Fast food market is still not saturated in the Czech Republic

The fast food market in the Czech Republic is still not fully saturated and companies in the country are performing very well. At the same time, they are still innovating their concepts to remain attractive to customers, according to Jan Kotrbáček, head of retail leasing for Central and Eastern Europe at Cushman&Wakefield. The Popeyes chain is opening its first branch in the Czech Republic on Wenceslas Square in Prague today. It focuses on chicken dishes in the style of American Louisiana cuisine. The chain now operates over 4,000 restaurants in more than 40 countries.

According to Kotrbáček, the branch on Wenceslas Square will definitely be one of the stores with the highest turnover in the Czech Republic and Central and Eastern Europe. "Competing brands on Wenceslas Square also have the best-performing outlets in the whole region in this location," he added. Popeyes is opening its restaurant just next door to a branch of the KFC chain. In the coming months, the company plans to open one restaurant in Brno and another branch near Prague.

However, other fast food concepts are also considering entering the Czech or Central European market, Kotrbáček said. In recent years, he said, the chains have performed well, although the retail market has gone through many challenges. For example, they are adapting their design to new trends and looking for innovation. "Good fast food concepts are really thriving in the Czech Republic and we are doing well even compared to foreign countries. Moreover, Prague city centre benefits from foreign clientele, which no other Central European cities can offer to such an extent," he added.

The most common fast food restaurants in the Czech Republic are KFC with 120 outlets and McDonald's, which opened its 117th outlet last time. Burger King and Pizza Hut, for example, are also on the market.

The fast food concept was brought to the former Czechoslovakia by McDonald's. It opened its first branch in Prague in 1992. In 1993, its typical Big Mac product, which is sold all over the world, cost 50 crowns. Now it costs CZK 105. Rising inflation has been reflected in prices, so that since the beginning of last year, the typical sandwich has become three times more expensive. At the beginning of last year, it cost CZK 89. Last year, the price of a cheeseburger rose from CZK 33 to CZK 42 from the chain's basic offer. Until 2012, it cost CZK 20, so the current price is now more than double.

McDonald's has more outlets per capita in the Czech Republic than in Slovakia. It has 117 outlets in the Czech Republic, which corresponds to one restaurant per 91,000 inhabitants. In Slovakia, the company operates 40 of them, which corresponds to one outlet per 136,500 people. In the UK, there is one branch for a population of just under 49,000. The largest number of outlets, over 13,400, is in the USA, so one restaurant per approximately 24,500 inhabitants.

Source: Cushman & Wakefield and CTK
Photo: Wikimedia