Fast-Food Operations Dominating Restaurant Groups Market

October 19, 2006 by Mark | 0 Comments

Kyiv:

As Ukraine’s restaurant business increasingly consolidates, fast-food joints are taking the lead, with demand from Ukrainian consumers looking for a quick meal continuing to rise over the last several years.

According to industry experts, however, the Ukrainian market still leaves hungry and hurrying patrons with a narrow selection to choose from, while some quick-service eateries are not above cutting corners on hygiene and quality to keep expenses down.

Also, say market players, big international fast-food chains are noticeably limited in Ukraine, having already missed their chance to occupy the better locations.

According to Olga Nasonova, the owner of Kyiv-based Restaurant Consulting, the number of restaurants belonging to restaurant groups has grown by about 20 percent in Ukraine in the last three years, while the level of restaurant services has been improving due to rising competition in every niche of the business, whether it is a high-class eatery with haute cuisine or a fast food joint.

“Five or six years ago, restaurants didn’t bother much about how to garnish a dish and serving it nicely with a smile, and they still kept their customers because there was almost no competition,� Nasonova said.

“Now the competition is getting tougher. A customer has a choice whether to go here, or turn the corner where there is another good place. That’s why there is a fight for clients now.�

According to Nasonova, fast food chains are well placed to take advantage of the increasingly competitive environment.

In News, Franchising in Europe

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