Table of Contents
Executive Summary
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- The market
- Strong growth of market value in 2018
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- Figure 1: Best- and worst-case forecast for Western-style fast food, by value, 2013-23
- Quick expansion in volume
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- Figure 2: Best- and worst-case forecast for Western-style fast food, by volume, 2013-23
- Store expansion to highways
- Get the help of local enterprises
- Companies and brands
- Further localisation and quick expansion helped brands gain market share
- Build more consumption occasions
- “Plant-based” is the new trend
- The consumer
- Win more consumers by understanding them
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- Figure 3: Brand penetration, China, December 2018
- Develop afternoon tea occasion
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- Figure 4: Selected consumption occasions, by brand, China, December 2018
- The ways of increasing soft drinks and desserts penetration
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- Figure 5: Product penetration, China, December 2018
- High expectation of healthy drinks
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- Figure 6: Expected upgrade, China, December 2018
- Brands’ performance in restaurant satisfaction
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- Figure 7: Brand satisfaction, China, December 2018
- Consumers are more satisfied with external attributes
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- Figure 8: Service satisfaction, China, December 2018
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- Figure 9: Overall satisfaction with most visited Western-style fast food restaurants – Key driver output, December 2018
- What we think
Issues and Insights
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- Put efforts into developing healthy drinks
- The facts
- The implications
- Fusion food is a great innovation idea
- The facts
- The implications
- Functional children’s meals and nutritious labelled light meals are welcomed
- The facts
- The implications
The Market – What You Need to Know
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- The market will keep growing in both value and volume
- Revolution in highway service zone
- Localised operation right helps international brands expand
Market Size and Forecast
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- Great performance in 2018 while a slowing growth in the future
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- Figure 10: Best- and worst-case forecast for Western-style fast food, by value, 2013-23
- A double-digit growth rate in volume
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- Figure 11: Best- and worst-case forecast for Western-style fast food, by volume, 2013-23
Market Factors
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- Marketisation of foodservice in highway service zone
- Chinese acquirers bring advantages to international brands
- Competitors in other business formats pose threats
Key Players – What You Need to Know
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- KFC had an increasing market share
- McDonald’s and Dicos lose make share
- Burger King and Wallace had a good performance
Market Share
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- KFC dominates and even grows faster than the others
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- Figure 12: Leading players in the Western-style fast food market, by percentage of market value, China, 2017-18
- McDonald’s and Burger King compete with each other
- Dicos had an unsteady year
- Wallace has gained more market share
Competitive Strategies
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- Enlarge the proportion of consumers aged 20-29
- Use membership system to reach more consumers
- Upgrade and enrich consumers’ experience
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- Figure 13: Dicos in-store environment, China, 2019
- Figure 14: KFC dessert shop, China, 2019
Who’s Innovating?
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- Plant-based burger brings a healthier image
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- Figure 15: The heme process, by Impossible Foods, US
- Mini-burgers give more choices at once
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- Figure 16: Mini-burger, by Bite Me, UK
- Use Chinese herbs with the claim of beauty and health benefits
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- Figure 17: Soft drink and porridge with Goji, by Dicos, China
The Consumer – What You Need to Know
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- More 30-49s visit on lunch occasion
- Consumers are highly interested in healthy drinks
- Innovate in healthier desserts
Brand Penetration
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- Brands have attracted different age groups
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- Figure 18: Consumer age structure, by brand, China, December 2018
- Brands’ popularity in different regions
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- Figure 19: Consumers of each brand, by region, China, December 2018
- McDonald’s has more consumers in tier three cities
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- Figure 20: Outlets and consumers of McDonald’s, by city, China, December 2018
Consumption Occasion
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- More 30-49s choose Western-style fast food for lunch
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- Figure 21: Consumption occasions, by generation, China, December 2018
- Figure 22: Visitation rate on lunch occasion, by brand, China, December 2018
- Subway and Wallace could enhance afternoon tea occasion
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- Figure 23: Selected consumption occasions, by brands, China, December 2018
- Competition on breakfast occasion from other foodservice businesses
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- Figure 24: Consumption occasions, China, December 2018
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- Figure 25: Breakfast occasions, by brand, China, December 2018
Product Penetration
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- Potential of adding fresh juice and infusion tea on menu
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- Figure 26: Product penetration, China, December 2018
- Develop healthy and fun light meals for families with children
- Innovate in desserts with healthy features
Expected Upgrade
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- It’s time to do healthy drinks
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- Figure 27: Expected upgrade, China, December 2018
- 25-29s show a great interest in fusion food
- Consumers have different expectations regarding brands
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- Figure 28: Selected expected upgrade, by brand, China, December 2018
Service Satisfaction
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- Convenience and cleanliness impress consumers the most
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- Figure 29: Service satisfaction, China, December 2018
Restaurant Satisfaction
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- KFC story
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- Figure 30: Brand satisfaction, China, December 2018
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- Figure 31: Key drivers of overall satisfaction with KFC, December 2018
- McDonald’s story
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- Figure 32: Key drivers of overall satisfaction with McDonald’s, December 2018
- Burger King story
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- Figure 33: Key drivers of overall satisfaction with Burger King, December 2018
- Wallace story
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- Figure 34: Key drivers of overall satisfaction with Wallace, December 2018
- Dicos story
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- Figure 35: Key drivers of overall satisfaction with Dicos, December 2018
Meet the Mintropolitans
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- Mintropolitans prefer light meals and coffee
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- Figure 36: Difference of product penetration between Mintropoilitans and non-Mintropolitans (as benchmark), China, December 2018
- Health and nutrition are top expectations among MinTs
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- Figure 37: Expected upgrade, by consumer classification, China, December 2018
Appendix – Market Size and Forecast
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- Figure 38: Total market value of Western-style fast food, China, 2013-23
- Figure 39: Total market volume of Western-style fast food, China, 2013-23
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Appendix – Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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