COMPLEX APPROACH TO DETERMINATION OF PUBLIC CATERING POTENTIAL MARKET CAPACITY

Abstract

The Food Service Industry sector's feature connected with changes in the market structure, determining the emergence of various formats and concepts of enterprises, is its focus on the customer demand. The latter determines the characteristics of its development and at the same time facilitates the achievement of commercial enterprises’ main objectives, profit-making. Due to that, defining the market potentialities becomes a live issue at the early stages of projects development related to launching the new enterprises or reconstructing the operating ones. That allows to validate the expediency of the development strategy chosen and, therefore, to reduce substantially the risk of selecting the wrong concept. The aim of this study is to develop a complex approach to determination of catering market's potential capacity by the example of the city of Kemerovo. In this regard the analysis of public catering market structure between 2012 and 2015 and of customer demand in respect to the different segments of public catering enterprises in Kemerovo was carried out. Solving the tasks set revealed imbalance between supply and demand in several segments of the public catering sector, in particular, in Fast food and Fast casual food segments, demand outpaces supply. At the same time in Street food and Casual dining segments supply exceeds demand. This paper suggests recommendations for correcting the existing definitions of potential and actual market capacity with regards to specific features of the public catering sector. A complex approach to definition of potential market capacity was developed, which revealed the significant perspective for public catering sector in Kemerovo.

Keywords

• food service industry
• public catering
• potential market capacity
• public catering market structure
• customer demand