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Anuga in Cologne:

❚ 7-11 October 2017: Ten trade shows


under one roof
❚ Featuring Anuga Culinary Concepts
❚ Focus on the global restaurant &
catering market

Special:

Food & Foodservice


Industry Outlook
❚ 40 pages of facts & figures,
2017+
concepts & trends, insights &
perspectives
❚ Market research & benchmark
cases highlighting successful
national and international multi-
concept players in the out-of-home
market
❚ Future trends in F&B: Food for
thought by HoReCa experts

Proudly presented by:

www.anuga.com
www.koelnmesse.com www.food-service-europe.com
Content ❘❙

Taste the Future


4-5 Anuga in Cologne: Ten Trade Shows Under One
Roof – Anuga Culinary Concepts Addresses
Foodservice Professionals

The world’s leading food fair in Cologne, Germany, from 7 to 11 Food & Foodservice Industry Outlook 2017+
October 2017, brings together ten trade shows at the same time
and place. Covering the spectrum from Anuga Frozen Food to
Consumer Research
Anuga Drinks, Anuga is the world’s biggest food and beverage
exhibition. And, this year for the first time, includes Anuga Culin- 6-9 Global Diversity and Common Trends: A Comparative
ary Concepts – bundling cooking skills, technology, equipment Analysis of Structures and Changes in Major
and gastronomy solutions. It is aimed at decision makers from Out-of-Home Markets in Europe and Beyond
the foodservice sector.
What’s Hot in Foodservice?
This supplement demonstrates the growing importance of the
out-of-home market in the everyday life of millions of con-
18-19 Trend Statements I: Professionals from Denmark,
UK, South Africa and Germany
sumers. It underscores the importance of Anuga as a major
trade show for the industry. It concentrates on market research on 28-29 Trend Statements II: Professionals from Germany,
The Netherlands, Italy and Lebanon/
the one hand and multi-concept operators and trends on the other.
Middle East
40 pages packed full of brain food at its best.
38-39 Trend Statements III: Professionals from Switzer-
We would like to invite you – and to inspire you – to come to land, Germany/DACH, New Zealand and
the USA
Cologne in October 2017. Discover the taste of the future at this
unique market place for the worldwide food industry. And come
to the Anuga FoodService Power Breakfast, on offer every day at Case Studies: Leading Multi-Concept Players in Profile
11 am, from 7 to 9 October 2017 – for a great start to a successful 10-13 Italy: Cigierre – Market Leader in the Country’s
day (see page A5). We look forward to seeing you there. Casual Dining Segment with International
Ambitions
14-17 Germany: casualfood – Fast-growing Privately
Owned Player Specialised on Travel Locations
20-23 Poland: AmRest – The Largest Publicly Listed
Restaurant Operator in Central Europe
24-27 Switzerland: Two Spice – Playing in the Top
League of the Swiss Restaurant Industry
30-33 UAE: Al Tayer Group’s Hospitality Division –
Focus on Casual Luxury All Over the
Middle East
34-37 Germany: Studierendenwerk Hamburg –
Among the Top Class when It Comes to
Campus Catering

Katharina C. Hamma Gretel Weiss


Chief Operating Officer Publisher FoodService
Koelnmesse GmbH Europe & Middle East SPECIA L
Food & Foodservice Industry Outlook 2017+
For the next edition of Anuga international trade show from 7 to 11 October 2017
in Cologne, Germany, featuring Anuga Culinary Concepts – particularly de-
voted to foodservice professionals (hall 7)
A Special produced by FoodServiceEurope & Middle East (trade magazine) in part-
nership with Koelnmesse (Anuga exhibition). www.koelnmesse.com
Publishing House Deutscher Fachverlag GmbH
Mainzer Landstrasse 251, 60326 Frankfurt, Germany
Contact Tel. +49(0)69 7595-1512, Fax +49(0)69 7595-1510
foodservice@dfv.de, www.cafe-future.net, www.food-service-europe.com
Publisher Gretel Weiss
Editors-in-chief Boris Tomic and Marianne Wachholz
Editorial Team Ulla Dammer, Flavia Fresia, Bob O’Brien, Jutta Pfannschmidt-
Wahl, Bettina Quabius, Ulrike Vongehr, Katrin Wissmann (Statements)
Pictures Thomas Fedra, Companies
Layout Ines Knetsch, Ina Wudtke
Sales Manager Friederike Smuda

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 3
❙❘ Trade Show

Chef of the Year 2015: 1. Stefan Lenz, 2. Cornelius Spienle, 3. Sven Pietschmann

Anuga in Cologne:
New Ideas for Better Business
With almost 7,200 exhibitors from 100 trade show and is thus doing justice on an international level to
countries today and around 160,000 the theme that is attractive for both the trade and the out-of-home
market. The new Anuga section does justice to the segment‘s
trade visitors from the retail and away-
big significance within the trade and in the out-of-home market,
from-home sectors, Anuga is the largest which has grown over the last years. Anuga Hot Beverages met
food and beverage trade show in the with great interest from the very beginning and is very popular
world. 89% of the exhibitors and 69% of among the exhibitors of coffee and tea. Located in hall 7.
the visitors come from abroad. Staged
Bundling cooking skills, technology and gastronomy concepts: Anuga Culinary
from 7 to 11 October, Anuga covers the Concepts. The theme ‘cuisine’ is also being re-defined at Anuga. To
entire fair grounds in Cologne, which after this end, the trade show ‘Anuga Culinary Concepts’ is bundling
all are one of the largest in the world. cooking skills, technology, equipment and gastronomy concepts.
Here, as in the previous years, the finals of the two established
www.anuga.com
professional competitions, ‘Chef of the Year’ and ‘Patissier of
the Year’, will once again take place. Customers from the out-of-
284,000 sq m gross exhibition space in eleven, in some cases multi- home market have numerous points of contact here, which offer
storey halls, four entrances, a continuous trade show boulevard information, entertainment and contact to the stars of the cooking
and a central piazza ensure clear structures, fast connections and scene. Located in hall 7.
a high quality of stay. The concept of Anuga ensures a well-arran-
ged layout: ten trade shows under one roof, among them Anuga More highlights for foodservice professionals
Culinary Concepts, customized to the needs of visitors from the Anuga Wine Special. As part of the ‘Anuga Drinks’ trade show, the
away-from-home sector. special event ‘Anuga Wine Special’ will once again be also loca-
ted in hall 7, which perfectly enhances the culinary approach of
New in 2017 the ‘Anuga Culinary Concept’. Anuga Wine Special will feature
Coffee, tea & co. get their own arena at Anuga: Anuga Hot Beverages. For the an attractive tasting area with many wines from all over the world.
first time, Anuga is presenting coffee, tea and cocoa in their own As in previous years, the event will once again be professionally

A4 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
Anuga FoodService Power Breakfast
Take-off for a successful day with inspiring lectures from
international speakers, sharing their knowledge and ex-
perience, and the opportunity to establish new contacts.
Moderated by chain restaurant management expert,
Prof Chris Muller, Boston University, each one-hour session
starts at 11 am and will be held in English.
Saturday, 7th October Marlijn van Straaten, HMS Host, Amster-
dam/The Netherlands: Securing diversity and quality with
own and licensed brands at international transport hubs.
Sunday, 8th October David Singleton, Al Tayer Group, Dubai/ Chris Muller Marlijn van Straaten
UAE: Challenges and opportunities for multi-brand players
in the Gulf region.
Monday, 9th October Michael Weigel, casualfood, Frankfurt/
Germany: Growing fast by specialising on travel locations
with the right brand portfolio.
Where? Dehoga Marktplatz Gastronomie, hall 7. Partici-
pation is free. Breakfast snacks & drinks at disposal.
Please register online: www.anuga.com/Registration_Power_
Breakfast
Organisers: Koelnmesse GmbH and FoodService Europe &
Middle East
David Singleton Michael Weigel

organized by the renowned World Champion sommelier Markus Under focus: Out-of-home-business
Del Monego and his team. Seminars on wine related subjects and Because of its structure and its comprehensive offer Anuga
the Anuga Wine Award will round up the wine experience at An- reaches the most important decision-makers not only from the in-
uga 2017. ternational trade, but also addresses the leading customers from
the out-of-home market: not only representatives of the big food-
Anuga FoodService Power Breakfast – Short and handy information, presented by service and system gastronomy companies as well as hotel chains, Once again,
experts from the business. but also institutional foodservice, i.e. the operators of hospital kit- Anuga presents
For the fourth time, Anuga and international trade magazine, chens, company restaurants, school and university canteens from ten trade shows
Foodservice Europe & Middle East offer interesting and exciting Germany, Europe and overseas. in one, including
presentations on the newest trends and perspectives in the world- Over 4,000 exhibitors of Anuga’s 7,200 participants said that in Anuga Culinary
wide catering market. Again this year, three high-calibre inter- 2017 they will have products for the out-of-home-market on offer. Concepts, fea-
national speakers will give glimpses into their strategies and Thus Anuga is the world’s most comprehensive and largest sour- turing culinary,
what’s going on in their respective action fields. Moderated by cing platform for food and beverages for the foodservice sector. technology and
Prof Dr Christopher C. Muller, Boston University, the one- equipment for
hour lectures will take place in hall 7 at the Dehoga Marktplatz Supporting tools to find the right contacts the foodservice/
Gastronomie platform (Dehoga Catering Marketplace) each of the The exhibitor database enables the visitor to search for suit- catering market.
first three days of the fair (see box). able industry partners using keywords. Looking for products for
the out-of-home-market from France? Find it in the database.
Another highlight is the 27th Forum for System Catering on Tuesday, Looking for meat from New Zealand for your catering service?
10 October, organised by the German Hotel and Restaurant As- Find it in the database. Looking for all the manufactures of organic
sociation (Dehoga). Aimed at decision-makers from the entire products in the frozen food section? Identify it with the help of the
away-from-home market and its supply chain, the congress fea- database.
tures high-profile speakers such as Thomas Mack (Europa-Park The exhibitor database will be available from August onwards.
Rust) or Jochen Pinsker (npdgroup Germany). It takes place at the Professionals can learn about the registered exhibitors on the Anu-
Congress-Centrum Ost, Messeplatz 1, from 11 am to approxima- ga website and download the Anuga App. Onsite on the fairgrounds
tely 1.15 pm. all the services can be called up on the mobile devices, too. ❘❙

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 5
Global Diversity and
Common Trends
2016 marked a new direction for the com- Italians, Spaniards, Chinese and Canadians like to use restaurants for their
mercial foodservice markets in continental morning meals to a much greater degree than others do. Russians,
in sharp contrast, barely use restaurants before late morning.
Europe and brought some hopeful trends Countries that have a late dinner time tend to also have a very
around the world. Lunch caught a bit of distinct moment in the afternoon when consumers get a snack of
growth in several markets. Spain returned to some sort.
Japanese and Americans should be forgiven for thinking of res-
growth after nearly ten years of struggling.
taurants as places to acquire food that will be eaten elsewhere.
Still, the aftermath of the global economic Consumers in both of those countries actually sit down in restaur-
crisis has left consumers skittish and some ants on less than a third of all their restaurant visits. For Japane-
se, this represents the dominant role that convenience stores play
new societal trends are showing up around
in the market. This sort of behaviour is nearly inconceivable to
the world. Findings by The NPD Group’s Spaniards or Italians who eat more than eight out of every ten res-
Global Senior Vice President, Bob O’Brien. taurant meals while sitting in a restaurant.

Trends this Decade. Within all this variety of behaviour, some common
The global foodservice market is, to say the least, a diverse market. trends have emerged around the world in the current decade.
From overall rates of use to the times of day that people eat to Sustained growth has been hard to find around the world over the
where they choose to eat their prepared meals and snacks, con- past five years. Yes, consumer demand for prepared meals, snacks
sumers in each country exhibit unique patterns of behaviour. or drinks in China has grown. Australia and Great Britain have had
Russians, for instance, spend the least per person in any of the a couple of years of growth after some stagnancy. And, the USA
countries tracked by CREST; considerably less than even Bra- and Canada are up a bit over the five year period. Most of Europe
zil, where global chains have only recently begun to penetrate. has been weak over the past five years.
The biggest spenders are the East Asians. Continental European As weak as the European markets may have been over the past
consumers tend to spend less at restaurants than do consumers in five years, all of them posted growth in 2016. Germany and Great
the former British Empire despite (or because of) generally larger Britain arguably had the strongest growth in spending (not lifted
average cheques for meals. by inflation) in the world.

