Spain: A Different Dining Marketplace

By Vicente Montesinos, Director and Head of NPD Worldwide's Madrid office

Given Spain’s strong tradition of dining out and equally strong competition among restaurants built on a wide variety of concepts, how can restaurant operators set themselves apart? What drives foodservice success in Spain? Understanding what makes Spain and its foodservice industry different from its European counterparts and the U.S. restaurant business is critical to increasing business and satisfying local preferences.

There’s More to Spanish Food Than Tapas
First, it’s important to understand that tapas may be a national favorite, but many other concepts compete for “share of stomach” among Spain’s consumers. Spain boasts a strong tradition of informal dining, supporting one restaurant per 204 inhabitants (compared to one restaurant for every 509 inhabitants in the U.S.; one for every 267 in France; and one for every 394 in Germany). And it’s not all tapas! In fact, the Quick Service Restaurant (QSR) segment, including Fast Food, delivery, retail/convenience, self-service, cafeterias and tapas, represents only 29% of Spain’s total dining-out revenue.

Listen to the Locals
The Spanish foodservice market is characterized in large part by emerging new concepts, many of them with a strong local component. The rise of Spain’s Fast Food “bocadillos” (traditional Spanish baguette-style sandwiches) about a decade ago illustrates the value of appealing to local tastes.

The first international Fast Food concepts arrived in Spain in the late 1970s and early 1980s. These Fast Food places were well received in major urban areas, but it in the mid-1990s the international names in Fast Food ran into strong local competition. That’s when Spaniards began developing their own Fast Food concepts, focusing on bocadillos. Developing and expanding on homegrown concepts like the bocadillo – a familiar, culturally unique food; reinventing the tapas concept with a modern and sophisticated approach; and developing new, more efficient pizza-delivery schemes are among the ways restaurant operators may be able to attract the attention of hungry Spaniards.

For Here or To Go?
Spaniards are much less likely to consume restaurant meals off-premises than diners in other parts of Europe. Fifty-five percent of QSR orders in Spain are consumed off-premises; 31% of Fast Food orders are taken “to go.” These are the lowest rates in Europe.

Paying the Check
Another dining-out difference between Spaniards and other Europeans is the amount they spend on meals. The average eater check in Spain’s overall QSR market is the lowest in the countries we study in Europe, at 3.16 euros. This is because in Spain there is still a preponderance of low-cost meals purchased in the retail and cafeteria niches. In contrast, the new Fast Food concepts in Spain are creating sufficient excitement so that Spanish Fast Food diners’ average check is actually the highest in our Europe database: 5.27 euros. This compares to an average Fast Food check of 5.11 euros in France, 4.68 euros in Germany and 4.25 in the U.K.

Watch the Clock
An important factor in understanding Spain's unique restaurant marketplace is recognizing the country's unusual mealtimes. Restaurant operators with an eye on Spain must keep in mind that lunch and dinner occur about two hours later in Spain than in other European nations. Attracting Spaniards to the table may mean adjusting opening hours since dinner generally begins after 8:00 p.m. In fact, 9:00 p.m. is the standard opening time for the Full Service Restaurant segment in Spain.

How can NPD’s CREST information assist in your business decision-making?
For more information about NPD’s CREST service in Spain, contact Vicente Montesinos at +34 914 119 445 or e-mail vicente_montesinos@npd.com.