Required Report - public distribution

**Date:** 7/15/2005

**GAIN Report Number:** PL5016

PL5016

**Poland**

**HRI Food Service Sector**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Charles Rush

US Embassy

**Prepared by:**

Business Analysts & Advisers Ltd., Elizabeth Minor, Summer Intern

**Report Highlights:**

Poland is a significant market for diverse food products. The population
of the country, reaching almost 40 million, spends about 30 percent of
its income on food and beverages. this is significantly less than in
other Western countries, in Germany it is 40 percent and in the United
States 52 percent.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Warsaw \[PL1\]

\[PL\]

Table of Contents

[**Executive Summary 3**](#executive-summary)

[I. THE HRI MARKET DESCRIPTION 4](#i.-the-hri-market-description)

[II. MARKET STRUCTURE, COMPANY PROFILES & SUB-SECTOR TRENDS
6](#ii.-market-structure-company-profiles-sub-sector-trends)

[DISTRIBUTION CHANNELS 6](#distribution-channels)

[MARKET STRUCTURE 6](#__RefHeading___Toc109528102)

[SUB-SECTOR PROFILES 7](#sub-sector-profiles)

[Hotels and Resorts 7](#hotels-and-resorts)

[Restaurants 13](#restaurants)

[Institutional 16](#institutional)

[III. COMPETITION 18](#competition)

[IV. BEST PRODUCT PROSPECTS 19](#best-product-prospects)

[PRODUCTS PRESENT IN THE MARKET THAT HAVE GOOD SALES POTENTIAL
19](#products-present-in-the-market-that-have-good-sales-potential)

[PRODUCTS NOT PRESENT IN SIGNIFICANT QUANTITIES BUT WHICH HAVE GOOD
SALES POTENTIAL
19](#products-not-present-in-significant-quantities-but-which-have-good-sales-potential)

[PRODUCTS NOT PRESENT BECAUSE THEY FACE SIGNIFICANT BARRIERS
20](#products-not-present-because-they-face-significant-barriers)

[V. POST CONTACT INFORMATION 20](#post-contact-information)

# Executive Summary {#executive-summary .unnumbered}

Poland is a significant market for diverse food products. The population
of the country, reaching almost 40 million, [spends about 30 percent of
its income]{.mark} on food and beverages. The value of food and
beverages sold by the retail and the Hotel and Restaurant Industry (HRI)
sectors in 2003 totaled [\$43 billion, a 16 percent increase from
2001.]{.mark} However, the portion of income spent in restaurants and
the larger food service sector has remained constant at 6-8 percent of
total food expenditures. This is significantly less than in other
Western countries, in Germany it is 40 percent and the United States 52
percent.

Traditionally, Poles prefer dining at home rather than in restaurants.
Low incomes and relatively high prices in restaurants limited growth in
this sector. Prices in restaurants and food service establishments in
the early nineties grew much faster than the retail prices for food. In
fact, between 1993-1996 expenditures on catering services decreased by
16 percent. Since 1996, this trend has changed, particularly in urban
areas where incomes and employment levels are higher.

Today the variety and sheer number of restaurants reflect changes in
demographics. In the past, foreigners or Polish officials frequented
restaurants. Weddings were the one occasion that families visited
restaurants and the majority of which were located in hotels. This is no
longer the case, particularly in large cities where approximately 30
percent of the population lives. In urban areas 56 percent of households
have two or more incomes. Restaurants come in all shapes and sizes, as
well as price ranges. Warsaw, for instance, boasts a variety of low-cost
eateries and high-end restaurants. Consumer tastes in these areas are
becoming similar to those of Western Europe and the United States.
Mediterranean, French, Middle Eastern, and Asian cuisines are becoming
more popular and more readily available in local neighborhoods as well
as well-traveled locations. Demand for fast food is growing quickly.
Many families now consider visiting traditional or fast food restaurants
a form of entertainment.

During the last decade, the increase in demand for HRI food service was
stimulated by increasing GDP, growth in employment among women, higher
per capita incomes, and development of tourism. All these factors
developed rapidly until 2000 when a significantly lower rate of growth
of the Polish economy began, which continued through 2002. This resulted
in higher unemployment, lower per capita income, and reduced tourism in
Poland. Gross Domestic Product growth dropped from 4 percent in 2000 to
1.2 percent in 2001 and near 1 percent again in 2002. Unemployment
increased from 15 percent to 17.4 percent, mainly affecting women. As a
result, development of the HRI sector has slowed. Nevertheless, this
drop was not as dramatic as in other sectors of the Polish economy.

The situation reversed in 2003 when the economy started to recover and
growth continued throughout 2004. Although GDP growth rose to 3.8
percent and 5.3 percent respectively, the unemployment rate increased,
reaching a level of 19-20 percent. The unemployment rate is still higher
as regards women (20.3 percent) than in the case of men (18.4 percent).
In 2004 women constituted 51.6 percent of adult population and 45.2
percent of the total workforce.

In 2004, imports of agri-food products formed 6 percent of total import
value (US\$4.6 billion), which was 30 percent higher than in 2003. The
majority of food and feed products imported to Poland were fruits,
animal feed, fish, and seafood. The majority of these products
originated in Germany, Holland, Italy, France, and Denmark.

Processed food products made up 43 percent of total food and
agricultural imports in 2004. Food imports from the United States were
valued at US\$91.5 million, accounting for 2.3 percent of all Polish
agricultural imports. Key products imported from the U.S. include red
meat and tripe, fresh fruits, and fish.

U.S. exports face stiff competition from EU suppliers and from domestic
processors. There has been rapid development of local production due
largely to foreign investments in food processing and the food
production sector.

# I. THE HRI MARKET DESCRIPTION {#i.-the-hri-market-description .unnumbered}

At the end of 2003 there were more than 89,000 food service
establishments (permanent and seasonal) in Poland, a 4.4 percent
increase from 2002. The number of food service establishments has been
growing for many years and this tendency is expected to continue. As a
result of rapid privatization in this sector, more than 96 percent of
eateries are privately owned and operated (98.2 percent restaurants,
98.7 percent bars, 73.4 percent cafeterias, and 97.7 percent food
stands). Food service establishments include 38,400 bars, 33,700 food
stands, 8,800 restaurants, and 7,200 cafeterias.

