Required Report - public distribution

**Date:** 3/22/2006

**GAIN Report Number:** PL6013

PL6013

**Poland**

**HRI Food Service Sector**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Ed Porter

U.S. Embassy

**Prepared by:**

CR

**Report Highlights:**

Poland, with a population of nearly 39 million, where consumers spend
about 28 percent of their income on food and beverages, is a significant
market for diverse food products.

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 3](#i.-the-hri-market-description)

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

[A. DISTRIBUTION CHANNELS 4](#a.-distribution-channels)

[B. MARKET STRUCTURE 5](#b.-market-structure)

[III. BEST PRODUCT PROSPECTS 8](#iii.-best-product-prospects)

[A. PRODUCTS PRESENT IN THE MARKET WHICH HAVE GOOD SALES POTENTIAL
8](#a.-products-present-in-the-market-which-have-good-sales-potential)

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

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

[IV. POST CONTACT INFORMATION 9](#__RefHeading___Toc130288404)

# Executive Summary

Poland, with a population of almost 39 million, where consumers [spend
about 28 percent of their income]{.mark} on food and beverages, is a
significant market for diverse food products. Retail and hotel and
restaurant food and beverages sales were valued at about [\$43
billion]{.mark} in 2003, [about 16 percent more than in 2001.]{.mark}
However, the percentage of income spent in restaurants and the overall
food service sector, has remained constant at only 6-8 percent of total
expenditure on food.

Traditionally, Poles prefer to dine at home rather than in restaurants.
Low incomes and relatively high prices in restaurants have limited
growth in this sector. Prices in restaurants and food service
establishments in the early 1990s increased much faster than retail
prices for food.

Today the variety and sheer number of restaurants reflects the changing
demographics in Poland. In the past, primarily foreigners or Polish
government officials frequented restaurants. Weddings were the only
special occasion when families dined in restaurants which were mainly
located in hotels.

This is no longer the case, particularly in large cities where about 30
percent of the population lives. The number of two or more-income
households in urban areas is high (about 56 percent of all households).
Warsaw, for instance, boasts a variety of low-cost eateries and high-end
restaurants. Consumer tastes are becoming similar to those in Western
Europe and the United States. Mediterranean, French, Middle Eastern and
Asian cuisines are becoming more popular and more available in local
neighborhoods as well as high traffic areas.

# 

# I. THE HRI MARKET DESCRIPTION

*Number of Food Service Establishments 1995,2002, 2003, and 2004
(permanent [and seasonal)]{.mark}*

![](media/image2.wmf)

*Source: Central Statistical Office (GUS)*

*Types of Food Service Establishments*

![](media/image3.wmf)

####### 

####### Source: GUS

Total revenues earned in the food service sector including catering,
commodity sales, and other activities increased rapidly during the 1990s
(2000 revenues were 120 percent higher than in 1995), and remained
stable at \$4.2-4.5 billion during 2003-2004.

*Total Income From the Food Service Sector*

![](media/image4.wmf)

Advantages of and Challenges to American products on the Polish market

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

# 

# II. MARKET STRUCTURE, COMPANY PROFILES & SUB-SECTOR TRENDS 

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

Entering the Polish market is a challenge for exporters of raw materials
intended for the food service sector. The main obstacle is the use of
low cost Polish products. Imports are used only when less expensive
domestic products are not available.

I.  Some companies in the HRI sector purchase imported products directly
    from importers but in general they buy via wholesalers or local
    suppliers.

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

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

> To be successful in Poland exporters must have a local representative
> or agent and personal contact with Polish businesses. To be
> competitive exporters must have a thorough knowledge of current laws,
> the local culture, tax and customs regulations, market structures,
> local exhibitions and trade fairs, implications of EU accession, and
> non-tariff barriers.

##  {#section-3 .unnumbered}

## ![](media/image5.wmf){width="5.384722222222222in" height="2.8847222222222224in"}B. MARKET STRUCTURE {#b.-market-structure .unnumbered}

