Consumer Foodservice in China
Euromonitor International's Consumer Foodservice in China report examine stand-alone restaurants and eating establishments in which the consumer can freely choose to eat. The report looks at market trends by sector (cafes/bars, full-service restaurants, fast food, home delivery and street stalls). It profiles the leading companies in the market and analyses factors influencing eating out patterns. Forecasts illustrate how the market is set to change
Get immediate access to strategic market analysis when you buy reports online
Tables: 106 | Publication date: Oct 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent
Executive summary
Consumer foodservice maintains double-digit growth
In 2006, consumer foodservice in China continued its high value growth as greater demand is evident from lower-tier cities such as Qingdao, Dalian and Changsha. This is because consumer foodservice in first-tier cities such as Shanghai is becoming mature and extremely competitive, leading to key players expanding outwards towards second-tier cities. At the same time, healthy economic development in second-tier cities has seen growth in disposable incomes, which in turn has helped drive demand. Nonetheless, consumer foodservice growth remained anchored in urban areas, in line with urbanisation. Consumer foodservice in rural areas (mainly villages and small cities) remains underdeveloped due to poor infrastructure, low disposable incomes and local cultures of self-subsistence.
New concept consumer foodservice is gaining popularity
Growing disposable income in urban areas is pushing consumer demand to a higher level. People are beginning to pay attention to new consumer foodservice outlets in terms of design, innovative menus, healthy diet, new themed venues such as bars for blind dating (Allen Club) and restaurants for children (Rainforest Café). Among all these innovative concepts, naturally healthy food (Element Fresh) appears to be very popular as growing numbers of high-end consumers are becoming more interested in living quality lifestyles.
National players posing threat to regional brands
The rise of national chains is posing a significant threat to regional brands. Particularly since large national chained restaurants or cafés/bars are expanding rapidly through franchising, the well-established brand name and high-quality service make them outperform small, regional brands within a very short time. For example, Xiao Fei Yang is one of the leading brands that has been rapidly expanding nationwide.
Localisation of international brands
After years of development in China, international brands such as KFC and McDonald’s are adopting strategies of localisation well, because they are realising that changing the local tastes will not be the best way to achieve success and that customising their offer can bring higher profits. Most of the international brands are planning to achieve further penetration into lower-tier cities such as Urumqi, Shaoxing and Taizhou, and it is becoming difficult to have local people accept Western cuisines in first-tier cities. Therefore, the trend of localisation continues to be the top priority for international brands. For example, Yum! Restaurants China launched its new product within KFC outlets called Miao Ling Sour Soup (a special flavoured soup originating from Yunnan province) to fuel consumers’ interest in China.
Chained consumer foodservice is consolidating the market
Not only are the national players posing a threat to small regional companies, it is the chained companies overall that are driving the market forward. Over the forecast period, chained companies will grow much faster than independent consumer foodservice units, and as long as the chained outlets are growing the market will become more consolidated. Small independent restaurants will be tempted to franchise themselves in order to achieve higher value sales; hence the urban market is expected to be dominated by regional chains in the short run.
