MARKET ANALYSIS ON PROPOSED: DOLCELATTE OSTERIA E PASTICCERIA (FAST CASUAL RESTAURANT AND PASTY SHOP)

Industry Outlook
Foodservice Sector: The Philippine foodservice market continues to expand in response to growing demand for convenience. Fast-food restaurants account for the great majority of the market. Upscale restaurants and cafes (known locally as the 'casual dining' market) in Metro Manila present a wide range of sales opportunities for U.S. foods and beverages. Restaurants located in five-star hotels and upscale malls are important outlets along with popular western-style chains. All use imported ingredients, including meats, wine, seafood, dairy products, sauces, and fresh produce. While restaurant managers will be price-sensitive when considering new ingredients, this is balanced with a need to present new menu items to attract the notoriously fickle upscale Filipino consumer. The Philippines has a young population, ages 1-29 comprise about 64% of the total population, which heavily favours dining in fast food and casual/family restaurants. Purchases of food away from the home continue to grow steadily, in fact eating out accounts for about 12% of the food budget, up from less than 9% in the mid-1990s. Higher consumer standards and concern for food safety are driving Filipinos toward dining in restaurants and away from traditional food hawkers. Popular chains led by Jollibee, McDonalds, ChowKing, KFC and Pizza Hut offer attractive menus and fiercely competitive prices, with full meals available for as little as $2.00. U.S. products found in these outlets include French fries, processed poultry products, sauces, and cheese toppings. Foodservice sales are currently valued at approximately US$3 billion, increasing by an estimated 15%-20% per year in the past decade. American franchises, which normally require standard or U.S.-approved food ingredients, have encouraged increased imports of food service products both in terms of volume and variety. Frozen French fries are the single most important product for this sector from the United States, importing over US$20 million in 2009. There is a growing demand for frozen poultry products, sauces & condiments, and fresh & processed fruits/vegetables. The number of full service restaurants is also growing. Nearly all the growth in recent years is in fashionable shopping/dining areas in Metro Manila. With their focus on quality, these restaurants bring in significant amounts of a wide variety of importsspecifically meats, wine, and condiments. Full service restaurants are a good way to introduce high-quality ingredients to the Philippines. Competition in this segment is keen and restaurant operators are interested in new and exciting menu ideas to attract customers.

http://www.foodexport.org/Reso urces/CountryProfileDetail.

Competitive Landscape
Filipino chicken full-service restaurant Maxs Inc remained as the largest company in the category during 2010. Generating revenue of Ps2.04 billion, the company accounted for 2% share of total sales in fullservice restaurants. Maxs chicken is iconic in full-service restaurants and could be referred to as one of middleincome Filipinos comfort food. Served with local sweet potato fries, Maxs fried chicken often evokes childhood memories. The strength of Maxs Inc in the Philippines is mainly due to this image and the sentiment that customers associate with the brand.
http://www.euromonitor.com/full-service-restaurants-in-thephilippines/report

Industry Trends
Companies in full-service restaurants hope to leverage on a pool of customers by opting to increase sales value through loyalty cards. During 2010, Pancake House, Inc which is a listed player in fullservice restaurants launched its Orange Card which could be used in its brands Pancake House, Teriyaki Boy, Sizzlin Pepper Steak, Dencios and Le Coeur de France. The goal of Orange Card is fourpronged: connect to customers in new ways; retain and turn passionate customers into brand advocates; reward loyal ones; and reach out to other guests who have not tried the specialties of other brands. On the same note, Racks and Gerrys Grill also unveiled their loyalty cards while Shakeys upgraded its Pizzanatic Card. The new Shakeys Pizzanatic Supercard gives customers usual benefits such as buy-one-take-one and free drinks as well as 10% discount for credit card and cash purchases.

http://www.euromonitor.com/full-service-restaurants-in-thephilippines/report

Prospect
During the forecast period, full-service restaurants is expected to capitalise on the predicted stronger economic performance in the Philippines. Business process outsourcing hubs and shopping centres being built in the fast developing cities in the country is projected to provide a fertile ground for growth of chained full-service restaurants over the forecast period. It is also expected that as the pool of higher income consumers widens and interest in more innovative food concepts heighten, sales from these channels will continue to grow.
http://www.euromonitor.com/full-service-restaurants-in-thephilippines/report

Target Market
Dolcelatte Osteria e Pasticceria: will target the midto high-income consumers who want to have a high quality food, bakery products, and beverage at a very reasonable prices. This group will see a large growth in their numbers over the next decade(NSOFIES 2009) If we can continue to meet and exceed their expectations, we will expect sales growth over time period. We just have to stay focused on their changing needs to maintain their loyalty.

Target Market Segment Overview

Demographics of Primary Target Market:
Social Class A, B, and upper C income Group Age Group: 25 to 45 years old Profession: Officials of the government, Corporate Executive/Managers/Supervisors/Professionals/Clerks/ Services Workers & Shop & Market Sales workers. Education: Mostly College Graduates and Masters Degree Activities: Eat-out/Meetings

Statistics

Statistics

Statistical Data

Competitive Landscape
Filipino chicken full-service restaurant Maxs Inc remained as the largest company in the category during 2010. Generating revenue of Ps2.04 billion, the company accounted for 2% share of total sales in fullservice restaurants. Maxs chicken is iconic in full-service restaurants and could be referred to as one of middleincome Filipinos comfort food. Served with local sweet potato fries, Maxs fried chicken often evokes childhood memories. The strength of Maxs Inc in the Philippines is mainly due to this image and the sentiment that customers associate with the brand.
http://www.euromonitor.com/full-service-restaurants-in-thephilippines/report

Competitive Landscape
Price Point:
Very Low (99-down) 7-11 Ministop Dunkin Donuts Mister Donut Low (100-299) Jollibee KFC Greenwich Starbucks Cafe Mary Grace French Baker Cafe France Mid (300-499) Pizza Hut/Shakeys Bizu Caff Dolce Cafe Breton Cibo Bizu Delifrance UCC Cafe High (500699) Cyma Italiannis Burgoo Very High (700-up) Spiral Lemuria Bistro Filipino