A6 ❘❙ Special: Industry Outlook 2017+


Consumer Research ❘❙

In most countries lunch is the largest day part and in most countries most parts of the world. They began to slip and for the past few
lunch trends dominate overall industry trends. Naturally, lunch is years have been flat. In Europe, Spain and Italy (two of the wea-
related to employment. As employment has expanded very slowly ker markets recently) have recently posted gains in family parties.
in the years since the global crisis, the potential demand for the This brings some hope that consumers are becoming more com-
workday lunch has been held in check. And, consumers need to fortable and optimistic.
feel like their prospective life is positive if they are going to choose
to spend extra money to go out to lunch. These elements have held Chains have been the driving force in the global restaurant industry since
lunch down in many countries. (or even before) the global crisis. For the entire decade, year after
Of all the lingering effects of the global economic crisis, anemic year, traffic to chain restaurants grew and independents declined
lunch demand has been the most stubborn. There has been consis- everywhere (except China where everything seems to go up).
tent, if unspectacular, growth of lunch traffic in Great Britain, Aus-
Total away-from-home spending is calculated on the basis of two
tralia and Canada over the past few years. And finally, in 2016, all
factors: the number of visits and the average check. For example,
the European markets except France posted lunch traffic gains.
spending in Brazil rose only 4.2 % despite a jump in the average
Perhaps a corner has been turned on the last effects of the global
check because the number of visits went into decline.
crisis.
This strength at the lunch day part was, in many mar-
kets, added to growth at the morning day parts that
have given so much support to the industry around the
world in recent years. Morning meals have consistent-
ly grown in most of the markets tracked by CREST.
In the weak environment after the global crisis, chains
and independents sought new paths to growth and ma-
ny found it at breakfast and morning snacks. These day
parts provided some relief, although at a lower average
check level than at other meals.
In 2016, consumers chose to eat more of their prepared
foods in the places most comfortable to them. In the
English speaking countries we track, that means traffic
growth came to the off-premises locations. In parti-
cular, consumers increased the number of meals that
were purchased prepared and consumed at home. In
Continental Europe, on-premises service not only ac-
counts for a good bit of the traffic but it also accounted
for nearly all the health in nearly all of those markets
in 2016.
The vast majority of all visits in the global foodservice market The same thing held true in 2016. What was jarringly different,
come from adult-only parties. These can be in groups, couples however, was that independents grew in six of the markets tracked
or singles and they rise and fall with the state of the economy by CREST in the fourth quarter of 2016. We don’t know if this is
and employment. Parties with kids are an element of the market the start of a new trend. It is, however, a clear break from the over-
that varies from country to country. From Australia where family riding trend of the past ten years.
parties account for nearly a third of all traffic to Russia where
they account for less than a tenth, these parties represent a kind Millennials. The plight and habits of millennial consumers around
of cream rising to the top of the market when things are just right. the world has been a front-of-mind issue to foodservice marke-
In the early years of this decade family parties were on the rise in ters. Consumers in their 20’s, all around the world, make more
purchases than other consumers. Their greater number of
Bob O’Brien, Global purchases leads to greater variety. That greater variety gives mar-
Senior Vice President keters insight into what new tastes and behaviors might drive the
for the US-based NPD market in the coming years. AND, they tend to take their higher
Group, is one of the purchase frequency with them as they age; lifting the base for the
most knowledgeable entire market. Their drop in purchasing in the aftermath of the glo-
foodservice-industry bal crisis and their subsequent anemic rebound provided much to
insiders worldwide. An worry about.
excellent speaker, he has Fortunately, they have begun to come back to the market. All
given numerous lectures around the world, outside of a couple of countries, millennials
all over the world. have begun to boost their purchase rates. This has led to a new

Special: Industry Outlook 2017+ ❘❙ A 7


But, if we examine the foods and drinks that
millennials are more likely to choose than are ave-
rage consumers, some differences can be seen. In
China, items like pastries and caffè lattes rise to the
top, reflecting young consumers’ taste for the cof-
fee shops that are popping up all over the cities. In
Spain, their choices of drinks and snacks that are
most likely to come from convenience stores stand
out and indicate a future where more items are car-
ried out in that market. For Americans and Cana-
dians, the choices that rise to the top reflect group
sharing and a taste for South Asian food that other
consumers don’t have.

❙❘ “Morning meals have


consistently grown in most of the
markets tracked by CREST.”

All of these items account for a very small share of


the choices that Millennials make. Focusing solely
on them will not automatically bring success to a res-
taurant operator. These choices, however, provide a
hint of where tastes will move over the next several
years as young adults marry, have children and take
on the trappings of family life. These marginal tastes
will likely stay with them and evolve.

Mobile Ordering on the Fast Track. It is a rare thing in


the global foodservice market that comes along
and excites consumers and businesses seemingly
everywhere and seemingly simultaneously. Mobile
ordering has done just that. From literally nothing
just two or three years ago, mobile ordering has
found an important place in foodservice markets
around the world. As important as mobile ordering
is, only about 1% of restaurant purchases come via a
mobile app in any country tracked by CREST.
Companies that ‘aggregate’ multiple restaurants in-
to a single place have captured consumers’ imagin-
ations with their apps by providing more choices in
any given situation. This trend offers a tremendous
opportunity on one hand. It creates new connections
to consumers. It opens the door to new situations
that restaurants might not have been able to serve in
the past. It is especially good for independent res-
taurants that might not have the ability to organize
the communication or payment methods that mo-
thread of thought about how to satisfy their tastes. Millennial bile orders from aggregation companies can provide. On the other
consumers are broadly thought to have exotic and different tastes hand, this is less good news for chains which lose control of their
relative to other age cohorts in their countries. In broad strokes, branding and positioning to the third party provider. As a result,
however, they are not the least bit exotic. All around the world, chains have embraced the idea of having their own apps.
the most commonly consumed foodservice foods and beverages It is important to keep in mind that, as exciting and revolutionary
of millennials are nearly identical to the favorite foods and bev- as mobile commerce is for restaurants, it is very, very small. All
erages of other adults. around the world the vast majority of consumers still place their

A8 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
Consumer Research ❘❙

restaurant orders the ‘old boring way’ with a telephone or actually Shopping-mall food courts contribute a small amount of restaur-
face to face. In China, the country with the least ‘boring’ ordering, ant traffic all around the world. This alone won’t mortally wound
96% of all restaurant visits use the old fashioned way of ordering. the industry. This trend only underscores, however, the need for
In the USA it’s 97%. restaurants to provide a reason for consumers to walk in the door.
Mobile ordering, small as it is, has (along with Internet ordering) Whether it’s unique atmosphere, special foods, outstanding ser-
accounted for nearly all the traffic growth in restaurants around the vice, entertainment or all four of those things, consumers need
world in the past few years. In China, mobile ordering is roughly a reason to act. There are plenty of times when consumers will
four times the size it was at the start of 2014. In the USA it in- make a purchase when doing something else. Whether it’s at a train
creased nearly 600% from the beginning of 2013 to the end of 2016. station or after a sporting event or while travelling, consumers are
To date, consumers have not embraced mobile applications with often in situations where they need to eat and are away from home.
the same gusto in Europe. Traditional ordering
methods have been relatively flat over the past
couple of years, just as they have been elsewhere.
Mobile ordering, while up, is less dramatically or
inexorably up than it is elsewhere.
This is another case, like millennial food tastes, that
gives a hint about the future. Consumers of all ages
respond to the convenience that mobile ordering
provides. It will be a long time before mobile is a
dominant force in any foodservice market. Any res-
taurant operators that hope to succeed will need to
get the basics of the ‘old boring way’ right. They
will also need to understand how to harness the new
kind of relationships that mobile ordering can form
in order to maximize the satisfaction of their guests.
Still, it represents the future. And, it is a source of
growth for everyone that creates new ways for res-
taurants to connect with their customers.
Summary. So, consumers, and the industry, appear to have come out
Consumers Out and About. All around the world, one of the things that of the long shadow of the global economic crisis. In most countries
is understood to be ‘true’ is that physical shopping is steadily dy- traffic counts grew in 2016 and, in Continental Europe, generally
ing along with other ‘out and about’ activities. The long shadow improved over the course of the year. There are some new trends
of the economic crisis has dampened consumers’ enthusiasm for in play as millennials come back to the market, mobile emerges as
shopping nearly everywhere. In addition, e-commerce has opened a consumer favourite ordering method and physical retail demand
a new channel that supports spending but doesn’t create a situation wanes. All of these trends, which may indicate big parts of the
where consumers might be out and about in need of some repast. future of the industry, are marginal and, while important, are not
the core things that restaurant operators need to focus on right now.
❙❘ “It is important to keep in mind that, as exciting Consumers in every country have core tastes in foods and beverages
and revolutionary as mobile commerce is for that need to be addressed. Consumers have core habits that take
them to restaurants at specific times of day or days of week with
restaurants, it is very, very small.”
specific needs that restaurants need to satisfy. Consumers want to
And, new forms of entertainment like video streaming or gaming interact with restaurants in ways that make them feel good about
on high quality hardware remove more reasons when young and the purchase whether it’s via a mobile device or sitting at a table.
old consumers might have left their homes. Satisfying those tastes will bring success while keeping an eye on
This has all led to much writing about the death of shopping malls. how to be in position to grow with emerging tastes. Bob O‘Brien
Or, in some cases, the re-framing of shopping malls where restaur-
ants are the thing that draws consumers and retailers bask in the
glow of the traffic generated by diners.
About The NPD Group
CREST shows that this has not been a trend over the past five The NPD Group began tracking consumers’ purchases of prepared
years. In nearly every country tracked by CREST, the number of meals, snacks, and drinks in the USA in 1975. Since that time, coverage
meals consumed in shopping-mall food courts was larger in 2016 has been expanded to include Australia, Canada, Germany, the UK,
than it was in 2011. It may, however, be a new trend in the market- Japan, France, Spain, Italy, China, Russia, Brazil and, most recently,
place. In the English-speaking countries we track (Great Britain, Korea. Every day, in 13 countries around the world, the NPD Group
Canada, Australia and the USA) food court traffic declined from tracks the restaurant and foodservice industry to enable operators,
manufacturers, and other foodservice companies to make the best-
2015 to 2016.
informed business decisions.
The NPD Group’s consumer panel ‘CREST’ is the industry’s leading
source for trends and performance indicators as well as consumer be-
haviour. www.npdgroup.com
F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
❙❘ Italy

Old Wild West

Old Wild West Old Wild West

Old Wild West

Wiener Haus

F OOD S ERVICE E UROPE M IDDLE E AST 3/17


A 10 ❘❙ Special: Industry Outlook 2017+ &
Italy ❘❙

Cigierre is the market leader in the Italian casual


dining segment. It operates more than 230 restaur-
ants under half a dozen proprietary brands, from
flagship Old Wild West (164 sites as of April 2017)
Pizzikotto
to newly acquired Pizzikotto. www.cigierre.com

It’s All about ‘Foodtainment’


