Economic Factors Restricting Full-Service Restaurants Revenue in Chile: Ken Research Chile’s economy is growing at a reasonable pace. The economy is sure to recover with the weak investment but will loose monetary policies. The real GDP in Chile is sure to grow by about 3.3% per year and such a performance will be better with the commodity boom in the coming years. Increasing in social spending has contributed to a decline in inequality and growth of the country’s middle class. The consumers spending limit is affected by the economic factors, ageing population, demographic and lifestyle changes in Chile. According to the report, “Full-Service Restaurants in Chile”, it has been observed in the recent years that the full-service restaurants in Chile witnessed mixed results and few categories declined in the foodservice sector. Full-service restaurants are usually the most expensive because of their full-course meals and. Majority of the consumers have decreased their expenditure by avoiding heavy consumption and opted for cheaper items on a menu. Consumers have also stopped ordering full meals at full-service restaurants and order just appetisers and drinks instead, or skipping desserts and appetisers, etc. Mamut, from Gastronomia y Negocios SA, is the leading player in the full-service restaurants in Chile. The menu offered at Mamut is very similar to that of the other competitors such as Applebee’s Neighborhood Grill & Bar and Ruby Tuesday. Mamut has the highest number of outlets among chained competitors, with 21 outlets located throughout a city. International player, The Carlyle Group has also been inspired to invest in Chile’s full-restaurant market for developing new outlets and launching brands. Chile consumers eat out more frequently but now they have adapted to the country’s economic scenario and accordingly increased their transactions by visiting low-cost restaurants. Nevertheless, growth in the full-service restaurants is at a slower rate while fast food restaurants have witnessed a strong increase in sales. Majority of the fast food operators have managed to attract consumers’ attention with their higher-quality gourmet meals on their menus at slightly higher prices and adding attractive side options. However, it has been observed that there is a continuing slowdown in chained operators otherwise, with steady growth despite economic difficulties. In Chile, independent players such as fast food services have dominated the full-service restaurants due to their great diversity and competitive prices. The increase of Latin American immigrants in the recent years has encouraged Latin American cuisines which are now popular among Chileans. Travel hubs such as airports are particularly popular with chained players’ brands, such as McDonald’s, Starbucks and Johnny Rockets. Consumers are willing to eat out which has demanded for growth in the fast food outlets. This deciphers less active growth in full-service restaurants and a drastic increase in growth within fast food outlets.
Chile Full Service Restaurants Industry Trends Analysis - Ken Research
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