***Number of Food Service Establishments 1995, 2002, and 2003***

***(permanent [and seasonal)]{.mark}***

![](media/image2.wmf)

*Source: GUS (Central Statistical Office)*

In 2004 the highest increase in food service units was in bars (5.4
[percent)]{.mark} and food stands (4 [percent)]{.mark}. Bars are the
most common food service establishments representing 43 percent of all
such establishments.

####### Food Service Unit Breakdown {#food-service-unit-breakdown .unnumbered}

![](media/image3.wmf)

*Source: GUS*

Revenues from food service activities increased rapidly during the
nineties and have remained stable, slightly exceeding US\$4 billion,
during the period 2001-2004. As much as 53 percent of the total income
is generated from food service production and almost 28 percent from
sales of commodities.

####### Total Income From Food Service Business  {#total-income-from-food-service-business .unnumbered}

####### (in current prices) {#in-current-prices .unnumbered}

![](media/image4.wmf)

*Source: GUS*

No statistical data exists showing the proportion of imported food
products, either processed food or raw materials, directly purchased by
food service establishments. Between 1994-2004, imported food
constituted 10-13 percent of total food sales in Poland (excluding
beverages and alcohol).

A dynamic development of the Polish food service sector began in the
nineties when international corporations (primarily American)
specializing in fast food entered the Polish market. These companies
included, but are not limited to: Burger King[^1], McDonald's, Pepsico
(KFC, Pizza Hut), Domino's Pizza, and Telepizza.

###### Advantages of and Challenges to American Products on the Polish Market {#advantages-of-and-challenges-to-american-products-on-the-polish-market .unnumbered}

+----------------------------------+-----------------------------------+
| *Advantages*                     | *Challenges*                      |
+----------------------------------+-----------------------------------+
| 1.  Low level of risk when       | 1.  The trend by major food       |
|     investing in the food        |     chains to use mainly          |
|     service sector in Poland     |     materials and semi-products   |
|     compared with the fierce     |     of Polish origin lowers the   |
|     competition on world         |     demand for imported           |
|     markets;                     |     commodities;                  |
|                                  |                                   |
| 2.  Growth in personal income    | 2.  Demographic changes resulting |
|     and changes in consumption,  |     from a drop in the birth rate |
|     life, and work standards     |     will decrease the population  |
|     will support development of  |     of the primary fast food      |
|     food services;               |     consumers (i.e. children and  |
|                                  |     young people);                |
| 3.  Economic growth and          |                                   |
|     development of tourism, to   | 3.  Integration with the European |
|     and from Poland, makes       |     Union has made food           |
|     western food consumption     |     ingredients from this area    |
|     standards more popular.      |     easily accessible and has     |
|                                  |     limited the demand for        |
|                                  |     imports from other countries  |
|                                  |     including the USA.            |
+----------------------------------+-----------------------------------+

#  {#section .unnumbered}

# II. MARKET STRUCTURE, COMPANY PROFILES & SUB-SECTOR TRENDS  {#ii.-market-structure-company-profiles-sub-sector-trends .unnumbered}

##  {#section-1 .unnumbered}

## DISTRIBUTION CHANNELS {#distribution-channels .unnumbered}

Entering the Polish market is a challenge for exporters of raw materials
in the food service sector. The main obstacle is the desire to use lower
cost Polish products. Imports are indispensable only when these products
are not otherwise available.

Methods of supply for imported food ingredients:

-   Subsidiaries of fast food chains have their own supply channels in
    the form of trade or representative offices in countries where
    materials or products are purchased.

-   Some of the largest organizations in the food service sector (mainly
    hotel chains) have their own supply units.

-   Local wholesalers and importers import materials, semi-processed
    products, and commodities for other food service firms.

Regardless of the route to the Polish market, success requires
establishing a local representative or agent and personal contacts with
Polish businesses. A solid position in the market may only be achieved
by exporters who have a thorough knowledge of current legal, tax and
customs regulations, market structures, local exhibitions and trade
fairs, implications of EU accession, and non-tariff barriers to trade.
These obstacles are best overcome by working with an experienced local
representative. The type of representation depends primarily on the
exporter's goals, product types, and distribution channels in Poland.
Relations between an exporter and local partner should be well
established before contracts or long-term agreements are considered.
Exporters should consider using consulting firms working within Poland
for market research.

[]{#__RefHeading___Toc109528102 .anchor}

## MARKET STRUCTURE {#market-structure .unnumbered}

Among the aforementioned distribution channels local wholesalers have
experienced the most rapid growth.

For many years, large former state‑owned companies such as Agros,
Rolimpex, and Animex monopolized food imports. Since the beginning of
the nineties three main trends have been observed:

-   Large companies have been privatized and, in many cases, their new
    owners have focused on other areas of activity (production of food,
    alcoholic beverages, soft drinks, animal feed, or exports).

-   A free‑market economy has allowed many newly‑established private
    businesses to carry out and develop import/export activities; most
    of these operate on a local scale and specialize in specific groups
    of products.

-   Large food producers, both Polish and foreign, as well as
    hypermarkets purchase commodities from abroad using their own import
    departments.

-   Former "giants" have lost their importance and are only one of many
    companies operating in this area.

The Majority of Polish imports are semi‑products and components
necessary for further processing. The most important foreign commodities
are: fruits and nuts (15 percent of total agri‑food imports), animal
feed (12 percent), fish (9 percent), cocoa and chocolate (5 percent),
fats, oils, and cereals (5 percent), as well as processed fruits and
vegetables (5 percent).

######## ![](media/image5.wmf){width="5.384722222222222in" height="2.8847222222222224in"}Food Components Distribution Chart {#food-components-distribution-chart .unnumbered}

## SUB-SECTOR PROFILES {#sub-sector-profiles .unnumbered}

### Hotels and Resorts {#hotels-and-resorts .unnumbered}

In 2003 there were 7,116 various establishments providing 596,500 beds
in Poland. They provide a wide range of services and standards targeted
at different consumers, including everything from camping sites to
luxury hotels. Both the number of establishments and beds decreased
compared to 2002 when they amounted to 7,948 and 610,900 respectively.
The decrease mainly affected private pensions, tourist inns, camping
sites, and leisure centres formerly owned by the state. In 2003 there
were 1,155 hotels, 132 motels, 260 pensions, and 169 shelter-houses and
transit hostels, providing 144,700 beds.