The company was founded in 1995 by Marco Di Giusto, with market, still notable for its high fragmentation and mom-and-pop
the aim of playing a different role in the very traditional Italian approach.
restaurant market. For a few years, it focused in developing and
operating fast-casual concepts in shopping centres, which back The development of Old Wild West was initially achieved mostly through
then were opening thick and fast in Italy but still lacked distinctive franchising, though in the last few years the group has taken a new
fast-casual formats, their F&B offer being limited to fast food. direction and equity stores are now preferred over franchising due
The beginnings were marked by a sort of trial and error process: to better profitability. Already, the ratio is 50/50, with a goal of
”We had a string of successes and failures, we opened and increasing the share of equity stores in the next few years. “Fran-
closed sites,” recalls Di Giusto, “until in 2002 we opened the first chisees, though, will always have a healthy share in our system,”
Old Wild West and it was an immediate hit“. Old Wild West is a says Di Giusto, “as they remain an important lever to optimize
themed burger & steakhouse concept with a decor recreating the costs.” Especially now that Cigierre is launching its international
atmosphere of a saloon in a Wild West frontier city. Its menu is development. Old Wild West already has a foothold in France (2
centred on grilled meat, burgers and tex-mex cuisine, while cli- sites), Switzerland (2, soon to become 3), Belgium and Croatia.
ents waiting for their orders can nibble free peanuts. All red meat “We are very focused on the French, Belgian and Swiss markets,
is certified and beef comes from cattle raised and grazed on South where our restaurants are performing better than the average Ita-
American pastures. A family-friendly and fun atmosphere, and a lian unit,” reveals Di Giusto. And he goes on to say that “interna-
‘foodtainment’ approach, mixing good food and entertainment, tional growth will be both organic and by acquisitions. We are in
are other ingredients of the mix. the market for acquisitions and are looking at opportunities as they
arise. We might be interested, for instance, in acquiring a small
With Old Wild West Cigierre struck gold, but they were also good at French steakhouse chain and convert it into Old Wild West to ac-
streamlining the concept into an efficient and replicable business celerate our growth pace.”
model with standard operating procedures, rigorous food cost
control and carefully studied recipes, attention to customer ser- Cigierre in Figures
vice. A breakthrough came in 2006, when the logistics provider
Founded 1995
Havi Logistics, that up to then had been working exclusively with Brands Old Wild West, Old Wild West Express,
McDonald‘s, started acquiring new customers. “We rapidly struck Wiener Haus, Shi‘s, Pizzikotto
a deal with Havi Logistics and this enabled us to become more Restaurants 227 (117 directly operated, 110 franchised)
competitive in purchasing and more efficient in supplying our Countries of activity Italy, Belgium, France, Switzerland,
units in all corners of Italy.” Croatia
Total system sales (2016) c330 m net (+16% on 2015)
As the Old Wild West brand rapidly grew, back office operations man- Ebitda (2016) c36.963 m
agement grew apace, to reach what Di Giusto terms “total site Staff >4,000 (2,300 employees in directly operated sys-
control”: “Today, we know and measure everything that happens tem only)
in our restaurants.” This kind of industrial organisation and total Meals served (2016) 19 m
Average check Old Wild West c15
control mentality is relatively exceptional in the Italian restaurant

F OOD S ERVICE E UROPE M IDDLE E AST 3/17


&
Special: Industry Outlook 2017+ ❘❙ A 11
❙❘ Italy

Shi’s

Shi’s

Pizzikotto

Pizzikotto

Pizzikotto

A 12 ❘❙ Special: Industry Outlook 2017+


Italy ❘❙

Apart from Old Wild West, the group is also building its portofolio of own Marco Di Giusto, Co-founder of Cigierre
brands in different market segments.
You‘ve coined the term ‘foodtainment’ to describe what Cigierre‘s
concepts are about. Can you explain it?
Wiener Haus is a brand developed by Cigierre itself and offering the It‘s all about emotions. One of our first objects has always
atmosphere of a typical Bavarian brewery. It now has 30 stores been to give our customers on an exciting experience.
in Italy. In 2015 Cigierre acquired the Shi‘s restaurant in Udine We have a lot of repeat customers and we think they
(sushi and Asian-Italian fusion cuisine, prepared with quality keep coming back not only for a good
Italian ingredients) and in 2016 the Pizzikotto pizza chain, a full- steak or burger, but because of the
service pizza concept with ten units located in the Emilia Rom- experience they live in our themed
agna region. restaurants. Here they find a poten-
tially fun and buzzy atmosphere, an
Pizzikotto features both thin and crusty pizza and Neapolitan style entertaining ambience in an original
setting. The average age of Old Wild
pizza, as well as a distinctive dessert menu and 100% organic raw
West‘s customers is 18 to 45 years,
ingredients. Both Shi‘s and Pizzikotto offered a different take on
with a lot of families. We like to say that
their respective markets and had potential for growth. After the ac-
Old Wild West is a family restaurant
quisition, Cigierre has been working on their formulas, fine tuning and are happy to see children enjoying
menus and standardizing operations in order to start their chain de- themselves.
velopment. “We are working to optimise both these brands,” con-
firms Di Giusto. “We think Pizzikotto has the potential to replicate
Marco Di Giusto co-founded Cigierre
the success of Old Wild West. We’ll open Pizzikotto in shopping
in 1995 in Udine, his hometown in
malls, cinema complexes and downtown locations. Average sur-
Northern Italy, and has been at its helm
face is 500 sq m. As for Shi’s we‘re working to make it perfect not
since. In 2016 equity firm BC Partners
only for high street locations but also for shopping malls, which
acquired a majority stake in Cigierre,
are in our DNA.”
and Di Giusto stayed on as the CEO of
the company.
Overall, Cigierre has plans to double the current number of restaurants in
five years, reaching 450-500 restaurants through a tight schedule How important is innovation for you?
of about 50 new openings a year. Most of this growth will be in It is very important. We are always looking for innovations
Italy, both with selected new openings of Old Wild West in choice that will make a difference for our customers. In the last
sites that are sure to perform well, and development of the other few years we‘ve mainly implemented technical innovations.
brands, especially Pizzikotto, which now has twelve sites and will We try to relate to technologically savvy clients by, for
have 20 by the end of 2017, and Shi’s, six sites at the moment plus instance, enabling them to pay their checks with their
smartphones. All this allows for a simpler and quicker meal
another eight by year end. Cigierre are also currently working on
experience. We have also launched virtual loyalty pro-
a new concept.
grammes. And we are also constantly introducing product
innovations.

Cigierre was a pioneer in pizza delivery back in the 1990‘s, but the
times weren‘t ripe then and you abandoned it. How do you see the
Italian delivery market now?
International players like Foodora and Just Eat have
entered the Italian market and consumer behaviours re-
garding take-away and delivery are changing. We are
Shi’s
thinking about delivery and we can‘t rule out that we‘ll roll
out our own systems for some of our brands, for instance
Shi‘s, where delivery already makes up a significant share
Historically, along with its proprietary brands, such as Old Wild West
of revenues.
and Wiener Haus, Cigierre has also operated brands under licence.
This last route, though, has been abandoned and the group is now International foodservice brands like Starbucks and Wagamama are
orientated to only develop and operate own brands. “We’ve lear- coming to Italy, which up to now has been a relatively closed market.
ned from past errors,” explains Di Giusto. “We’ve been master What do you think of the new competition?
franchisee of two international concepts for years and we’ve come Growth in the Italian foodservice market is very slow and
to the conclusion that a franchisor can’t only sign a franchise to succeed you need to diversify your offer. I hope that
contract and then disappear, but has to sell to the franchisee a the Italian restaurateurs are aware that, with the arrival
whole range of services. Signing the deal is only the beginning. of international players, they will have to keep improv-
ing both their service and product if they want to be
That’s why we’ve decided to only build our own brands.“
competitive.
Flavia Fresia

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 13
❙❘ Germany

Hermann‘s

Natural

A 14 ❘❙ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17


Germany ❘❙

With 13 different foodservice brands, casualfood,


the German travel-location caterer, can be found
since 2005 at airports, railway stations and motor-
ways. In 2017 there will be over 60 units, including
convenience stores, restaurant and snack formats.
Since 2015 the multi-brand players have also been
operating outside Germany: at L JU Ljubljana Airport
in Slovenia. Further European expansion not ruled
out. www.casualfood.de

The Taste of Travelling


When, twelve years ago, Michael Weigel and Stefan Weber open- challenge, is something about which the two 50-year-old entre-
ed their first mobile snack counter, serving pretzels, sandwiches preneurs, who get on well privately, are – unusually for them – in
and beverages at a departure gate in Frankfurt Airport, they did disagreement.
not know what a growth and success story they were triggering.
By going for the location – still only sparsely provided with food- They realised early on that a high visitor-frequency location such as Frankfurt
service facilities – the pair of young entrepreneurs, with no exper- Airport could be handled more effectively and with less risk with
ience at all of the sector at that time, proved they had a good sense a mix of different concepts and pillars. “So, it was our aim, along
for what was to come in the travel-location category. Stefan We- with the mobile outlets, to take fixed sites into the portfolio, with
ber, still working in his own advertising agency during the launch long-term contracts, focusing on fast-casual food,” explains Ste-
stage, was the ideas man from the beginning. Michael Weigel fan Weber.
threw his experience as a marketing expert into the scales and is The two entrepreneurs took the next step towards multi-concept
still in charge of statistics and operations. expansion at the same time as they were expanding their mobile
In the launch year of 2005 the young company, in just under five outlets: in 2006-07 they added Quicker’s Convenience Stores, the
months, with two Mayer’s snack trolleys at Frankfurt Airport, ear- first at Dusseldorf Airport, the second at Frankfurt Airport. The
ned around ¤250,000 of sales revenue (net). Five staff served some combination of shop, kiosk, bakery and cafe offers everything
60,000 guests. which travellers want to buy quickly before their flight departs,
from a snack to toothpaste. A good third of the casualfood outlets
In 2017, the ‘little’ idea of selling pretzels at the airport, has grown into a ‘big’ belong today to the C-store category. The importance enjoyed by
catering empire, with net annual sales revenues at the last count of the convenience concepts in the sales mix can be seen by their
¤43.7 m (2016). The number of guests has risen to over 7 m a year. share of turnover, which is 50%.
Mobile pretzel counters continue to be the core of the business, After casualfood began by sharing management of the Quicker’s
but Weber and Weigel have gradually expanded the concept range Stores with the duty-free specialist Heinemann, in 2010 they took
and created a multi-brand company with 13 different types of out-
let – clustered in three categories: mobile snack bars, fast-casual casualfood in Figures
bars and restaurants, and convenience stores. This year will see
Founded 2005 as Mayer’s Mobil at FRA
numbers pass the 60-unit mark.
Headquarters Frankfurt, Germany
Hand in hand with this, the two casualfood players have expanded
Executive Partners Stefan Weber, Michael Weigel
their location philosophy. If until 2011/12 they were still based No. of outlets 59 (all company-owned and run under
exclusively in airports, in the following years the business took off own management) at 5 airports, 5 railway stations and
in railway stations and motorways, too. At the end of 2016, along 2 motorway service stations (as of June 2017)
with 47 stores at airports, casualfood had seven outlets at railway Distribution focus FRA – 29 outlets
stations and three in motorway service stations. Examples of the Brands basta! Pizza & Pasta, Beyond, Goodman &
company’s own successful concept developments are brands such Filippo, Hermann’s, Italissimo, Kilkenny Irish Pub, Mayer’s,
as Mondo, Goodman & Filippo and Hermann’s. Mondo, Mondo Bianco, Natural, Quicker’s (some under
Whether the first year was the most challenging one, or whether varying formats from mobile outlet to bar, restaurant or
the first five years have remained in memory as a particular growth C-store), plus 2 outside brands: Kamps, DB Service Store
Sales c43.7 m (2016) vs. c37.1 m (2015)
Sales target approx. c49 m (2017)
No. of guests about 20,000 a day
Staff >600
F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 ❘❙ A 15
❙❘ Germany

