Romanian online food ordering market, expected to grow after VAT cut

The recent Romanian government decision to cut VAT for foods and non-alcoholic beverages from 24 percent to 9 percent will have growing chain effects that will lead to the exponential growth of the food ordering and related services, including food ordering via online sites and mobile platforms such as Quicky.ro and Oliviera.ro, stated in a press release HelloHungry officials.

“While reducing VAT will definitely cut the VAT refunding evasion, it will also allow restaurants and related services, such as food ordering and catering to hire more personnel and better pay the existing one, while improving the overall services quality,”

said Dragos Cristea, sales manager with HelloHungy Romania.

“HelloHungry salutes the VAT cut for food, as it plans to expand throughout Romania. Our expansion plans envisage the largest cities such as Timisoara, and we are confident that a serious VAT reduction will enable restaurant managers to offer even better discounts to our customers, either individual or group corporate food ordering,”

Cristea added.

Romanian households spend about 70 percent of revenue consumption on foods and drinks, which is the highest ratio in Europe. Growing economic activity in Bucharest and other big cities in Romania is sustaining a good growth rate of food delivery service which almost doubled over 2012 – 2013 with an average spent on online delivery of RON 70 (EUR 16).

Romanians living in big cities order food at least once a week, either while at the office (40 percent) or at home (60 percent). The total food service market in Romania is worth EUR 13 billion and online and mobile delivery amounts to about EUR 3 million in annual revenue.

HelloHungy, with its two ordering platforms – Quicky.ro – a leader in the special food and corporate online orders and Oliviera.ro – the first mobile food order platform in Romania, has a 34 percent market share.

“The VAT reduction for foods will lead to a significant grow in consumption and employment, giving a boost to the economy. Besides the general market surge, there will be also an employees’ satisfaction increase. We will be able to further improve our corporate customers’ special offers, and improving food ordering for corporate clients will mean a better way to make employees happier, with better discounts, make it easier for corporates to cover lunch expenses,”

said Dana Lemnaru, digital marketing manager with HelloHungy Romania.

HelloHungry, owner of BGmenu.com, is the largest food and catering ordering service in Bulgaria, with more than 500 restaurants enrolled and 50,000 annual customers. HelloHungry launched its services in Romania in 2014, after acquiring the local players Quicky.ro and Oliviera.ro, focusing at first on Bucharest food ordering market.

Source: Business Review
TAGS:
CATEGORY: Romania
 
 

Popular posts

Related posts