Compared to the European Union, Poland has an extremely low ratio of
hotel beds to per 10,000 inhabitants. Poland has 33 hotel beds per
10,000 inhabitants compared to 574 in Greece and 699 in Austria.
However, the number of hotels in Poland is growing rapidly. In 2003
there was an 8 percent increase in hotels and a 6 percent increase in
beds compared to 2002. Since 1994 the average yearly increase in the
number of hotels (7 percent) outpaced the average yearly increase in
beds (5.2 percent). The most significant increase in this area was in
four-star hotels, which experienced 13 percent growth since 1994.

In 2003 there were 1,155 hotels in Poland with 61,200 rooms and 117,100
beds, of which two and three-star hotels had the highest number of beds,
22 percent and 42 percent respectively. Also, their share in the total
number of hotels is dominant. Nevertheless, this dominant position is
threatened by continuously developing chains of lower-standard hotels.
On the other hand, there are only eight five-star hotels in Poland.

According to the forecast of the Institute of Tourism the number of
hotels and motels will grow significantly. It is expected that in 2007
there will be 1,400 hotels in Poland; the most rapid increase will be in
one and two-star hotels.

Hotels, motels, pensions, shelter-houses, and transit hostels run over
2,700 food service establishments (restaurants, bars, cafes, etc.).
Another 4,200 food service establishments were located at spas, training
and recreational centres, camping sites, and unclassified outlets.

######## Hotel Breakdown by Category in 2004 {#hotel-breakdown-by-category-in-2004 .unnumbered}

![](media/image6.wmf)

###### Source: Author's calculation based on GUS data {#source-authors-calculation-based-on-gus-data .unnumbered}

***Food Service Units, Permanent and Seasonal, in Hotels, Resorts,
Camping sites, and Temporary Lodgings***

![](media/image7.wmf)

######  {#section-2 .unnumbered}

######  {#section-3 .unnumbered}

######  {#section-4 .unnumbered}

###### Source: GUS {#source-gus .unnumbered}

Poles prefer staying with friends or relatives rather than staying in a
hotel. This is true for 59 percent of short-term and 46 percent of
long-term trips. During 2003 about 6.9 million people stayed in hotels,
which is a 7 percent increase from 2002. The highest number of hotel
reservations was in the Mazowieckie, Małopolskie, and Dolnośląskie
provinces.

In 2004, almost 62 million foreigners visited Poland, 19 percent more
than in 2003. A significant decline observed at the borders with Belarus
and Ukraine was compensated by remarkable growth in tourists from EU
countries.

#######  {#section-5 .unnumbered}

####### Number of Foreign Visitors {#number-of-foreign-visitors .unnumbered}

![](media/image8.wmf)

*Source: GUS*

Polish citizens account for the majority of hotel reservations. In 2004
foreign tourists constituted 38 percent of the total number of hotel
reservations.

Most visitors are from neighbouring countries: Germany, the former
Soviet Union, and the Czech and Slovak Republics. Tourists from other
countries constitute about 10 percent of the total number of visitors.
Foreign tourists usually visit larger towns and stay in hotels there.

***Country and Number of Tourists***

***(in thousands)***

  ------------------------ ----------------- -------------- --------------
  Group of countries       2002              2003           2004

  *Total*                  *50,734.6*        *52,129.8*     *62,000*

  Germany                  23,654.7          25,456.5       34,122.1

  Russia, Belarus, Ukraine 11,939.0          10,193.9       9,466.2

  EU-15 (excluding         1,700.3           1,681.9        1,834.4
  Germany)                                                  

  New EU members           12,582.1          13,898.6       15,465.7

  Other European           261.7             276.9          297.9

  Main overseas            311.1             333.8          405.1

  Other CIS                108.1             112.1          116.9

  Other overseas           177.6             176.0          209.5
  ------------------------ ----------------- -------------- --------------

*Source: GUS*

Poland has developed neither a tourist infrastructure nor an appropriate
promotion of high-quality resorts, which might attract western visitors.
A lack of significant improvement in these areas is the main reason that
Poles travel abroad and that foreign tourists spend their holidays in
other countries. A majority of foreign visitors come on business and
stay in hotels. The number of businessmen traveling to Poland has
increased in the last few years. Currently, only 40 percent of all
visitors come to Poland for vacation.

The growth rate of hotel rooms has been faster than that of the number
of visitors. This is reflected in the index of the average use of hotel
rooms, which has dropped below 50 percent. Concurrently, the
profitability of the entire sector has declined almost 20 percent. This
has also precipitated a fall in average hotel prices. Currently, the
average price of a hotel room in Warsaw is about US\$ 150.

Occupancy rate by hotel category (percentage)

  ---------------------------- ------------------------ ------------------------
  **[Hotel                     **[Occupancy             
  category]{.smallcaps}**      rate]{.smallcaps}**      

                               **[2002]{.smallcaps}**   **[2003]{.smallcaps}**

  **Total**                    **36.0**                 **36.0**

  \*\*\*\*\*                   51.3                     49.5

  \*\*\*\*                     44.8                     43.3

  \*\*\*                       37.9                     38.7

  \*\*                         34.3                     32.8

  \*                           29.1                     31.1
  ---------------------------- ------------------------ ------------------------

*Source: GUS*

Corporate clients generate the highest demand for hotel rooms in large
cities. For this reason the occupancy rate is highest from Monday to
Friday. Four and five-star hotels are primarily occupied by foreign
visitors; Poles prefer three-star hotels where they account for about 60
percent of guests.

Key players in the Hotel market have already invested in Poland. In
addition, hotels owned with Polish capital have been continuously built
as an alternative to international unified standards. There are many
foreign hotel chains operating in Poland. These hotels are mainly
located in Warsaw, Krakow, and other large cities. Until recently
foreign businesspeople primarily used these hotels. For some time,
medium rated hotels targeting lower-income tourists and businesspeople
have been constructed.