Table of contents
CONSUMER FOODSERVICE IN CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Consumer foodservice maintains double-digit growth
New concept consumer foodservice is gaining popularity
National players posing threat to regional brands
Localisation of international brands
Chained consumer foodservice is consolidating the market
KEY TRENDS AND DEVELOPMENTS
Lifestyle shift from occasional eating out to more casual gatherings
Chained outlets are moving into the fast lane
Food hygiene is becoming more important
Raising capital to grow with the market
Growing demand for varied and exotic cuisine
Dining environment plays an important role
MARKET DATA
Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2001-2006
Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2001-2006
Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2006
Table 4 Consumer Foodservice by Eat in Vs Takeaway 2006
Table 5 Consumer Foodservice by Food Vs Drinks Split 2006
Table 6 Sales in Consumer Foodservice by Location 2001-2006
Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2006
Table 8 Chained Consumer Foodservice Company Shares 2002-2006
Table 9 Chained Consumer Foodservice Brand Shares 2003-2006
Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2006-2011
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2006-2011
APPENDIX
Published Data Comparisons
Table 12 Consumer Expenditure on Consumer Foodservice 2004-2006
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CHINA
AJISEN (CHINA) HOLDINGS LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Ajisen (China) Holdings Ltd: Key Facts
Summary 3 Ajisen (China) Holdings Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Ajisen (China) Holdings Ltd: Competitive Position 2006
BE FOR TIME CO LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Be For Time Co Ltd: Key Facts
Summary 6 Be For Time Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Be For Time Co Ltd: Competitive Position 2006
INNER MONGOLIA XIAO FEI YANG FOODSERVICE CO LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Inner Mongolia Xiao Fei Yang Foodservice Co Ltd: Key Facts
Summary 9 Inner Mongolia Xiao Fei Yang Foodservice Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Inner Mongolia Xiao Fei Yang Foodservice Co Ltd: Competitive Position 2006
INNER MONGOLIA XIAO WEI YANG CHAINED FOOD SERVICE CO LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Inner Mongolia Xiao Wei Yang Chained Food Service Co Ltd: Key Facts
Summary 12 Inner Mongolia Xiao Wei Yang Chained Food Service Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Inner Mongolia Xiao Wei Yang Chained Food Service Co Ltd: Competitive Position 2006
INTERNATIONAL DAIRY QUEEN INC - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Two franchisees of International Dairy Queen Inc in China
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 15 International Dairy Queen Inc: Competitive Position 2006
MANABE CO LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Manabe Co Ltd: Key Facts
Summary 17 Manabe Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 18 Manabe Co Ltd: Competitive Position 2006
MCDONALD'S CHINA DEVELOPMENT CO LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 19 McDonald's China Development Co Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 20 McDonald's China Development Co Ltd: Competitive Position 2006
SHANGHAI YONGHE KING CO - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Shanghai Yonghe King Co: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 22 Shanghai Yonghe King Co: Competitive Position 2006
UBC COFFEE FOOD CO LTD - CONSUMER FOODSERVICE - CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 23 UBC Coffee Food Co Ltd: Key Facts
Summary 24 UBC Coffee Food Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 25 UBC Coffee Food Co Ltd: Competitive Position 2006
CAFéS/BARS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Cafés/Bars by Subsector: Units/Outlets 2001-2006
Table 14 Cafés/Bars by Subsector: Transactions 2001-2006
Table 15 Cafés/Bars by Subsector: Foodservice Value 2001-2006
Table 16 Cafés/Bars by Subsector: % Volume Growth 2001-2006
Table 17 Cafés/Bars by Subsector: % Transaction Growth 2001-2006
Table 18 Cafés/Bars by Subsector: % Foodservice Value Growth 2001-2006
Table 19 Global Brand Owner Shares of Chained Cafés/Bars 2002-2006
Table 20 Brand Shares of Chained Cafés/Bars 2003-2006
Table 21 Forecast Sales in Cafés/Bars by Subsector: Units/Outlets 2006-2011
Table 22 Forecast Sales in Cafés/Bars by Subsector: Transactions 2006-2011
