- Fast Food
Shcri.com: Research Report of the Fast Food Industry in China, 2009
The fast food market in China can be divided into the western style and Chinese style according to the specific characteristics. At present, the major western style fast food brands are KFC, Mcdonald’s and Dicos. Chinese style fast food mainly concludes Lihua fast food, Kungfu, Malan noodle, Yonghe King and Daniang dumplings etc. KFC has had more than 2 thousand stores in China and Mcdonald’s stores in China are over 1 thousand, but the scale of Chinese style fast food is all very small.
The fast food industry in China started late and only had about 20 years of history. In 1987, KFC opened its first fast food store in Beijing, opening the fast food preclude in China. During the 1980s and 1990s, other western style fast food entered Chinese market in succession with purpose of attracting the consumers to try the new taste food. As a result, marked achievements had been attained than the expected. In recent decades of years, with the speed-up of social life, the fast food industry has keeping growth at the annual rate of 10 to 15percent. In 2008, the general scale of the fast food industry in China had exceeded 30 billion USD. There is huge potential in the fast food industry in China; meanwhile, there are also investment and concept errors.
The incomes per capita are not very high in China and the development of the fast food industry is retrained from the consumption level and consumption power. Besides, the economic development in various regions is serious disparate, the economy developing faster in the coastal areas than the inlands and the central and western areas; faster in the large cities than the medium and small cities. Even though in the same city, the characteristics of the different consumption levels and the unbalanced development are also prominent. In Chinese market, the average price of a fast food varies from 0.5 USD to 3 USD. The fast food industry in China is imperfect in market environment, inadequate in laws and regulations, imperfect in the distribution systems, non-standard in the consumption environment and numerous in the food safety problems. Therefore, the investors should take the policies, places, the consumers’ incomes and cultural elements into consideration when investing the fast food industry in China.
The urbanization is speeding up in China. Large quantities of rural populations flow into the cities, intensifying the consumption power of the original urban populations. Due to the numerous populations and the continuous fast growth of Chinese economy, China has gradually become the largest catering market in the world under the cultural background of hunger breeds discontentment.
All the time, KFC and Mcdonald’s, two largest western style fast food giants, have left Chinese fast food enterprises far behind, but what cannot be ignored is that Chinese style fast food still occupies near 80% market shares. Among Chinese style fast food, according to the incomplete statistics, at least over 60% fast food is the rice. There are numerous Chinese style fast food enterprises, but the single enterprise is weak in strengths. Besides, the financial crisis has also affected the catering market in China, especially cut down the expenditures in the high-end business banquet. As far as the fast food is concerned, the opportunities exceed the crisis. With the extension of the financial crisis, the consumers and operation situation of the catering market all change quietly. According to the market researches in Shanghai and Beijing etc, many enterprises which patronized the medium and high-end restaurants formerly cut down the expenditures on the business banquet and obviously cut down the dinner frequency and dining standards due to the serious reduction in the profits, leading to the influences on the Chinese restaurants in various degree. Many customers of the restaurants turn to the medium and high quality fast food.
Under the circumstances of international financial crisis, the fast food industry in China does not stop the expansion pace.
For example, KFC is planning to open at least 300 stores in China in 2009, and the planned open stores of Mcdonald’s are cut down slightly but still about 150. The giant enterprise of Chinese style fast food, Kungfu Catering Management Co., Ltd and Changzhou Lihua Fast-Food Ltd also speed up the expansion. As far as the fast food industry is concerned, the financial crisis turns down the costs for the labor forces and house rents in China and provides more development space.
Under the circumstances of the financial crisis, many domestic and foreign enterprises take aim at the fast food industry in China, exclusive the possibility of new western style fast food entering China. Taking the Jollibee Foods Corp. for example, it has already entered Chinese market through merging Yonghe King.
More following information can be obtained in this report:
- Development Environments of the Fast Food Industry in China
- Development Situation of the Western Style Fast Food Industry in China
- Development Situation of Chinese Style Fast Food Industry in China
- Major Enterprise and Their Operations of the Fast Food Industry in China
- Competition Situation and Marketing Strategies of the Fast Food Industry in China
Influences of International Financial Crisis on the Fast Food Industry in China
- Prediction the Development Trends of the Fast Food Industry in China
- Investment Opportunities of the Fast Food Industry in China
To get more details, please visit http://www.shcri.com/reportdetail.asp?id=308
Based on the database, Interviews and research methods from China Research and Intelligence, CRI analyzes the development and opportunities in this industry clearly.
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