######## Top 10 hotels in Poland by turnover in 2000 and 2001\* {#top-10-hotels-in-poland-by-turnover-in-2000-and-2001 .unnumbered}

+--------+--------+------+-----+-----+-----------+--------+----+-----+
| **[Ho  | **     | **[  | **[ |     | *         | *      | *  |     |
| tel]{. | [Locat | Chai | num |     | *[Average | *[room | *[ |     |
| smallc | ion]{. | n]{. | ber |     | room      | use in | Re |     |
| aps}** | smallc | smal | of  |     | price     | 2001   | ve |     |
|        | aps}** | lcap | ]{. |     | U         | (%)]{. | nu |     |
|        |        | s}** | sma |     | S\$]{.sma | smallc | e] |     |
|        |        |      | llc |     | llcaps}** | aps}** | {. |     |
|        |        |      | aps |     |           |        | sm |     |
|        |        |      | }** |     |           |        | al |     |
|        |        |      |     |     |           |        | lc |     |
|        |        |      |     |     |           |        | ap |     |
|        |        |      |     |     |           |        | s} |     |
|        |        |      |     |     |           |        | ** |     |
|        |        |      |     |     |           |        |    |     |
|        |        |      |     |     |           |        | *  |     |
|        |        |      |     |     |           |        | *[ |     |
|        |        |      |     |     |           |        | US |     |
|        |        |      |     |     |           |        | \$ |     |
|        |        |      |     |     |           |        | M] |     |
|        |        |      |     |     |           |        | {. |     |
|        |        |      |     |     |           |        | sm |     |
|        |        |      |     |     |           |        | al |     |
|        |        |      |     |     |           |        | lc |     |
|        |        |      |     |     |           |        | ap |     |
|        |        |      |     |     |           |        | s} |     |
|        |        |      |     |     |           |        | ** |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
|        |        |      | **  | *   |           |        | ** | **  |
|        |        |      | [ro | *[b |           |        | 20 | 200 |
|        |        |      | oms | eds |           |        | 00 | 1** |
|        |        |      | ]{. | ]{. |           |        | ** |     |
|        |        |      | sma | sma |           |        |    |     |
|        |        |      | llc | llc |           |        |    |     |
|        |        |      | aps | aps |           |        |    |     |
|        |        |      | }** | }** |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| Ma     | Warsaw | Marr | 523 | 1   | 356       | 56     | 40 | 3   |
| rriott |        | iott |     | 046 |           |        | .7 | 8.1 |
|        |        | Lod  |     |     |           |        |    |     |
|        |        | ging |     |     |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| Sh     | Warsaw | ITT  | 352 | 704 | 380       | 60     | 30 | 2   |
| eraton |        | Sher |     |     |           |        |    | 9.1 |
|        |        | aton |     |     |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| So     | Warsaw | O    | 418 | 777 | 280       | 58     | 26 | 2   |
| bieski |        | rbis |     |     |           |        | .9 | 4.8 |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| Forum  | Warsaw | O    | 733 | 1   | 170       | 53     | 25 | 2   |
|        |        | rbis |     | 310 |           |        | .1 | 4.1 |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| S      | Warsaw | O    | 313 | 530 | 290       | 54     | 20 | 1   |
| ofitel |        | rbis |     |     |           |        |    | 8.2 |
| Vi     |        |      |     |     |           |        |    |     |
| ctoria |        |      |     |     |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| H      | Warsaw | O    | 336 | 630 | 240       | 53     | 17 | 1   |
| oliday |        | rbis |     |     |           |        | .1 | 5.4 |
| Inn    |        |      |     |     |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| Le     | Warsaw | Le   | 206 | 384 | 400       | 51     | 17 | 1   |
| Royal  |        | Meri |     |     |           |        | .4 | 5.2 |
| Me     |        | dien |     |     |           |        |    |     |
| ridien |        |      |     |     |           |        |    |     |
| B      |        |      |     |     |           |        |    |     |
| ristol |        |      |     |     |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| Poznan | Poznan | O    | 489 | 664 | 120       | 61     | 12 | 1   |
|        |        | rbis |     |     |           |        | .7 | 3.1 |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| M      | Warsaw | A    | 250 | 500 | 230       | 56     | 11 | 1   |
| ercure |        | ccor |     |     |           |        | .7 | 1.9 |
+--------+--------+------+-----+-----+-----------+--------+----+-----+
| Ra     | Sz     | Radi | 369 | 738 | 155       | 54     | 10 | 1   |
| disson | czecin | sson |     |     |           |        | .7 | 1.3 |
| SAS    |        |      |     |     |           |        |    |     |
+--------+--------+------+-----+-----+-----------+--------+----+-----+

*\* Data for 2002,2003, and 2004 are not available*

The rapid development of the Polish hotel sector has been stimulated by
international hotel chains, which intensified their activity during the
nineties. The most important of these are:

-   Qubus Hotel Holding, a Norwegian company, has nine hotels in Zielona
    Góra, Gorzów Złotoryja Wrocław, Głogów, Legnica, Gliwice, Wałbrzych,
    and Katowice. They are also planning to open hotels in Warszawa,
    Kraków, Lodz, and Poznań.

-   A French group, Envergure Hotels, has seven two-star hotels
    affiliated with the Campanile chain, one Kyriad hotel, and one hotel
    affiliated with the Premiere Classe chain.

-   Global Hotels Development Group (six hotels), a franchisee
    co-operating with the English owned Bass Hotels & Resorts, is
    building and managing Holiday Inn hotels in Poland. Currently, they
    have hotels in Gdańsk, Wrocław, and Kraków and are planning to open
    20 hotels in the next 10 years. They also intend to develop a chain
    of Express by Holiday Inn economy class hotels. Two have already
    been opened in Kraków and Warsaw. Bass Hotels & Resorts also
    operates the Inter Continental Hotel in Warsaw.

-   Best Western International, an American company, operates four
    hotels in Wrocław, Białystok, Białowieża, and Warsaw. Future
    investments are planned for Gliwice and Poznań.

-   Radisson-SAS has four four-star hotels in Poland, including Warsaw,
    Szczecin, Wrocław, and Kraków. They also plan to build hotels in
    Katowice and Lublin.

-   Hyatt Hotels & Resorts has one five-star hotel in Warsaw and is not
    considering further developments in Poland.

-   Starwood Hotels and Resorts operates the Sheraton and Westin Hotels
    in Warsaw. They are planning a new Sheraton hotel in Poznań.

-   The Marriott and Le Royal Meridian are represented in Poland;
    however, both chains have only one hotel and no further development
    plans have been revealed.

