The fast food market - France (2024)

1.2 The global market

The global fast-food market reached $***.* billion in **** and fell in **** to $***.* billion, down *.*%. The global market seems to have picked up again, as it is estimated to reach $***.* billion in ****. The CAGR for the period **** - **** was *.*%. [***] In the overall foodservice market, fast food is the segment with the largest market share (***) and the highest CAGR. This growth is mainly driven by new trends, the success of food trucks and food tech, and the growing interest in world cuisine, as well as by emerging economies where Western brands are becoming increasingly established. The USA is the country with the largest market share, and is set to maintain this leadership position in the years ahead. [***] In Europe, fast food is also set to grow, albeit at a slower pace than in emerging economies, despite growing health awareness and concerns. This growth is being driven by the fast, convenient nature of fast food, which enables it to keep pace with new lifestyles, as well as a wider range of products where healthy alternatives are also available. In this way, the fast-food sector should increasingly meet the expectations of a segment of the population seeking not only speed and convenience, but also healthy eating. ...

1.3 A strong domestic market

While the French out-of-home catering market has yet to return to its pre-Covid levels, the same is true of the fast-food sector , which in **** is reporting record figures since **** ***** beats this record), with footfall equal to that of **** and growth of *% over the months of June and July **** vs. ****. The recovery is definitely here for the restaurant sector, and it's particularly good for the fast-food market. The latter has even managed to open new outlets, gaining market share at the expense of traditional restaurants and company canteens. This is due to the growth in delivery and takeaway sales during the health crisis, facilitated by the fast-food model itself, sales of which have not fallen back despite the lifting of restrictions[***].

By ****, fast food will be the leading growth driver in the foodservice market, recording around +*% growth in spending compared to ****, and an *% increase in patronage[***]. The market is said to have recorded average annual growth of **.*% over the ****-**** period, despite a slowdown in growth over the ****-**** period, linked in particular to the successive crises that have shaken France (***), which have led to a drop in restaurant patronage, including for fast-food outlets. Overall, however, before the health crisis, the sector ...

1.4 Market cyclicality

Fast food restaurant revenues France, **** - **** (***) Source: ****

The chart above is based on INSEE and NAF code **.**C (***). This is the sales index for fast-food outlets, with **** as the base year, to which base *** is assigned. In March ****, for example, revenues reached a value of ***.**, implying that companies registered under this NAF code posted sales **% higher than the average month in ****. This graph reveals a strong cyclicality in the revenue structure of fast-food businesses; every year, in July, relative sales fall, while in August they rise sharply. This is mainly due to the fact that in July, French workers are on vacation, travelling abroad or have more time to cook, while in August, the rush to work often prompts consumption of fast food.

However, it should be noted that this graph does not take into account the months of the health crisis, which do not reflect the cyclical nature of the market, but rather a general decline in sales over several months (***).

1.5 The fast-food sector has been hard hit by the health crisis

Significant drop in patronage and revenues

The foodservice sector has been hard hit by the health crisis. According to the sector report for the first eight months of ****, published by the NPD Group, the sector has lost almost **% of footfall compared to ****, the majority of which occurred during the containment period. During the months of March, April and May, the foodservice market lost **% of footfall and **% of spending, representing a loss of sales of between ** and ** billion euros. [***] Among consumption periods, lunchtime was the hardest hit, with a total drop in footfall of **% between January and August ****.

Fast-food restaurant revenues (***) France, January ****-July **** (***)

Unsurprisingly, the months of March, April and May see a sudden and unprecedented dip in the sector's revenues. A slight upturn is seen in June, quickly offset by a further drop in July (***). [***]

The fast-food sector held up better thanks to take-away and delivery sales, and thus managed to post a smaller loss of revenue, on the order of -**%. Fast-food outlets have basic operating models that are more favorable to takeaway and delivery - for most establishments, the majority of sales do not take place with table service. Three segments fared better than the others: pizzerias, supermarkets ...

2.1 The French, atypical consumers but fans of fast food

The French market is considered a special one, due to the importance attached to the country's restaurants, gastronomy and culinary traditions. In particular, fast-food chains have had to adapt their offerings to attract French consumers, such as McDonald's, which includes many ingredients typical of French gastronomy (***) on its menus.

