RUSSIAN RESTAURANT MARKET REALITIES & TRENDS

Transcription

1 RUSSIAN RESTAURANT MARKET REALITIES & TRENDS Moscow, 20 October 2010

2 What is Russian Restaurant Market Today? Modern Russian Consumers Modern Russian Restaurant Market SO FAR! 20 YEARS Modern Russian Restaurant Companies 2

3 Rosinter Restaurants Holding Restaurant Count Growth CAGR Corporate: 26% Franchise: 74% Leading Casual Dining operator and franchisor in Russia, CIS and the Baltic states Aug 2010 Franchised Corporate Izhevsk St. Petersburg Perm Tyumen Surgut 21 Cherepovets 2 Ivanovo N. Novgorod Yekaterinburg Kazan 2 7 Yurmala Riga Moscow 5 Omsk Ulyanovsk Ufa Novosibirsk 11 1 Tolyatti 2 10 WroclawPoznan Minsk 7 Saratov Samara Gomel Warsaw 12 Kiev Dnepropetrovsk Atyrau Astana Prague Rostov Budapest Kishinev 3 -on-don 3 Almaty Stavropol 11 2 Sochi Krasnodar 2 Barnaul 6 Krasnoyarsk 3 Novokuznetsk 2 Corporate City Franchise City Mixed Operations August 31,

4 Structure of Russian Food Service Global Dining Market Growth Comparison (in USD)* Structure of Russian Food Services Market (by value), 2009** Food Services Dining Market 51% 49% Stalls/ Kiosks Institutional sales Fine dining, 4% Casual dining, 58% Fast casual, 19% Chains, 25% Independent, 75% Chains, 25% Independent, 75% QSR, 13% Chains, 92% Independent, 8% Coffee shops, 6% Chains, 74% Independent, 26% *Source: Business Analytica, VTB Capital Research **Source: Rosstat, Business Analytica, VTB Capital Research 4

5 Chain by Chain Russian Dining Market by Number of Outlets, 2009* Fast casual 49% QSR 5% Casual dining 40% Coffee shops 4% Fine dining 2% *Source: Business Analytica, Rosinter Estimates, VTB Capital Research Share of Chained Foodservices (by value), 2009** Share of Chains Evolution in Russia (by value), ** 50% 47% 45% 42% 40% 35% 32% 36% 35% 30% 26% 29% 25% 23% 20% 15% 10% 5% 0% Russia Moscow **Source: Euromonitor, VTB Capital Research 5

6 Our Guests 20 years ago: A visit to a restaurant was their dream! Today: They come to restaurants to have breakfast, lunch, dinner! Tomorrow: It will be a part of their life! Per Capita Annual Spending on Dining (in USD), 2009* Dining as % of Household Consumption per capita, 2009* *Source: Euromonitor, EIU, Business Analytica, VTB Capital Research 6

7 What Do the Russians Prefer? Regional CD Chain Restaurants Market Share by Cuisine, 2008* Moscow CD Chain Restaurants Market Share by Cuisine, 2009* Other 12,1% American 5,5% Russian 8,7% Beer 15,6% Japanese 39,7% 45% 40% 35% 30% 25% 20% 15% 10% 5% 40.2% 31.2% 25.1% 19.3% 18.1% 16.5% 12.5% 11.9% 8.3% 8.1% 4.8% 4.1% 0% Italian 18,3% by revenue Japanese Beer Italian Other cuisines American by number of outlets by revenue Russian *Source: Euromonitor, EIU, Business Analytica, VTB Capital Research 7

8 Bojole research,2009 Women are Power of Our Market Frequency of CD restaurants visits 28% 10% 9% 11% 7% 10% 3% 3% Wom en Men 2 Men 2 Women Man+Woman 3+ Men 3+ Women Groups Around 60% of guests in casual dining segment are women. Women are the opinion leaders and transactions drivers. They prefer Italian and Japanese cuisine and coffee shops. Men prefer grill, steak and fish houses, beer restaurants and bars. Quality food, service and atmosphere with good price is important for the Russians today. 8

9 Today s Segmentation of Consumer & Behavior Hit on Brakes Consumers Strongly affected by the recession No Saving End of month liquidity problems No access to credit Low propensity to spend Worried but Patient Consumers fully affected by the recession Some Saving Moderate end of month liquidity problems Moderate access to credit Low Propensity to spend Comfortable & Well-off Consumer Mildly if not affected by the recession. Good Saving Account Moderate or No end of month liquidity problems Moderate to good access to credit Good Propensity to spend Live for today Consumers mildly if no affected by recession Good access to credit Light or no of month liquidity problems High Propensity to spend A mind set (sometime not connected to bank account) 9

10 Consumer Segment Changing Behaviors Treats Shrink Size Entry Price Rosinter Strategy Review Entry Price Offer New Entry price offer focuses on affordability Reward Loyalty Value Deals Food Money Discount Coupon Rewarding next visit Combo Offers Lunch Menus, Bento Box, Etc Emphasize Quality & Service & Value Proposition Quality & Service Focus Re-Training of all cooking stations & Staff Dish / Glassware & Take Away boxes Improvement of tangible restaurant elements Payment Method Convenience Immediate satisfaction Malina as Payment Card Allow guest to pay with Malina Points Strengthening Wine list Improve elements bringing immediate satisfaction 10

11 Trends Delivery & Take Away Gastronomy Canteens Food Service for Private Jets Transportation Hubs University & School Dining Vending Machines Catering 11

12 Trends Bakeries Combo & Multycomplex Pure Coffee Shops Pan Asian & CIS cuisines Healthy Food Mono Product Concepts 12

13 Franchising Transport 2% Health protection 3% Training centers 3% Business service 5% Construction services 1% Entertainments, travel, sport 7% Retail industry 46% Public services 11% Restaurants industry 22% Leaders of Russian franchising market: retail, restaurants and services Around 350 franchisors operate on Russian market Foreign companies 52%, local companies 48 % 13

14 **Source: Business Analytica, Company data, VTB Capital Research RUB mn *Source: Company data, VTB Capital Research What s the News? Russian Dining Market Value, F* 1,400 1,227 1,200 1,091 1, OUR BABY HAS A GOOD APPETITE! F 2011F 2013F 2015F 2017F Moscow Russia Moscow Dining Market Share in Russia, 2009** 100% 90% 80% 70% 60% 60% 50% 83% 40% 30% 20% 40% 10% 0% By turnover Moscow 17% By number of outlets Regions 14

15 Thank you! & Bon appetite! 15