MARKET ACCESS SECRETARIAT
Global Analysis Report
Foodservice Profile
Philippines
July 2014
EXECUTIVE SUMMARY
CONTENTS
The Philippine economy has been posting fluctuating but positive
growth, with strong upward surges in 2010, 2012 and 2013, to
register a total value of US$167.5 billion in 2013. Increasing
workforce participation, particularly among women, as well as a
population of time-pressed, urban consumers eagerly seeking
convenient meal options, have supported growth in the country’s
foodservice market, valued at just under US$9.7 billion in 2012
(Euromonitor, 2014).
Executive Summary........................ 1
Independent operators represent the majority of the industry, but
only by a slight margin. Chains are expected to post stronger
growth rates in terms of value sales, outlets, and transaction
numbers, as they work to take advantage of the country’s strong
economy and extend their presence in the market. Filipino
consumers have a keen interest in foreign cuisine and international
brands across all formats.
Sector Overview ............................. 2
Subsectors ...................................... 4
Locations ........................................ 5
Top Companies .............................. 7
Conclusion ...................................... 7
Resources....................................... 7
Fast food establishments remain the key subsector and are
expected to continue registering strong sales growth, due largely to
the wide product offering, convenience, and affordability they can
provide consumers. However, other formats are quickly gaining
favour in the market, including 100% home delivery/takeaway,
which outpaced all other subsectors in terms of value growth over
the 2008 to 2012 period.
Operators that can provide value-conscious consumers with a wide
range of menu options including interesting international fare and
familiar brands, which also cater to an increasingly busy lifestyle,
will likely find favour in this market going forward.
Source: Shutterstock.
SECTOR OVERVIEW
As shown in the table below, the Philippine foodservice sector was valued at US$9.7 billion in 2012.
Between 2008 and 2012, the market recorded a compound annual growth rate (CAGR) of 4.2% and is
expected to continue expanding with a CAGR of 5.6% until 2017, reaching total sales of US$12.7 billion.
The top chained brands in the market include Jollibee, McDonald’s, Chowking, Mang Inasal, and
Greenwich.
Foodservice subsectors consist of fast food, full-service restaurants, cafés/bars, street stalls/kiosks,
self-service cafeterias (for which there is currently no Philippine market/data), and 100% home
delivery/takeaway. Fast food was the dominant subsector in 2012, representing 30% of the total market.
However, the fastest-growing subsector was 100% home delivery/takeaway, which increased its sales by
a significant CAGR of 10.3% over the 2008 to 2012 period.
Historic Market Value and Growth of Philippine Foodservice by Subsector, US$ millions
Consumer Foodservice
Fast Food
Full-Service Restaurants
Cafés/Bars
Street Stalls/Kiosks
100% Home Delivery/Takeaway
Pizza*
2008
2009
2010
2011
2012
8,202.3
2,105.5
2,211.6
2,026.1
1,647.3
211.8
355.4
8,447.3
2,221.4
2,230.2
2,017.0
1,728.9
249.8
374.7
8,843.8
2,402.4
2,297.4
2,058.5
1,814.7
270.8
393.3
9,195.4
2,594.4
2,306.9
2,131.3
1,871.8
290.9
422.0
9,686.4
2,875.1
2,366.4
2,190.9
1,940.6
313.4
452.1
CAGR %
2008-12
4.2
8.1
1.7
2.0
4.2
10.3
6.2
Forecast Market Value and Growth of Philippine Foodservice by Subsector, US$ millions
Consumer Foodservice
Fast Food
Full-Service Restaurants
Cafés/Bars
Street Stalls/Kiosks
100% Home Delivery/Takeaway
Pizza*
2013
2014
2015
2016
2017
10,195.3
3,086.0
2,451.6
2,280.3
2,042.6
334.8
483.5
10,760.4
3,312.2
2,549.7
2,383.5
2,155.3
359.7
518.2
11,364.3
3,547.3
2,654.6
2,500.3
2,274.7
387.5
554.6
11,996.7
3,788.7
2,767.2
2,621.7
2,400.5
418.7
593.1
12,660.5
4,036.5
2,887.7
2,748.8
2,534.0
453.6
633.3
CAGR %
2013-17
5.6
6.9
4.2
4.8
5.5
7.9
7.0
Source for both: Euromonitor, 2014.
CAGR = compound annual growth rate.
*Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100% home
delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the
consumer foodservice total. As such, pizza is not counted as its own sector within the consumer foodservice total.
In 2012, the Philippine foodservice sector had 80,813 outlets and recorded more than 3.6 billion
transactions. By subsector, street stalls/kiosks had the most outlets and transactions at 38,146 and just
over 2 million, respectively. Aside from pizza, which cuts across several formats in the industry, the 100%
home delivery/takeaway subsector registered the fewest outlets and transactions in 2012.
