Southeast Asian foodservice in 2019 to grow at the same rate as 2018
The Philippines is projected to witness the fastest growth among SEA markets.
Amidst economic uncertainties, foodservice growth in Southeast Asia in 2019 will remain similar to last year's rate.
According to Rabobank's global outlook, the region will experience a 7.1% growth this year, near-identical to 2018's 7%.
For Indonesia, the continuing shift to dining-out that is encouraged by promotions and menu innovations will drive growth.
"However, uncertainty due to the upcoming presidential elections in April...will force operators to 'wait and see' on outlet addition and expansions plans," the report said.
Increasing disposable income and a growing young population "overwhelmed by a demanding lifestyle" will aid foodservice growht in Vietnam. Rabobank expects footfall to improve due to a growing preference to dine out, and income growth will be accompanied by a desire for "better food and experiences."
The Philippines is projected to witness the fastest growth among SEA markets, with outlet expansion cited as a key supply driver. Key demand drivers, meanwhile, are a "young and aspirational" population and a growing middle class.
Rabobank's forecast for foodservice growth in six SEA markets. Photo: Rabobank's Global Outlook
Developed markets are expected to focus on profitability. Malaysia's growth is projected to be due to improving customer sentiument and household spending to do changes in government and policy.
Technology is expected to play a greater role in Thailand to achieve cost savings, with digital order taking, payment and delivery becoming more common.
For Singapore, which already has a high penetration of foodservice outlets and a "mature" dining-out culture, will find growth through concept and format innovations. Costs for raw material, labor and rental, however, remain major challenges for operators in the island-nation.
Rabobank also cited food prices, labour, food safety, challenges for delivery aggregators and M&A activity are the key things to consider this year. (Get the full report by clicking here.)
