Philippine food service sector sales dips to 20% in 2023

However, the industry is still expected to recover to pre-pandemic levels in 2024.

The Philippine consumer foodservice sales are expected to grow at 20% in 2023, a dip from the 26.6% growth in 2022, a report by the United States Department of Agriculture (USDA) revealed.

According to the report, although limited-service restaurants still form a majority of food service, street kiosks outperformed limited-service restaurants, full-service restaurants, cafés, and bars in sales growth. By early 2024, the food service industry is estimated to recover to pre-pandemic levels. 

Last year, pizza restaurants contributed the most to restaurant sales, with a 24% sales increase, followed by Asian restaurants. 

Fast-tracking expansions

Whilst most food establishments are launching new restaurant concepts, some restaurant chains fast tracked store openings to meet local and international franchise agreements.
In 2022, 57% of restaurants are part of a chain whilst only 27% are independent.

“As restaurant chains open more company and franchise-owned stores, they will continue to outpace independent restaurants. Chains have more financial leverage to expand, efficiency in operations, and capacity to order bulk purchases compared to independent stores. Most food chains such as Jollibee and Potato Corner focused on faster store openings locally and abroad,” the report said.

Cafes & Bars

Café and bar sales grew by 26% last year.

Bars & pubs continue to hold the most sales shares in the market at 40% in 2022. Cafes hold 30%, tied with speciality coffee and tea shops.

Starbucks continues to lead cafe sales, holding a 56% sale share at $775m in 2022. It is followed by Dunkin’ at $142m, McCafe at $86m, Mary Grace at $64m, and The Coffee Bean & Tea Leaf at $62m.

Street stalls and kiosks

Meanwhile, USDA estimates street stalls and kiosks sales will reach 25%  growth in 2023 after outperforming all categories last year.

Growth however is slower compared to last year because of the higher cost of raw materials and consumers holding back on spending.

The top street stalls and kiosks brands in 2022 by sales are Angel’s Burger at $134m, Tender Juicy Hotdog at $110m, Turks at $93m, Infinitea at $88m, and Zagu at $76m.