Table 23 Forecast Sales in Cafés/Bars by Subsector: Foodservice Value 2006-2011
Table 24 Forecast Sales in Cafés/Bars by Subsector: % Volume Growth 2006-2011
Table 25 Forecast Sales in Cafés/Bars by Subsector: % Transaction Growth 2006-2011
Table 26 Forecast Sales in Cafés/Bars by Subsector: % Foodservice Value Growth 2006-2011
FULL-SERVICE RESTAURANTS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 27 FSR by Subsector: Units/Outlets 2001-2006
Table 28 FSR by Subsector: Transactions 2001-2006
Table 29 FSR by Subsector: Foodservice Value 2001-2006
Table 30 FSR by Subsector: % Volume Growth 2001-2006
Table 31 FSR by Subsector: % Transaction Growth 2001-2006
Table 32 FSR by Subsector: % Foodservice Value Growth 2001-2006
Table 33 Global Brand Owner Shares of Chained FSR 2002-2006
Table 34 Brand Shares of Chained FSR 2003-2006
Table 35 Forecast Sales in FSR by Subsector: Units/Outlets 2006-2011
Table 36 Forecast Sales in FSR by Subsector: Transactions 2006-2011
Table 37 Forecast Sales in FSR by Subsector: Foodservice Value 2006-2011
Table 38 Forecast Sales in FSR by Subsector: % Volume Growth 2006-2011
Table 39 Forecast Sales in FSR by Subsector: % Transaction Growth 2006-2011
Table 40 Forecast Sales in FSR by Subsector: % Foodservice Value Growth 2006-2011
FAST FOOD IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 41 Fast Food by Subsector: Units/Outlets 2001-2006
Table 42 Fast Food by Subsector: Transactions 2001-2006
Table 43 Fast Food by Subsector: Foodservice Value 2001-2006
Table 44 Fast Food by Subsector: % Volume Growth 2001-2006
Table 45 Fast Food by Subsector: % Transaction Growth 2001-2006
Table 46 Fast Food by Subsector: % Foodservice Value Growth 2001-2006
Table 47 Sales of Bakery Products Fast Food by Type 2006
Table 48 Global Brand Owner Shares of Chained Fast Food 2002-2006
Table 49 Brand Shares of Chained Fast Food 2003-2006
Table 50 Forecast Sales in Fast Food by Subsector: Units/Outlets 2006-2011
Table 51 Forecast Sales in Fast Food by Subsector: Transactions 2006-2011
Table 52 Forecast Sales in Fast Food by Subsector: Foodservice Value 2006-2011
Table 53 Forecast Sales in Fast Food by Subsector: % Volume Growth 2006-2011
Table 54 Forecast Sales in Fast Food by Subsector: % Transaction Growth 2006-2011
Table 55 Forecast Sales in Fast Food by Subsector: % Foodservice Value Growth 2006-2011
100% HOME DELIVERY/TAKEAWAY IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 56 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2001-2006
Table 57 100% Home Delivery/Takeaway by Subsector: Transactions 2001-2006
Table 58 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2001-2006
Table 59 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2001-2006
Table 60 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2001-2006
Table 61 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2001-2006
Table 62 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2002-2006
Table 63 Brand Shares of Chained 100% Home Delivery/Takeaway 2003-2006
Table 64 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2006-2011
Table 65 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Transactions 2006-2011
Table 66 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2006-2011
Table 67 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2006-2011
Table 68 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2006-2011
Table 69 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2006-2011
SELF-SERVICE CAFETERIAS IN CHINA
OVERVIEW
STREET STALLS/KIOSKS IN CHINA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 70 Street Stalls/Kiosks by Subsector: Units/Outlets 2001-2006
Table 71 Street Stalls/Kiosks by Subsector: Transactions 2001-2006
Table 72 Street Stalls/Kiosks by Subsector: Foodservice Value 2001-2006
Table 73 Street Stalls/Kiosks by Subsector: % Volume Growth 2001-2006
Table 74 Street Stalls/Kiosks by Subsector: % Transaction Growth 2001-2006
Table 75 Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2001-2006
Table 76 Forecast Sales in Street Stalls/Kiosks by Subsector: Units/Outlets 2006-2011
Table 77 Forecast Sales in Street Stalls/Kiosks by Subsector: Transactions 2006-2011
Table 78 Forecast Sales in Street Stalls/Kiosks by Subsector: Foodservice Value 2006-2011
Table 79 Forecast Sales in Street Stalls/Kiosks by Subsector: % Volume Growth 2006-2011
Table 80 Forecast Sales in Street Stalls/Kiosks by Subsector: % Transaction Growth 2006-2011
Table 81 Forecast Sales in Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2006-2011