In 2012, a typical foodservice outlet earned US$119,861 from about 45,000 transactions, or US$2.66 per
transaction. Cafés/bars had the highest average transaction value at just US$7.33; however, with
US$458,548 fast food recorded the highest average sales per outlet, showcasing consumers’ frequent
use of this quick, convenient and generally affordable format.
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Outlets and Transactions of Philippine Foodservice by Subsector, 2012
Subsector
Outlets
Consumer Foodservice
Fast Food
Full-Service Restaurants
Cafés/Bars
Street Stalls/Kiosks
100% Home Delivery/Takeaway
Pizza*
Transactions
(millions)
80,813
6,270
18,156
15,568
38,146
2,673
1,552
3,644.1
832.2
357.3
299.0
2,092.8
62.9
73.6
Average Sales Average Sales
per Outlet
per Transaction
(US$)
(US$)
119,861.9
2.66
458,548.6
3.45
130,337.1
6.62
140,731.0
7.33
50,873.0
0.93
117,246.5
4.98
291,301.5
6.14
Source: Euromonitor, 2014.
**Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100% home
delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the
consumer foodservice total. As such, pizza is not counted as its own sector within the consumer foodservice total.
Independent operators are the prevalent foodservice providers in the Philippines but only by a slight
margin, accounting for US$5.6 billion or 58% of the total foodservice market in 2012, as shown in the
table below. However, chained operators are expanding their sales presence in the country at triple the
rate of their independent counterparts, registering a CAGR of 7.6% from 2008 to 2012. Chained operators
are expected to continue gaining market share with a CAGR of 7.2% over the 2013-2017 forecast period,
to reach sales of US$5.8 billion, or 46% of the overall foodservice market in 2017.
Historic Market Value and Growth of Philippine Foodservice by Type, US$ millions
Consumer Foodservice
Independent
Chained
Source: Euromonitor, 2014.
2008
2009
2010
2011
2012
8,202.3
5,148.0
3,054.3
8,447.3
5,228.7
3,218.5
8,843.8
5,368.6
3,475.2
9,195.4
5,451.5
3,743.9
9,686.4
5,587.0
4,099.4
CAGR %
2008-12
4.2
2.1
7.6
CAGR = compound annual growth rate.
Forecast Market Value and Growth of Philippine Foodservice by Type, US$ millions
Consumer Foodservice
Independent
Chained
Source: Euromonitor, 2014.
2013
2014
2015
2016
2017
10,195.3
5,796.4
4,398.9
10,760.4
6,035.1
4,725.3
11,364.3
6,294.5
5,069.7
11,996.7
6,566.3
5,430.4
12,660.5
6,851.7
5,808.8
CAGR %
2013-17
5.6
4.3
7.2
CAGR = compound annual growth rate.
Independent operators accounted for over 63,000 outlets and 2.3 billion transactions in 2012. However,
on a per-outlet basis, chained outlets had over twice as many transactions, higher sales, and an average
transaction value that was slightly higher than their independent counterparts.
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Outlets and Transactions of Philippine Foodservice by Type, 2012
Subsector
Consumer Foodservice
Independent consumer foodservice
Chained consumer foodservice
Outlets
80,813
63,010
17,803
Average Sales Average Sales
per Outlet
per Transaction
(US$)
(US$)
3,644.1
119,861.9
2.66
2,301.8
88,668.5
2.43
1,342.3
230,264.6
3.05
Transactions
(millions)
Source: Euromonitor, 2014.
SUBSECTORS
The information in this section was sourced from Euromonitor, 2013. Please see the resources at the end of this
report for a complete list of documents consulted.
Fast Food
The largest subsector within Philippine consumer foodservice, fast food saw a CAGR of 8.1% between
2008 and 2012, reaching total sales of about US$2.9 billion. Future sales growth is expected to slow
slightly, with a CAGR of 6.9% forecast between 2013 and 2017. With the exception of McDonald’s, which
ranked second in 2012, the top five brands in the fast food subsector are all owned by domestic player
st
rd
th
th
Jollibee: Jollibee (1 ), Chowking (3 ), Mang Inasal (4 ) and Greenwich (5 ). Burger fast food is currently
the largest category in terms of value sales, but chicken fast food establishments have shown the
strongest growth, and ice cream fast food is quickly gaining favour among the Filipino population.
Over 6,200 fast food outlets recorded 832 million transactions in 2012, having grown by a compound
annual rate of 7.0% and 6.0% respectively, since 2008. Per outlet, fast food saw sales of US$458,548,
with an average transaction value of just US$3.45, the second-lowest across the entire sector.
