Food Service - Hotel Restaurant Institutional

An Expert's View about Food and Beverage Services in Poland

Posted on: 23 Jan 2012

Poland’s HRI sectors are growing and offer sales opportunities for U.S. suppliers of a wide array and input. Many consumer ready and high value food products, such as baking ingredients, seafood, wine

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/30/2011 GAIN Report Number: PL1132 Poland Food Service - Hotel Restaurant Institutional Overview Report Approved By: Michael Henney, Agricultural Attache Prepared By: Jolanta Figurska, Agricultural Marketing Specialist & Pawel Flakiewicz, Student Intern Report Highlights: Although there are challenges facing the U.S. exporter in light of Poland’s EU membership, U.S. exporters should certainly explore opportunities in Poland. Poland is one of a limited number of EU Member States that achieved positive GDP growth in 2010, if you sell to one of its 27 member states your business should be advertising and promoting its products in Poland. America is highly regarded in this region and products displaying their American heritage with a flag or geographic emphasis are popular. Poland’s HRI sectors are growing and offer sales opportunities for U.S. suppliers of a wide array and input. Many consumer ready and high value food products, such as baking ingredients, seafood, wine and spirits, pet food, almonds, pistachios, sunflower seeds, protein isolates, grapefruit and cranberries are popular. Exporters are advised to carefully ascertain the market access to the EU for their product. Post: Warsaw Executive Summary: Section I. The HRI Market Description Poland, with a population of almost 39 million, where consumers spend about 25 percent of their income on food and beverages, is a significant market for diverse food products offered by the hotel, restaurant and institutional food sector (HRI). Revenues from food catering sector alone were valued in Poland at about $2.4 billion in 2010. In larger cities which house about 30 percent of Poland’s population, the number of two or more-income households is high (about 54 percent of all households). Warsaw, the capital, boasts a variety of low- cost eateries and high-end restaurants and its consumer’s tastes are becoming similar to those in Western Europe and the United States. Mediterranean, French, Italian, Middle Eastern and Asian cuisines are becoming more popular and more visible in local neighborhoods as well as high traffic areas. New smaller ethnic group restaurants such as Georgian or restaurants serving typical Polish fare from specific regions of Poland are also increasing in popularity. It is now considered trendy to know celebrity chefs, and individual meetings and cooking sessions with VIP's are being arranged in hotels and restaurants. The number of hotels in Poland increased from 924 recorded in the year 2000 to 1,796 recorded in 2010. During the period 2007 – 2011 alone, 426 new hotels were built in Poland and construction of around 250 – 260 more is planned during the next 3-5 years. The majority of future investments will concentrate on 2-3 stars hotels (60% of all planned construction). The number of hotel rooms in Poland increased from 50,000 in the year 2000 to 90,000 in 2010. In 2010 the Polish hotel market has continued to grow, mainly due to continued increase in international tourists and businessmen, and also due to the fact that the Poles themselves have been travelling more and staying at hotels in areas of Poland that cater to recreational activities. The fact that Poland is one of the two hosts (the other being Ukraine) of the European Soccer Championship in 2012 will influence the luxury class hotel sector, and hence the dynamic growth should continue in the larger cities of Poland. The growth in this sector could last for 2 or even 4 years after the event. It is estimated that around 12 million