Apart from the international chains there are chains belonging to Polish
companies, which enjoy strong positions in terms of the number of
hotels.

**Orbis S.A.**, with funding from the French hotel giant Accor, is the
market leader in three, four, and five-star hotels, with a 40 percent
market share. They manage 77 hotels in 33 cities within Poland and one
in Lithuania. The Orbis chain includes: one Sofitel, 10 Novotels, 12
Mercures, one Holiday Inn, eight Ibis, and 33 Orbis hotels.

**OST "Gromada"** is the second largest company managing mainly
three-star hotels. This chain includes 21 hotels, of which one is in
Berlin and one in Capetown, eight leisure and camping centres, and
offers 5,000 beds.

**Hotele Warszawskie "Syrena"**, bought out by Austrian Bau-Holding,
operates on the Warsaw market and offers 1,600 beds in six two and
three-star hotels.

**PUHiT Ltd.,** manages one and two-star or unclassified hotels,
established as a result of the privatisation process of former worker
hotels. Currently, this company has several dozens facilities.

########  {#section-6 .unnumbered}

######## Hotel and Resort Company Profiles {#hotel-and-resort-company-profiles .unnumbered}

+-------------------+------------------+------------------+---+-----------+
| **[Company &      | **[Type & Number | **[Locatio       |   | **[P      |
| Sub-Sector        | of               | n]{.smallcaps}** |   | urchasing |
| Ty                | Outlet           |                  |   | Agent     |
| pe]{.smallcaps}** | s]{.smallcaps}** |                  |   | (s)]{.sma |
|                   |                  |                  |   | llcaps}** |
+-------------------+------------------+------------------+---+-----------+
| Orbis, hotels     | Hotels - 77      | Nationwide       | D |           |
| with restaurants  |                  |                  | i |           |
|                   | Hotel            |                  | r |           |
|                   | Restaurants -    |                  | e |           |
|                   | 130              |                  | c |           |
|                   |                  |                  | t |           |
|                   |                  |                  | ; |           |
|                   |                  |                  | I |           |
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|                   |                  |                  | l |           |
|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+
| Gromada, hotels   | Hotels - 19      | Nationwide       | D |           |
| with restaurants  |                  |                  | i |           |
|                   | Hotel            |                  | r |           |
|                   | Restaurants - 21 |                  | e |           |
|                   |                  |                  | c |           |
|                   |                  |                  | t |           |
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|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+
| Qubus Hotels,     | Hotels - 9       | South-West       | D |           |
| hotels with       |                  | Poland           | i |           |
| restaurants       | Hotel            |                  | r |           |
|                   | Restaurants - 9  |                  | e |           |
|                   |                  |                  | c |           |
|                   |                  |                  | t |           |
|                   |                  |                  | ; |           |
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|                   |                  |                  | l |           |
|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+
| Envergure Hotels  | Hotels - 9       | Warsaw, Kraków,  | D |           |
| (H -9)            |                  | Poznań, Lublin,  | i |           |
|                   | Hotel            | Szczecin,        | r |           |
|                   | Restaurants - 9  | Katowice,        | e |           |
|                   |                  | Wrocław          | c |           |
|                   |                  |                  | t |           |
|                   |                  |                  | ; |           |
|                   |                  |                  | I |           |
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|                   |                  |                  | l |           |
|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+
| Best Western      | Hotels - 4       | Nationwide       | D |           |
| International,    |                  |                  | i |           |
| hotels with       | Hotel            |                  | r |           |
| restaurants       | Restaurants - 4  |                  | e |           |
|                   |                  |                  | c |           |
|                   |                  |                  | t |           |
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|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+
| Radisson SAS,     | Hotels - 4       | Warsaw,          | D |           |
| hotels with       |                  | Szczecin,        | i |           |
| restaurants       | Hotel            | Wrocław, and     | r |           |
|                   | Restaurants - 10 | Kraków           | e |           |
|                   |                  |                  | c |           |
|                   |                  |                  | t |           |
|                   |                  |                  | ; |           |
|                   |                  |                  | I |           |
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|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+
| Sheraton, hotels  | Hotel -- 1       | Warsaw           | D |           |
| with restaurants  |                  |                  | i |           |
|                   | Hotel            |                  | r |           |
|                   | Restaurants - 4  |                  | e |           |
|                   |                  |                  | c |           |
|                   |                  |                  | t |           |
|                   |                  |                  | ; |           |
|                   |                  |                  | I |           |
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|                   |                  |                  | p |           |
|                   |                  |                  | l |           |
|                   |                  |                  | i |           |
|                   |                  |                  | e |           |
|                   |                  |                  | r |           |
|                   |                  |                  | s |           |
+-------------------+------------------+------------------+---+-----------+

###  {#section-7 .unnumbered}

Each hotel has at least one large restaurant (usually two) and a snack
bar. Often larger hotels have restaurants that specialize in
international cuisine. There are a number of smaller hotels that
normally have a café or small restaurant on the premises. It is
estimated that there are slightly more than 1,000 hotel restaurants in
Poland.

### Restaurants {#restaurants .unnumbered}

The density of the restaurant sector in Poland has been growing
steadily; however, compared to other European markets Poland has a low
density of food service networks.

Polish consumers also visit restaurants and snack bars less often than
other European nations. About 40 percent of Poles eat out whereas in the
Czech Republic 76 percent of the population does. Nevertheless, the
restaurant sector is expected to develop rapidly. This is mainly due to
increased income and better paying jobs. An increasing number of cheaper
restaurants appearing in shopping centres will continue to influence
consumers.

***Number of Food Service Units (per 10,000 inhabitants)***

![](media/image9.wmf)

*Source: Food Service 3/2004*

######## Number of Restaurants {#number-of-restaurants .unnumbered}

![](media/image10.wmf)

###### Source: GUS {#source-gus-1 .unnumbered}

According to the report prepared by GfK Polonia, there are also 8,700
pubs, 4,500 nightclubs, and over 8,000 other outlets at gas, railway,
and bus stations.

Total sales in the foodservice sector in 2004 were estimated at US\$ 4.3
million. Restaurants accounted for 21 percent of sales. Fast food
restaurants accounted for a relatively small proportion of sales, 9
percent, considering they make up 14 percent of all eateries. Nightclubs
represent the least significant share at 6 percent.