Goodman & Filippo

Italissimo

causualfood: Sales Mix

15%
Mobile
snack
50% counters
Convenience
stores 35%
Bars &
restaurants

A 16 ❘❙ Goodman & Filippo


Germany ❘❙

over the ten existing Quicker’s outlets in full, with a value of Michael Weigel, Co-Owner of casualfood
¤10 m in sales. Now this format represents the company’s star
What makes an airport so permanently attractive to you as a location?
growth area.
What would you say is the outlook at railway stations and motorways?
2007 saw the next step in diversification: three Mayer’s Bars were Air traffic is continuing to increase world-wide every year,
launched at Frankfurt Airport, meaning that suddenly design and a clear growth area. Many customers come with high
shop-fitting concepts were needed, which Weber and Weigel ob- spending power and our concepts are tailored exactly to
tained from outside. Thus, casualfood entered on a new business this frequently international clientele, who want fast, good,
era: “The combination of brand, design and catering formula as a uncomplicated eating and drinking on their journey. That
major whole became an important trademark. This brand message we meet our customers’ taste can be seen from our con-
plays an immense role even now,” emphasises Weber. “A guest stant growth in this segment.
decides in ten seconds if he is going to eat at our place or walk on
past. We have to grab him.”
2008 saw a further jump in expertise, in the shape of the Mediter-
Michael Weigel, born 1967, one of
ranean concept Mondo: the format, in two varieties, as Piccolo
the co-founders, has been master of
and large restaurant unit with kitchen, fullservice and take-away,
statistics and at the heart of operations
was designed to appeal to all guest categories. “At this level, we
and personnel from the launch. At the
had to overcome a real inhibition threshold. All of a sudden, we
start, he was himself actually one of
had to work as fullservice restaurateurs, were running our own
the sales staff behind the first Mayer’s
kitchen and dealing with quite different factors in terms of sales
pretzel trolley, today joint owner of the
area and guest frequency. But speed was to remain our trump card;
multi-brand company casualfood. The
we aimed never to lose sight of our corporate DNA, the fast-casual
former sales professional cannot quite
approach, nor have we done so,” says Weigel. Now a part of their
deny his expert view even when eating
own brands is run with different formats, from mobile snack outlet
privately, for he wants to stay receptive
and take-away, to restaurant and bar with take-away area, to con-
to new ideas. But he certainly never
venience store.
allows this to interfere with his enjoy-
ment of good food. What he notices,
Until 2011/12 growth was concentrated exclusively on airports, then the
however – always and everywhere – is
time was ripe for further site categories. They launched the first
particularly good service.
railway-station site in the shape of the sausage concept Hermann’s
and then, expanded to include the pizza concept basta, went on to At the railway stations, we are likewise constantly grow-
include motorways. ing. Along with our own successful concepts, we recently
That their pleasure in the catering business has not slackened in entered into a partnership with Deutsche Bahn, to run more
their twelfth year is exemplified by the format of Goodman & Fi- service stores at attractive sites. An initial successful pilot
lippo, opened in Dusseldorf Airport at Gate A in September 2016. has been under launch since September of last year at the
This fresh deli-concept, featuring daily on-site production, like- regional railway station of Frankfurt Airport.
wise an idea of their own, exploits the specialties of two countries:
How do you keep your staff on the hop at these busy locations?
Italy and the USA. To sum up so far: “Goodman & Filippo has
The need for flexibility and speed is extremely high in
started up well beyond our expectations. The take-away share was
all catering for travellers. And the staff need to be able
about 75% at the start. Now the restaurant business has established to handle the very widest range of customer groups and
itself more and more, reaching a 40% sales share. We expect this cultures. Of course, that can be very attractive, for no two
development to continue and thus that the average net checkout days are alike. A member of our staff will meet travellers
bill, currently ¤6.80, will rise to ¤7.50. There is further room for a from all over the world and can show off his language
rise. The same applies to the net monthly sales figure of just under skills. We teach this to our staff. And we support them with
¤270,000. The food favourites to far: surf’n’turf burger and chi- numerous measures, from on-boarding and a permanent
cken club sandwich,” says Weigel in short. training cycle, to training programmes, including those in
the company, to part-time degree courses. Naturally we
most prefer to develop our own staff further!
And 2017? March saw the opening of one Quicker’s in Essen rail-
way station and another in the new Ryan Air section of Frankfurt
How do you combat all the wear and tear, how do you relax?
Airport. A further Goodman & Filippo will get going at Cologne-
Of course, that doesn’t always succeed. Seriously, the way
Bonn Airport in July. A Hermann’s is planned for November at of combating stress is to enjoy your work in a great team.
Gate A in Frankfurt; the present Beyond, also Gate A, will be That’s what we do. I find relaxation best with my family.
converted into another Goodman & Filippo, too. “Further projects In Croatia, in a small town on the coast, you can let your
for this year, including projects outside Germany, are also in the mind run wonderfully free. But when I am with friends,
pipelines but not yet advanced enough to talk about.” over a good meal and a fine bottle of wine, I can relax
Jutta Pfannschmidt-Wahl very well.

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 17
❙❘ Trend Statements

Greener Menus and Digitized Restaurants


“In our market, organic greens and vegetables are on the rise, and
having a vegan menu is a must today. In fact, at Sticks’n’Sushi, we
have a much greener menu today than we did five years ago, and
we expect this development to continue. There’s an overall trend to-
wards going more green and sustainable with customer interest and
hence foodservice offers moving away from red meat and ever more
often towards organic farm-produce. In recent years, the quality of
biodynamic wine has increased significantly, and it has found its
way onto our beverage card. We have also added fermented bev-
erages such as Kombucha and Kefir. While traditional soft drinks
play only a minor role in our beverage menu, we’ve decided to
include alternative soft drinks with less added sugar and additives.
Topics like climate change and sustainability are on everybody’s
radar today. Consequently, our guests want to know where our
Kim Rahbek founded Sticks’n’Sushi together food comes from and how it is produced. I believe that they will
with his brother and brother-in law in 1994 in expect even more transparency in the future coupled with the same
Copenhagen, Denmark. In 2012, the restaurant high quality in service, but in an increasingly digital environment.
group went international with a first unit in Lon- Already today, technology plays a decisive role in the foodservice
don. Berlin followed in 2017. “Food is all about realm, and we believe that it will influence our business quite signifi-
design,” says the CEO, who pays close attention cantly in the coming years, as guests expect any relevant restaurant
to the fashion and design industry as well as to be digital. We aim to use the modern technology to ensure a
architecture and philosophic trends. seamless guest-journey in-house and for take-away.
www.sushi.dk Speaking of which, take-away has increased dramatically in the
last couple of years, as has delivery. We’re observing this trend at
both the low and high-end of the market.”

For wagamama’s Head of Inter-


national Marketing, Michele Young, Focus on Wellbeing & Street Food Influences
India and Asia are a great source of “Looking back ten years to 2007, we’ll see that the food trends
culinary inspiration: “Where else then were an increased focus on healthy eating, wholesome, fresh,
can you enjoy such a celebration of organic food, convenience with a healthy twist. Those trends are still
different and distinctive tastes and prevalent if not stronger today, and I expect that they will still feature
savour such aromatic, spicy and bold on our menus in another ten years time.
flavours? I admire the way that With consumers more aware about what goes into their food, the de-
vegetables can become the hero on mand for healthier alternatives and focus on wellbeing has continu-
the plate in these countries.” ally grown. This has also had an impact on the demand for free-from,
www.wagamama.com vegetarian or vegan products. All these issues – including food-aller-
gies and intolerances – have been on our radar for some time.
When it comes to indulgence, street food from around the world
continues to inspire both consumers and development chefs. We
are seeing more flavour influences and innovation from countries in
Southeast Asia. Korean food is gaining attraction whilst Vietnamese
is becoming more mainstream in its appeal.
Overall, consumers are increasingly demanding on service quality,
dining experience and more adventurous in their tastes. To cement
loyalty, they want to find a personal and emotional connection with
the brands they are dealing with.
As for operations, it’s no longer an option for restaurants to run
without a good technology infrastructure. At wagamama’s it’s pret-
ty much engrained in every area of the business form managing or-
ders with suppliers through to taking orders from customers – both
in the restaurant and online. We also have an internal platform for
business as well as an internal social platform.”

A 18 ❘❙ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17


Trend Statements ❘❙

Sharing Opportunities, Choice & Better-For-Me Options


“Observing the UK market, we see that eating away from home is
a big trend due to time-poor consumers as well as customers wan-
ting choice of cuisine. Besides, people now embrace the feasting
concept as a way of socialising – and an affordable way of dining
out. There’s great demand for both sharing plates and small plates
(tapas) across cuisines like American BBQ and Mexican.
The Nando’s concept is reflective of these trends: Stemming from
South Africa with a Portuguese influence of chargrilled chicken
infused with peri peri from Mozambique, it gives a unique propo-
sition to consumers. Our menu also comprises a selection of sharing
platters for up to six people.
While keeping to our core products, we also utilize ingredients that
are on trend and work well with our foods, e.g. sweet potatoes or
grains. In answer to customer health perception needs for ‘better for
me’, we recently introduced the Supergrain Side: a mix of grains, A London native, Nando’s Group
greens and beans including wheat berry, freekeh, edamame, can- Head of Food, Blair Smethurst,
nellini, quinoa, green beans, barley, kale, and avocado. We’ve took an interest in food from an
also introduced a burger innovation. The Trio Burger with peri- early age on. He studied culinary
peri chicken breast fillet, grilled halloumi cheese and Portobello arts and travelled other countries
mushroom meets customer demand for flavoursome products. to work and learn. Before joining
As for the future, I believe that trend cuisines will be a patchwork Nando’s in 2015 he held positions
quilt of traditional flavours and cuisines mixed with modern tech- at Coles Supermarkets (Australia)
niques. Customers will expect to trust brands, i.e. restaurants to do and Marks & Spencer (GB).
the right thing regarding sustainable sourcing, and offer foods that www.nandos.co.uk
are nutritionally responsible, fresh, unique and innovative.” www.nandos.com

What’s Hot in Foodservice?


Booming Delivery Market & Oriental Cuisine KP Kofler founded the catering company Kofler
“The food business has always been shaped by social develop- & Kompanie in 1991 in Frankfurt, Germany, and
ments, take digitalization or the sharing economy, for example, grew it into an internationally renowned premium
with their huge impacts on the whole industry. Food delivery is on a hospitality service. The business has already
completely different level today than it has been during the past few hosted three World Cups and three Olympic
years. Thanks to new delivery services, the access to high quality Games, including VIP catering for the FIFA World
food has become much easier – at least in major cities. Cup 2014 in Brazil. For culinary inspiration, Kofler
The London delivery market is expected to grow by about 28% over turns to London: “the silicon valley of food.”
the next ten years. That’s why White Rabbit Fund, a restaurant and www.koflerkompanie.com
advisory business that we launched in 2016, and which built up two
innovative foodservice start-ups in London, will focus even more
strongly on this market segment. We are currently working on a
solution that will support restaurants in dealing with major
challenges connected to handling both take-away orders and on-
site business successfully.
With regard to food and menu items, the world was a different one,
ten years ago. While sushi used to be something truly special, it has
become a common treat for most consumers. New trends like poké
food have entered the market. Middle Eastern cuisine, i.e. oriental
food especially from Israel, is set to conquer our menus in the next
decade. Tel Aviv will become the new Copenhagen. We’re also
witnessing the rise in popularity of high quality Mexican food.”

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17


❙❘ Poland

La Tagliatella

KFC

Pizza Hut

A 20 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
Poland ❘❙

The goal is clear, the timeline is set: AmRest aims to


become the leading restaurant company in Europe in
five years. The Polish-American company is the
largest publicly listed restaurant operator in Central
Europe. As of May 2017 it operates more than
1,200 restaurants under seven brands in 13 coun-
tries and has nearly 30,000 employees. Its growth is
tightly scheduled: 250 new restaurants are to be ad-
ded this year, pushing up the pace to 400-450 new
restaurants in the next few years. www.amrest.eu

Everything Is Possible!
AmRest is equally clear about the strategy it has chosen to reach ‘Everything is possible’, a belief forged in the early days of the
its goal: consolidation and organic growth, but at the moment es- company, back in the 1990’s, when a young McGovern and a
pecially acquisitions and agreements. friend came to see for themselves what Eastern Europe looked like
Indeed, in the last few months the pace of m&a and new deals after the fall of the wall and decided to stay and start a restaurant
is so fast it is difficult to keep up with it. In April alone AmRest business, overcoming difficulties and refusing to be stopped by
first signed an agreement to become a majority shareholder in the setbacks.
Polish company that operates the PizzaPortal.pl platform, thus
partnering up with Delivery Hero, a global leader in the online ”We started a company with no one from the restaurant business because
food-ordering segment. Then, a couple of weeks later, AmRest there were no restaurants at the time in Central Europe,” recalls
announced plans to enter the Austrian market with the KFC brand, McGovern. “So we had to do and learn everything on our own,
with the first restaurant due to open before the end of 2017. Final- which created an incredibly strong bond between us. Of our se-
ly, on April 24, AmRest disclosed to have signed a binding deal nior executive team, the newest person has been with the company
whereby one of its subsidiaries would become the Pizza Hut mas- ten years, many of them are with it since the very beginning, 20+
ter franchisee for 36 restaurants currently operated by multiple years. Once you build that kind of comraderie that comes from
sub-franchisees in Russia and acquire 18 Pizza Hut restaurants having gone through those early years, you stick together.“
operated by Pizza Hut Russia.

