Czech Republic Foodservice Market Size and Trends by Profit and Cost Sector Channels, Consumers, Locations, Key Players, and Forecast, 2021-2025

The foodservice profit sector in the Czech Republic was valued at $10.8 billion in 2020. The market is projected to grow at a CAGR of more than 15% during the period 2021-2025. In the profit sector, full-service restaurants (FSR) was the leading channel in 2020 followed by pub, club & bar; quick service restaurants (QSR); accommodation and coffee & tea shop. The healthcare segment dominated the cost sector, followed by education; welfare & services; and military & civil defense.

The foodservice market in the Czech Republic declined significantly in 2020. The decline in the foodservice profit sector was caused by the substantial reduction in the number of transactions in 2020 due to the operational restrictions on restaurants, cafés, and other foodservice outlets amid the COVID -19 outbreak. Chain operators fared better than independent operators during the pandemic as independent operators found it difficult to diversify their business format due to their limited finances, while chain operators enjoyed strong financial footing and rationalized outlet networks and services.

Overview of the foodservice market in the Czech Republic

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What are the market dynamics in the Czech Republic’s foodservice market?

The government mandated the closure of restaurants, cafes, and other outlets for dine-in services on March 14, 2020; however, services through the window (for take-away) and delivery were permitted. Later, these outlets were allowed to reopen on May 25, 2020, but with several restrictions imposed on operating hours and occupancy rates. However, with the onset of the second wave of COVID-19, these outlets were again closed on October 14, 2020, briefly reopening from December 3 to December 18, 2020.

As only take-aways and delivery services were allowed during most of 2020, this accelerated the shift towards ordering foodservice through online platforms. Moreover, chain operators fared better than independent operators during the pandemic as independent operators found it difficult to diversify their business format with limited finances, while chain operators enjoyed relatively strong financial footing and rationalized outlet networks. The pandemic resulted in the closure of 2,144 foodservice establishments in the Czech Republic in 2020 due to poor sales.

The COVID-19 restrictions, combined with the limitations on dine-in services at restaurants and eateries, discouraged people to visit restaurants and other foodservice outlets. As a result, consumers switched towards food delivery services to eat meals at home as 8% of respondents stated that they consume food and drinks using delivery a few times a week while 4% of respondents stated that they consume daily.

What are the sector classifications in the Czech Republic foodservice market?

The foodservice market is segmented into the profit sector and cost sector. The cost sector typically represents the state’s foodservice operators while the profit sector represents the commercial operators. 

Profit Sector: 

Quick service restaurants market in the Czech Republic

The QSR channel was the third-largest profit sector channel. The channel’s value declined during 2015-2020. The decline can be attributed to the low visits by consumers owing to hesitation in socializing outside of the home, a direct fallout of their fear of getting infected, and the government-mandated operational restrictions on restaurants for most of 2020. However, the closure of restaurants for dine-in during 2020 led to increased orders via take-away, drive-throughs, and home deliveries. The channel was led by western-style fast-food chains; however, it remained relatively fragmented. Online ordering, take-aways, and deliveries supported the QSR channel immensely, especially during the COVID-19 outbreak. At-home consumption will continue to prevail in the country. 

Full-service restaurants market in the Czech Republic

The FSR channel was the largest profit sector channel in the Czech Republic. The temporary closure of restaurants, especially for dine-in services, following the government’s recommendations, led to a decline in sales during 2020. Chain restaurants fared better than independent operators during the pandemic as chain restaurants quickly switched to take-away and delivery services. Local, small, and independent restaurants struggled to stay afloat during 2020, and some shut down permanently. The channel is heavily fragmented and is dominated by independent operators. 

Coffee & tea shop market in the Czech Republic

The channel accounts for a relative mix of chain and independent operators, although independent operators hold the dominant share. The coffee & tea shop channel is relatively small compared to other profit sector channels in the Czech Republic. The decline was largely due to the closure of cafés and operational restrictions amid the COVID-19 pandemic. However, the channel was growing before the pandemic due to increasing demand for premium coffee on the back of robust disposable incomes. Additionally, the channel continued to impact offerings across foodservice channels, with QSR and FSR both increasingly offering specialist coffee products following the introduction of these offerings through the coffee & tea shop channel.