Although price plays a significant role in deciding if and where to eat
out, food quality is becoming increasingly important. Consumers have
higher requirements and expect new and more diversified dishes;
nevertheless, 93 percent of the population prefers to eat Polish
cuisine. There are virtually no chain-restaurants in Poland outside of
the fast food sector. Their development started in 1991-1992, when the
largest international chains established franchises in Poland. These
consist of bars, restaurants, and carryout establishments.

The major exception is the Sphinx restaurant chain, which has operated
in Poland since 1995. The company is Polish owned and since 2002
Enterprise Investors has been the majority shareholder. For the first
seven years they developed slowly but continuously. Rapid growth took
place in 2003 when they opened 18 restaurants and continued in 2004 with
another 15 new establishments. They have 67 restaurants and plan to have
150 by the end of 2006.

The fast food sector is developing dynamically and is the only
restaurant sub-sector forming chains. The ownership of the remainder of
the restaurant sector is varied. There are only a dozen or so family run
companies in Poland which own more than one restaurant, café, or bar.
McDonald's, Pizza Hut/KFC, Telepizza, and Pan American Pizza are major
market players in this segment. Each of these has more than 60
restaurants and employs a few thousand people. They have chains in all
major cities and are now expanding their activities by opening new
restaurants in towns with populations ranging between 80,000 and
100,000. Most of these chains operate on a franchise basis. Pizza
Dominium is the largest fast food chain solely of Polish origin. They
have 31 units in Poland, one in Prague, and one in Moscow. This year
they plan to open 10 restaurants and sell 15 franchises. Burger King was
part of this group but withdrew from the Polish market four years ago.

A second group includes chains with up to 20 restaurants. These are: New
York City Pizza, San Marzano, Subway, Positano, Akasaka, Tao-Tao, and
the Polish chain Leśne Runo. A third group is made up of food stands,
located mainly in big cities. These are: Oscar, A-petit, Tukan Salad
Bar, Dania Fast Food, and Picnic. Kiosks and bars with Vietnamese and
Chinese food form a separate group. There are 150-200 units in Warsaw
and over 2,000 in Poland.

There are more than 1,000 restaurant owned by food service chains in
Poland. Most of these operate by selling franchises. In addition, there
are a large number of individual fast food restaurants (selling mainly
pizzas), with reasonable financial standing. Major menu items at fast
food restaurants include hamburgers, hot dogs, sandwiches, salads,
pizzas, and french fries. All chains, including Polish branches of
international companies, use Polish suppliers.

Food Courts and other types of food service establishments, situated in
modern shopping and entertainment centres, are a new phenomenon in
Poland. They attract a continuously growing number of customers. Fast
food chains, restaurants, and cafeterias consider such places very
promising locations.

The HRI sector will continue to grow despite the low purchasing power of
Poles. Every year Polish consumers are more health conscious; thus, fast
food restaurants have changed their menus and serve a wider range of
vegetarian and other healthy dishes. The HRI industry is an important
market for food sales and in 2004 it accounted for 20 percent of all
fast moving consumer goods (FMCG).

Most restaurant owners (80 percent) buy from wholesalers offering
transport services. They also buy products at macro cash and carry or
directly from producers. The remainder purchase food products from
wholesalers in super and hypermarkets, open markets, or other retail
outlets.

Among local suppliers Boduelle Polska Sp. z o.o. is one of the biggest.
They supply the best restaurants and hotels, offering frozen and boiled
vegetables. Hortino is another important market player; however, their
products are cheaper and of lower quality. Lannen Polska is a company
that supplies top quality food products. They offer a wide range of
soups, meat, and vegetables. Hortex markets their products to individual
hotels and restaurants; however, the range of products for this market
segment is more limited than that offered for the retail trade.
Oerlemans Foods Polska specializes in the production of a wide range of
high-quality frozen fruits and vegetables offered for restaurant and
industry use.

######## Top Food Service Chains by Number of Restaurants {#top-food-service-chains-by-number-of-restaurants .unnumbered}

+------------------+--------------------+-------+----------+----------+
| Chain            | Owner              | [20   | [2       | [2       |
|                  |                    | 00]{. | 001]{.sm | 004]{.sm |
|                  |                    | small | allcaps} | allcaps} |
|                  |                    | caps} |          |          |
+------------------+--------------------+-------+----------+----------+
| Mc Donald's      | Mc Donald's Polska | 167   | 200      | 206      |
|                  | (American capital) |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | R     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
+------------------+--------------------+-------+----------+----------+
| Pizza Hut/KFC\*  | Am                 | 106   | 130      | 126      |
|                  | erican-Restaurants |       |          |          |
|                  | (Dutch capital)    |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | 71    |          |          |
|                  |                    | KFC   |          |          |
|                  |                    | and   |          |          |
|                  |                    | 55    |          |          |
|                  |                    | Pizza |          |          |
|                  |                    | Hut   |          |          |
|                  |                    | r     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
|                  |                    | in    |          |          |
|                  |                    | 2004  |          |          |
+------------------+--------------------+-------+----------+----------+
| TelePizza        | TelePizza Poland   | 60    | 72       | 91       |
|                  | (Spanish capital)  |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | R     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
+------------------+--------------------+-------+----------+----------+
| Sphinx           | Sphinx Polska      | n.a.  | 24       | 67       |
|                  | (Polish capital +  |       |          |          |
|                  | Enterprise         |       |          |          |
|                  | Investors)         |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | R     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
+------------------+--------------------+-------+----------+----------+
| Pan American     | Pan American Pizza | \-    | 2        | 46       |
| Pizza            | (Polish capital)   |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | Re    |          |          |
|                  |                    | staur |          |          |
|                  |                    | ants, |          |          |
|                  |                    | food  |          |          |
|                  |                    | st    |          |          |
|                  |                    | ands, |          |          |
|                  |                    | pubs, |          |          |
|                  |                    | and   |          |          |
|                  |                    | night |          |          |
|                  |                    | clubs |          |          |
+------------------+--------------------+-------+----------+----------+
| Mr. Hamburger    | Mr. Hamburger      | 30    | 35       | 50       |
|                  | (Polish capital)   |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | Bars  |          |          |
|                  |                    | lo    |          |          |
|                  |                    | cated |          |          |
|                  |                    | in    |          |          |
|                  |                    | the   |          |          |
|                  |                    | Si    |          |          |
|                  |                    | lesia |          |          |
|                  |                    | r     |          |          |
|                  |                    | egion |          |          |
+------------------+--------------------+-------+----------+----------+
| Da Grasso        | Da Grasso          | \-    | 6        | 53       |
|                  |                    |       |          |          |
|                  | (Polish capital)   |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | Pizza |          |          |
|                  |                    | r     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
+------------------+--------------------+-------+----------+----------+
| Pizza Dominium   | Pizza Dominium     | n.a.  | n.a.     | 31 pizza |
|                  |                    |       |          | res      |
|                  | (Polish capital)   |       |          | taurants |
+------------------+--------------------+-------+----------+----------+
| Pizza Marzano    | Pizza Express      | 6     | 9        | 9        |
|                  | Polska             |       |          |          |
|                  | (international     |       |          |          |
|                  | capital)           |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | Pizza |          |          |
|                  |                    | r     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
+------------------+--------------------+-------+----------+----------+