AmRest in Figures
In March, AmRest signed deals aimed at becoming Pizza Hut mas-
ter franchisee for Germany and acquiring two Pizza Hut delivery Group founded 1993
stores in Dusseldorf, announced the forthcoming acquisition of Headquarters Wroclaw, Poland
42 KFC restaurants in France and finalized the acquisition of 15 No. of brands 7 (Burger King, KFC, Pizza Hut, Starbucks,
KFC equity stores in Germany. Previously, it had struck deals with La Tagliatella, Blue Frog, KABB)
Pizza Hut in Central Europe and in France to buy their delivery No. of restaurants 1,203 (as of 27.4.2017)
business. And in 2016 AmRest had acquired 144 Starbucks equity
No. of restaurants by brand (2016) 519 KFC (excl. 15 in
Germany acquired in 2017), 275 Starbucks, 214 La
stores in Germany, thus more than doubling their Starbucks port-
Tagliatella, 92 Pizza Hut, 45 Burger King, 32 Blue Frog,
folio overnight.
4 KABB
No. of countries where AmRest is present 13
”We are a growing and acquisitive company,” comments AmRest co- No. of restaurants by country (2016) 389 Poland, 245 Spain,
founder and CEO Henry McGovern. “Our focus right now is on 145 Germany, 123 Russia, 114 Czech Republic,
Europe, where 95% of our restaurants are, though we also have a 66 Hungary, 36 China, 28 Romania, 11 Bulgaria,
nice business in China.“ 10 France, 6 Croatia, 5 Serbia, 3 Slovakia
Group sales PLN4,207 m (c985 m)
This fast growth couldn‘t be handled without a strong organisation, No. of meals/clients served ~ 200 m per year
a strong company culture and the right attitude. The last is ex- No. of staff 28,771 (23,623 in 2015)
emplified by the company motto ‘Wszystko Jest Możliwe!’, i.e.

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 21
❙❘ Poland

Starbucks

La Tagliatella

Starbucks

A 22 ❘❙ Special: Industry Outlook 2017+


Poland ❘❙

Teamwork as well as in-house training and mentoring programmes Henry McGovern, Founder of AmRest
based on supportive development and feedback are some of the
What is the job description of a Chief Emotional Officer?
policies that today stay AmRest in good stead when planning and
My role is to drive the energy of the
organising its development. Another of the company’s core values
company. I‘m not an executive any
is ‘trust in the good intentions’, meaning specifically, let people more. About ten years ago I realized
have autonomy and trust that they are going to do things well. that there were more and more people in
the company who were better at things
”We are very much a people business and in a partnership we bring an than I was. I had started the company,
entrepreneurial attitude towards the business,” says McGovern. I was very hands-on, I had to know
This also explains AmRest‘s recent acquisition strategy and why about everything, but then I grew out of
the development is focused around a few strong brands: “We have it. I realized what I really do is just keep-
seven brands and it sounds like a lot but when you look at the seg- ing AmRest more exciting, interesting,
ments they are in, it‘s really not,” underlines McGovern. “As we fun, challenging and developmental.
are focused around the people side of the business, we need to have
Henry McGovern is currently the self dub-
full teams and have to build an organisation to handle the growth
bed ‘Chief Emotional Officer’ of AmRest
we want, so we must be able to afford our systems and processes.
Europe and a member of its supervisory
We already have more than 100 people in our development team
board. A US citizen, in 1993, when he
including architects, site locators, and engineers. Therefore, we
was 25, he co-founded AmRest and
look for businesses that can get to scale and scale for us today is
served as Chief Executive Officer from
a 100 m Euro business. We need to have exclusivity or a large
1995 to 2008.
territory for doing that.”
Fun and enjoyment are important parts of AmRest‘s company culture?
AmRest‘s portfolio is made up of a mix of proprietary (La Tagliatella, I‘m a believer for good or for bad that we‘re only here
Blue Frog Bar & Bistro, KABB) and franchised brands (KFC, one time, we might as well enjoy it. What a shame if
someone is not enjoying life. We just don‘t take it too ser-
Starbucks, Pizza Hut and Burger King).
iously. We hear a lot of things about life-work balance.
La Tagliatella is an Italian themed chain offering a true Italian trat-
For me that seems so antiquated. Today our lives are just
toria experience. ”It‘s a quality-driven, food-focused brand that has
intermatched, there‘s not this separation. If you need to
become synonimous with the best Italian food in Spain, as well as separate your life into compartments, you‘re not taking the
our most profitable business,“ reveals McGovern. The brand had most out of it. If you have to work one evening, you have
105 restaurants when AmRest bought it in 2011. Today, it has over to work one evening, but then take another day off and go
200 restaurants in Spain, with an average ticket of ¤20 per person, to the beach or whatever. So, try to find more of the soft
and a dozen sites in France and Germany, with plans to further line as opposed to the hard line. Also, the restaurant busi-
develop it both organically and through franchising. Blue Frog is a ness is what everyone talks about and wants to be a part
Western casual-dining concept with 36 restaurants in ten cities in of. It‘s a fun business, we should have fun.
China and plans to open in Spain and Poland later this year. ”Our
China business last year grew about 30%, this year it will grow Where do your drive and inspiration come from?
In my coaching I try to help people find one word that is
another 30%,” reveals McGovern. “We have crossed the ¤100 m
meaningful for them and helps them define what are they
mark, which means we have enough scale to do other things.“
are good at. My word is freedom. I must make sure that I
But AmRest is also notable for taking a unique approach to ”exe- give myself freedom and I don‘t box myself in too much.
cuting“ its franchised brands, that are among the global leaders in I‘m definitely driven by challenges.
their respective product categories. In some of their restaurants,
AmRest transformed Pizza Hut from a fast-food into a fast-casual If you could turn back time, what would you do differently?
brand, where the food is prepared in front of the customers with I don‘t know. You never know what the road ahead is.
the ingredients they want, and a focus on freshness. In Poland, Very bad roads end up in very good places. All of my busi-
about half of AmRest‘s Pizza Hut locations are fast casual now. ness ventures have been interesting. It‘s hard for me to say
With KFC they did the same thing, for instance only using fresh, what I would change, because it has taken me down that
locally sourced chicken and redesigning the restaurants to have an road. Life is good.
open kitchen. “We go after whatever will make the brands more
AmRest recently entered the German market thanks to two major
transparent and better quality to the customer,” sums up McGo-
acquisitions (Starbucks equity stores and KFC equity stores). What have
vern. As for Starbucks, AmRest is currently working to ”elevate you learnt firsthand about the German market so far?
the impact“ of the recently acquired German stores. “There’s a That it is price sensitive. I hope that we can encourage
reason why Starbucks is by far the world leader and it’s because Germans to recognize that eating well brings a certain
of the quality of the brand. In Germany we want to deserve the enjoyment to life that‘s worth paying for. We need to get
leadership position we have,” concludes McGovern. Germans out, enjoying their time in restaurants more. The
Flavia Fresia market has its idiosyncrasies but we‘ll work through all.

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 23
❙❘ Switzerland

Yooji’s, Kesselhaus, Zurich Yooji’s, Kesselhaus, Zurich

Yooji’s, Westside, Zurich

Bohemia Cheyenne

A 24 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
Switzerland ❘❙

Two Spice AG of Zurich plays in the top league of


the Swiss restaurant industry. The multi-concept com-
pany unites 23 businesses and ten different brands
under its roof and in 2016 earned revenues of al-
most CHF80 m. The group has been successful over
the whole of German-speaking Switzerland with its
sushi concept, Yooji’s. Last year the restaurateurs
were host to over 3.7 m guests. www.twospice.ch
Yooji’s

Trendsetter from Switzerland


Whether it’s Yooji’s, Iroquois, Bohemia, Totò or Nooba: their res- dishes can be eaten in the restaurant or ordered as a take-away.
taurants have long made Marc Saxer and Daniel Kehl, the two Production takes place in an open kitchen, allowing an insight into
brains behind Two Spice AG, major players on the Zurich cater- the preparation and creation of the food. “More and more vegetar-
ing scene. Their portfolio is diverse – including both individual ians, vegans or people with gluten allergy are finding their way to
restaurants and multiplied concepts. The best known of them is us,” says Saxer. This is not surprising: over half of the dishes at
no doubt the sushi chain Yooji’s. First opened in 2000 in Seefeld, Jack&Jo are vegetarian.
Zurich, today this system-catering formula can be found at 13 sites
in Switzerland. It was through Yooji’s that the two entrepreneurs For over 25 years the ideas factory at Two Spice has been giving birth to res-
once pioneered on the Limmat what is now a popular food – initial taurant concepts and brands. It all began with the live-music cafe
guests were largely unaware of maki, sashimi, nigiri, and all the CaBaRe, which newly qualified chef Marc Saxer and the then ban-
rest. It’s all quite different now. Not just the guests, but Yooji’s ker Daniel Kehl opened in 1990. The two organised innumerable
itself have developed over a decade and half. “We take new ideas concerts and made CaBaRe into a well-known venue. Right up to
and apply them to every project,” says Marc Saxer. Today the con- today the two entrepreneurs, who have themselves worked long in
cept includes the classical sushi belt (kaiten), touch screens for or- kitchen and service, preserve a wider view, are interested not just
ders at every seat, and a take-away area. If you want, you can even in the food, but also in culture, music, art and lifestyle. “We have
order the sushi creations via Yooji’s app and get them delivered to always thought it important to run catering at a professional level.
your door. When it comes to their products the two restaurateurs Nevertheless, in our outlets we aim to encourage a good overall
place great emphasis on sustainability: fish and seafood come from experience. Everyone, both guests and staff, should feel good, in
sustainable sources and there are environmentally friendly take- a fantastic atmosphere,” is how Saxer describes the spirit of Two
away packages. Spice. The uncomplicated form is close to their heart, as is the

Another approach is taken by the better-burger concept Jack&Jo, which is one of Two Spice AG in Figures
the latest Two Spice projects. To date there are two outlets in the
Founded 1990 in Zurich, Switzerland
Winterthur railway-station concourse, a protected monument, and
Founders/Owners Marc Saxer, Daniel Kehl
on Zurich’s Europaallee, which with their modern, atmospheric
Headquarters Zurich
design give a very inviting impression. The focus is on ‘slow fast No. of outlets 23, plus 1 franchised (Nooba Laax)
food’, which for these entrepreneurs is no contradiction. “Despite Concepts and brands 10: Bohemia (American brasserie),
increasing time pressures, our customers want to enjoy their food. Boilerroom (bar&lounge), Cheyenne (American sports
Source and quality of products play an ever greater role,” explains bar), Iroquois (fullservice), Jack&Jo (slow fast food, 2
Saxer. units), Nooba (pan-Asian, 2 units), Rice Up! (take out),
Ristorante Totò (Italian, fullservice), Yooji’s sushi deli (fast
At Jack&Jo these two players are highlighting healthy, home-made food casual, 13 units), Weindepot (wine store)
with ingredients from local producers. The menu features burgers, Staff about 600
soups and salads, plus a broad breakfast and brunch range, includ- Revenues 2016 CHF80 m
No. of guests more than 3.7 m a year
ing trend-setting offers such as overnight oats or chia pudding. All

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 25
❙❘ Switzerland

Nooba Jack & Jo

Nooba

A 26 ❘❙ Special: Industry Outlook 2017+


Switzerland ❘❙

public: their outlets are rated as trend-setting meeting places for Marc Saxer, Joint Owner of Two Spice AG, Zurich
a diverse mixture of guests, in which relaxed places such as Bo-
How would you describe the spirit of Two Spice? As a restaurateur, what
hemia have something to offer on the culinary side.
is your guiding light?
Bringing culture and catering together has been a major
Creativity and commitment, combined with a sense for quality and a well- preoccupation of ours from the start. We always thought
developed entrepreneurial awareness are some of the facts which it important to run the restaurant business at a high pro-
have made the catering duo successful. “Our strengths include the fessional level. Nevertheless, in our outlets we wanted to
way we always stick to something,” they say. This is also shown encourage a good overall experience. Everyone, both the
in the classics from the Two Spice factory, which are constantly guests and the team, should feel good in a fantastic atmo-
being developed further, to keep up with the times. So it is with sphere. This mixture of quality objective
Bohemia, opened in 1999 on Zurich’s Kreuzplatz: with a relaxed and lively catering has always been the
atmosphere and good cuisine, the restaurant attracts guests from defining feature of our restaurants – and
it is going to stay that way.
early morning to midnight. Since its latest renovation, the Amer-
ican Brasserie also has a charcoal grill, on which food is grilled on
Marc Saxer, co-founder and joint owner
the Argentinian model. The Iroquois, opened in 1994 and known
of Two Spice, has more than 25 years’
for its burgers and sports programmes, underwent a refurnishing
experience in trend-setting restaurant
in 2012 in country-house and vintage style. At the moment the
operation. He founded the restaurant com-
popular district venue is being rebuilt again, and by autumn 2017
pany in 1990, together with Daniel Kehl,
will have a new look.
in Zurich. The two entrepreneurs – Saxer is
a trained chef, his associate an industrial
Almost all Two Spice AG restaurants run at a high sales level. With a total
economist – have themselves long been
of 23 outlets and ten different brands, in 2016 the group earned
working in the catering sector and know
revenues of almost CHF80 m. The portfolio includes not just res-
exactly what their guests want. They apply
taurants, but also a wine dealer’s and the product brand yootea, a
their experience to every new food and
bio-refreshment drink. Responsible for product development and
beverage project.