Pub, club & bar market in the Czech Republic

The channel is highly fragmented. No operator exists in the channel with a value share greater than 0.6%. Some small chains exist, but the majority of outlets are independent. Frequent visitors to these outlets are likely to be attracted by a greater variety of cuisines and dishes. Enhanced menu offerings with varied food options will result in higher transaction values and will also make room for a wider range of visit occasions. Though the channel is largely driven by alcoholic drinks, the popularity of non-alcoholic drinks is increasing. Changing attitudes towards alcohol will lead to a reduction in the traditional customer base. As a result, operators need to innovate in drink offerings to differentiate the channel from FSR and coffee & tea shop channels, which are less likely to focus on this area. 

Foodservice market in Czech Republic, by profit sector

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Cost Sector:

Healthcare foodservice market in the Czech Republic

Healthcare was the largest channel in 2020. The recorded marginal transactional growth during 2015-2020, while outlet growth declined. The healthcare channel is expected to record moderate transactional and outlet growth during 2020-2025. Healthcare establishments where foodservice is provided are considered here such as hospitals, medical centers, and residential care.

Education foodservice market in the Czech Republic

Education, the second-largest channel, registered a decline in both transactions and outlets due to the closure of educational institutions during 2020 owing to the COVID-19 restrictions. The education channel is forecast to become the largest channel in the Czech foodservice cost sector in terms of OBP value by 2025. The channel is expected to see a strong recovery in the number of transactions, which are forecast to grow at a CAGR of more than 40% during 2020-2025.

Military & civil defense foodservice market in the Czech Republic

Police, fire service, and ambulance service locations, where ambulance services do not form part of other healthcare outlets are covered in military & civil defense. Outlet numbers are not available for the air force, army and navy sub-channels. The channel registered a negative CAGR during 2015-2020, however, it is expected to grow at a stable CAGR during 2020-2025. 

Welfare & services foodservice market in the Czech Republic

The welfare & services channel is forecast to record the fastest growth in a number of outlets during 2020-2025. The channel registered a negative CAGR during 2015-2020, however, it is expected to grow at a stable CAGR during 2020-2025.

Foodservice market in Czech Republic, by cost sector

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Who are the major market players in the foodservice market in Czech Republic?

In the QSR channel, McDonald’s Corporation is the leading market player followed by Yum! Brands, Inc., Bageterie Boulevard and Restaurant Brands International. DAOS PLUS s.r.o. leads the FSR channel followed by Lokál, Grosseto Brumlovka Ltd., Ambiente Franchise, s.r.o. and COLOSEUM RESTAURANTS s.r.o.. Starbucks Corporation leads the coffee & tea shop channel followed by The Coca-Cola Company, CrossCafe original Ltd., Schärf Group and PRALINKA s.r.o.

QSR foodservice market in Czech Republic, by key players

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Market report scope

This report provides a comprehensive analysis of the foodservice market in the Czech Republic.

• Overview of Czech Republic’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on Czech Republic’s foodservice market including GDP per capita, consumer price index, population growth, and annual household income distribution.
• Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR, coffee & tea shops, and pubs, clubs & bars) within the Czech Republic’s foodservice market, including the value of the market, number of transactions, number of outlets, and average transaction price.
• Customer segmentation: Identify the most important demographic groups, buying habits, and motivations that drive out-of-home meal occasions among segments of the Czech Republic population.
• Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
• Case Studies: Learn from examples of recent successes and failures within the Czech Republic foodservice market.

Reasons to Buy

• Specific forecasts of the foodservice market over the next five years (2021-2025) will give readers the ability to make informed business decisions by identifying emerging/declining markets.
• Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea shop, and Pub, Club & Bar) will allow readers to understand the wants and needs of their target demographics.