The foodservice market - France (2024)

1.2 The global foodservice market dominated by the United States

In a global market worth around $*,*** billion by ****, the United States is the leading country for full-service foodservice, with sales of around $*** billion.

China ranks *nd in the market, followed by Japan, and is expected to experience significant growth over the next few years, with CAGRs of *.*% and *.*% respectively.

Global foodservice market size World, ****-****, in millions of dollars Source: ****

1.3 The recovery of the traditional foodservice market in France

Unlike the fast-food sector, the traditional foodservice sector stagnated in France at the start of the last decade. Indeed, since ****, the traditional foodservice market has been worth around ** billion euros. However, from **** onwards, the sector saw strong growth, with the traditional foodservice market reaching **.*** billion euros in ****. In ****, the same growth dynamic is observed, with the pre-crisis level exceeded. Projections for ****, however, anticipate further limited growth, with inflation weighing on household budgets and forcing them to review the allocation of their resources. in a study by the NPD Group, **% of French consumers said they planned to eat out less in the coming months. [***]

Size of the traditional foodservice market France, ****-****, in billions of euros INSEE

Observation of monthly trends in the sales index reveals a cyclical pattern in sales growth for the traditional foodservice market each year. In particular, the month of July and the winter periods following the December festivities seem to be unfavorable for the traditional foodservice market. conversely, the month of August appears to be exceptionally advantageous for the French traditional foodservice market.

Monthly sales indices for traditional foodservice France, ****-**** Source: ****

In ****, **,*** businesses were registered in URSSAF databases as traditional catering establishments (***), with average sales of ...

2.1 The growing tourism industry

Prior to the health crisis, the number of foreign tourists had been growing year on year, reaching ** million in ****, with the resulting revenue logically following suit, at **.* billion euros in ****, +*.*% on ****. [***] France was thus the leading destination in terms of the number of international tourists in ****, ahead of Spain and the United States.In ****, tourism has still not picked up exactly as it did in the pre-pandemic period. While North American and European tourists were well represented in the summer of ****, Asian customers were still absent.

In ****, international tourism revenues for France are estimated at **.* billion euros, marking a **% increase over ****. This increase is explained by a price effect due to inflation, although the change in revenues compared with **** remains lower than price inflation over the period.

The change in revenues reflects changes in the composition of arrivals, with a notable decline in long-haul customers, with the exception of Americans, the main contributors in terms of spending. By contrast, European local customers were more present for leisure stays.

The seasonality of revenues also changed, with the emergence of the months of May and June, shifting revenues towards the pre-season, partly due to the return of Americans to France.

Number of international ...

2.2 Consumers and restaurant consumption habits

Out-of-home consumption

According to a FranceAgriMer study, in May ****, **% of consumers say they have ế visited a restaurant in the last * months. Of these, **% are women, and **% have no children. Nearly **% are between ** and ** years old. Furthermore, two-thirds of out-of-home meal consumers live in the center or outskirts of a city.

Age of CHD consumers France, ****, in Source: ****

Location of out-of-home consumers France, ****, in Source: ****

In France in ****, consumer spending in restaurants will vary significantly between lunch and dinner. The majority of respondents spend between €** and €** for lunch(***), reflecting a greater willingness to pay for an evening meal.

Restaurant expenditure per person France, ****, in € Source: ****

Consumption in traditional restaurants

In France in ****, restaurant patronage is notably higher for lunch than for dinner, with **% of respondents eating at least once a week at lunch versus **% at dinner. However, monthly frequency is higher for dinner(***), indicating a preference for monthly dinners rather than frequent lunches.

Survey: How often do you eat out? France, ****, in Source: ****

Traditional catering is the out-of-home segment in which the French are most interested in enjoying themselves and having a good time. In general, it offers control over the quality of the food, and the choice of a certain atmosphere ...

2.3 French tastes in food and drink

What the French look for in a restaurant

Poll: What is your main criterion for choosing a restaurant? France, ****, in Source: ****

**% of French people choose a restaurant primarily on the basis of the menu and the type of cuisine offered, followed by **% who give priority to price, while personal recommendations and location are determining criteria for only a minority, with *% and *% respectively.

Poll: What do you expect from a restaurant? France, ****, in Source: ****

**% of French people expect above all to spend a pleasant moment with their loved ones in a restaurant, followed by **% who are looking to eat dishes they can't prepare at home. Expectations in terms of portion size, the discovery of new flavors, and local and seasonal produce are also significant, while the relative importance of aspects such as quality service and presentation of dishes is lower.

