The HoReCa (hotel, restaurant and catering) market in Russia increased in value last year by 11% to almost RUB 993 billion (€23bn or $31bn), according the estimates from PMR. While all segments managed to grow, catering companies showed the strongest performance, reported the Krakow, Poland-based market research and consulting company, following its survey of 600 foodservice operators in Russia.
A positive factor influencing the market was the intensification of the development of the sports events industry. Preparations for major events such as the Summer Universiade in Kazan (held in 2013) and the Olympic Winter Games in Sochi became a stimulus for tourism infrastructure expansion, including the construction of HoReCa establishments. At the same time, it resulted in a 10% rate of growth in the number of overseas tourists coming to Russia.
On the other hand, this growth was hurt by the downturn in the overall economic situation, resulting in a drop in consumption. Although the trend of eating out is becoming stronger each year, consumers favour cheaper options.
In the near term, the general political instability in the world and the erosion of Russia’s image in the global tourism market (caused by the annexation of Crimea) will impact business. Further HoReCa market development will be fully dependent on the overall macroeconomic and political environment. It is likely that the country’s image, which has suffered after the events in Ukraine, will not be quickly restored.
During the course of the survey, conducted by PMR in January of 2014, catering staff were asked about the main barriers that make it difficult to operate in Russia. More than half of the respondents (55%) said that the most significant barrier was fierce competition. One-fourth of those surveyed pointed to the impoverishment of Russian society, while 23% cited a shortage of skilled personnel as social factors.
On the other hand, 15% of those surveyed complained about complicated legislation, bureaucracy and high taxes, while 11% cited high maintenance costs, and 9% claimed there are no barriers at all.
More details about the report are available by contacting PMR by phone (+48 12 618 90 00) or via e-mail (marketing@pmrcorporate).
