
ThemaKc
Fast
Food
• Basic inverse relationship
between volume and average ticket
price
• Seating capacity increases with
volume transactions
• Anglo-Saxon restaurants include
McDonalds, KFC, Burger King
• Cafeterias include Flunch, Casino,
Crescendo, Cora, Ikea, Eris and
Toquenelle
• French Fast Food are lead by
Subway, Brioche Doree and Paul
• Thematic Fast Food include
Starbuck, Sushi Shop, Planet Sushi,
Mezzo di Pasta
• Grill include Buffalo Grill,
Courtepaille, Hippopotamous
• Thematic are lead by La Pataterie,
Bristro du Marche e Leon de
Bruxelles
Number of Transactions per outlet per year
AverageTicketPriceperTransaction
Bubble size proportional to seating capacity per outlet
SANITIZED

12. AMATI
& Associates
AMATI
& Associates
Registered address:
ul. Pułku Baszta 4A lok. 26,
02-649 Warszawa, polska
nip: pl 5213627346
url: www.filibertoamati.com
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