Poll: What are the essential elements of a culinary experience? France, ****, in Source: ****

For a satisfying dining experience, **% of French people consider being seated to be essential, followed by **% who prefer a quiet place and **% who consider it necessary to be in a restaurant. Expectations also include high-quality service and very little waiting, while elements such as the presence of ...

2.4 Home meal delivery on the rise

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 [***].

In ****, the French massively adopted meal delivery, a market valued at * billion euros in France, with sustained growth despite the end of restrictions linked to the Covid-** pandemic. Nearly half of consumers opted for delivery in ****, forecasting an increase in sales to *.* billion euros by ****. Young adults, CSP+ and people living in large cities are the most frequent users, motivated by convenience and increased purchasing power, with a notable increase in the practice of lunch on delivery[***]. Despite continued expansion in the number of participating establishments, leading platforms such as Uber and Deliveroo concentrate a large part of the market, although challenges persist in terms of service quality and customer satisfaction, particularly concerning the quality of delivered dishes[***].

Delivery sales France, ****-****, in billions of € Source: ****

Home ...

2.5 The new preoccupation of restaurateurs: maintaining their e-reputation

The decisive role of review-sharing platforms

Survey: Do you consult online reviews? France, ****, in Source: ****

It appears that more than * out of * French people claim to pay attention to reviews for the establishments they frequent.

More precisely, a similar proportion of French people refuse to patronize an establishment whose rating doesn't exceed *.*/*, a sign of the very real impact that reviews have on restaurant owners' business.

Poll: Below what rating would you refuse to visit the establishment concerned? France, ****, in Source: ****

Reading reviews before visiting an establishment has become a habit for **% of Internet users, a particularly strong trend among **-** year-olds, **% of whom systematically analyze reviews before making a decision. What's more, **% of users publish at least one review a month, with **% of **-** year -olds writing more than ** reviews a month. Consumers are also demanding, with **% avoiding establishments rated below *.*/*, and **% of young people refusing to patronize those rated below *.*/*.

Poll: What are the sectors where customer feedback is most important? France, ****, in Source: ****

Unsurprisingly, restaurant establishments receive a large number of reviews, as Internet users want to be sure of their choice from a wide selection. The **-** age group is the most assiduous in reading restaurant reviews ...

3.1 Value chain and key market players

A restaurant's value chain begins with procurement, where the ingredients and products needed to prepare the dishes are purchased. Source: ****

Next, the products are transformed into dishes in the kitchen. This process involves the preparation, cooking and presentation of dishes according to the restaurant's quality standards and recipes. Kitchen staff play a central role in this stage. The culinary experience is completed by service in the dining room, where waiters welcome customers, take orders, serve dishes and ensure customer satisfaction.

Finally, the value chain ends with customer feedback. After consuming their meal, customers provide feedback, either directly on the spot, or via online review platforms or social networks. Customer opinions are essential for the continuous improvement of the services and products offered by the restaurant.

3.2 Very uneven supply and population densities by region

A comparison of the number of businesses in relation to the population of the various French regions at the start of **** shows thatIle-de-France is the region with the most traditional restaurants, withgion with the most traditional restaurants, with **,*** establishments, but Corsica has the most in proportion to its population (***). France counted a total of **,*** traditional restaurant establishments in ****. [***].

Source: ****

3.3 Economic and financial performance of traditional catering establishments

Failure rate

The default rate is measured as the number of business failures in the sector under consideration, as a proportion of the total number of businesses in the sector.

In the French hotel and catering market, this rate peaked at *.*% in ****, subsequently falling to *.*% in ****. This figure is particularly high compared to other business sectors. [***]. This peak has now been exceeded, with over *% of catering businesses failing by ****.

Restaurant business failure rate France, ****-****, in INSEE,ACOSS

Other indicators for the traditional catering sector

The graphs below illustrate several indicators representative of the traditional foodservice market (***).

Number of businesses registered under NAF code ****A (***) France, ****-****, in number of establishments Source: ****

Workforce registered under NAF code ****A (***) France, ****-****, in number of employees Source: ****

Sales per company in the traditional catering sector France, ****-****, in thousands of euros Source: ****

3.4 The different restaurant chains on the French market

Although **% of restaurateurs are independent, the remaining **% operate under brand names or are franchised, and account for around **% of sales [***]

The following table gives an overview of the main restaurant chains in France. It also includes fast-food chains and institutional catering.

