Abstract

We analyze demand for food away from home (FAFH) in Slovakia by means of a doublehurdle
model using recent Slovak Household Budget Survey data covering the period
2006–2012. The estimated unconditional income elasticity of FAFH demand (1.37)
demonstrates that away-from-home eating is still perceived as a luxury by Slovak
households. An important feature of our applied theoretical framework is measurement
of the effect of a wifeʼs opportunity cost of time. Results indicate that households where
the wife is employed have significantly higher expenditure on FAFH compared to households
where the wife is unemployed or a housewife. Further FAFH market growth can be
expected in Slovakia in the future, driven by rising GDP, increasing participation
of women in the job market, demographic changes towards an increase in the proportion
of single-person households, and adoption of more individualistic lifestyles.