Full-Service Restaurants
Between 2008 and 2012, the full-service restaurant subsector registered a CAGR of 1.7% to reach sales
of US$2.4 billion, making it the second-largest category within Philippine consumer foodservice. The
subsector serves primarily Asian cuisine, but chained North American style restaurants have been the
fastest-growing in terms of value sales in recent years, as consumers become increasingly welcoming of
foreign brands and international cuisines. Much stronger growth is expected over the 2013-2017 forecast
period, with a CAGR of 4.2% to reach anticipated sales of US$2.9 billion in 2017. The top chains in this
subsector include Max’s, Pizza Hut, Shakey’s, Kenny Rogers Roasters, and Pancake House.
In 2012, full-service restaurants saw 357 million transactions among over 18,000 outlets, despite
recording declines in both of these areas, with a CAGR of -0.7% and -1.5% respectively, since 2008.
Full-service restaurants averaged sales of US$130,337 per outlet and the second-highest sales value per
transaction of any subsector, with US$6.62 in 2012.
Cafés/Bars
The cafés/bars subsector was valued at US$2.2 billion in 2012. Between 2008 and 2012, this subsector
saw a CAGR of 2.0%, facing stiff competition from fast food and full-service restaurant chains that also
serve alcoholic beverages and café-type fare. However, the subsector is expected to more than double its
growth rate over the forecast period of 2013 to 2017 with a CAGR of 4.8%, and reaching sales of
US$2.7 billion. Growth will be led by the specialty coffee shop category, which generally caters to more
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affluent, young urbanites, seeking a casual atmosphere to gather with friends. The Philippine cafés/bars
subsector is currently dominated by Starbucks, with a 55% brand share in 2012, followed by Figaro
Coffee, The Coffee Bean and Tea Leaf, Padi’s Point, and Café France.
The over 15,500 cafés/bars outlets in the Philippines saw 299 million transactions in 2012. However, the
number of outlets and transactions each recorded negative growth over the 2008 to 2012 period (CAGRs
of -1.6% and -2.7%, respectively). A typical outlet earned US$140,731 and had about 19,000 transactions
in 2012, with the highest average transaction value of any subsector, with US$7.33.
Street Stalls/Kiosks
The street stalls/kiosks subsector was valued at US$1.9 billion in 2012, having grown at a compound
annual rate of 4.2% between 2008 and 2012. Dominated by independent operators, this subsector
features a wide variety of traditional delicacies and unique offerings to stimulate on-the-go consumer
interest. Growth is expected to accelerate just slightly over the forecast period of 2013-2017 as chained
franchises extend their presence in this subsector, with an expected CAGR of 5.5%, to reach sales of
US$2.5 billion in 2017. Top chains in the Philippine street stalls/kiosks subsector include Mister Donue,
Dunkin’ Donuts, Burger Machine, Waffle Time, and Zagu.
In 2012, there were over 38,000 street stalls/kiosks with total transactions exceeding 2 billion in the
Philippines. Between 2008 and 2012, outlets and transactions grew at annual rates of 1.7% and 0.8%,
respectively. The average street stall/kiosk earned US$50,873 in 2012, or just US$0.93 per transaction,
the lowest among all subsectors in both respects.
100% Home Delivery/Takeaway
The 100% home delivery/takeaway subsector is the smallest of the Philippine foodservice market, but is
growing at a substantial pace as consumers have less time for meal preparation at home and operators
introduce new product lines. Valued at US$313.4 million in 2012, sales registered a CAGR of 10.3%
between 2008 and 2012, making it the fastest-growing foodservice subsector. Over the forecast period of
2013 to 2017, 100% home delivery/takeaway sales are expected to reach US$453.6 million and the
subsector will maintain its status as the fastest-growing in the industry, with an anticipated CAGR of 7.9%.
The top chained brands in the market are Chooks to Go, Andok’s, Ang Lechon Manok ni Sr. Pedro, Pizza
Hut, and Lots’A Pizza.
In 2012, there were 2,673 outlets in the 100% home delivery/takeaway subsector, and just fewer than 63
million transactions. However, outlets and transactions grew at robust compound annual rates of 18.6%
and 7.0% respectively, between 2008 and 2012. This subsector is expected to remain the leading area of
outlet and transaction growth within Philippine consumer foodservice until 2017. A typical outlet earned
US$117,246 in 2012, or US$4.98 per transaction.
LOCATIONS
The majority of the Philippine’s foodservice sector is represented by retail and standalone locations in
terms of sales (US44.1 billion and US$3.9 billion, respectively) and outlets in 2012. The retail format has
supported overall outlet growth in the industry, due to the expansion of shopping malls. However, travel
locations saw the greatest expansion in terms of value sales and outlet growth from 2008 to 2012.
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Historic Market Value and Growth of Philippine Foodservice by Location, US$ Millions
Consumer Foodservice
Retail
Standalone
Travel
Leisure
Lodging
Source: Euromonitor, 2014.