Source: ****

3.5 The meal voucher market: a constant battle for restaurateurs

A situation of oligopoly exerting pressure on restaurant margins The French Competition Authority recently issued an unfavorable opinion concerning a possible cap on commissions charged by meal voucher issuers, responding to a government request. This decision comes despite long-standing calls from restaurateurs and retailers to limit the influence of major French market players such asEdenred, Up, Natixis Intertitres and Sodexo, which collectively will dominate over **% of the sector by ****. The French meal voucher market is worth around *.* billion euros in ****, widely used for meals and food purchases, subsidized by employers and exempt from social security contributions to a certain extent. In the opinion of the French Competition Authority, capping commissions would not solve the structural dysfunctions of the market, and could even generate uncertain undesirable effects. This decision comes after previous sanctions against the main issuers for anti-competitive practices, underlining the persistent challenges in regulating a market that is crucial for workers and companies in France[***].

Breakdown of meal voucher market share France, ****, in Source: ****

Redirecting meal vouchers to supermarkets, to the detriment of restaurateurs

Restaurateurs are voicing serious concerns following the government's decision to extend the use of meal vouchers for food shopping until ****. This announcement, welcomed by voucher holders, ...

3.6 Bringing about changes in the restaurant value chain to meet consumers' environmental requirements

Consumer expectations when it comes to out-of-home catering have evolved considerably in recent years, with the emphasis on the quality, traceability and environmental impact of food products. A recent study shows that **% of French people recognize the direct influence of their diet on their health, motivating a change in their consumption habits. Nearly half of French people have reduced their meat consumption, while more than half of young adults prefer local products when choosing a restaurant. Faced with these growing expectations, around two-thirds of restaurateurs have adapted their offer to include specific options for vegetarians. What's more, * in ** restaurateurs now use digital solutions to effectively manage their food waste, marking a transition towards more sustainable practices. This trend is supported by internationally renowned chefs, as shown in our "Words from Gourmet Chefs" study, where ingredients such as flowers, seaweed and pollen have become popular in the kitchen. Large restaurant chains have also seen a significant expansion in vegetarian dishes, accompanied by environmental initiatives such as waste recycling. Chipotle, for example, has pledged to recycle half its waste by ****, while La Croissanterie has launched a campaign via the Too Good To Go app to reduce food waste. Food retailers are also responding ...

4.1 A wide range of kitchens in France

France's seated restaurant offering is characterized by a diversity that reflects not only the country's gastronomic history, but also contemporary developments in consumer expectations. Traditional restaurants, such as brasseries and bistros, are omnipresent in the French culinary landscape. Brasseries, often located in the heart of towns and villages, offer a variety of cuisine, from simple dishes such as moules-frites to more elaborate menus, while providing a convivial atmosphere suited to different types of meal.

Bistros, on the other hand, are distinguished by their intimate character and their culinary offer centered on traditional French and local cuisine. Often run by passionate owners, these establishments feature regional dishes accompanied by local wines, creating an authentic, relaxed atmosphere appreciated by regulars and visitors alike.

Gastronomic restaurants also feature prominently in the French offer. Often run by renowned, Michelin-starred chefs, these establishments stand out for their refined cuisine, meticulous presentation and attention to quality, seasonal produce. They attract a clientele in search of upscale culinary experiences, and are often cited in gastronomic guides for their excellence and creativity.

At the same time, France is witnessing the emergence of a new generation of contemporary restaurants that combine tradition and modernity. These establishments emphasize gastronomic innovation, creative ...

4.2 Consumer price index

The consumer price index is the tool used to measure inflation in a country. [***] Published monthly in the Journal Officiel, it estimates price trends for various household consumption sectors, whose list and weighting for the final index are available on the official site of the iNSEE website.

The CPI for a traditional meal in a restaurant(***), in a context of high inflation, to reach ***.** in ****.

Consumer price index for a traditional restaurant meal France, ****-****, base *** in **** INSEE

4.3 New management tools for restaurateurs

Lately, a number of technologies are making their appearance on the French restaurant scene, according to a **** study by EHL Insights:

Online ordering systems and delivery apps Online meal ordering and "contactless" delivery services have become indispensable for restaurants, particularly under the impact of regulatory and health restrictions. This trend is growing rapidly, with the global online meal delivery market forecast to reach $***.* billion by ****, according to Statista. Contactless payment Contactless payment is gaining popularity in the foodservice industry, accelerated by the pandemic. Some **% of global transactions are expected to be contactless within five years, according to a Juniper study, with the global value of contactless payments rising from $* trillion to $* trillion by ****. Online table reservation systems Systems such as OpenTable and Eat App facilitate online table reservations, offering restaurants the management of waiting lists, customer preferences and market data essential for customer loyalty. Digital kitchen display Kitchen display systems (***) improve restaurants' operational efficiency by enabling digital management of orders, delivery times and inventory, while facilitating internal communication and order accuracy. Automated inventory management software Software like Kitro uses artificial intelligence to optimize food inventory management, reducing waste and associated costs, a problem that costs the hospitality industry up to $*** billion ...