***Distribution Flow***

######## 

***Top 10 Revenue Generating Hotels in Poland 2000 and 2001***

+----------+------+-------+-----+------+-------+---------+----+----+
| **[Hotel | **   | **[   | **[ |      | **[Av | **[Oc   | *  |    |
| nam      | [Cit | Chain | num |      | erage | cupancy | *[ |    |
| e]{.smal | y]{. | ]{.sm | ber |      | room  | Rate    | re |    |
| lcaps}** | smal | allca | of  |      | price | 2001    | ve |    |
|          | lcap | ps}** | ]{. |      | US\$  | (%)]    | nu |    |
|          | s}** |       | sma |      | ]{.sm | {.small | e] |    |
|          |      |       | llc |      | allca | caps}** | {. |    |
|          |      |       | aps |      | ps}** |         | sm |    |
|          |      |       | }** |      |       |         | al |    |
|          |      |       |     |      |       |         | lc |    |
|          |      |       |     |      |       |         | ap |    |
|          |      |       |     |      |       |         | s} |    |
|          |      |       |     |      |       |         | ** |    |
|          |      |       |     |      |       |         |    |    |
|          |      |       |     |      |       |         | *  |    |
|          |      |       |     |      |       |         | *[ |    |
|          |      |       |     |      |       |         | US |    |
|          |      |       |     |      |       |         | \$ |    |
|          |      |       |     |      |       |         | M] |    |
|          |      |       |     |      |       |         | {. |    |
|          |      |       |     |      |       |         | sm |    |
|          |      |       |     |      |       |         | al |    |
|          |      |       |     |      |       |         | lc |    |
|          |      |       |     |      |       |         | ap |    |
|          |      |       |     |      |       |         | s} |    |
|          |      |       |     |      |       |         | ** |    |
+----------+------+-------+-----+------+-------+---------+----+----+
|          |      |       | **  | **   |       |         | ** | ** |
|          |      |       | [ro | [bed |       |         | 20 | 20 |
|          |      |       | oms | s]{. |       |         | 00 | 01 |
|          |      |       | ]{. | smal |       |         | ** | ** |
|          |      |       | sma | lcap |       |         |    |    |
|          |      |       | llc | s}** |       |         |    |    |
|          |      |       | aps |      |       |         |    |    |
|          |      |       | }** |      |       |         |    |    |
+----------+------+-------+-----+------+-------+---------+----+----+
| Marriott | Wa   | Mar   | 523 | 1046 | 356   | 56      | 40 | 38 |
|          | rsaw | riott |     |      |       |         | .7 | .1 |
|          |      | Lo    |     |      |       |         |    |    |
|          |      | dging |     |      |       |         |    |    |
+----------+------+-------+-----+------+-------+---------+----+----+
| Sheraton | Wa   | ITT   | 352 | 704  | 380   | 60      | 30 | 29 |
|          | rsaw | She   |     |      |       |         |    | .1 |
|          |      | raton |     |      |       |         |    |    |
+----------+------+-------+-----+------+-------+---------+----+----+
| Sobieski | Wa   | Orbis | 418 | 777  | 280   | 58      | 26 | 24 |
|          | rsaw |       |     |      |       |         | .9 | .8 |
+----------+------+-------+-----+------+-------+---------+----+----+
| Forum    | Wa   | Orbis | 733 | 1310 | 170   | 53      | 25 | 24 |
|          | rsaw |       |     |      |       |         | .1 | .1 |
+----------+------+-------+-----+------+-------+---------+----+----+
| Sofitel  | Wa   | Orbis | 313 | 530  | 290   | 54      | 20 | 18 |
| Victoria | rsaw |       |     |      |       |         |    | .2 |
+----------+------+-------+-----+------+-------+---------+----+----+
| Holiday  | Wa   | Orbis | 336 | 630  | 240   | 53      | 17 | 15 |
| Inn      | rsaw |       |     |      |       |         | .1 | .4 |
+----------+------+-------+-----+------+-------+---------+----+----+
| Le Royal | Wa   | Le    | 206 | 384  | 400   | 51      | 17 | 15 |
| Meridien | rsaw | Mer   |     |      |       |         | .4 | .2 |
| Bristol  |      | idien |     |      |       |         |    |    |
+----------+------+-------+-----+------+-------+---------+----+----+
| Poznan   | Po   | Orbis | 489 | 664  | 120   | 61      | 12 | 13 |
|          | znan |       |     |      |       |         | .7 | .1 |
+----------+------+-------+-----+------+-------+---------+----+----+
| Mercure  | Wa   | Accor | 250 | 500  | 230   | 56      | 11 | 11 |
|          | rsaw |       |     |      |       |         | .7 | .9 |
+----------+------+-------+-----+------+-------+---------+----+----+
| Radisson | Szcz | Rad   | 369 | 738  | 155   | 54      | 10 | 11 |
| SAS      | ecin | isson |     |      |       |         | .7 | .3 |
+----------+------+-------+-----+------+-------+---------+----+----+

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

***Hotel and Resort Company Profiles***

  --------------------- ------------------------ ---------------------------- ------------ -------------------------
  **[Company Name &     **[Outlet Name, Type &   **[Location]{.smallcaps}**                **[Purchasing
  Sub-Sector            Number of                                                          Agent(s)]{.smallcaps}**
  Type]{.smallcaps}**   Outlets]{.smallcaps}**                                             

  Orbis, hotels with    Hotels - 77, hotel       National                     Direct;      
  restaurants           restaurants-130                                       Importers,   
                                                                              Local        
                                                                              suppliers    

  Gromada, hotels with  Hotels - 19, hotel       National                     Direct;      
  restaurants           restaurants-21                                        Importers,   
                                                                              Local        
                                                                              suppliers    

  Qubus Hotels, hotels  Hotels - 9, hotel        South-West of Poland         Direct;      
  with restaurants      restaurants-9                                         Importers,   
                                                                              Local        
                                                                              suppliers    

  Envergure Hotels      Hotels - 9, hotel        Warsaw, Kraków, Poznań,      Direct;      
  (H-9)                 restaurants-9            Lublin, Szczecin, Katowice,  Importers,   
                                                 Wrocław                      Local        
                                                                              suppliers    