According to a **** OECD study, France is the country where people spend the most time eating, with * hours and ** minutes a day. France also leads European countries in terms of the time given to lunch breaks (***)[***]

According to a survey carried out for a **** FranceAgriMer study, the main reasons why French people eat out are to "indulge themselves", and to avoid having to cook.

Reasons for out-of-home consumption on last visit of French respondents France, ****, in Source: ****

In the out-of-home catering sector, a survey revealed that **% of French consumers consider speed of service and consumption to be the main reason for visiting a fast-food restaurant. This trend can be explained by the increasingly active lifestyles of many French people.A franceAgriMer reportreport of **** informs us thatin ****, **% of French people will visit fast-food outlets.

A survey by ENOV shows that the economic aspect plays a very minor role in motivating French people to ...

2.2 Characteristics of fast-food demand

Frequency of French fast-food consumption France, ****, in Source: ****

By ****, the popularity of fast-food is well established, with almost **% of consumers eating fast food on a regular basis.

By comparison, a study by Anses shows a certain democratization of fast-food consumption over the years. The proportion of consumers who never eat there has largely decreased, with the lowest proportion on the ****/**** Anses study. In ****, **.*% of the population will consume fast food at least once a week, **.*% * to * times a month, **.*% less than once a month and **.*% never.

Frequency of fast-food consumption, by employment status, among adults aged ** to ** France, ****, in Source: ****

We can see from the graph above that it isworking people and students are most likely to consume fast-food products, with **.*% of them going at least once a week, compared with *.*% of retirees, the unemployed and homemakers. The difference is also striking for the proportion of retired, unemployed and homemakers who do not eat at least once a weeknever visit a fast-food outlet: **.*% versus **.*% among working people and students.

Frequency of fast-food consumption among working adults and students France, ****, in Source: ****

Within working adults and students, there is a clear difference in consumption patterns. Indeed, students**% of them go at least ...

2.3 Regional disparities

A HelloFresh study published in **** looks at fast food in France's ** biggest cities. It shows that fast foods account for **% of restaurants in Cergy-Pontoise, almost **% in Amiens, but *.*% in Paris, where fast foods are numerous but the overall restaurant offer is much more extensive. Taking all ** French cities together, the study concludes that an average of **.*% of restaurants are fast-food outlets. [***]

Top ** cities with the highest fast food market share France, ****, in Source: ****

The number of fast food outlets varies widely by city, from over **,*** in Paris to fewer than *,*** in Montpellier and Nantes.

Number of fast food outlets by city France, ****, in units Source: ****

2.4 France's favourite fast-food chains

The graph below is based on OpinionWay's survey of French people's favorite brands. These are the responses to the question "Do you like this fast-food brand? For each brand, the percentage corresponds to the proportion of respondents who answered "yes".

McDonald's is France's favorite fast-food chain, with **. *% of respondents saying they liked it. Planet Sushi is the least favorite of this list of fast-food chains, with only **.*% of respondents saying they liked it.

France's favorite fast-food chains France, March ****, in Source: ****

Survey: Focus on France's favorite burger brands France, ****, in Source: ****

The graph below compares the approval ratings of different fast-food brands according to the age of respondents. These * brands have the specificity of having a decreasing appreciation rate with the age of the respondents. The most spectacular difference concerns Burger King, with **. *% of respondents aged **-** saying they liked it, compared with only **.*% of respondents aged over **, although this figure has been rising since ****. Burger King's strong popularity with young people (***) is due in part to its strong presence on social networks.

Comparison of ratings for * fast-food brands by age group France, March ****, in % Source: ****

The graph below compares the approval ratings of * fast-food brands according to respondents' socio-professional category. ...

2.5 Demand for home-delivered meals drives fast-food growth

Over the past few years, and particularly since the first confinement linked to the covid-** crisis, meal delivery systems have been increasingly in demand, benefiting in particular from the growth of the fast-food sector. Successive confinements have familiarized the French with this system. A study by NPD Group shows thatbetween **** and ****, home delivery increased by **%, with a further **% increase between **** and ****. In ****, this represented *** million visits to commercial foodservice, or *% of total market visits [***].