2008
2009
2010
2011
2012
8,202.3
3,251.2
3,640.7
556.1
469.0
285.2
8,447.3
3,379.6
3,692.6
599.5
482.5
293.1
8,843.8
3,608.2
3,769.2
647.5
512.0
306.9
9,195.4
3,845.5
3,786.5
702.5
539.9
321.1
9,686.4
4,113.8
3,903.5
762.1
571.0
336.0
CAGR %
2008-12
4.2
6.1
1.8
8.2
5.0
4.2
CAGR = compound annual growth rate.
Forecast Market Value and Growth of Philippine Foodservice by Location, US$ Millions
Consumer Foodservice
Retail
Standalone
Travel
Leisure
Lodging
Source: Euromonitor, 2013.
2013
2014
2015
2016
2017
10,195.3
4,358.6
4,062.8
814.6
598.0
361.3
10,760.4
4,608.9
4,271.3
868.3
625.7
386.1
11,364.3
4,881.8
4,493.6
920.9
660.6
407.4
11,996.7
5,164.1
4,748.5
964.3
691.4
428.5
12,660.5
5,461.7
4,999.5
1,015.6
729.9
453.8
CAGR %
2013-17
5.6
5.8
5.3
5.7
5.1
5.9
CAGR = compound annual growth rate.
In 2012, lodging outlets were the best performers in terms of average sales per outlet (US$237,539) and
per transaction (US$14.64), largely due to their higher prices. Lodging foodservice establishments tend to
charge more than their standalone counterparts, as rental fees are more costly in such locations. As well,
patrons of lodging establishments, which include hotels and resorts, are generally willing to pay more for
the convenience offered by on-site dining.
Outlets and Transactions of Philippine Foodservice by Location, 2012
Subsector
Consumer Foodservice
Retail
Standalone
Travel
Leisure
Lodging
Outlets
80,813
25,588
44,344
5,810
3,656
1,415
Transactions
(millions)
3,644.1
1,093.0
2,190.0
223.5
114.7
22.9
Average Sales Average Sales
per Outlet
per Transaction
(US$)
(US$)
119,861.9
2.66
160,770.7
3.76
88,027.3
1.78
131,163.6
3.41
156,181.6
4.98
237,539.8
14.64
Source: Euromonitor, 2014.
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TOP COMPANIES
As shown in the table below, international companies are prominent in the overall Philippine foodservice
industry. Chains continue making the most of a positive economy as they enter the market in increasing
numbers, largely targeting urban city-centres and their higher-income residents. However, the market
continues to be led by domestic Jollibee Foods Corp, with sales totalling US$1.67 billion in 2012, or
17.3% of the total foodservice market. The second-largest player is McDonald’s with a 5.5% share and
total sales of US$390.4 million, followed by Yum! Brands (KFC, Pizza Hut) with a 2.1% share, and sales
of US$135.7 million in 2012.
Top 10 Companies in Philippine Consumer Foodservice
Company
Jollibee Foods Corp
McDonald's Corp
Yum! Brands Inc
Starbucks Corp
Duskin Co Ltd
Pancake House Inc
Dunkin' Brands Group Inc
Seven & I Holdings Co Ltd
Max's Inc
Bounty Agro Ventures, Inc
Source: Euromonitor, 2014.
Foodservice Value Sales (US$ millions)
Market
CAGR (%)
2008
2012
Share (%)
2008-12
2012
1,160.9
1,671.5
9.5
17.3
390.4
533.0
8.1
5.5
135.7
200.8
10.3
2.1
70.7
107.4
11.0
1.1
81.4
99.4
5.1
1.0
40.2
93.7
23.6
1.0
41.3
61.0
10.3
0.6
29.4
58.7
18.8
0.6
41.6
56.0
7.7
0.6
2.7
47.5
104.1
0.5
Total
Outlets
2012
2,001
396
369
225
1,998
242
1,094
829
135
913
CAGR = compound annual growth rate.
CONCLUSION
Changing consumer lifestyles and strong economic growth combine to create potential opportunities for
Canadian agri-food exporters seeking to access the Philippine market. In recent years, the foodservice
sector has posted strong growth and is expected to continue doing so over the next five years, as
time-pressed consumers utilize restaurants as a convenient and time-saving alternative to cooking food at
home. Furthermore, as Filipinos grow increasingly interested in foreign foods and multinational brands,
more chains are eager to enter the market and harness this demand, creating opportunities for suppliers.
However, consumers remain very value-conscious, so affordability and variety remain key factors.
RESOURCES
Euromonitor International (2014). Foodservice data.
Euromonitor International (2013).
- Consumer Foodservice in the Philippines
- Full-Service Restaurants in the Philippines
- Cafés/Bars in the Philippines
- Street Stalls/Kiosks in the Philippines
- Fast Food in the Philippines
- 100% Home Delivery/Takeaway in the Philippines
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Foodservice Profile: Philippines
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