  Best Western          Hotels - 4, hotel        National                     Direct;      
  International hotels  Restaurants-4                                         Importers,   
  with restaurants                                                            Local        
                                                                              suppliers    

  Radisson SAS, hotels  Hotels - 4, hotel        Warsaw, Szczecin, Wrocław,   Direct;      
  with restaurants      restaurants-10           and Kraków                   Importers,   
                                                                              Local        
                                                                              suppliers    

  Sheraton, hotels with Hotel - 1, hotel         Warsaw                       Direct;      
  restaurants           restaurants -4                                        Importers,   
                                                                              Local        
                                                                              suppliers    
  --------------------- ------------------------ ---------------------------- ------------ -------------------------

Each hotel has at least one large restaurant (usually two) and a snack
bar. Often larger hotels have restaurants which specialize in
international cuisines (Chinese, Italian, etc.). There are a number of
smaller hotels which normally have a café or small restaurant on the
premises.

Top Food Service Chains According to Number of Outlets

+------------------+--------------------+-------+----------+----------+
| **Chain**        | **[ow              | **    | **[200   | **[200   |
|                  | ner]{.smallcaps}** | [2000 | 1]{.smal | 4]{.smal |
|                  |                    | ]{.sm | lcaps}** | lcaps}** |
|                  |                    | allca |          |          |
|                  |                    | ps}** |          |          |
+------------------+--------------------+-------+----------+----------+
| 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 capiral)   |       |          | taurants |
+------------------+--------------------+-------+----------+----------+
| Pizza Marzano    | Pizza Express      | 6     | 9        | 9        |
|                  | Polska             |       |          |          |
|                  | (international     |       |          |          |
|                  | capital)           |       |          |          |
+------------------+--------------------+-------+----------+----------+
|                  |                    | pizza |          |          |
|                  |                    | r     |          |          |
|                  |                    | estau |          |          |
|                  |                    | rants |          |          |
+------------------+--------------------+-------+----------+----------+

***[Institutional Company Profile]{.mark}***

+------------------+----------------------+------------+--------------+
| **[Company Name  | **[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         |                      |            | supplier     |
+------------------+----------------------+------------+--------------+
| WARS ,           | Restaurants & bars   | National   | Direct;      |
| institutional    | in trains (CS)       |            | Importers,   |
| catering         |                      |            | Local        |
|                  |                      |            | supplier     |
+------------------+----------------------+------------+--------------+

Foreign Companies Invested in the Hotel and Restaurant Sector

  ----------------- --------------------- ----------------- ------------------------------
  **Investor**      **[capital invested   **Origin**        **[Activities]{.smallcaps}**
                    (Millions of US\$) as                   
                    of December 31                          
                    2004]{.smallcaps}**                     

  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 restaurant
  Developments                                              

  Sheraton Warsaw   45.0                  USA               hotel with restaurant
  Corporation                                               

  Cosmar S.r.l      45.0                  Italy             hotel with restaurant

  Am-Rest Holding   25.0                  USA               restaurant

  Qubus Hotel       22.3                  Norway            hotel with restaurant
  System                                                    

  Porr              20.0                  Austria           hotel
  International                                             

  Min Hoong         20.0                  China             hotels and motels, with
  Development                                               restaurant

  Intersnack        15.0                  Austria           hotels and motels, with
  Knabber Gebaeck                                           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 restaurant
  International                                             

  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 motels, with
  Heyden                                                    restaurant

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

# 

# III. BEST PRODUCT PROSPECTS

# 

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

Wine

Dried Fruit (prunes)

Nuts (almonds, peanuts, pistachios)

Grapefruit (ruby red)

Seafood (salmon, butterfish, herring, mackerel, black cod)

Distilled spirits (bourbon)

Food ingredients for the HRI food service sector (certain spices and
mixes)

##  {#section-7 .unnumbered}

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

Restaurants and bars that offer international cuisines, such as Italian,
Greek, Spanish and Middle Eastern could find success in Poland. American
chain restaurants such as TGI Friday and Subway are gradually
establishing a presence but not in significant numbers.

There are opportunities to develop restaurants that offer healthy and
organic foods. Snacks with low fat or low-sugar content and made with
natural ingredients have good sales potential. Restaurants that offer a
vegetarian menu may also tap into the growing demand for such food.
Microwaveable and ready-to-eat products may also have good potential,
particularly for institutional food services (schools, hospitals,
nurseries etc.). As only about 300,000 Polish families have microwaves
at home, these products would be targeted at institutional food
companies who serve the less affluent segment of the population

##  {#section-8 .unnumbered}

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

[Semi-processed goods for microwave, high quality seafood products and
processed grains (apart from grains grown in Poland), rice
(brown).]{.mark}

# IV. POST CONTACT INFORMATION

# 

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: 48-22 504 2336
>
> fax: 48-22 504 2320
>
> e-mail: agwarsaw@usda.gov or agwarsaw@poczta.onet.pl
>
> homepage: <http://poland.usembassy.gov/poland/agric.html>

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.