The following chart shows the popularity of classic fast food dishes when ordering home delivery (***)

For which dishes do you prefer home delivery? France, ****, in Source : Yougov Omnibus study carried out from October ** to **, **** among *,*** people representative of the French national population aged ** and over, according to the quota method. According to a more recent study carried out by Just Eat on its customers in ****, the main food trends that stand out are, in order, orders for pizza, Japanese specialties, burgers, Indian specialties, and finally French tacos.

The chart below shows that the most popular time of day for meal delivery is dinner, accounting for **% of orders. Lunch follows with **% of orders.

what time of day do the French order their meals delivered? France, ****, in Source: ****

In ...

3.1 Specific features of the production line

The fast-food sector is divided between independent players not attached to a chain, and large, often international, chains. However, the business is still dominated by major groups and networks such as McDonald's, Subway, Yum!brands (***).

Production in the fast-food sector is a major factor in the organization of the brands, since the entire market concept is based on offering a fast product. As a result, operations are standardized as far as possible to optimize preparation time. Often, the basic ingredients are all already prepared, and the "final" product is assembled to the customer's order. This is the case for salad bars and Subway. Domino'shas built two production centers that prepare fresh pizza dough and ship it to all outlets, reducing order preparation time, staff training costs and product consistency.

Although sourcing is done in such a way as to minimize costs, short circuits are now increasingly emphasized in favor of product quality and freshness. This has prompted the Burger Kingchain, for example, to roll out a major plan to relocate its supplies. Today, all the bread and meat used in its products are of French origin, as are half the potatoes used to make the fries [***]. **% of the products used by ...

3.2 A growing number of market players

According toURSSAF (***), the number of companies in the French fast-food sector rose from **,*** in **** to **,*** in ****, an increase of ***% over the period. It should be borne in mind, however, that several establishments may belong to the same chain. As a result, the number of establishments in this market is increasing, leading to a sharp intensification of competition, and particularly price competition, which is driving down the price of the most standard products. Number of fast-food outlets France, ****-****, in units Source: ACOSS The trend is similar for the number of employees, which reached ***,*** in ****. If we divide the total number of employees (***), we see that there are on average *.* employees per establishment. Fast food workforce France, ****-****, in units Source: ACOSS Geographical distribution of fast-food establishments [***] The chart above is based on URSSAF data for the nAF code **.**C - "Fast-food outlets" - and shows that the Île-de-France region accounts for a large proportion of fast-food outlets, with **,*** in ****. Region Number of establishments Auvergne-Rhône-Alpes **** Bourgogne-Franche-Comté **** Bretagne **** Centre-Val de Loire **** Corsica *** Eastern France **** Hauts-de-France **** Île-de-France ***** Normandy **** Nouvelle-Aquitaine **** Occitanie **** Pays de la Loire **** Provence-Alpes-Côte d'Azur **** [***]

3.3 Typology of the forces involved

Four types of player share the fast food market in France:

- Specialist fast-food companies;- Bakeries;- Online fast-food platforms;- Supermarkets and food superstores

According to Euromonitor, the fast-food market is characterized by a high level of competition between players. While competition comes from other catering outlets, such as snacking and traditional restaurants, competition in the fast-food sector is itself very strong, increasingly limiting the scope for price increases.

While sales of sandwiches in bakeries were growing until the health crisis, bakeries have suffered from telecommuting, which has put a stop to lunch breaks.and are currently suffering from soaring raw material prices, which they can only pass on to a limited extent. On the other hand, burger chains remain unchallenged, with impressive growth (***), thanks in particular to the boom in delivery.

What types of fast food are most popular?

Fast-food purchasing preferences France, ****, in ENOV

The burger is by far the fast-food leader in France.

Fast-food trifecta, by sales France, ****, in % of sales Source: ****

The hamburger comes out on top with sales of *.* billion euros in ****, followed by the sandwich with *.* billion, then the grill(***) and pizza with *** million. Some products, such as donuts, have seen strong growth, ...

3.4 The franchise model

In terms of distribution, the sector relies heavily on the principle of franchising (***).

In ****, there will be *** fast food franchises in France. [***]

The major chains manage this network and ensure product consistency across the various outlets. One of the strategies adopted to face up to the competition from supermarkets is to set up shop within the supermarkets themselves: Sushi Shop at Monoprix, Starbucks at Casino....

Another point of differentiation for this sector is customer service (***) and outsource the delivery part, in return for a commission as a percentage of the sale.

