Strong competition in the European foodservice market is intensifying with the economic downturn and the impact of austerity measures. Consumers are demanding quality from foodservice operators and will pay that little bit more for a quality product. Foodservice chains will continue to account for the lion's share of the foodservice market as they adapt with store modernisation and menu variation.

Asia is the world's largest fast food market, followed by Western Europe. Western Europe, however, has a fraction of Asia's population which highlights the high expenditure per person in European countries. The largest expenditure is to be found in full service restaurants, cafés and bars, accounting for over 50% of all sales in 2010.

The largest fast food brand in Western Europe is McDonalds, with 2010 sales of $20 billion. The second largest player in Western Europe is Burger King, with a mere $3.7 billion. Other leading Western Europe foodservice companies include KFC ($2.4 billion), Quick ($1.8 billion), JD Wetherspoon ($1.6 billion) and Subway ($1.3 billion). There is some regional variation in these results, as brands are identified on a national basis. Quick is mainly a continental European outlet, whereas JD Wetherspoon is UK based.

Some chains experienced growth between 2005 and 2010, with seven chains averaging better than 20% annual sales growth over the period. The appeal of coffee is also strong - Costa Coffee has grown at approximately 30% per year.

KFC is dominant in chicken fast food. In developed markets such as France and Germany, KFC has little or no competition. Even in the UK where competition is greater, KFC still maintains a dominant position over competitors such as Nando's.

If you would like to view more information about this market, click here - Western European Foodservice: A Glimpse at the Future for Global Operators