additional visitors will use hotel services in the period of 2012 – 2015, compared with an increase of 660,000 people in 2009. The average occupancy rate in Poland in 2010 was 55.4%, as compared with 52.4% achieved in 2009.The average room price in Poland in 2010 was reported at USD 72. The market concerning restaurants, fast foods, cafeterias and bars was valued at USD 5 billion in 2010, this is a 7 percent increase compared to 2008. Poles spend over 5 percent of their discretionary budget in restaurants. One fourth of the polish population dined out in a restaurant, bar or pub at least once in every 2 months during 2010. On average 20 percent of the polish population spends USD 25/month and 10 percent USD 60/month on eating out per month. The number of restaurants in Poland increased from 8,519 in 2000 to 13,874 in 2010. The most stimulating changes occurring in the Polish economy, supporting development of this sector are; increasing salaries, change of dietary habits, changes in life styles requiring longer working hours, an increasing number of singles and expansion of shopping centers and malls. Hotel and restaurant experts predict that close to 400 restaurants and bars will be opened in the next five years. Coffee bars and coffee houses offer the best profits and their numbers increased by 18 percent during 2010. The key placers include petrol station cafes e.g. Stop Cafe. Starbucks is also present on the Polish market since 2009. Poles like to visit fast-food restaurants, and most international chains already have a presence in Poland. Pizzerias are also gaining in popularity with over 350 outlets already operating in larger cities. Basic economic indicators for Poland are as follows: POLAND 2009 2010 2011f 2012f Population, mln 38.2 38.3 38.3 38.3 Nominal GDP, PLN bn 1,343.4 1415.4 1549.8 1613.1 GDP per capita, US $ 12,262 12,294 14,302 15,167 Real GDP growth, % change y-o-y 1.6 3.8 4.6 3.5 Budget balance % of GDP (7.3) (7.8) (6.2) (4.3) Consumer prices % y-o-y, eop 3.5 3.1 3.4 2.5 Exchange rate PLN/US$, eop (Nov. 2011) 3.05 2.96 2.79 2.74 Exchange rate PLN/EUR, eop (Nov. 2011) 3.87 3.96 3.99 3.67 Goods Imports, EUR bn 107.2 131.0 151.8 171.6 Goods Exports EUR bn 101.8 122.4 138.3 156.6 Balance of Trade in Goods, EUR bn (5.4) (8.6) (13.5) (15.0) Current account, % of GDP (3.6) (4.5) (5.5) (5.4) Foreign reserves ex gold, US$ bn 75.9 88.8 99.7 102.7 Total external debt stock, % of GDP 59.9 67.7 65.6 69.4 Source: Emerging Europe Monitor: Central Europe and Baltics, Macroeconomic Forecast Poland Hotels in Poland Number of Hotels by star rating in largest cities in 2010 City 5* 4* 3* 2* 1* Not categorized yet Lodz 0 1 10 9 2 1 Warsaw 11 9 19 13 8 2 Cracow 10 17 68 23 3 5 Katowice 1 3 3 4 2 2 Poznan 2 6 24 12 3 0 Szczecin 0 4 7 3 5 0 Wroclaw 4 8 22 4 2 0 Gdansk 3 5 10 5 0 1 Source: Polish National Statistics Office Hotel’s by Largest Cities Number of Food Service Establishments - Restaurant and Catering Sector in Poland Gastronomy Specification 2000 2005 2009 2010 Number of food service facilities 84,342 92,072 75,378 71,679 (as of the day 11\31\2011) Public sector 3,320 2,398 1,616 1,527 Private sector 81,022 89,674 73,762 70,152 Restaurants 8,519 9,716 13,501 13,874 Bars 36,436 40,834 30,519 28,696 Cafeterias 7,010 6,950 4,373 4,433 Other food services 32,377 34,572 26,985 24,676 Source: Polish Statistical Office 2011 Gastronomy Categories 2009 2010 2009-2010 Value of the market (PLN Mln) 6,874 6,747 (1.9) Food service chains 1,019 1,117 9.6 Independent gastronomical facilities 5,855 5,630 (3.8) Home delivery/takeaway 46 49 4.0 Coffee houses/bars 1,867 1,727 (7.5) Restaurants 2,027 1 955 (3.5) Fast food 1,452 1,527 5.1 Self-service canteens 994 981 (1.3) Street food services 488 509 4.3 Pizzerias 619 622 0.5 Source: Euromonitor International Advantages and Challenges of the Polish Market for U.S. Exporters \Advantages Challenges Central