New Zealand Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

New Zealand Foodservice Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The New Zealand foodservice market is projected to witness a CAGR of 3.92% during the forecast period (2022 - 2027).

The COVID-19 pandemic has completely changed the consumption habits of consumers, and this trend continued all over the world. The same applies to New Zealand as well. The homebound scenario has been a prominent affair, and the operation of food services was on an experimental basis. Although consumers had kept their tap on popular chains such as KFC, restaurants were mostly closed and were operational through online services. Since out-of-home consumption had reduced drastically in the first phase, online delivery of food from these companies had increased during the period of the pandemic in the country.

The market is primarily driven by the growing demand for home delivery and food service providers. In addition, factors such as the increasing frequency of dining out amidst time-pressed schedules, and the growing influence of western dietary patterns, due to the presence of international companies, particularly in developed cities, are further boosting the market growth.

Furthermore, expansion by international players has been witnessed to be one of the major factors affecting market growth. For instance, according to Restaurant Brands, in 2015, New Zealand had 91 KFC stores, which increased and reached 108 in 2020. Similarly, BurgerFuel is planning to open 1000 new stores over the next eight years and plans to utilize existing franchisees within the Subway sandwich chain's worldwide network.

The full-service restaurant segment is highly competitive in New Zealand, owing to the presence of a large number of small and major players. Full-service restaurants are increasingly focusing on sustainable, locally sourced ingredients with local ingredients giving the food a sense of place. Thus, leading players are focusing on leveraging opportunities from the emerging consumer trends in order to expand their offerings, primarily to cater to the requirements. For instance, the Lotus-Heart is one of those independently owned vegetarian restaurants. In addition to their pure vegetarian fare, the restaurant offers various options for vegan, gluten-free, and raw food diets. Also, for many years, cities such as Wellington have been highly accepting of vegetarian and vegan food options, with most full-service restaurants offering a selection well beyond the token salad for vegans and vegetarians. Lone star has been one of the leading players in the New Zealand full-service restaurant market, offering high-quality food.

Consumer spending on fast food was highest in Auckland, Wellington, and Christchurch. Restaurant Brands, New Zealand Limited, currently operates and owns the master franchising rights for the Carl's Jr., KFC, and Taco Bell brands in New Zealand. Owing to the significant demand for fast food across the country, global players are entering the market studied with an aim to increase their revenue and market share. For instance, in October 2021, Fast food chain Taco Bell's new store was launched in New Zealand, Wellington. Popular brands such as KFC, McDonald's, and Subway are embarking on expansion plans across the country to effectively penetrate their presence. For instance, in February 2020, McDonald's opened four new restaurants in Wellington.

The New Zealand market for foodservice is competitive and fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players in the market include Starbucks Corporation, Yum! Brands Inc, McDonald's Corporation, Dominos Pizza Limited, and Inspire Brands Inc. The major focus of the companies is to offer unique products that can cater to the consumer's preferences efficiently.

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