5
ANNUAL REPORT AND CONSOLIDATED ACCOUNTS 2013
Given that the consumer decision-making process has
become more complex and selective, as reflected in the
different rates and habits of consumption, we took care,
in these modernizations and remodels, to consolidate
our operations so as to ensure the best possible con-
sumer experience, as we have found it essential to al-
ways strive to strengthen the customer relationship and
anticipate customers’ needs at all times.
The above applies equally to the Spanish market, where
we face similar challenges, since the Spanish economy
is likewise undergoing severe adjustments.
The Group continued to reinforce its positioning, found-
ed on three broad lines of action: readjusting and
modernizing the Group’s portfolio; adding value to the
Group’s human resources; and expanding the Group’s
operations to new markets in Portuguese-speaking
countries, especially in Africa.
In all these lines of action we are making steady pro-
gress towards a new horizon of business and corporate
development, introducing new concepts, opening new
units in key locations and closing unprofitable ones, all
thanks to the efforts of the operational teams, which
have internalized the customer orientation.
As the largest Portugal-based multinational operating
in the modern restaurants sector, the Ibersol Group
continues to offer its stakeholders a robust vision of the
future: a multi-concept Group, present in different ge-
ographical areas, that seeks to meet customers’ needs
through appropriate management of resources.
being one of the European countries in which the restau-
rant sector contributes most to the growth of employ-
ment and the economy), the Government considered
that the conditions were not fulfilled for a reduction in
the rate of VAT applicable to the sector to more com-
petitive levels, despite earlier promises. The sector con-
tinues to labour under the burden of an extremely high
VAT rate, which has very negative consequences for the
sector and the country as a whole.
There persists the mistaken notion that VAT on food
service is a tax borne by the consumer, whereas the fact
is that, as the burden cannot be passed on to consum-
ers through prices, most operators have continued to
see their margins squeezed. Yet this squeeze on mar-
gins affects only those who stay within the law, as the
rest offset the extra cost by not paying tax on part of
their income, putting honest competitors in a weaker
position, although it has to be acknowledged that the
authorities have made considerable efforts to combat
the underground economy.
To alleviate this difficulty, the Ibersol Group, as a
large restaurant operator, has tried to hone its man-
agement model by trimming variable costs and also,
where possible, some of its fixed costs. At the same
time, it has sought to implement an expansion plan in
the Iberian market through very selective openings,
while also modernizing existing units, so as to contin-
ue to offer customers a richer experience in terms of
service and quality.
