Fast food market share

Around the world, fast food is a huge market, with the largest fast food market
share in Europe going to the UK. Fast food is classed as burgers, pizza, chicken,
sandwiches, fish and chips and fatty ethnic foods such as curry and chinese
takeaways.

As people work longer hours, subsequently leaving them with less time in their lives, fast
food has become an easy option to save cooking. The UK fast food market is double the size
of Germany, and three times the size of the French market. In 2005, consultancy Key Note
valued the UK fast food market at GBP£8.38 billion.

Despite the market facing strong opposition with the world facing rising levels of obesity,
triggering concerns over healthy eating, it hasn't had much of an effect on the fast food
market share.

The global fast food market recorded good sales results in 2008 with further positive results
anticipated in 2009 as the sector taps into consumers' desires for better value when eating
out.

Spain

In Spain, developments in the Spanish fast food sector have closely mirrored the trends of
consumers for better value for money when eating out.

The Spanish food lifestyle is changing with the introduction of the European timetables, not
allowing most employees have their traditional three hour Spanish lunch breaks and
“siestas” The fact that consumers have less time to eat and are now more price conscious
has helped the fast food chains grow.

In 2008 there were 2,808 fast food restaurants in Spain, 35 percent of the total number of
foodservice establishments in the country, according to Board Bia.

The type of outlets evident in the Spanish fast food sector are as follows:
• Pizza restaurants with home delivery service - 33.16 percent market share
• Burger restaurants - 30.91 percent market share
• Sandwich restaurants - 26.21 percent market share
• Other – 9.72 percent market share

McDonald’s and Burger King have 94 percent of the burger market between them. The most
recent competitor, a French burger company (Quick Restaurants), entered the Spanish
market in mid 2008 by opening an outlet in Barcelona with plans to expand further.

Telepizza is the largest company according to the number of establishments, and accounts
for two thirds of the pizza market. Pizza Hut, was the closest competitor on a national scale
with 104 restaurants, until recently when its managing company Grupo Zena did not renew
its contract and gave their licence and establishments to Domino’s Pizza.

The Eat Out Group dominates the sandwich segment with 40 percent of the market under
three trademarks, namely Pans & Company, Bocatta and Krunch. The second place is
occupied by Cien Montaditos with 15.6 percent followed by Rodila at 13 percent. Other
smaller chains like Delinas are looking at “fast casual” more than “fast food” offering healthy
food with their main dish (sandwich) in a modern ambient environment.
McDonald's

With over 35,000 locations in 119 countries, McDonald’s has a large chunk of the fast food
market share, it serves 47 million customers each day, and employs 1.5 million people.
McDonald's operates its own restaurants and franchises its brand to local businesspeople
(about 70 percent of the world's McDonald's are franchise). McDonald’s is well-established
in Europe, Asia/Pacific Islands, the Middle East, and Africa. Its growth in Europe is mainly
driven by France, Germany and the United Kingdom. In Asia, the general management has
indicated that there is significant potential in the China market. The corporation has adapted
its menu items to local cultures, such as the Teriyaki Mac in Japan, variants of Filet-O-Fish
in China, and using lamb instead of beef in India.

Main players

Although McDonald's dominates the burger side of the fast food sector, hot on its heels is
Burger King and KFC, according to a 2005 report by Catersearch. In the pizza sector, you
have Pizza Hut and Domino's.

Subway

The fast food market will continue to be a competitive market. Not only do you have the
likes of McDonald's, but you also have the rise of sandwich outlets like Subway, who are
quickly gaining dominance for the preferred choice for consumers for lunch. Subway is one
of the fastest growing franchises in the world with approximately 31,949 restaurants in 91
countries as of November 2009. Many restaurant analysts attribute Subway's fast growth to
the growing health concerns by restaurant customers, a trend that Subway has taken
advantage of in its marketing. In the UK and Ireland, the company hopes to expand to 2010
restaurants by 2010. In the UK, Subway has become the biggest seller of sandwiches

In an 2008 article on the site for the British newspaper, The Telegraph, one industry expert
said, "In a lot of city centres it has replaced the doner kebab shop as a place where people
go to get food and hang out after the pub."