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New C&M analysis: Consumer Foodservice (Poland) Dominium SA Company Profile
Dominium SA in Consumer Foodservice (Poland) - a new company profile report on 2014-03-18 19:02:04
Dominium SA owns and operates a pizzeria network and a franchise operation. The company was founded in 1993 and is based in Warsaw, Poland. Consumer foodservice registered moderate growth during 2012, although sales results for the major operators remained unsatisfactory. The slowdown in growth compared to 2011 was due to the economic stagnation which is evident in Poland. Adverse macroeconomic circumstances have boosted unemployment and placed limits on disposable income levels, with the pessimistic consumer mood leading to a widespread focus on life´s essentials, limiting spending on consumer foodservice, which is seen by the majority of Poles as an unnecessary luxury.

The major event in Poland during 2012 was the country´s co-hosting with Ukraine of the UEFA Euro 2012 football tournament. Numerous consumer foodservice operators hoped for significant improvements in sales deriving from the major sporting and social event. However, the benefits of the tournament were limited to those consumer foodservice outlets located in the four cities hosting matches, with the additional demand generated by tens of thousands of football fans proving a major boon. In light of the disappointment stemming from the limited benefits of the Euro 2012 tournament, compounded by the ongoing adverse economic circumstances, the owners of numerous consumer foodservice outlets withdrew from the industry during the second half of 2012. Declines in outlet numbers were particularly strong among independent operators in self-service cafeterias, full service restaurants and snack bars, with those outlets in unattractive locations and those with poor reputations for food and atmosphere those to suffering the most. Similarly, some consumer foodservice chains such as Pizza Dominium, Café Nescafé, Sushi Bar Nigiri and China Box suffered declines in the number of outlets operated under franchise.

As far as outlet volume is concerned, independent operators dominate consumer foodservice in Poland. International companies and large chained operators concentrate mainly on establishing outlets in the most attractive locations, normally shopping centres, busy high streets and service stations. Due to this policy, chained operators are able to achieve better results measured by sales per outlet and average transaction value. Fast food meets demand for convenience among busy Poles, especially the denizens of large cities. The operators of cafés continue to benefit from rising interest among Polish consumers, many of whom perceive drinking coffee in a branded café as an essential element of their modern European lifestyles.

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