### Institutional {#institutional .unnumbered}

Institutional food service establishments consist primarily of
cafeterias in public buildings and private companies. In the past,
companies provided cheap, subsidized meals and products to employees.
The demand in the institutional food sector had been steadily
decreasing. However, a growing supply of commercial catering services
has been noted, and the decreasing tendency has reversed. In 2003 there
were almost 7,300 cafeterias, which is 0.5 percent more than the year
before.

***Number of Institutional Food Service Units (Cafeterias)***

![](media/image11.wmf)

Source: GUS

The most common institutional food service establishments are cafeterias
operating in educational establishments (schools, universities, and, to
a lesser extent, kindergartens and nurseries). It is estimated that
educational facilities represent 40 percent of total sales in the
institutional food service sector.

The educational sector is followed by food services provided for office
and factory workers. This constitutes 20 percent of the total value of
institutional food services. The smallest area is that of institutional
food services in the health care, the armed forces, and social welfare
institutions.

Food services in the commercial area are generally organized in-house.
However, specialized professional firms (e.g. contract caterers) are
becoming more common. A significant growth in companies dealing strictly
with food service (party service, office food service, and operating
canteens) was noted until 1995. At this point restaurants began offering
institutional food service as an alternative source of income.
Currently, this market is stagnant as regards large companies offering
this type of services, but the number of small, local firms is
increasing.

French Sodexho, British Eurest, German Dussmann, and Polish Impel are
the only companies that operate nationwide food service activities in
Poland. These organizations provide their services to people working in
office buildings, factories, schools, and hospitals.

Sodexho Polska Sp. z o.o., founded in 1993, is a subsidiary of Sodexho
Alliance, the worldwide leader in food and management services. They
employ more than 1,000 people in Poland and provide food service to over
70 contractors. They offer catering for company employees and government
funded institutions (schools, hospitals etc.), private and state-owned
companies, health care units, and schools. Sodexho also organises
banquets and large events and maintains vending machines.

Eurest, a member of the Compass Group Corporation, has been active in
Poland since 1993. It employs 700 people and operates restaurants and
cafeterias at more than 70 locations, offering complex food services.

Dussmann has been operating in Poland since 1993. Since 1990 Polish
Impel has been providing a wide scope of services to production
companies, financial institutions, health service, social service, and
public administration. They employ over 20,000 people and operate 21
branch offices all over the country. Institutional catering services are
carried out by 900 employees who operate over 100 food service units.
Such companies as LOT Food Service and WARS also offer catering services
on a national basis.

LOT Food service Sp. z o.o. has the largest catering production site in
Poland. They employ 750 people and produce over 18,000 meals a day. They
deliver their products to different market segments; however, supplying
airlines generates over 77 percent of total sales. Institutional
catering accounts for about 6 percent of their income. WARS, food
service for Polish trains (PKP), focuses solely on this market segment.

######## [Institutional Company Profiles]{.mark} {#institutional-company-profiles .unnumbered}

+------------------+----------------------+------------+--------------+
| **[Company &     | **[Outlet Name, Type | **[Loc     | *            |
| Sub-Sector       | & Number of          | ation]{.sm | *[Purchasing |
| Typ              | Ou                   | allcaps}** | Agent(s)]{.  |
| e]{.smallcaps}** | tlets]{.smallcaps}** |            | smallcaps}** |
+------------------+----------------------+------------+--------------+
| Sodexho Polska,  | Sodexho Food Service | National   | Direct;      |
| institutional    | (CS) (51)            |            | Importers,   |
| catering         |                      | National   | Local        |
|                  | Impel Food Service   |            | suppliers    |
| Impel Catering,  | (CS) (100)           | National   |              |
| institutional    |                      |            | Direct;      |
| catering         | Eurest Food Service  | National   | Importers,   |
|                  | (CS) (70)            |            | Local        |
| Eurest Poland,   |                      |            | suppliers    |
| institutional    | Dussmann Food        |            |              |
| catering         | Service              |            | Direct;      |
|                  |                      |            | Importers,   |
| Dussmann Poland, |                      |            | Local        |
| institutional    |                      |            | suppliers    |
| catering         |                      |            |              |
|                  |                      |            | Direct;      |
|                  |                      |            | Importers,   |
|                  |                      |            | Local        |
|                  |                      |            | suppliers    |
+------------------+----------------------+------------+--------------+
| LOT Food service | "LOT" Polish         | National   | Direct;      |
| Sp. z o.o.,      | Airlines (CS)        |            | Importers,   |
| institutional    |                      |            | Local        |
| catering         |                      |            | suppliert    |
+------------------+----------------------+------------+--------------+
| WARS ,           | Restaurants & bars   | National   | Direct;      |
| institutional    | in trains (CS)       |            | Importers,   |
| catering         |                      |            | Local        |
|                  |                      |            | supplier     |
+------------------+----------------------+------------+--------------+

# COMPETITION 

American and Western European companies are the most active in the HRI
sector. Companies from the U.S. dominate fast food services. Competition
for this sub-sector comes from small family-run restaurants, bars,
food-stands, and recently developing "underground" bars. Ownership of
hotels, restaurants, and resorts is dispersed. The best hotels belong to
international hotel chains. The majority of restaurants and resorts are
Polish owned.

