Wendy’s decision to enter the Romanian market appears well-timed, given the robust growth in the country’s chained burger limited-service restaurant sector.
The Romanian market has shown impressive expansion, growing from USD282.7m in 2021 to USD444.0m USD in 2023. This rapid growth, with year-on-year increases of 28.1% and 22.6% in the last two years, indicates a burgeoning appetite for fast-food burgers among Romanian consumers. The data was provided by Euromonitor International.
While Romania’s market size is smaller than some of its regional neighbors, particularly Poland and Hungary, it stands out for its growth potential. The per capita spending on chained burger restaurants in Romania reached USD23.3 in 2023, which, while lower than Poland’s USD57.4 and Hungary’s USD71.0, suggests significant room for expansion. This gap in spending levels could be seen as an opportunity for Wendy’s to capture market share and drive increased consumer engagement with the category.
“The level of market saturation with fast food chains in Romania is still far from high. It is true that in the past few years the market has seen the rapid growth of Popeyes, KFC, Burger King and McDonald’s: in 2023, these players have reached 3 258.2 billion RON in combined revenue, according to Euromonitor data. Yet there is plenty of room for further expansion. According to Euromonitor International data, Romanian foodservice market will post a 6.2% CAGR growth rate over 2024-2028, indicating a strong performance during upcoming four years. Many of the busy urban dwellers in Romanian cities continue to prefer fast food chains due to their convenience and good locations in the shopping malls or near key transportation hubs,” explains Ivan Khoruzhyy, consultant at Euromonitor International.
Interestingly, Romania’s growth rate outpaces its neighbors, maintaining a strong 22.6% increase from 2022 to 2023, while other countries in the region are also experiencing growth, albeit at slightly lower rates. This positions Romania as an attractive market for expansion, with consumers showing increasing interest in chained burger offerings.
The Romanian market’s current state suggests it may be less saturated than its larger neighbors, potentially offering Wendy’s an opportunity to establish a strong presence more readily. As the market continues to expand, Wendy’s entry could further stimulate growth and potentially accelerate the trend towards higher per capita spending on fast-food burgers.
In essence, the data paints a picture of a Romanian fast-food burger market that is dynamic, growing, and ripe for new entrants. Wendy’s will be entering a market with strong momentum, where consumers are increasingly embracing chained burger restaurants. If Wendy’s can effectively leverage this growth and perhaps help drive the market towards the higher spending levels seen in neighboring countries, it could find significant success in Romania. The challenge and opportunity for Wendy’s will be to capitalize on this growth trend while differentiating itself in what is likely to become an increasingly competitive market.
Find out more at: https://www.euromonitor.com/