In 2010, the Russian fast food market increased by 11% in current value terms to reach RUB216.0 billion, whilst transaction volumes increase by just 5%. Outlet numbers in Russia's fast food industry increased by 2% to total 20,852. Fast food continued to be the best performer in the Russian consumer foodservice market, which supports the move towards more outlets in new locations. Burger fast food saw the fastest growth in the market, with a current value increase of 26%, and outlet numbers increased by 21%. Moskva-McDonald's leads the Russian fast food market with a value share of 19%. Fast food is expected to post a constant value CAGR of 5% over the forecast period, to reach RUB278.6 billion in 2015

Trends

Fast food was the only foodservice channel which performed well during the time of economic instability in the country, and actually posted positive current value growth in 2009. The recession, however, did not leave fast food entirely unscathed, and the growth of the channel was still much lower than the 10% current value CAGR in the review period. In 2010 fast food saw the highest expansion in terms of both current value sales and number of outlets, with 11% and 2% increases respectively. As consumers' lifestyles are becoming more hectic, this supports the move towards more outlets in new locations, and the rising popularity of places where food can be consumed rapidly or taken away. Growing disposable incomes amongst the majority of the population in the country and new multinational brands which appeared throughout the year supported the further development of fast food culture in Russia.

Independent operators continued to account for the vast majority of value sales in fast food in Russia, as well as transactions and outlets. Chained fast food operators, however, continued to grow at the expense of their independent counterparts, with chained players recording total growth of 20% in current value terms in 2010, whilst independents increased by just 6%. Chained fast food saw strong growth mainly driven by multinational players, such as McDonald's, Subway and Baskin-Robbins, with extensive expansion boosted by franchising.

Competitive Landscape

Moskva-McDonald's remained the leading company in chained fast food in value terms in 2010, accounting for a share of 45%. The company is developing the pioneering brand McDonald's in burger fast food, which claimed to have 275 outlets in Russia by the end of 2010. Over the review period the company constantly worked on improving its menu and introducing new service formats.

Subway, the third largest fast food brand in terms of transactions, and fourth in terms of outlets and current value sales, saw the highest increase in share in 2010. The company, being very well managed, was able to increase its revenue by 43% in 2009, during the time of economic instability in the country. The brand owners introduced new cheaper menu items, such as sandwiches for less than RUB29, which although slightly decreased the sales per outlet, helped to maintain the number of transactions per outlet compared with the previous year. In 2010 the company posted stunning growth by more than doubling the number of outlets in the year (from 82 in 2009 to 167 in 2010). The Subway brand is positioned as a healthy alternative to what is increasingly perceived as unhealthy fast food. The best-selling items, such as turkey-ham, tuna and chicken breast subs, are perceived by Russian consumers as less unhealthy, and as containing less fat than burgers, for instance, so enjoyed high demand over the year.

Prospects

Fast food in Russia is expected to see further steady growth over the forecast period. The leading players forecast a promising future for fast food, with constant value sales and outlet numbers expected to increase by CAGRs of 5% and 2% respectively. The number of outlets is expected to see further positive development, mainly due to the expansion of chained players into the regions of the country, with a key focus on the largest cities. The key markets of Moscow and St Petersburg are already fairly saturated, and the competition is expected to be between the current players, with chained fast food brands carving out share from independents.

The leading multinational brands are expected to continue expanding in terms of new outlets; however, as the channel approaches saturation, the number of new entrants is likely to stagnate. The key competition is expected to appear between the existing players, with pioneers such as McDonald's, Subway and Baskin-Robbins taking over the independents. Chained fast food is expected to record a constant value CAGR of 10%, whilst independent fast food is expected to increase by a marginal 1% over the forecast period.

Report scope

Fast Food in Russia market research report offers a comprehensive guide to the size and shape of the market at a national level. It provides foodservice sales, the number of outlets and the number of transactions by sector, allowing you to identify the foodservice sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they eating habits, lifestyle changes, tourism spending or legislative issues. Forecasts to 2015 illustrate how the market is set to change.

Product coverage: Asian Fast Food, Asian Full-Service Restaurants, Bakery Products Fast Food, Bars/Pubs, Burger Fast Food, Cafés, Casual Dining Full-Service Restaurants, Chained 100% Home Delivery/Takeaway, Chained Cafés/Bars, Chained Fast Food, Chained Full-Service Restaurants, Chained Pizza Consumer Foodservice, Chained Self-Service Cafeterias, Chained Street Stalls/Kiosks, Chicken Fast Food, Convenience Stores Fast Food, European Full-Service Restaurants, Fast Casual Dining, Fish Fast Food, Ice Cream Fast Food, Independent 100% Home Delivery/Takeaway, Independent Cafés/Bars, Independent Fast Food, Independent Full-Service Restaurants, Independent Pizza Consumer Foodservice, Independent Self-Service Cafeterias, Independent Street Stalls/Kiosks, Juice/Smoothie Bars, Latin American Fast Food, Latin American Full-Service Restaurants, Middle Eastern Fast Food, Middle Eastern Full-Service Restaurants, North American Full-Service Restaurants, Other 100% Home Delivery/Takeaway, Other Fast Food, Other Full-Service Restaurants, Pizza 100% Home Delivery/Takeaway, Pizza Fast Food, Pizza Full-Service Restaurants, Specialist Coffee Shops.

Data coverage: market sizes (historic and forecasts), company shares, brand shares and distribution data.

Why buy this report?
* Get a detailed picture of the Fast Food market;
* Pinpoint growth sectors and identify factors driving change;
* Understand the competitive environment, the market's major players and leading brands;
* Use five-year forecasts to assess how the market is predicted to develop.