Your portfolio unites a mixture of stand-alone and system concepts. Is


❙❘ “In our outlets we aim to encourage a good there a common denominator?
overall experience. Everyone, both guests Quality is our credo; that applies to the cuisine just as
and staff, should feel good.” much as to the staff. A love of detail. People like to think of
Two Spice AG as belonging to the trend segment – but in
fact we address a much broader target group. Being trend-
procurement is Two Spice Trading, the group’s central trading setting and cool was and is not necessarily synonymous
company. Both their own brands and new products from all over with quality, though. We have consistently pursued a
the world are distributed in Switzerland and world-wide by Two different philosophy.
Spice Trading. Thus the trading company has maintained many You run trend-setting restaurants but don’t produce any nine-day won-
years of collaboration with partners and suppliers – including ders. How does that work?
those in Japan and Korea. It is one of our strengths that we stick with a thing and work
hard. We are work-buffs who are always in search of new
Asian cuisines are a particular hobby-horse of these two players. Their approaches and solutions – whether at the technical level,
latest project, too, was conceived under the culinary aegis of the as at Yooji’s, or in the food area. The secret is no doubt a
Far East: last year, in the shape of Rice Up!, the two entrepreneurs love of experimentation, combined with an entrepreneurial
launched a take-away in the food court at Berne railway station, base, and entrepreneurial spirit.
inspired by the street-food markets of Asia. Rice will be found What do you see as the exciting trends in the food and beverage sector
at every point of the range. Meals are based on various different at the moment? Which cuisine would still attract you?
bowls, which are prepared freshly and quickly to recipes which In our ideas factory we create new impetus, new food
they have developed themselves, or as the customer prefers, with concepts almost weekly. We are always active and open
rice, noodles, salad, meat, tofu, shoots or other toppings. For thirst to new trends. We have long been attracted by the Orient
quenching, you can select rice milk with chai or matcha and home- – not just geographically and culturally, but by its cuisine,
made lemonade. In its very first year, on just 80 sq m of service too. We can well imagine a varied and cordial mixture of
area, Rice Up! earned revenues of over CHF2.7 m. Following the Israeli, Syrian and Lebanese cuisine, mezze in short, for
example. We have already begun our culinary journey
successful pilot outlet in Berne, now the restaurateurs intend to
across the continent of Asia: Nooba features traditional
test the concept in Zurich: from summer this year – fully reflecting
pan-Asian dishes with country-typical spices on the menu.
the spirit of the times – there will be a Rice Up! pop-up store in a It would also be exciting to journey on further towards
prominent position in the Bahnhofstrasse. Ulla Dammer India.

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 27
❙❘ Trend Statements

Discerning the Social Role and Responsibility of Restaurants


“Time, today, is a decisive factor when we look at food and con-
sumption patterns. We’re living in fast-moving times and people
face a multitude of tasks and often heavy workloads. Little time
remains for (joint) dinner preparation at home. Concepts like
L’Osteria make excellent products at affordable prices available
to everyone.
At the same time, our society is highly influenced by technological
advancements. To offset the isolation caused by the continuous use
of laptops and mobile phones, I believe that restaurant visits are
also becoming increasingly important in social terms.
Nonetheless, at L’Osteria we’ve been noticing an increase in de-
mand for delivery and take-away over the past years. While our
F&B items have always been available for take-away, with Foodora
we have found a very reliable delivery partner.
In 2016, Mirko Silz joined the Overall, customers have become much more knowledgeable,
L’Osteria founders in the manage- which also means that we have to stay on top with social and eco-
ment board of the 58-unit strong nomic trends: more salads, sustainably produced products, or lean
German pizza & pasta chain. Look- supply chains are examples of how we can fulfil the requirements of
ing back, he says, his time as CEO of a healthy and environmentally aware lifestyle.
Vapiano SE (2006-2011) marked It’s hard to say which culinary trends will come to us in the future.
not only a major milestone in his Already today, we’re seeing that trends are not going in one pre-
career but held also decisive profes- defined direction, but are rather a combination of various elements
sional learnings. What he loves most such as particularly healthy foods, traditional ingredients, and fa-
about the foodservice industry? miliar cuisines. What guests crave at L’Osteria is our dedication to
“People!” www.losteria.de freshness in both food and drinks.”

After 15 years in the retail business, Bart van Price Sensitivity, Inquisitive Consumers & More Consumption Occasions
den Nieuwenhof was asked to lead La Place in “In the Netherlands, the out of home market is growing fast this
early 2012. Following the bankruptcy of former year. After years of stagnation, growth is finally here and new
proprietor Vroom & Dreesmann, the CEO is cur- players – national and international (e.g. Five Guys, Taco Bell,
rently working on re-strengthening the brand, Dunkin’ Donuts) – are coming to the market.
today owned by the Dutch Jumbo supermarket While (New) Italian and Asian cuisines are still winning, we see
chain. The father of three finds great inspiration in an increasing number of new concepts that focus on one speci-
Israeli cuisine: “I believe it will win the hearts of ality only. Also, demand for ‘made-for-you’ as well as vegetarian
more and more people all over the world.” products is rising quickly. Our La Place concept is strongly aligned
www.laplace.com/en with these trends. The market restaurant formula – by the way the
first to introduce front cooking in the Netherlands – is made for
personalized solutions. Besides, one major topic for us as well as
for the whole industry is burgers. Our new burger concept allows
customers to combine their bread and meat with a selection of eight
new toppings.
As for consumer behaviour, it’s clear that in the years to come,
price sensitivity will remain an issue and low prized offers will find
great audiences. Nonetheless, guests today are increasingly well
informed and better educated. In ten years time, they will want to
understand everything about their food. Demand will develop from
currently ‘what you see, is what you get’ to ‘what I understand, is
what I want’. As health consciousness will continue to grow, I also
expect concepts (Asian and others) with a focus on sustainable fish
to grow in North western Europe.
We will also see an increase in the number of consumption moments
per day – with less volume being consumed per occasion.”

A 28 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
Trend Statements ❘❙

Local, Genuine Ethnic & Zero-Kilometre Superfoods


“Looking at Europe, we observe that ‘trueness’ (#truefood) linked
with ‘local’ are very strong drivers in the gastronomic landscape
today. The desire to ‘celebrate traditions and identity’ seems to
increasingly drive especially young generations into restaurants.
At Autogrill, we address this trend with our Bistrot concept, which
brings local and Italian dishes made from very local ingredients to
food lovers all over the world.
Another trend is ‘genuine ethnic cooking‘ in counter served and fast
casual formats. People want to experience the real taste of specific
regions and crave the experience of having their food prepared
in front of their eyes. The Autogrill Group has developed a whole
range of genuine ethnic concepts for different regions and chan-
nels, e.g. Asia, Thai Urban Kitchen, Seven Spices, Kebab Factory.
Exotic and previously unknown grains, fibres and vegan proteins
as well as soy products and functional foods have conquered the With a family background in the
European foodservice and retail market in recent years. We have food business, the COO of Autogrill
also incorporated them in some of our recipes, e.g. crushed Switzerland, Maximilian Schiedt,
smoothies with superfood ingredients, mueslis with ‘new grains and held various positions in the food
seeds’ like quinoa or chia. (wholesaler’s) industry (e.g. Tho-
In the future, driven by environmental concern and a focus on local mas Niederreuther, Hilcona) before
produce and quality, I expect that we will see the rise of local zero- joining the foodservice business.
kilometre superfoods. My personal favourite: domestic fresh water A world traveller and food lover,
fish, either farm raised or caught locally in our lakes. In parallel, we the avid angler finds inspiration in
will see the farming of exotic fish and other seafood in closed circuit every culture and tradition.
farms heated with geothermal energy.” www.autogrill.com/en

What’s Hot in Foodservice?


Creating Instagramable Food Experiences An Istanbul native, Mert Askin, spent the first
“The away-from-home market is currently shaped by advancements 10 years of his career in management consulting
on various levels. Experimentation with food formats is playing a vital before he moved to professional foodservice in
role in creating culinary experiences. Think of restaurant pop-ups, 2006. Today, he is in charge of the F&B division of
dinner in the sky or home-cooking events with professional chefs. the multinational retail group Azadea, operating
On site, on the other hand, the focus is on creating ‘Instagramable’ across the Middle East and Africa. He says that
or socially shareable food experiences. Providing such moments to the significant trend in the region is towards
our customers means rethinking every menu item in terms of ima- homegrown concepts that tailor their offering to
ginative plating and presentation, or creating a veritable culinary the resident clientele. www.azadea.com
theatre by applying different cooking techniques.
We’re also witnessing the rise of culinary tourism. The exploration
of local food cultures has become a major purpose of travelling. At
Azadea we offer a journey through Italy with our Eataly brand and
are also working on regional menus within our other brands.
In recent years, culinary interest in superfoods and traditional or
ethnic ingredients such as turmeric, saffron or coconut has gained
momentum. At the same time, it has become the duty of operators
to pay closer attention to their customers’ food sensitivities and diets
(vegan, dairy-free, paleo, etc.) and customize menus accordingly.
I believe that in the years to come heretofore unknown or rarely
used fruits, vegetables, grains, fish and meats will find their way
into the culinary spectrum.”

