ZF English

Hypermarket-owned restaurants compete with McDonald's

27.08.2009, 18:35 11

Hypermarket chains Carrefour, Real, Auchan and Cora see annual revenues put at almost 100 million euros from the sale of products made in-store, which attract clients, applying the fast-food restaurant strategy.
Most hypermarket chains have created small fast-food restaurants inside their stores, which attract new clients and contribute about 4-5% to the sales of a store.
The best-selling products made in the retailers' kitchens are grilled chicken and pizza, according to the data provided by Carrefour and Real.
"On average, the share of the products cooked in-store (food and pastry) in the total sales of a hypermarket in the first half of the year stood at 4%," says Andreea Mihai, marketing manager of Carrefour Romania.
Considering the four major hypermarket chains that invested in their own restaurants - Carrefour, Real, Auchan and Cora, posted 2.4 billion-euro business last year, the sales in these small fast-food restaurants can be put at almost 100 million euros. The other networks have not released their information on the sales in this sector.
In comparison, McDonald's, the biggest fast food chain on the market, posted 109 million euros in turnover last year.
In Bucharest, the home-made product section of a store can generate 4-6 million euro sales, considering some hypermarkets' sales amount to as much as 100-150 million euros a year.
Real sells 150 products on this segment, and representatives for the retailer said that the kitchen of each store also takes orders for products (catering business). Grilled meat is the best-selling product, followed by pizza.
Another retailer that operates a restaurant with similar sales to a McDonald's restaurant is IKEA. The restaurant in the biggest furniture store (by sales), located in Baneasa, posted 5.2 million-euro turnover last year, which puts it in the race for the top spot among restaurants with the highest revenues in Bucharest. It rivals the McDonald's in the Unirii area, which, according to ZF estimates, boasts similar sales.

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