HoReCa market under a strong impact of price increases in 2023
In 2022, the value of the HoReCa market grew at a double-digit rate, according to PMR latest report “HoReCa market in Poland 2023. Market analysis and development forecasts for 2023-2028.” This was possible thanks to the gradual recovery of tourism and a good situation in the labour market. The increase in the prices of food services was also an important factor, so in nominal terms the growth in the value of the HoReCa market was much stronger than in real terms.
Find comprehensive information about the current state of the Polish HoReCa market in the PMR report:
Price rises impact Poles' behaviour and their use of food services
In 2022, the value of the HoReCa market grew at a double-digit rate. However, 2022 was a period of rapidly rising inflation, so the real growth rate of the HoReCa market value was lower than that in nominal terms. According to PMR forecasts, after its 2022 record spike, inflation will remain at a similar (in compound annual terms) level in 2023. The food service price index will be growing faster than inflation overall.
Inflation has a restraining effect on the food service market in Poland, and according to PMR cyclical surveys, food services are one of the first categories on which spending is cut when prices go up.
On the other hand, Poles do not tend to give up eating out completely, and in particular they do not abandon tourist trips. However, they do make some changes to their behaviour, for example, they choose cheaper establishments or reduce the number of menu items they order (forgoing drinks, starters). When it comes to tourist trips, Poles go for cheaper holiday options or a shorter stay.
Price is key for food service establishments when choosing a supplier
Rising prices and the cost of doing business are the major challenges for companies operating in the HoReCa market. According to PMR latest survey of food service companies of April/May 2023, it is the high cost of maintaining premises, such as utility charges and food products, that is currently the biggest barrier to running and growing a food service business. Compared to the previous survey, this barrier was indicated nearly 30 p.p. more frequently.
Unsurprisingly, against a backdrop of rising inflation and business costs, the price has become an even more important criterion than before when it comes to choosing suppliers to food service establishments. In 2023, just as last year, the most important factor when choosing a supplier is the price of products offered – it was indicated by 90% of the respondents. The product quality comes next (85%), and these two criteria remain by far the key ones. Other factors, such as quick and timely delivery or a wide product range were indicated significantly less often.
Note on methodology:
The presented findings come from two PMR surveys conducted between April and May 2023 for the report: “HoReCa market in Poland 2023. Market analysis and development forecasts for 2023-2028. Impact of inflation, war in Ukraine and COVID-19”:
- Survey with a sample of 595 companies operating in the hotel, restaurant or catering sector; seven types (segments) of premises/companies were covered: restaurants, hotel restaurants, pizzerias, fast food bars (including food trucks), cafes/tearooms, bars/pubs and catering companies.
- Consumer survey on the use of hotel, restaurant and cafe (HoReCa) offerings in 2022. The group of 1,227 adult Poles took part in the survey.
The HoReCa market comprises sales of food service establishments and catering companies in the hotel (Ho), restaurant (Re) and catering (Ca) segments. The restaurant (Re) market includes total revenues from sales in restaurants, pizzerias, fast food bards, cafes, and drink bars.
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