The development of online sales

The battle between fast-food brands now also involves online sales. This trend had already begun before the Covid crisis:

In early ****, Planet Sushi embarked on a vast transformation plan to develop online and self-service sales through the installation of linear distribution systems in its restaurants and the strengthening of its digital strategy (***). Many players are turning instead to distribution platforms to develop these advantages. For example, McDonald's signed an exclusive partnership with Uber Eats in **** and now offers a delivery service in nearly ** French cities. For its part, Burger King (***) partnered with Deliveroo to deliver its products to thirty French cities in December ****. Some chains ...

3.5 Growing competition from supermarket snacks

Snacking is the term used to describe the eating of ready-made, standardized meals on the move, outside of mealtimes. It differs from fast food in the way products are consumed. In fast food, the customer buys from a restaurant, a stall that sells only food. Snacking, on the other hand, means buying sandwiches, hot dogs and ready-made meals in a supermarket or grocery store, outside mealtimes (***).

A study by CDH Expert-Datassential, Speak Snacking ****, confirms the dynamism of the snacking market, which is making a strong comeback in the wake of the health crisis. In ****, the snacking market was down -*.*% on ****, due to confinements and curfews. French people were mainly teleworking, so they were at home and could cook for themselves, which isn't necessarily the case when they're at work. Consumers will spend **.*% more on a snacking meal basket in **** than in ****. In supermarkets, the average lunchtime bill is **.* euros.

Snacking market sales France, ****-****, in billions of euros Source: ****

Purchasing criteria for snacking products in supermarkets France, ****, in Source: ****

among the products purchased in supermarkets for snacking, sandwiches come first, followed by pizzas. When it comes to desserts, the first products consumers turn to are fresh fruit. Top snacking products ...

4.1 A wide range of products

Fast-food products are ready-to-eat, and generally come in disposable packaging.

In terms of products offered, there are three main types of cuisine:

French (***), American (***) Italian (***)

Next come products from Asian cuisines (***) and Turkish/Greek and Lebanese specialties.

There are a number of different fast-food concepts:

American burgers and fast food (***) Bakeries and sandwich shops (***) Pizzerias (***) French tacos (***) Kebabs Healthy fast food (***)

**** confirms the growing use of digital tools for online ordering. New delivery and "click and collect" services are booming. According to Gira Conseil's latest report, home delivery grew by *.*% in ****, and now accounts for a quarter of gains in the foodservice market.

Beyond the type of cuisine and the concept, the expansion of the offer also involves the development of products for different meals, such as breakfast. McDonald's has opened a number of McCafés offering breakfast menus (***).

4.2 Low prices on the rise

Prices are generally very low compared to traditional foodservice offerings, due to lower costs and fierce competition.classification can also be made according to product "quality" (***), with prices significantly higher for the former: an average order at Cojean - premium positioning - comes to €**.

The product is often offered in different formulas: sandwich/main course on its own, or accompanied by a drink and/or a side dish (***); all at well-considered prices, averaging between €* and €**. As margins are low, restaurateurs are advised not to spend more than **% of the price on ingredients.

However, according to INSEE, fast-food consumer prices have risen by *.*% in ****. Despite continued stiff competition from bakeries and GSAs (***), restaurateurs have managed to reevaluate their prices by continuing their efforts to move upmarket to position themselves in the fast-growing casual segment.

The consumer price index for fast-food and traditional restaurant services rose by *.*% between **** and ****, and by *. *% since **** (***). **** saw consumer prices jump with an index of ***.

Consumer price index for foodservice France, ****-**** (***) Source: ****

For fast food, the consumer price index rose by **% between **** and ****, and by **% since **** (***). Household consumption of fast-food services was worth **.* billion euros in ****, up *. *% on ****. Consumer price index for fast-food services France, ****-**** (***) However, ...

4.3 Healthy, environmentally-friendly fast food on the rise?

A second lever for the sector is the development of new offers to attract a new clientele (***) with chains such as Cojean, Bioburger and Exki.