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17


❙❘ UAE

Almaz by Momo

Magnolia Bakery Magnolia Bakery

Ocean Basket NYD/Forty Carrots

A 30 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
UAE ❘❙

The Al Tayer Group is one of the largest luxury retailers in


the Middle East, hosting a portfolio of some of the world’s
most famous luxury brands in the fashion, jewellery, home,
hospitality and department store sectors. Al Tayer Group’s
hospitality division operates numerous international fran-
chise and own brands across the UAE, including Armani
Dubai Caffè, Almaz by Momo,Caffè Nero and Magnolia
Bakery, to name but a few. www.altayer.com Almaz by Momo

Casual Luxury
Founded in 1979, Al Tayer Group is a privately-held company accessible. The F&B portfolio is one of the key attractors to malls
with operations in twelve countries in the Middle East. With over in a region where eating is almost a pastime for many shoppers
9,000 employees from more than 100 different nationalities, the who often have two meals during a single shopping trip. Conse-
Dubai-based company operates businesses in automobile sales quently, many malls such as Mall of the Emirates are seeking to
and service, luxury and lifestyle retail, perfumes and cosmetics significantly increase their percentage of space allocated to F&B
distribution, engineering as well as interiors contracting. Over the and thereby sustain a continuous need for new brands in the region.
years it has successfully introduced more than 80 brands to the But Singleton also believes in other trends: “The new emergence
Middle East, including several of the world’s leading brands such of unconventional – at least for Dubai rather than other more ma-
as Armani, Bulgari, Banana Republic, Ford, Ferrari, Gucci, Gap, ture markets – non-mall locations such as Alserkal Avenue or Al
Harvey Nichols and Maserati. The group’s retail division current- Quoz where regeneration has become cool and easy to access and
ly operates over 200 stores across the region. In 2017, the group can be combined with arts, crafts and other non-retail activities is
launched the region’s first online luxury platform, Ounass.com. changing the way how people spend their time which over time
will eat into the role of the mall.”
The hospitality division at Al Tayer, established in 2007, is the master fran-
chise operator for several international hospitality brands across One of Al Tayer’s core brands, Caffè Nero entered the UAE market in 2009
the UAE. The portfolio includes Armani/Dubai Caffè, Almaz by and today has 17 stores in Dubai and five stores in Abu Dhabi. The
Momo, Atrium Café, Caffè Nero, Cosi, Emporio Armani Caffè, brand positions itself as a more premium coffee shop, staying true
Forty Carrots, Magnolia Bakery, More Café, Ocean Basket, Scene to its European heritage whilst offering guests the highest quality
and Serendipity 3. Each brand is usually represented by one to coffee and food inspired by classic Mediterranean recipes in an
three units across the country with the exception of Caffè Nero environment that is designed to convey a home-like atmosphere.
with its 22 stores in the UAE. “We are focusing on developing “Our fantastic baristas bring this to life, giving each store its own
our casual businesses such as Caffè Nero, Magnolia Bakery and character through a combination of personal service and unique
Ocean Basket,” says David Singleton, Vice President Hospitality design,” Singleton is proud to say. It certainly adds to its success
at Al Tayer Group. “Serendipity 3 and Atrium Café are new brands that the product range of-
where we have more work to do before we are in ‘roll out’ mode. fered by the coffee shop Al Tayer Group in Figures
We do have plans on the future to grow them, though.” And he caters to local tastes. The
adds: “We will grow steadily and at the right time. We are develop- menu contains items such
Headquarters Dubai, UAE
Owners Al Tayer family
ing exciting new concepts within our department store expansion as Zaatar Croissants, Fala-
Founded 1979
program, recently opening Scene, a luxury café in Bloomingdale’s fel, Halloumi and Shawar-
Business areas Automotive, Retail (Beauty,
Kuwait and will do the same with Bloomingdale’s and Macy’s ma Wraps, taking inspir-
Department Stores, Fashion, Home, Hos-
in Abu Dhabi. We will expand our existing brands in the right, ation from the region. pitality, Jewellery, Lifestyle), Real Estate,
affordable locations.” Healthcare
Another key hospitality brand of Countries of activity Bahrain, Kingdom of
Besides a few locations in commercial towers the vast majority of Al Al Tayer, New York-based Saudi Arabia, Kuwait, Qatar, Oman, UAE
Tayer’s stores is located in shopping malls, either in Dubai’s mega Magnolia Bakery, opened Year of first restaurant 2007
malls or, increasingly over the last couple of years, in some of the its first international loca- Foodservice brands 12
upcoming smaller community or strip malls that are more easily tion in 2010 in the Dubai

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 31
❙❘ UAE

More Café

Foodservice Brands in Operation


Almaz by Momo (2 Dubai, 1 Abu Dhabi)
Armani Caffè (1 Dubai)
Atrium Café (1 Dubai, 1 Abu Dhabi)
Caffè Nero (17 Dubai, 5 Abu Dhabi)
Cosi (1 Dubai)
Emporio Armani Caffè (1 Dubai, 1 Abu
Dhabi Intl. Airport)
Forty Carrots (1 Dubai)
Magnolia Bakery (2 Dubai, 1 Abu Dhabi)
More Café (1 Dubai)
Ocean Basket (1 Dubai)
Scene (1 Kuwait)
Serendipity 3 (2 Dubai)
Caffè Nero

Almaz by Momo

A 32 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
UAE ❘❙

Mall. The Bakery offers classic American baked sweet and sa- David Singleton, VP Hospitality at Al Tayer Group
voury goods and is renowned for its cupcakes, all prepared from
What are the strong points of Al Tayer Hospitality?
scratch on-premises all-day. More recently, the bakery’s product
As the largest luxury retailer in the
range has been extended to an ice-cream range inspired by its
Middle East, Al Tayer Group hosts a
baked desserts. portfolio of some of the world’s best
luxury brands in the fashion, jewellery,
Among the portfolio of a dozen hospitality brands are also the family res- home and department store categories.
taurant Ocean Basket, a South African seafood restaurant concept Complementing its position in luxury
known for its simplicity and homely atmosphere; the stylish North retail, the Group has also built new
African restaurant Almaz by Momo, a blend of innovation and frontiers in lifestyle retail, representing
tradition, ranging from food to décor, also featuring a juice bar and leading brands in the Beauty, Home,
Shisha salon; the exclusive Emporio Armani Caffè and Armani Fashion and Hospitality sectors.
Dubai Caffè, which reflect the distinctive and unique Italian style David Singleton is Vice President Hospitality
of Giorgio Armani and offer traditional Italian cuisine; and, as the at Al Tayer Group, heading twelve restaur-
latest project in development, NYD, a New York street food pop- ant brands spanning luxury, casual and
up within 40 Carrots that was primarily developed for the home- counter segments of the market. His career
delivery market and focuses on hot dogs and burgers. so far has encompassed 35 years as man-
ager, operator and marketer, among others
Another more recent addition to the portfolio is Serendipity 3, a New with one of the UK’s top pub groups, as well
York institution with over 60 years of American tradition, offer- as Russia and Eastern Europe as a brand
ing an extensive menu of towering burgers, foot long hot dogs, director and new concept developer.
and the famous signature Frrrozen Hot Chocolate dessert, where
a one-of-a-kind whimsical décor with umbrellas on the ceiling, What challenges and opportunities do you see for the future of hospi-
clocks on the walls and bird cage seating promise to make for a tality in the Gulf region?
The market is in the midst of a very challenging economic
memorable experience. The implementation of the Serendipity 3
period, brought about by tourism numbers, global curren-
concept also serves as a good example of how Al Tayer is adapting
cy fluctuations and regional oil prices. The F&B sector is
an international brand to the local environment while keeping the
becoming more crowded and continues to grow expo-
essence and the integrity of it: both, an area in the guestroom with nentially, with no apparent slowdown in store number
mirrored ceilings and a modernized take on the Tiffany-style pen- growth. Apart from that, mall footfall has become an issue,
dant lamps as well as the open dessert kitchen are reinforcing the with lease costs remaining high. However, malls such as
strong points of the brand. “The emotional needs are so different the Mall of the Emirates are seeking to significantly ramp
in every country,” Singleton points out and continues: “You have up their percentage of space allocated to F&B which will
to ask what the brand is famous for, never mess with that. We also increase the need for more new brands on the market. F&B
have a dedicated culinary and development team who works on all has to play an important role in these malls, it’s just how,
of our brands. Adaptations vary by brand, but we’re also working and will the expression ‘build it and they will come’ be
hard with partner brands to ensure they understand our market and challenged for the first time …?
they develop for us too.”
Who inspires you in the industry?
One of Al Tayer’s latest concepts and created in-house is Scene, a I am one of the lucky guys in the F&B industry having
luxury café that was developed for Bloomingdale’s in Kuwait in worked in different countries, really great companies and
March this year. Mainly targeted to the coffee-loving local popula- for some extremely inspiring leaders, but right now here
in the Middle East I get great inspiration from my team.
tion, shoppers are invited to a private dinner party in a Manhattan
With almost 800 employees, I try hard to spend time in my
style apartment where food and fashion merge to bring to life the
stores and talk to them a lot. When I learn of their passion
glamour of New York. Two blends of coffee have specially been for our business and their guests it’s heartening. With
created for the concept and are served in stylish cups, alongside such a stable team I can ask a lot of them, they embrace
cakes and savoury options. Singleton comments: “You have to challenge and become part of what we do. We have an
get inside the culture of the people you are serving and don’t be extremely diverse expat workforce, they make personal sa-
arrogant enough to think just because you like it, it must be right.” crifices to work for us, and culturally we really do take very
Al Tayer has obviously succeeded so far, which according to Sin- good care of them. I remember working with Tony Hughes
gleton is due to the group’s strong commitment to quality: “We who in 2002 gave me a book, ‘The Servant Leader’, it’s
are obsessed with quality and working with partners who share become one of my most important reference books in my
our values and quality obsession. We care about our people, we book case. As I’ve been fortunate enough to grow in the
industry, I’ve learned the simple thing, that in my role one
understand our customers, and we work with the best people in the
of the single most important tasks is to ensure my teams are
world to help us develop our systems, people and brands.”
supported with all the knowledge, skills, and reasons for
Bettina Quabius
why to do their job.

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 33
Café dell‘Arte

Café ins grüne

Mensa HCU Mensa HCU

A 34 ❘❙ Special: Industry Outlook 2017+


Germany ❘❙

Among German universities the campus catering in Ham-


burg is among the top class. With sales of c14.6 m,
the Studierendenwerk Hamburg comes second place –
only Berlin earned more. The most important factor of
success is their intense closeness to their customers. In
various concepts, from classical refectory to pizza bar,
the head of university catering, Michael Gradtke, and
his team offer a broad range of F&B products, taking its
measure from current catering trends.
www.studierendenwerk-hamburg.de

Cooking for Generation Y


High Noon on a sunny Friday in May. Outside on the campus a management, provides information via monitors about the dishes
warm 18 °C is enticing everyone to start the weekend – on the and their ingredients.
ground floor of the Philosophy Tower there is duck breast with In all, the Studierendenwerk, North Germany’s biggest communal
noodles, fresh asparagus from Spargelhof Meyer, or Greenitsch food and drink supplier, plays host every day to 23,000 guests in
brand fresh-fruit salad in a practical take-away beaker for hurried 13 refectories, 13 cafés and seven coffee shops. Makes about 5.2 m
eaters. The prices are so low it ought to be a record: budding aca- a year. Its clientele includes aspiring arts and science graduates,
demics must pay ¤4.50 for the duck-breast dish, while university mechanical engineers, art students, freshers or honorary profes-
employees and other guests pay ¤5.30. sors, young men and young women – a motley clash of all possible
No surprise that the tables are all well occupied; you can also hard- demographic clusters, cultures, eating habits and tastes. To reduce
ly get a seat in front of the huge, jolly glass facade. There is a them all to a common denominator while covering costs – a chal-
relaxed, lively atmosphere – a good mood wherever you look, in lenging job, but one which those in charge take on nevertheless
spite of the press of people. For the crowd spreads without a jam with obvious enjoyment and good humour. “The food and drink
or hold-up over the ample food-issue area – the mix of line-up and on offer reflects a multitude of criteria, such as guest preferences,
free-flow islands epitomises modern communal catering. health aspects, regional factors and climate protection,” empha-
The so-called ‘Philmensa’, one of the three refectories on the sises Jürgen Allemeyer, Managing Director of Studierendenwerk.
central campus, is at the same time the outlet with the strongest “It is as varied as the demand.”
sales in the Studierendenwerk. A bit run-down as a building, it
is nevertheless highly popular – due to its long opening hours, Staying constantly on the ball, aiming to be close to the customers, but also
apart from anything else: from as early as 7 am early birds can keeping an eye all the time on the outside catering market – this is
breakfast here from Mondays to Saturdays, two rolls, butter, jam the motto of the F&B professional. After all, they are faced with a
and a pot of coffee cost ¤1.50; you can have fried or scrambled particularly demanding clientele – according to market research,
eggs on top. Generation Y, of the 18 to 30-year-olds, takes little account of re-
The outlet opened in 2014 in the brand-new HafenCity University gulated mealtimes, is cosmopolitan and open to the world, has its
(HCU in short) is also doing extremely well. Here, as in Finkenau smartphone always on, and wants to eat when and where it suits.
(launched 2015), a new generation of refectory has been estab- The people in Hamburg are correspondingly flexible, adapting
lished, featuring a sophisticated freshness concept and front cook- range, furnishing and opening
ing. From the beginning the guest numbers, at some 1,000 students hours to the conditions required Studierendenwerk Hamburg
a day, have been way above expectations at the HCU. An innova- at the location in question.
tive F&B range, with a high freshness level – e.g. leg of lamb from Along with the classical refec- Managing Director Jürgen Allemeyer
the smoker on the terrace, plus stylishly cool surroundings with tory operations in XL format, Head of university catering Michael
Gradtke, André Schütte (deputy)
wooden stools and benches directly on the Elbe – attracts frequent acting as central venues for “ea-
Number of F&B units 13 refectories,
customers. The refectory on the Finkenau arts and media campus, ting and meeting” in the breaks
13 cafés, 7 coffee shops
on the other hand, has a jolly, colourful look, just right for its target between lectures, small-format
Guests per day 23,000
group; a modern food-control system, networked with inventory cafes or cafe shops are playing Sales revenues approx. c14.6 m
(2015, excluding subventions)
Sales per guest c206.08 (2015)
Sales growth +5.4 % (2016)
F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
❙❘ Germany