Europe’s most populous country with U.S. products face high transportation costs as a domestic consumer market of nearly 40 compared to many European competitors. million people. A strategic location within a dense, major Complicated system of product registration in some international market offering re-exports cases delaying or even preventing products from potential. entering the Polish market that are new to the EU. Transshipment from other EU countries of Poland’s EU Accession puts United States products import now possible with Poland’s EU at a competitive disadvantage versus EU-27 duty- integration. free EU internally traded products. A very productive, young, and skilled labor Despite rising incomes, Polish consumers indicate force therefore, good potential for finding that price is still the primary purchasing factor for trading partners and favorable conditions for food and beverage products in at least 75 percent or establishing joint ventures. more of their retail food purchases. Polish consumers associate United States Food recalls in the EU have had a negative impact products with good quality. on Polish consumer views of imported products, and GMO issues hamper imports of United States products. Market niches exist in consumer ready food Foreign investment in the Polish food processing products - i.e. dried fruits, nuts, wine and industry results in local production of many high distilled spirits, and microwavable products. quality products that were previously imported. Economic growth has been rising While the export of some U.S. goods has been encouraged by EU trade regulations, some goods, namely poultry and beef, remain limited due to EU sanitary restrictions. Section II. Road Map for Market Entry A. Entry Entering the Polish market is a challenge for exporters of raw materials intended for the food service sector. The main obstacle is the use of low cost Polish products. Imports are used only when less expensive domestic products are not available. I. Some companies in the HRI sector purchase imported products directly from importers but in general they buy via wholesalers or local suppliers. II. Some of the largest organizations in the food service sector (mainly hotel chains) have their own supply units. III. Local wholesalers and importers import materials, semi-processed products and commodities for other food service firms. To be successful in Poland exporters must have a local representative or agent and personal contact with Polish businesses. To be competitive exporters must have a thorough knowledge of current laws, the local culture, tax and customs regulations, market structures, local exhibitions and trade fairs, implications of EU accession, and non-tariff barrier. B. Market Structure Distribution Flow C. Sub-Sector Profiles Top 10 Revenue Generating Hotels in Poland in 2010 HOTEL NAME CITY CHAIN NUMBER OF Rooms Beds Marriott Warsaw Marriott Lodging 522 612 Sheraton Warsaw ITT Sheraton 350 470 Radisson Blu Sobieski Warsaw Radisson 429 800 Forum Nowotel- Accord Warsaw Accor 733 1158 Sofitel Victoria Warsaw Accor 341 453 Holiday Inn Warsaw Accor 336 498 Le Royal Meridian Bristol Warsaw Le Meridian 206 400 Poznan Poznan Accor 369 571 Mercure Warsaw Accor 250 361 Radisson SAS Szczecin Radisson 311 431 Hilton Warsaw Hilton Hotels 314 412 Campanile Warsaw Louvre Hotels 345 481 Hotel 500 Warsaw J.W. Construction Holding SA 182 254 Rialto Warsaw Preferred Hotels 354 420 Hyatt Regency Warsaw Hyatt Regency Hotels 388 496 Hotel and Resort Company Profiles in 2010 COMPANY NAME & OUTLET NAME, LOCATION PURCHASING SUB-SECTOR TYPE TYPE & NUMBER OF AGENT(S) OUTLETS Accor, hotels with Hotels - 63, hotel Na Direct; Importers, tional restaurants restaurants-60 Local suppliers Gromada, hotels with Hotels - 17, hotel Na Direct; Importers, tional restaurants restaurants-17 Local suppliers Qubus, hotels with Hotels - 12, hotel