BDI CODE 2014 - Israel's Leading Companies, Law Firms, Accounting Firms, Best Companies To Work For - page 264

BdiCode 2014
SERVICES
264
Food Service and Catering
Over the past year the catering and restaurant industry has experienced
significant developments and changes that included among others: the
opening of the chain of coffee shops Cofix that offers its customers coffee
and other products at reduced prices, and even led other chains to lower
their prices; the expansion of the veganism trend as a healthier and a more
moral way of life that affected many businesses in choosing the make-up of
the menu they offer their customers and its price. Also, it had the affect of
closing of coffee shops and restaurants that were struggling due to the high
competition in the industry that keeps being on top of the list of the most
dangerous industries in the economy and is characterized with low survival
prospects over time.
The total income of the coffee shops and restaurant industry in 2013 amounted
to NIS 17.8 billion, a growth of 4% compared to 2012. Also, it is estimated
that in 2013 10,300 coffee shops and restaurants were operating on a national
scale, a growth of compared to the previous year. The average annual earnings
per sales point in the industry is estimated at NIS 1.7 million, like in 2012.
It is estimated that in 2013 the expenditure of households on food eating
out amounted to NIS 10.2 billion, a growth of 7% in comparison to 2012.
Among the factors that contributed to the growth we would like to mention
the accelerated opening and expansion of malls and shopping centers over
the past few years as well as a rise of 3% in the consumer price index on
eating out in comparison to last year.
It is estimated that the number of private sales points in the industry (coffee
shops and restaurants that are not part of a chain) in 2013 amounted to 7,725
coffee shops and restaurants, 75% of the total coffee shops and restaurants
operating in the industry.
In the coffee shops and restaurants industry the difficulty to stay in business
the more years of seniority one has is especially predominant. The survival
rate of coffee shops and restaurants at the end of the first year of business is
68%, however in at the end of the third year this rate plummets to 51% and
at the end of the seventh year of activity only 1 out of 5 (21%) of businesses
survives and stays in business.
Some of the large employers in the industry, the fast food chains, are undergoing
changes in the employment relations in their own backyards. In May 2013 the
employees of the Burger Ranch (Orgad HSN) chain signed the first collective
bargaining agreement in the industry. Some of its clauses we would like to
note are: seniority pay to wages, providing transportation for employees, larger
convalescence pay, larger subsidiary of meals, starting a fund to help pay tuition
and so on. In the weeks following the employees of McDonald's (Aloniel) and
Agadir also started to form an association. Later, in April 2014 the Histadrut
HaNoar HaOved VeHalomed announced founding a committee in the two
largest pizza chains in Israel: Pizza Hut and Domino's Pizza (Elgad Pizza).
The company ranked in first place, Aloniel, which operated the McDonald's
chain in Israel, ended 2013 with an income of NIS 618 million, a growth of
7% in comparison to the year before.
Orgad HSN, which operates the Burgeranch chain, ranked fourth, had a
growth of 11% in income in 2013, NIS 200 million in comparison to NIS 180
million in 2012. The ranked sixth, Elgad Pizza, which operates the Domino's
Pizza chain, had a growth in income of NIS 180 million in 2013, a growth of
13% in comparison to 2012.
It is estimated that in 2013 the span of income of the catering industry is
NIS 2.7 billion. The aggregated income of the three largest companies is a
third of the entire market. Norcat who is under joint ownership of ISS and
Norfolk, ended 2013 with an income of NIS 409 million, a growth of 2% in
comparison to last year. The company, ranked in first place in the catering
companies in the industry employs 1,812 employees and is the largest
employer among them.
Schultz Company, ranked in second place among the catering companies
in the industry ended 2013 with an income of NIS 300 million, a growth of
25% in comparison to 2012. In May 2014 the company won the tender to
operate the catering and food services in Bahad City that is currently being
built in the south of Israel, for a period of 22 years.
Sodexo Company, which belongs to the worldwide company of the same
name, is ranked in third place among catering companies in the industry.
The company ended 2013 with an income of NIS 157 million, a decrease of
4% in comparison to 2012.
The Development of the Expenditure of Households
on Food Eating Out (in NIS billion)
The Development of Consumer Price Index of Meals
in Restaurants and Coffee Shops (includes VAT, per
quarter, Baseline: average 2009=100.0)
ון בארוחות מחוץ לבית )מיליארדי שקלים(
2011
2012
2013
8.6
9.5
10.2
2
4
6
8
10
12
2009
2010
2011
2012
2013
7.4
8
8.6
9.5
10.2
2012
2013
2014
Q Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
10
106.9
107.5
107.7
107.5
109.1
109.9
110.9
111.8
112.8
113.7
Q Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
10
109.5
109.6
110.7
111.4
111.3
111.1
112.1
113.2
113.4
112.6
100
105
110
115
20
100.0
8.0
.0
.0
8.0
.0
.0
.0
1 5.0
1 0.0
105.0
10 .0
Q
1
Q
2
בבתי קפה
Consu
התפתחות היקף ההוצאה הכספית של משקי הבית על מזון בארוחות מחוץ לבית )מיליארדי שקלים(
2009
2010
2011
2012
2013
7.4
8.0
8.6
9.5
10.2
2
4
6
8
10
12
009
2010
2011
2012
2013
7.4
8
8.6
9.5
10.2
100
105
110
115
2009
2010
2011
2012
2013 2014
100.0
103.5
101.5
107.6
104.4
109.6
107.5
111.1
109.9
112.6
113.7
8.0
12.0
.0
.0
.0
.0
.0
1 5.0
1 0.0
105.0
100.0
Q
1
Q
2
Q
3
Q
4 1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3 4
Q
1
Q
2
Q
3
Q
4
Q
1
Consumer pri
- gener
ארוחות במסעדות ובבתי קפה
מדד המחירים לצרכן - כללי
Consumer price index - general
Meals in restaurants and coffee shops
CONTINUED
Consumer price index - general
Meals in restaurants and coffee shops
FOOD SERVICE AND CATERING
1...,254,255,256,257,258,259,260,261,262,263 265,266,267,268,269,270,271,272,273,274,...480