Page 34 - Restamax Plc Annual Report 2017

34

MARKET SITUATION

Bright outlook in the restaurant field Alcohol Act amendment boosting the field
The outlook of the restaurant field has continued its As a whole, the Alcohol Act amendment, which entered
positive development. 2017 started off with growth into force in March 2018, allows restaurants to sell
for restaurants licenced to serve alcohol, but the chilly takeaway alcohol in addition to takeaway food. The
summer halted it. However, the situation improved amendment also brought another type of energy to
towards the end of the year, culminating in the Christ- the field by permitting longer opening and alcohol-
mas party season. The turnover of the tourism and service hours and relaxing the strict regulations on
restaurant segment increased by 6.5 per cent in 2017. alcohol marketing by restaurants, for example permit-
The positive change in turnover in the segment has ting happy hour marketing. The amendment will play
continually increased in recent years: in 2014, turnover a significant role in the development of the entire
only increased by 0.8 per cent, in 2015 by 3.1 per cent segment, and our numerous restaurants have already
and in 2016 by 4.9 per cent. started to take advantage of it.

Growth was driven by fast food restaurants; their Labour hire among the most strongly growing
turnover increased by 8.2 per cent. It is noteworthy fields in Finland
that the turnover of staff restaurants, which decreased
by 2.5 per cent in 2016, turned positive in 2017 with a The staffing services field is a strong growth indus-
growth of 2.1 per cent. try of the future. Staffing services facilitate flexible
and diverse employment contracts from both the
At Restamax, the popularity of quick quality food employer’s and the employee’s viewpoint. The field is
reflected on the opening of several new restaurants in especially popular among young adults due to its quick
2017: we opened Classic American Diners in Rovaniemi ability to react. In 2017, labour hire was one of the most
and Helsinki, a Colorado Bar & Grill in Tampere, a Colo- strongly growing fields in Finland.
rado Express in Ruka, a Thai Papaya in Lempäälä’s Idea-
park shopping centre, a Villisika in Ruka and a BeefKing The combined turnover of the 20 largest labour hire
in Tampere, to name some. companies in Finland in 2017 was EUR 1.281 billion, a
growth of approximately 18 per cent from the previ-
The increased demand for food delivery services is also ous year. Looking at the entire segment, the TOP 20
linked to the combination of hectic everyday life and operators represent approximately one-half of the
restaurant experiences. Restamax has worked in active segment’s total turnover. Staffing services grew rapidly
cooperation with Wolt and Foodora for three years now. in the first half of the year. In the latter half, monthly
At many of our restaurants, such as in hamburger and growth halted, though turnover stabilised at a high
chicken wings concepts, the use of delivery services level. Furthermore, looking at the 20 largest staffing
multiplied in 2017. services companies, over 80 per cent of their turnover
comes from labour hire services. Their combined 2017
The increase in the turnover of restaurants in Finland turnover amounted to EUR 1.077 billion. This means a
reflects on consumers’ general positive attitude to the growth of approximately 22 per cent from the previous
economic situation. According to the confidence indi- year. The growth of Smile Henkilöstöpalvelut increased
cator, consumer confidence strengthened towards the further in 2017, clearly exceeding the general growth in
end of the year and, in January 2018, rose to the high- the field.
est on record. All in all, the economy strengthened in
autumn 2017. According to the latest preliminary infor- Sources: Finnish Hospitality Association (MaRa), Confedera-
mation, Finland’s GDP grew by 2.7 per cent in 2017. tion of Finnish Industries (EK), Private Employment Agencies’
Association (HPL), Visit Finland Visitor Survey 2017 (Tutki-
The turnover of accommodation businesses increased mus- ja Analysointikeskus TAK Oy), Statistics Finland
by 9.7 per cent in 2017, which also reflects on the
increased demand for restaurant services. Foreign trav-
ellers spent EUR 2.6 billion in Finland in 2017, which is
almost EUR 0.5 billion more than the previous year. The
greatest increase was in Chinese and Russian travel-
lers. Foreign tourism has huge potential in the Finnish
restaurant field.

Restamax Plc