21.2.13
According to a report by Hellastat S.A., the food service suffered in 2011 due to the restriction of consumers’ available income due to the recession, as well as the VAT hike from 8% to 23%.
Pizzerias lead the race in revenue decline (30%), with souvlaki grill houses (28%) and other fast food (26%) establishments following suit. Sandwich stores and café chains were equally affected (24%), while brand-name restaurants performing marginally better (23%). It is also estimated that employment was reduced by 20% in the sector.
Due to these significant loses many companies have developed competitive policies, such as happy hours, exclusive on-line deals and special offers (such as free drinks with pizzas).
Regarding business developments in the sector during 2011 Hellastat pointed out that McDonald’s sold its 19 stores to Premier Capital, while Applebee’s ended operations in Greece entirely due to significant loses and an inability to fulfill its financial obligations.
The Hellastat report includes an analysis of the financial state of 229 businesses. The total work cycle of companies from the sample drop by 11.5% to 407.83 million euros in 2011. The average drop was estimated to be 14.7%, while only 8% of businesses increased profits.
Total profits before taxes were estimated to be 6.86 million euros, down by 70%. Excluding McDonald’s Hellas’ improvement, damages before taxes hiked from 3 million euros in 2010 to 21 million euros in 2011. The average gross profit margin was still relatively high (55.5%).