Direct; Importers, South-West of Poland restaurants restaurants-12 Local suppliers Louvre Hotels, hotels Hote Warsaw, Kraków, Poznań, ls - 10, hotel with re L Direct; Importers, ublin, Szczecin, staurants restaurants-8 Ka ppliers towice, Wrocław, Łó Local sudź Best Western Hote Białowieża, Białystok, ls -5 , hotel Direct; Importers, International, hotels with re R Kraków, Ożarów estaurants-5 staurants Maz Local suppliers owiecki, Wrocław Radisson SAS, hotels Hotels - 5, hotel Warsaw, Szczecin, Direct; Importers, with restaurants restaurants-7 Kraków, Wrocław Local suppliers Starwood, hotels with Hotel - 6, hotel Warsaw, Kraków, Poznań, Direct; Importers, restaurants restaurants -13 Sopot, Local suppliers Each hotel has at least one large restaurant (usually two) and a snack bar. Often larger hotels have restaurants which specialize in international cuisines (Chinese, Italian, etc.). There are a number of smaller hotels which normally have a café or small restaurant on the premises. Top 10 Chains operating in Poland within the food catering sector Number of Outlets Chain 2008 2009 2010 Stop Café & Stop Café Bistro 435 572 600 McDonald's 213 223 244 Da Grasso 160 177 204 Wild Bean Cafe 151 201 202 Telepizza 100 109 120 KFC 87 101 99 Sphinx 52 55 63 Dominium Pizza 52 55 63 Coffee Heaven 52 60 63 Pizza Hut 43 50 49 Institutional Company Profile Company Name & Sub- Outlet Name, Type & Location Purchasing Sector Type Number of Outlets Agent(s) Sodexho Polska, Sodexho Food Service National Direct; Importers, institutional catering (CS) (70) Local Suppliers Impel Catering, institutional Impel Food Service National Direct; Importers, catering (CS) (28) Local Suppliers Eurest Poland, institutional Eurest Food Service National Direct; Importers, catering (CS) (28) Local Suppliers Dussmann Poland, Dussmann Food Service National Direct; Importers, institutional catering (20) Local Suppliers LOT Food Service Sp. “LOT” Polish Airlines Warsaw, Direct; Importers, Zo.o., institutional catering (CS) (29) Gdansk, Local Suppliers Krakow WARS, institutional Restaurant & bars in National Direct; Importers, catering trains (CS) Local Suppliers Foreign Companies Invested in the Hotel and Restaurant Sector ntry of Country of No. Investor Nam Cou e Registration Origin Activities Comments Hotels and 40,5% stake in Orbis 1. Accor SA France France restaurants S.A. Hotels and Mc Donald's Polska 2. McDonald USA USA restaurants Sp. z o. o. – Warsaw Construction, Strabag Sp. z o. o. Bau Holding Hotels and 80% stake in Hotele 3. Strabag AG Austria Austria restaurants Warszawskie "Syrena" Louvre Hotels Hotels and Hotele G.E. Polska Sp. 4. SAS France France restaurants z o. o. - Main office in Warsaw. Hotels in Warsaw, Trusthouse United United Hotels and Le Royal Meridien 5. Forte Kingdom Kingdom restaurants Bristol Sp. z o. o. Radisson SAS BRC Holding Hotels and Centrum Hotel – 6. Developments USA USA restaurants Warsaw Sheraton Sheraton Warsaw Warsaw Hotels and Hotel Sp. z o. o. – 7. Cooperation USA USA restaurants Warsaw Cosmar Polska Sp. z Hotels and o. o. - Hyatt Regency 8. Cosmar S. r. l. Italy Italy restaurants Warsaw Hotel American Restaurants Sp. z o. o. - Office in Am-Rest The Hotels and Wrocław, Pizza Hut & 9. Holding N.V. Netherlands USA restaurants KFC brands Qubus Hotel Management - Zielona Góra, Qubus Hotel Sp. z o. o. - Gliwice, Gorzów Wikp., Głogów. Legnica, Wałbrzych, Wrocław, Qubus Hotel Hotels and Zielona Góra, 10. System Norway Norway restaurants Złotoryja Porr Polska S.A. - Warsaw, Porr Porr International AG - International/ Hotels and Warsaw, Chopin Sp. z 11. Chopin Austria Austria restaurants o. o. - Kraków Min Hoong Min Hoong Development Co. Pte. Development Hotels and Ltd. Poland Sp. z o. o. 12. Co. China China restaurants – Sopot International International Fast Fast Food Hotels and Food Polska Sp. z o. o. 13. Corporation USA USA restaurants – Warsaw