terprises,often with mostly neighborhood customers.Currently there are 4.5 million people taking advantages of institutional food service in Turkey.2 million-%45 of the overall number-are in Istanbul. As in the case of the retail sector with the larger super-and hyper markets, institutional food service has spread from Istanbul to other industrialized cities such as Ankara, Izmir, Adana, Bursa, Sakarya, Kocaeli,Bolu and Eskisehir. The main food inputs of the sector are meat (30%), and fruits and vegetables(%20). Use of imported food items is mostly limited to bulk commodity agricultural products, such as rice, pulses, corn, and vegetable oils. There is less demand for catered food service from public sector organizations than from companies in private sector. Many public sector organizations provide cafeteria services on their premises, or offer a meal voucher good at nearby restaurants. The millitary provides catering services in house and prefers local products, using a minimum of imported food materials, again being mostly bulk commodities.CAHRTTTTTTTTTTCOMPETITIONCHART In 1998 the United states was the leader in the food exports to Turkey in the food service sector, with an 11% market share, selling mainly vegetable oil, dairy products, and beverages-whisky and beer. Local products have dominance in the HRI market due to customer preferences for familiar foods and high duties on imported products. Imported products are mainly branded products (spirits, dairy products, sauces) and particular products that are eighter not available in Turkey or that have a higher cost of domestic production (sea food, exotic and tropical fruits etc.) Almost 50% of Turkeys imports in the food service sector are from European countries, due to their proximity, the Customs Union with EU (which provides for quota-free access and lower duties), and the dominat position of European (French, Italian) cuisines among foreign cu...