Where would you like to see more organic alternatives? France, ****, % Source: ****

In order to better understand the plethora of "alternative" and "healthy" offerings on offer in the sector today, it's necessary to define these terms in more detail :

Fast-Casual: a hybrid creation between fast food and conventional catering, this type of offering offers fast, but tasty, "by the book" cuisine. This concept can be applied to any product: for burgers, for example, brands such as Big Fernand are proving that it is possible to transform a product that is often overlooked and neglected by restaurateurs into a real delicacy. The emphasis is on the product, on the particular approach offered by the restaurant, and on the federated "community".this doesn't necessarily allow fast-food devotees to move upmarket (***), but it does open the way to a new clientele disenchanted with the time-consuming and costly classic restaurant experience. Slow-snacking : derived from slow-food, an Italian concept revived a few years ago that advocates a "slower", more conscious lifestyle, slow-snacking defends a vision of the lunch break that rejects the ...

4.4 Limited development of food trucks

Lastly, the boom in food trucks began in ****-****. This type of catering, which brings the product to the customer and not the other way round, is a medium whose flexibility has won over consumers. Indeed, between **** and ****, the number of food trucks rose by **% to ***; at the same time, revenues also increased by **.*% over the period.

However, the number of food trucks listed on the French market now appears to be stagnating. Bernard Boutboul, Chairman of Gira Conseil, points out that there are a number of obstacles to the growth of this market segment: fears about hygiene risks, pressure from traditional catering trade unions against this new type of competition, and the reluctance of local authorities to allow these new players to set up shop in towns and cities. In his opinion, the food truck boom of ****-**** is thus limited and not a trend for the coming years. [***]

Source: ****

5.1 Current regulations

Fast-food outlets can be either artisanal or commercial in nature, as described on the bpifrance website.

The hygiene and safety regulations in force for commercial fast-food establishments are similar to those for traditional catering. The rules are detailed on the public service website and concern the following points:

Premises, materials and equipment Staff hygiene Drinking water supply Food storage and preservation Waste Health declaration Controls

Fast-food outlets must comply with the requirements of regulation ***/**** of April **, **** on health safety for perishable products.

Since ****, restaurateurs have been required to display the "home-made " logo or statement on their menus.

The **** Egalim law obliged all restaurateurs to provide a "doggy bag" or "gourmet bag" to all customers requesting to take their dish away, as of July *, ****.

Since January *, ****, in accordance with the **** Antigaspillage pour une économie circulaire (***) law, fast-food outlets, school canteens, company restaurants and cafeterias have been required to serve meals consumed on site in reusable crockery. The only exceptions are paper wrappers for burgers and sandwiches.

Drinks outlets

If a restaurant owner wants to offer drinks on his menu, he needs two liquor licenses. For on-premises consumption of beverages, the "on-premises consumption of beverages" license is required. As for drinks, there are ...

5.2. Waste sorting issues for fast-food outlets

The various fast-food chains in France have been asked to propose a waste sorting compliance plan by March ****, as reported by Le Point. According to Le Figaro, ***,*** tonnes of packaging waste and **,*** tonnes of food waste are generated by fast-food chains every year. However, the latter is all too often not sorted, exposing chains to fines of up to €***,*** as an administrative penalty and a two-year sentence with a €**,*** fine as a criminal offence in the event of a surprise inspection.

In addition to waste sorting, consumers are exerting increasing pressure to reduce the waste generated by catering chains. In response, the regulator is implementing new restrictive laws, as is the case with single-use plastics. The fast-food segment is particularly exposed, especially to plastic straws, plates and cups. The European Union has passed a law banning the use of disposable plastics by ****. Any restaurant operator failing to comply with these directives will face fines, depending on the action taken by local legislators.

6.1 Segmentation

The following segmentation of market players is used:

• McDonald’s France
• Subway France
• Kioske à Pizza
• KFC France
• Pizza Hut (Yum Brands Group)
• Le Duff Groupe
• Speed Rabbit Pizza
• Holder Groupe
• Starbucks Coffee
• Eric kayser
• Exki
• Crêpe Touch
• Daunat Groupe
• Frichti (La Belle Vie)
• Barapom
• Cojean
• France Restauration Rapide
• Paul Boulangerie (Groupe Holder)
• Sodebo
• Taster
• Autogrill
• Starbucks Coffee France
• Chicken Street
• Bioburger
• Eat Salad
• Fresh Burritos
• King Marcel
• Pitaya (Bertrand Groupe)
• Soframa Capella (Even groupe)
• Pomme de Pain
• Popeyes
• Big M Burger
• Breizh Café
• Sushi Shop Restauration New
• Wingstot
• Big Fernand