A full service restaurant is a restaurant that offers fine dining with a wide selection of foods and beverages where food is served directly to the customers’ table. These establishments have attached alcoholic beverages, coffee shops, fast food restaurants and specialized traditional foods. Full service restaurants also provide takeout, delivery and live entertainment. The types of full-service restaurants include chained full-service restaurants, full-service restaurants by casual dining and non-casual dining, full-service restaurants by type, and independent full-service restaurants.
The full-service restaurants market in Brazil has witnessed a slow growth with the current economic situation and consumers looking for cheaper meal options. Generally full-service restaurants outlets are expensive options available, and majority of the consumers opt to eat in other types foodservice outlets. To save money, many people in Brazil are avoiding family dinner or lunch or even a get together at full service restaurants. Instead, many Brazilians are inviting family and friends to spend time together and to eat at home.
According to the report, “Full-Service Restaurants in Brazil”, the major leading brands in the full service restaurants in Brazil have prolonged to be- Outback Steakhouse, Madero and Applebee’s Neighbourhood Grill & Bar which are popular for casual dining. Outback Steakhouse has been able to attract a considerable number of consumers due to its attractive prices, its wide variety of appetisers, its “happy hour” prices and its new menu options focused on young consumers. In spite of the economic crisis in Brazil, Outback Steakhouse has been prosperous in its business with increasing number of outlets.
Brazil has been suffering the worst economic recessions from a decade with soaring inflation rates, lower consumer disposable income, negative GDP results, and political uncertainties. These factors are hampering consumers to spend on the foodservices. Unemployment of professionals has further led to a drastic decline in the full-service restaurants and other foodservice outlets which are visited by them during lunchtime.
Additionally, it has been noticed that only a limited number of Brazilians consumers order food via internet. iFood, Hellofood, Pizza Hut, and Domino’s are the leading websites in Brazil for ordering food via internet. These competitors are investing in their own apps to boost online sales. Independent consumer foodservice players in Brazil are also starting to develop their own websites for fruitful business. With increasing smart phones, ordering food online is made simple but majority of the consumers pay for their orders at the time of the delivery with cash, credit or debit card.
Brazilians awareness in health and wellness is an emerging theory and consumers are becoming more aware of diet and health. Majority of the food services are also offering foods related to health and wellness which could become an interesting business in the coming years. Street stalls/kiosks have considerably increased in number with reduced-prices despite of the country’s economic crisis. These are the major factors that have affected the growth of the full-service restaurants in Brazil.
Brazilian foodservice market has accounted to be the fourth biggest in the world with over one million establishments and 98% of establishments being national independents. Casual dining has gained popularity in Brazil and is sure to grow rapidly in the coming years. Brazil is sure to overcome its difficult economy gradually and the full-service restaurants market is anticipated to witness a steady growth in the coming years.
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Ankur Gupta, Head Marketing & Communications