Loading
Caterer & Hotelkeeper Magazine

Tags:

Czech Republic

Friday 01 April 2005 00:00
U nlike retail - and even hotels - the restaurant sector in the Czech Republic has few chains, and those that do exist tend to be in foreign rather than local hands.

Of close to 40,000 restaurants, only 3% are part of a chain while, elsewhere in the developed world, the share is more than 10%, says Jaromr Bernek, director of Czech-based Mag Consulting.

"Altogether, I would put the number of restaurant chain [operators] in this country at around 30," he says, "the biggest and best known being, of course, McDonald's and KFC."

So, chains account for most of the sales in the Czech retail sector, but barely a fraction in the restaurant sector. The reason is simple - local entrepreneurs just do not have the capital. That, coupled with the fact that opening a new restaurant is hardly a quick return on investment.

"Those Czechs who have the money do not go into restaurants - and if they do, it is merely to complement accommodation services," explains Ales Dockal, vice-president of the country's hospitality organisation, HO.RE.CA.

Beer-makers are among the few who have the funds to invest in chains in the Czech Republic (see panel). "Our breweries are now mostly owned by rich foreign companies," says Dockal.

And then there is the fact that, during the 40 years it was communist, most of the country's restaurants, especially the cheaper ones, all looked the same. "Their new private owners now try to differ from each other," says Pavel Hlinka, president of the National Federation of Hotels and Restaurants.

McDonald's and KFC account for about 80% of all chains in the Czech Republic, so it is only logical that the prevalent outlets are fast-food restaurants - and this will continue to be the case, at least in the near future, according to Bernek. Two notable international restaurant chains still not present in the Czech Republic are Burger King and Starbucks.

Many Czech hospitality experts are convinced, however, that the future of chains in this sector of the economy lies in pubs. Bernek suggests:
"They would be offering only one brand of beer plus a limited selection - say, no more than five - of warm meals typical for the local cuisine. These would be prepared in special serveries elsewhere and then frozen, so that they could be consumed within five days."

Dockal agrees. "I am wondering who will follow the example of the Staropramen brewery and launch another such chain. If I, for one, had the necessary billion crowns, I wouldn't hesitate one minute," he says.

Pubs in such a chain would not necessarily have to follow in the footsteps of McDonald's, but what they would all be obliged to have is the same ambiance and typical Czech fare. Dockal says: "It would be absurd if you were surrounded by loud techno music from its speakers and offered pizzas or tiramisu."

Recommended articles

Articles from the web

 
blog comments powered by Disqus
Profiting from 2012: Case Studies

Slash VAT, Boost business - Sign the petition now!

Latest Video

housekeeping

Video: highlighting housekeepers

In this week’s issue, guest edited by Raymond Blanc, we explore the important roles of housekeepers.

Watch here

The Caterer and Hotelkeeper discussion forum

  • Dingley Dell Flying Visits @ The Victoria Dingley Dell Flying Visits @ The Victoria
  • Dingley Dell Flying Visits @ The Victoria Dingley Dell Flying Visits @ The Victoria
  • Dingley Dell Flying Visits @ The Victoria: Mark Hayward Dingley Dell Flying Visits @ The Victoria: Mark Hayward
  • Dingley Dell Flying Visits @ The Victoria Dingley Dell Flying Visits @ The Victoria
  • Dingley Dell Flying Visits @ The Victoria Dingley Dell Flying Visits @ The Victoria
  • Dingley Dell Flying Visits @ The Victoria Dingley Dell Flying Visits @ The Victoria

Best of chef

Best of Chef – now available online

Best of Chef – now available online
View it now

Videos

Marcello Tully, Kinloch Lodge Video: Michelin-starred chefs turn out in force for Wellocks' chef conference Video: Highlights from Hotelympia 2012 Video: Foraging – why all the attention?
Marcello Tully
Masterclass
Watch the video here
Wellocks'
chef conference
Watch the video here
Highlights from
Hotelympia 2012
Watch the video here
Foraging:
why all the attention?
Watch the video here