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A sector on the rise

That there is a potential market does not mean that the real market today allows for a high profitability

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A sector on the rise

Among diverse repertoire of markets with little glamour but with a potential growth of very high profitability in long term is worth mentioning that of food at home. While you look at it, it's a logical growth. A skeptic would say that re is a fundamental reason: For more cooking programs that appear on television, households do not increase willingness to cook. Those who work do not have time; Households in which one or more people work and ors are released, increases tendency to indulge in whims, to idle or to give up a little rewarding task. And unemployed, after simple economic calculations, can deduce that it is cheaper to resort to well-prepared food served at door of house than to extend in purchases of raw materials that are sometimes expensive and, if not cared for, end Wasted. If a key factor is added to all this, as is increase in average age of Spanish population, potential of food at home is completely justified.

It was missing a fundamental piece, which will activate market over next few years: communication technology, which allows, for example, to make orders of food at home through mobile. In fact, this is decisive step that allows to rely on potential of food market at home (very attached to fast food market). The web and App allow you to extend comfort of client, so that you are not even required to call on phone to order a menu. The business versatility (of web, App or restaurant), measured by number of possible variations on standard menu, do rest.

But that re is a potential market does not mean that real market today will allow for a high profitability. In fact, operators like Just Eat, delivery Hero or Takeaway or do not have guaranteed profitability or lose money. The term ' market potential ' underpinning investments and profit expectations does not reflect current weakness of business. It describes rar situation of an economic environment of great dynamism, characterized by factors mentioned (resistance or laziness to kitchen, ageing, moonlighting or unemployment) more phenomenon less exposed that distance is extended in price between " Eat in a restaurant and use "fast food" served at home. That potential difference is business growth gradient.

From this point of departure we must understand that food market at home is slow-growing. And for a simple reason: re are many operations necessary to reach threshold of profitability. Companies may have calculated this threshold according to ir volume of services, ir fixed assets and variable costs; But truth is that in Spain has not yet been reached, since demand, albeit rising, is still incipient and that per capita expenditure responds to same profile. With a business structure of se characteristics it is not necessary to underline that one of axes of profitability is in reduction of variable costs. That, put in reality, means in general terms low qualification or underemployment in important segments of salaried (departers, especially) and salaries with maximum limit in thousand euros in same segments.

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