The cumulative value of foreign investments in the hotel and restaurant
sector by the end of 2004 amounted to US\$ 885 million.

Hotel and Restaurant Companies with Foreign Capital

  ----------------- ----------------- ----------------- -----------------
  Investor          capital invested  Origin            Activities
                    (Millions of                        
                    US\$) as of                         
                    December 31, 2004                   

  Accor             280.0             France            hotels and
                                                        motels, with
                                                        restaurant

  McDonalds         148.0             USA               restaurants

  Envergure Hotels  76.1              France            hotels and
                                                        restaurants

  Trusthouse Forte  60.0              United Kingdom    Hotel with
                                                        restaurant

  BRG Holding       53.7              USA               Hotel with
  Developments                                          restaurant

  Sheraton Warsaw   45.0              USA               Hotel with
  Corporation                                           restaurant

  Cosmar S.r.l      45.0              Italy             Hotel with
                                                        restaurant

  Am-Rest Holding   25.0              USA               restaurant

  Qubus Hotel       22.3              Norway            Hotel with
  System                                                restaurant

  Porr              20.0              Austria           Hotel
  International                                         

  Min Hoong         20.0              China             hotels and
  Development                                           motels, with
                                                        restaurant

  International     17.5              USA               Burger King
  Fast Food                                             restaurants
  Corporation                                           

  Intersnack        15.0              Austria           hotels and
  Knabber Gebaeck                                       motels, with
                                                        restaurant

  TelePizza         14.0              Spain             restaurant

  Rogner            13.6              Germany           Hotel with
                                                        restaurant

  Pan Smak Pizza    7.5               Canada            Hotel with
                                                        restaurant

  Scanpol           6.4               Denmark           Hotel with
  International                                         restaurant

  Marriott          5.0               USA               Hotel with
                                                        restaurant

  Ceneu Pizza       3.5               The Netherlands   restaurant

  Kochloeffel       3.0               Germany           fast food
                                                        restaurant

  Sven von der      2.6               Germany           hotels and
  Heyden                                                motels, with
                                                        restaurant

  Best Eastern      2.1               Luxemburg         hotels and
  Plaza Hotels                                          motels, with
  International                                         restaurant
  ----------------- ----------------- ----------------- -----------------

Currently, the majority of food service companies operating in Poland
have Polish and/or Western European owners. [There are still good
long-term prospects for growth in food service targeting hotels,
restaurants, and resorts.]{.mark}

The majority of imported foods for HRI services come from the European
Union. Due to the open market and logistical advantages, imports from
the EU are often less expensive than imports from the United States.
Poland's integration with the EU has strengthened the competitive
position of imports from EU countries in comparison to imports from the
United States.

#  {#section-8 .unnumbered}

# BEST PRODUCT PROSPECTS 

#  {#section-9 .unnumbered}

## PRODUCTS PRESENT IN THE MARKET THAT HAVE GOOD SALES POTENTIAL {#products-present-in-the-market-that-have-good-sales-potential .unnumbered}

Fast food chains have demonstrated the fastest growth in sales in the
HRI sector. It is expected that during the coming years the number of
fast food restaurants and franchises will continue to grow.

Polish consumption of vegetables, fruit, wine, fish, seafood, and beer
continues to grow. Sales opportunities for these products are good. Fast
foods such as sandwiches, snack foods, fish, meat, and vegetable dishes
served at shops and bars or delivered to the office or the home have
good sales potential.

## PRODUCTS NOT PRESENT IN SIGNIFICANT QUANTITIES BUT WHICH HAVE GOOD SALES POTENTIAL {#products-not-present-in-significant-quantities-but-which-have-good-sales-potential .unnumbered}

This group consists of all of restaurants and bars offering
international cuisines, which are present in a limited range on the food
service market, such as some European cuisines (e.g. Italian, Greek,
Spanish) and Middle Eastern. American cuisine restaurants such as TGI
Friday's are gradually appearing but still not in significant numbers.

There are also opportunities for health food and organic restaurants.
Snacks with low-fat or low-sugar content and made with natural
ingredients have good sales potential. Vegetarian cuisine is also
enjoying growing demand. Microwaveable and ready-to-cook products also
have good sales potential, particularly for institutional food services
(schools, hospitals, nurseries etc.). As only about 300,000 Polish
families have microwaves in the home, these products would be intended
for institutional food service. It should also be kept in mind that
Polish consumers are not accustomed to very spicy food.

## PRODUCTS NOT PRESENT BECAUSE THEY FACE SIGNIFICANT BARRIERS {#products-not-present-because-they-face-significant-barriers .unnumbered}

[This group consists of products whose access to the Polish market is
limited by high customs duties, including: products with high-sugar
content, semi-processed microwavable goods, high quality seafood
products, processed grains (apart from grains grown in Poland), and
brown rice.]{.mark} []{.mark}This group also includes products that are
not certified as acceptable for consumption in Poland, mainly because of
certain additives. [Poland uses a positive additives list. Polish
regulations tend to be stricter than in other developed countries
(especially for dyes and preservatives).]{.mark} Information concerning
these materials is available from Panstwowy Zaklad Higieny (State
Hygiene Institute) and the Ministry of Health. Harmonization of
regulations with the EU directives will alleviate some additive
limitations that are currently in place.

# POST CONTACT INFORMATION

#  {#section-10 .unnumbered}

If you have any questions or comments regarding this report, or need
assistance in exporting to Poland, please contact the Office of
Agricultural Affairs in Warsaw, at the following address:

> Office of Agricultural Affairs
>
> American Embassy
>
> Al. Ujazdowskie 29/31
>
> 00-540 Warsaw
>
> Poland
>
> ph: 4822- 504-2336
>
> fax: 4822-504-2320
>
> e-mail: agwarsaw@usda.gov or
>
> agwarsaw@wp.pl
>
> Homepage: http://www.usaemb.pl/usfas.htm

For more information on exporting U.S. food products to Poland,
including "The Exporter's Guide", "The Food Processing Sector Report",
"The Retail Food Sector Report", product briefs on the market potential
for U.S. fruit, wine, and dried fruits and nuts, please visit the
Foreign Agricultural Service home page: http://www.fas.usda.gov.
Importer lists are also available from our office to exporters of U.S.
food products.

[^1]: No longer operates in Poland