Intersnack Knabber Gebaeck GmbH Hotels and Syrena International 14. & Co. K.G. Austria Austria restaurants Sp. z o. o. – Warsaw Hotels and Telepizza Poland Sp. z 15. TelePizza S.A. Spain Spain restaurants o. o. – Warsaw 16. Rogner GmbH Germany Germany Hotels and Hotel Jan III Sobieski restaurants Sp. z o. o. – Warsaw Pizzerie Pan Smak Sp. Pan Smak Pizza Hotels and z o. o. - Pizza 17. Inc. Canada Canada restaurants resturants Scanpol International Hotels and Hotel New Skanpol 18. ApS Denmark Denmark restaurants Sp. z o. o. – Kołobrzeg Hotels and Hotel Marriott – 19. Marriott USA USA restaurants Warsaw The The Hotels and Pizza Express Polska 20. Ceneu Pizza BV Netherlands Netherlands restaurants Sp. z o. o. – Piaseczno Kochloeffel Hotels and Kochleoffel Polska 21. GmbH Germany Germany restaurants Sp. z o. o. – Katowice Sodexho Hotels and Sodexho Polska Sp. z 22. Alliance France France restaurants o. o. – Warsaw 22% stake in Best Eastern-Plaza Hotels S.A. - Office in Best Eastern Warsaw, HP Park - Plaza Hotels Hotels and Poznań, Olsztyn, HP 23. International Luxembourg Luxembourg restaurants Park Plaza - Wrocław Compass Group 100%stakes in Eurest International United United Hotels and Poland Sp. z o.o. - 24. B.V. Kingdom Kingdom restaurants Warszawa III. Competition IV. Best Product Prospects A. Products which have best sales potential: - Seafood: salmon, butterfish, herring, mackerel, black cod - Alcoholic beverages: Wine, Whiskey/Bourbon, Vodkas - Fruit (dried): Raisins, Prunes, Cranberries - Fruit (fresh): Grapefruit - Nuts: Almonds, Pistachios, Ground nuts - Food processing ingredients: (protein isolates, high quality spices and mixes (tex-mex), vegetable fat for process) - Food ingredients for the HRI food service sector (sunflower seeds, certain spices and mixes) Import statistics can be found in the report Appendix. B. Products not present in significant quantities but which have good sales potential: Restaurants and bars that offer international cuisines, such as Italian, Greek, Spanish and Middle Eastern could find success in Poland. American chain restaurants such as TGI Friday and Subway are gradually establishing a presence but not in significant numbers. There are opportunities to develop restaurants that offer healthy and organic foods. Snacks with low fat or low-sugar content and made with natural ingredients have good sales potential. Restaurants that offer a vegetarian menu may also tap into the growing demand for such food. More and more polish families own microwave ovens nowadays, so microwaveable and ready-to-eat food products also have good potential, particularly in larger urban areas, and among institutional food services, e.g., schools, hospitals and nurseries. V. Key Contacts and Further Information One of the goals of the Foreign Agricultural Service (FAS) office in Warsaw is to assist in the market development and promotion of U.S. food and agricultural products in Poland and the Baltic States. There are a wide variety of ways in which to approach these markets and many key contacts such as importers, distributors, and retailers. Please contact FAS Warsaw if you would like additional information on any of these markets if your company is interested in selling U.S. food and beverage products to this region. Staff contacts for marketing: Michael Henney, Agricultural Counselor Jolanta Figurska, Marketing Specialist Office of Agriculture Affairs U.S. Embassy, Poland Al. Ujazdowskie 29/31 00-540 Warsaw, Poland Telephone number: 011-48-22-504-2336 Fax number: 011-48-22-504-2320 E-mail:,or Web page: Author Defined:
Posted: 23 January 2012

See more from Food and Beverage Services in Poland

Expert Views    
HRI Food Service Sector in Poland   By Foreign Agricultural Service
Opportunities In Poland’s Food & Drink Sector   By UK Trade & Investment
Food Service - Hotel Restaurant Institutional   By Foreign Agricultural Service