Mensa HCU Café dell‘Arte

Café Finkenau Mensa Philturm

Café dell‘Arte
Germany ❘❙

an ever greater role – including a supply of hot food. Some of them Jürgen Allemeyer, MD of Studierendenwerk Hamburg
are designed as modern coffee bars. These outlets have seen par-
How satisfied are you with the current development of Hamburg
ticularly favourable increases over the past years. According to
University catering?
André Schütte, deputy head of the university-catering department,
In 2016, our sales went up by 5.4%. Behind this stands
they may well be the future drivers of upward sales revenues: at an even greater range of food, both low-priced and more
least two new cafés are due to be launched by the end of 2017. high-quality dishes, such as steaks or
Particularly successful in the café segment is the take-away range, pulled pork burgers. Then the permanent
which is also being further expanded. But in the refectories, too, optimisation of the quality of the
they have adapted to the ever more frequently heard desire for take- products.
aways: thus, students can take every dish home sealed in a menu
bowl. There is a selection of seven dishes and more here every day,
divided into headings such as ‘good and low priced’ or ‘campus
special.’ Along with this, you can put an individual composition
together at the vegetable, salad and pasta bar and partly with in- Jürgen Allemeyer: his duties as Managing
dividual components. At least one main dish is for vegetarians: Director of Studierendenwerk Hamburg in-
sweet potatoes with Cajun vegetables and blue-cheese dip, for clude not only foodservice for the university
example, of falafel with hummus filling, peppermint-yoghurt dip but also student accommodation and fi-
and vegetable couscous. Vegan alternatives are also on the menu. nancing, as well as social and international
Since summer 2011 the Studierendenwerk, adopting the so-called affairs. “Our many services are oriented
climate plate produced by the GreenFlux Association, has been a towards the students, as well as the uni-
pioneer in setting a clear signal for climate protection. Now sever- versities and their needs. For example, for
al dishes every day carry the initiative’s label. And with the intro- smaller locations when it comes to refectory
duction of light dishes, prepared to be particularly vitamin-sparing supplies and timetable-oriented hours of
and low-fat, under the MensaVital brand, the Hamburg Studieren- opening in the refectories.”
denwerk has proved a trend-setter within the sector.

And the larger number of full-semester days brought add-


The catering professionals demonstrate their love of innovation and closeness
itional earnings. And finally, the two new outlets had
to their customers not just as regards food, however. Thus, for ex- recorded a good performance: the Finkenau refectory saw
ample, working jointly with technicians in the Studierendenwerk’s its number of guests rise in 2016, and the HCU refectory is
workshop, they have had some ideas about barrier-free access and visited by considerably more guests than expected.
developed a special tray trolley for wheelchair users, which is now
also being supplied to interested parties outside. And, up to the What are the opportunities and what are the challenges which you see
minute since mid-May, they have been scoring high marks with a confronting you in the current year?
return-beaker scheme to avoid waste: if you drink your take-away All indicators point to expansion and modernisation: we
coffee in your own mug, you pay ten cents less. shall launch at least two new cafes in 2017. Our refectory
Freshness and an emphasis on the home-made form the focus in with the strongest sales will move for three years to another
site, because the building is being renovated. The City of
turn at the new pizza bar mono-concept. “Pizza, a product popular
Hamburg is also investing in other outlets: rebuilding, some
on all sides, offers high variability in terms of size and topping,
of it of wide scope, is planned at the refectories in Harburg,
can be well prepared, and guarantees high output at peak times,” Bergedorf and Campus. Internally we shall expand the
explains Schütte. “Plus, the capital investment is easy to control share of regional raw materials and work on centralising
and you don’t need much space.” At the university campus in purchasing.
Harburg and at the HCU they are currently learning best practice
experience with a new module: from 11 am to 6 pm a pizza baker What is the main task of student catering in 2017+?
prepares the classic Italian dish before the guests’ very eyes. “We Eating, including eating at the university, is more and more
are going to do more with this idea!” But in a different form: for to do with self definition and self portrayal; it expresses
autumn 2017, the opening of a large pizzeria is planned on the cen- what we long for. Sustainability, health, fun, enjoyment,
tral campus – with seating for 120 and production fresh to order. allergies, safety – we must take all these issues into account.
Providing transparency, including transparency through
“What students want and what they need is changing, just as the
the use of local food products with home-made appeal and
general conditions are changing in our mobile society,” empha-
dishes with an authentic origin. Then the increasing time
sises Allemeyer finally. Good now that the Hamburg City Senate
pressure, the growing mobility, the trend towards snacking
is heavily promoting the modernisation of the building infrastruc- and self-optimisation.
ture. Thus, for example, from autumn the Philosophy Tower will Amid these manifold and often contradictory pressures
be completely renovated – and the ‘Philmensa’ rebuilt to form a campus catering needs a clear positioning and a sharp
jewel of the new refectory generation. profile. That is what we are working on – permanently.
Ulrike Vongehr

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17 Special: Industry Outlook 2017+ ❘❙ A 37
❙❘ Trend Statements

Veggie Choices, Optimized Efficiencies & Insect Proteins


“With increasing health awareness, customer demand for super-
foods, healthy carbohydrates and vegetarian foods is rising. Be-
sides, consumers no longer stick to the classic 3-course menu, but
instead wish to compose their meal individually. At Marché, we are
therefore strengthening our salad and vegetable buffet and include
superfoods such as avocado, sprouts, seeds, herbs but also healthy
carbs like quinoa in our offer. At select Mövenpick Marché restaur-
ants we’ve introduced a new vegetarian island where customers
can combine crudités, salads, vegetarian dishes, fruit and toppings
to their liking.
In recent years, Peruvian and Hawaiian dishes have become very
trendy. I believe that the next decade will bring even more inter-
national influences to our kitchens. Asian but also African cuisines
will likely gain in importance: insects might replace part of our
After 12 years as CEO of Marché protein intake, while African roots and spices might open up entire-
International, Oliver Altherr sees ly new taste experiences.
his task as being the company’s vi- Nowadays, people cook less and eat out more often, but even then
sionary. An early trend spotter, he have very little time at their disposal. Hence, operators must op-
tries to spread his enthusiasm and timize all processes to avoid long wait times. As digitalization is
implement new ideas and trends entering all areas of the restaurant business, new chances arise for
throughout the company’s busi- improving efficiency. In the future, we will increasingly offer mobile
nesses. His personal favourite is order and pay to help our guests save even more time. As customers
the Cantonese cuisine: “The fresh- will ever more often want to be able to access their favourite foods
ness (e.g. of fish) is unbeatable!” and brands from wherever they are, we are also planning to ex-
www.marche-restaurants.com/en pand our distribution channels with delivery partners.”

Before joining SSP in 2008, Cornelius Everke’s Flexible Food Consumption, 1114 & Personal Food Journeys
career in the hospitality industry comprised lea- “Personal consumption patterns have changed decisively over the
ding positions with many renowned companies past decades. Our guests look for experiences and are increasingly
including Steigenberger Hotels, Volkswagen Au- interested in the ingredients of our foods. Major changes can be
tostadt, and Starbucks. One of his most exciting seen in the growing consumer focus on health, individualization,
work places, the current SSP CEO DACH & FRABEL and entertainment and of course the need for flexible food con-
remembers, was the Mandarin Oriental Hotel in sumption. The busy and mobile lifestyles of today’s employees lead
Hong Kong, where he was Hotel Director. to an increasing number of grab&go offers. In the future, smaller
www.foodtravelexperts.com meals for different dayparts will become more relevant.
On a meta-level, culinary mainstream trends are both premium-
ization and value-for-money. In travel channels, these trends are
driven by the pre-dominant factor ‘speed of purchase’. With our
franchise brands Pret A Manger (premium grab&go) and Back-
Werk (good-value self-service bakery) we cover both categories.
Currently, ethno food, chicken products and healthy foods with a
focus on vegetarian and vegan offers are on the rise. Besides, the
burger is definitely a must on the menu today. Contemplating fu-
ture culinary trends, we ought to consider the PIN code of the world
‘1114’: one billion people live in Europe, one billion in America, one
billion in Africa and an incredible four billion people live in Asia!
This is where I expect the influences of the next decades to come from.
As for our future guests, I think they will expect to pre-order from
home in order to have their menu served perfectly in time once they
arrive at our restaurants. Smart phone devices will dominate the
consumer footpath, which will in turn allow for customized promo-
tions and hence truly personal food journeys.”

A 38 ❘❙ Special: Industry Outlook 2017+ F OOD S ERVICE E UROPE & M IDDLE E AST 3/17
Trend Statements ❘❙

Trend for Select Dishes, Craft Spirits & ABC


“We are in the fashion industry to some extent and cuisines can
come in and out of fashion quite regularly. While cuisines like Ital-
ian are perennially popular, new ones come out of relative obscurity
and can excite the market, like the current Nordic and Peruvian
trends.
Over the next decade, I think we will see trends for select dishes
from a cuisine. Currently, the Hawaiian Poke bowl is appearing
on menus. It’s a fresh seafood dish that works well with the health
maintenance trend.
At our Monsoon Poon restaurants, we have introduced a couple
of innovative menu items: Duck is not an everyday protein for our
guests and is quite time consuming to prepare properly at home.
Therefore, we now feature a number of duck dishes and have seen
consistently high sales. Another innovation is our South East Asian
‘anti pasta’ platter, which offers our customers a snap shot of what Today the National President of
our menu is about and is great for sharing. the Restaurant Association of New
Alcohol consumption, especially mainstream or low priced pro- Zealand and co-owner of Monsoon
ducts, is on the decline, but an increase in craft beers and cocktail Poon restaurants, Mike Egan
sales offsets any revenue loss. At the same time, craft spirits are started his hospitality career as a
becoming the new craft beer: distilleries are popping up every- waiter. A huge fan of the Chicago
where, creating interesting spirits with local flavours or using old restaurant group ‘Lettuce Entertain
school techniques not offered by the big players. You’, he finds great inspiration
For those who choose not to drink, the trend is ABC – anything in the US market, paying special
but coke. Hence, we use interesting syrups and flavours to create attention to L.A., Chicago and Port-
refreshing non-alcoholic beverages, which are very popular.” land. www.monsoonpoon.co.nz

What’s Hot in Foodservice?


Chicken, Burgers and Technology-driven Guest Experiences Having grown up in the restaurant business – his
“Information has never been as accessible as it is today. Thanks to father was CEO of the German steakhouse chain
Google you can find out everything about anything in just seconds. Maredo – Axel Schwan joined Burger King in
As a result, people have never been more informed about food 2011. Three years later he was named Executive
quality, meaning that overall expectations around food and the Vice President & Global Chief Marketing Officer.
food experience have risen to new heights. I believe that in the next Passionate about both foodservice and marketing,
ten years, technology will influence the guest experience like never Schwan collected the brand’s award for ‘Creative
before. The way we order, the way we pay, the way we communi- Marketer of the Year’ during the 64th Cannes
cate with the restaurant – all of this will change significantly. Moreo- Lions International Festival of Creativity in June
ver, the boundaries between back-of-house and front-of-house will 2017. www.burgerking.com
likely fade away, as everything comes together to deliver a superior
guest experience, which, of course, has to be ‘Instagramable’.
With regard to menu items, from our perspective, the key main-
stream trends centre around burgers and chicken. I am convinced
that especially chicken-based products will see even more growth in
the next five to ten years. Why? It tastes great, it’s a healthy choice,
and it can be enjoyed in many different ways.
So far, consumer trends around organic, vegetarian or vegan foods
have not had a major influence on Burger King menus. However,
thanks to a few exceptional markets, we do have substantial know-
how and success in this area as well: In India, we have fantastic
vegetarian offerings including a Veggie Whopper.”

F OOD S ERVICE E UROPE & M IDDLE E AST 3/17

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