"Czechs adopted a more flexible approach to eating during the pandemic restrictions and there was a significant increase in demand for food delivery or takeaway: both at home or in the office," says Stefanie Nguyen of Colliers. This trend has persisted even after the pandemic died down and has become the new standard in the foodservice industry. At the same time, the economic situation is forcing consumers to be more discerning when it comes to spending on food - according to Eurostat data, Czech households spend 17.1% of their total income on food and non-alcoholic beverages, which represents a significant item in family budgets.

The prepared food delivery market is experiencing unprecedented growth. Data from Statista predicts that this segment will grow in Europe until at least 2029. According to Nielsen, 44% of respondents across the country used a ready meal delivery service from a restaurant or bistro during the first half of 2023. These trends strengthen the market position of bistros and fast food outlets that effectively combine on-premise food sales with delivery.

Dining during the working day is undergoing the most significant transformation. As the number of office complexes grows, there is a natural demand for fast and quality food in their immediate vicinity. The Prague Research Forum had previously reported that by 2024, the area of new or renovated office space in Prague would increase by almost 73,000 m2 to just under 4 million m2. With every 10,000 m2 of new office space, an average of 2-3 new food and beverage establishments are created.

Location and environment

Location is becoming a key success factor for gastronomy. "While bistros thrive mainly in busy locations such as high streets or around office centres, traditional restaurants can also be successful in quieter locations," explains Stefanie Nguyen. This difference is mainly due to the economics of operations - bistros and cafés can operate efficiently in a smaller footprint due to higher customer turnover, although the average spend may be lower than traditional restaurants. This allows them to thrive even in locations with higher rents, where traditional restaurants which have more space struggle to achieve profitability.

Another interesting trend is the emergence of premium bistros and eateries, a phenomenon common in Western metropolises. These establishments target more discerning customers who are willing to pay extra for quality, even if they generally have a more limited budget for everyday dining. This is also linked to the increasing demands for quality of premises and facilities.

New opportunities for property development

The transformation of the catering sector is creating new opportunities for developers and property owners. There is a growing demand for smaller, but high-quality, spaces in highly-frequented locations: especially near office centres and on busy city avenues. Developers must take into account the changing service mix requirements when planning new projects and adapt the layout of space accordingly. The current trend also favours the creation of specialised dining zones within commercial projects, which can combine different types of catering facilities.

Therefore, there is a growing demand for professional commercial real estate consultants to address dining needs. "Colliers offers comprehensive support to both foodservice operators and landlords. Our expert team can analyse the potential of individual sites and recommend the optimal location for a particular catering concept. For operators, advice on optimising the spatial solution with regard to the type of operation and the target customer group is key. Colliers also provides services in lease brokerage and negotiating the terms of lease agreements," notes Stefanie Nguyen, adding that market research and competitor analysis in a given location are also an important part of this service to help businesses anticipate trends and optimise the supply of space.