$20 billion revenues per year within five years. Continued growth in tourism sector should lead to increasing numbers of foreign cuisine restaurants, both inside and outside hotels.TABLE 2 FOOD SERVICE REVENUES BY SUBSECTOR,1998TABLE3 MARKET SIZE OF HRI FOOD SERVICE SECTOR IN TURKEY, 1994-1998Here we show the summary of the advantages and challenges facing US food products in Turkey:Advantages:The number of US fast food outlets is increasing rapidly .Some Us products are more competitively priced than local products.Branded foreign products do well in the Turkish market due to changing consumption patterns and Western influence .Turkish society is repetative to new products&readily adopt Western tastes.The number of foreign cuisine restaurants and international hotel chains are increasing.Challenges:Customs Union with the EU created a privileged position forEU country imports to Turkey.Transportation costs are less for products from neigbouring countries.Some high import tariff rates exist.There is a well-developed local food-processing sector providing most needed items.European and Far East cuisine are still dominant in restaurants and hotels.MARKET STRUCTURE AND SUBSECTOR PROFILESA.Distribution Channels and New-to-Market Exporter information:The distribution system in Turkey is beginning to shift from the wholesaler/dealership model to large scale networks backed bye large distribution companies. There are also a significant number of food manufacturers with their own distribution companies.The following chart illustrates how the distribution network operates for HRI food service purchasers. The most common pattern is exporter to import agent, import aagent to retailer:CHARTTTTTTTSince import procedures are complex and volume low in this sector, very few companies handle the direct importation of HRI food service products. Most domestic distribution companies, with the exception of some of the larger concerns, do not deal with i...