4.4 Recruitment issues in the foodservice industry:

Recruitment is a growing problem for restaurateurs, so much so that some are finding themselves having to turn away customers due to understaffing. In the midst of turbulence, and just a few weeks away from the summer season and the Paris **** Olympics, the restaurant sector is struggling to recruit. Today, ***,*** jobs are reportedly unfilled in hotels and restaurants across France. They concern all geographical areas, and range from front-of-house service to kitchens and bedrooms. According to theUnion des Métiers et des Industries de l'Hôtellerie (***), ***,*** of the ***,*** vacant positions are accounted for by former restaurant employees who have switched toself-employed status. This change of professional category poses a problem, as the government prohibits restaurant owners from hiring autoentrepreneurs [***].

In the fourth quarter of ****, **% of companies in the accommodation and catering sector were experiencing difficulties in recruiting, a level never seen before. These problems have increased considerably since mid-****, when the sector also saw its workforce reach record levels since the pre-pandemic period. The summer of **** was particularly intense, with an increase of ***,*** employees between January and July. To meet growing seasonal demand, companies attracted more workers who were not active in the sector a year earlier, accounting for **% of the ...

5.1 General regulatory framework for the traditional foodservice market

The rights and obligations of restaurant professionals are summarized in a practical fact sheet drawn up by the Direction Générale des Entreprises.

In terms of signage, they are required todisplay their prices both inside and outside, and since ****, restaurateurs have also been required to display the "home-made" logo or mention on their menus .

The operator must hold a restaurant license if he wishes to sell drinks as an accessory to the main meals. There are two types of restaurant license:

The small restaurant license, for the sale of non-alcoholic beverages The restaurant license, for the sale of all beverages authorized for consumption

To obtain this license, an operating permit is required, as well as a prior administrative declaration.

The rules governing health and hygiene, smoking bans, toilet facilities and opening hours must also be taken into account.

Hygiene regulations

The cold chainOne of the most important hygiene imperatives for restaurants is respect for the cold chain. It is crucial to maintain uninterrupted storage temperatures for perishable foodstuffs, as specified on their labels. This includes fish, shellfish, fresh produce, ready meals, raw meats, fresh dairy products, eggs, desserts, ice cream, fruit and vegetables. Respecting this chain is essential for preserving ...

5.2 Payment by luncheon voucher

The French Labor Codethe French Labor Code stipulates that all employers are obliged to provide a catering service when their company employs more than ** staff, i.e. one of the following solutions:

Distribution of luncheon vouchers Setting up a company catering structure Setting up an inter-company restaurant

There are no specific rules governing the unit value of luncheon vouchers, so employers can set the value as they see fit. In practice, they are rarely worth more than €**.**, and average around €*.

The use of luncheon vouchers is regulated; since March ****, they can only be used in supermarkets to purchase sandwiches, fresh, frozen or canned ready-made meals, or prepared salads. Alcohol cannot be purchased with these vouchers. Eating establishments are free to accept them or not, but as soon as they display them somewhere in their storefront, they can no longer refuse them. [***]

Luncheon vouchers are co-financed by employees and employers, with the latter contributing between ** and **% of the voucher's value. The latter can benefit from a tax and social security exemption on its contribution, with a ceiling of *.** euros per voucher (***).

5.3 Waste management

Since ****, restaurateurs, school canteens and food shops that produce more than ** tonnes of waste per year have been obliged to sort and recycle food scraps. Failure to comply with the law carries a €**,*** fine and * years' imprisonment.

In addition, the French Food Law of November *, **** requires on-site catering professionals to provide a doggy bag to customers who request one from July *, ****. The reference text relates to law no. ****-*** of October **, ****.

In addition, as of 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 inreusable crockery. The only exceptions: paper packaging for burgers and sandwiches.

6.1 Segmentation

• Agapes Restauration
• Le Duff Groupe
• Buffalo Grill
• Courtepaille
• Autogrill
• Hippopotamus (Bertrand Groupe)
• Flunch
• Frères Blanc (Bertrand Groupe)
• Côté Sushi (ETLB Franchiseur)
• Boréa
• Convivio Groupe
• Newrest
• Dupont Restauration
• Bertrand Groupe
• McDonald’s France
• Pizza Hut (Yum Brands Group)
• Holder Groupe
• Areas France
• La Boucherie - Baudelaire groupe
• Zenchef
• Alain Ducasse Groupe -De Gustibus
• Paul Bocuse Groupe - Institut Paul Bocuse
• Choco Logiciel