Menu Insights - China - September 2016

OVERVIEW
What you need to know
Products covered in this Report
Demographic classification
Personal income
Household income
EXECUTIVE SUMMARY
The market
Food catering market is recovering
New dietary guidelines to be considered on the menu
Menu innovation to attract indulgence-seeking consumers
Social media generates popularity
Companies and brands
Healthier food from fast food restaurants
Limited editions stir excitement
Local street food goes premium
More information and innovation on the names
Innovation highlights
The consumer
Consumers prefer different staple food for breakfast
Western staple food is popular amongst mid to high earners
Figure 1: Staples consumed at breakfast, lunch and dinner, June 2016
Preference for breakfast side dish also differs from lunch and dinner
Figure 2: Side dishes consumed at breakfast, lunch and dinner, June 2016
Western fast food chains remain the top choice when eating out, while Western-style restaurants appeal to mid to high earners
Figure 3: Venues for eating out, June 2016
Greater budget difference between high and low earners for breakfast and dinner
Figure 4: Budget for eating out at breakfast, lunch and dinner, June 2016
Consumers are most likely to eat breakfast out of home but not for dinner
Figure 5: Preference for eating out for three meals, June 2016
Set meals are more appealing to consumers with children
Figure 6: Preference for Western food and set meals, June 2016
Optional portion sizes are the most attractive personalisation service
Figure 7: Preferences towards personalised services offered by restaurants, June 2016
What we think
ISSUES AND INSIGHTS
Developing separate menus for the three meals is essential
The facts
The implications
Flexible portion size can boost appeal
The facts
The implications
Offering kids’ menus to attract families
The facts
The implications
Opportunity for freshly made tea
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Restaurants to become reliable venues for daily three meals
Menu innovation to attract indulgence-seeking consumers
New dietary guidelines to be considered on the menu
Social media generates popularity while food quality remains top priority
MARKET TRENDS
Restaurants to become reliable venues for daily three meals
Menu innovation to attract indulgence-seeking consumers
New dietary guidelines to be considered in designing the menu
Social media generates popularity while food quality remains top priority
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Healthier food from fast food restaurants
Limited editions stir excitement
Local street food going premium
More information and innovation on the names
Innovation highlights
COMPETITIVE STRATEGIES
Healthier food from fast food restaurants
Limited editions stir excitement
Local street food going premium
Figure 8: Taoyuan Village restaurant and the food, Shanghai, September 2016
More information and innovation on the names
WHO’S INNOVATING?
Hot pot in a fast food restaurant
Secret menu
Edible straws
Figure 9: Edible straw in Starbucks, Shanghai, July 2016
Desserts with chia seeds
Figure 10: Pret’s dessert with chia seeds, Shanghai, September 2016
THE CONSUMER – WHAT YOU NEED TO KNOW
Consumers prefer different staple food for breakfast
Western staple food is popular amongst mid to high earners
Egg, dairy and cake are essential at breakfast, while alcoholic drinks are important on the dinner menu
Freshly made coffee and tea are more appealing to mid to high earners, alcoholic drinks attract more males
Western fast food chains are the top choice when eating out
Greater budget difference is observed between high and low earners for breakfast and dinner, compared to lunch
Consumers are more likely to have breakfast out
Set meals are more appealing to consumers with children
Optional portion sizes are the most attractive personalisation service
STAPLE FOOD PREFERENCE
Consumers’ preference for staple food of breakfast differs from that of lunch and dinner
Figure 11: Staples consumed at breakfast, lunch and dinner, June 2016
For breakfast, Western food is popular among young consumers
Figure 12: Staples consumed at breakfast, by gender and age, June 2016
Figure 13: Staples consumed at breakfast, by personal income and city tier, June 2016
Western staple food for lunch is popular among mid to high earners, but not necessarily in tier one cities
Figure 14: Staples consumed at lunch, by age and personal income, June 2016
For dinner, pasta is more popular among mid to high earners
Figure 15: Staples consumed at dinner, by age and personal income, June 2016
SIDE DISH PREFERENCE
Egg, dairy and cake are essential in breakfast menu
Alcoholic drinks are important on the dinner menu
Figure 16: Side dishes consumed at breakfast, lunch and dinner, June 2016
Freshly made coffee and tea are more appealing to mid to high earners
Figure 17: Side dishes consumed at breakfast, by demographics, June 2016
Consumers in their twenties have more types of side dish for lunch
Figure 18: Side dishes consumed at lunch, by age, June 2016
Figure 19: Side dishes consumed at lunch, by gender and personal income, June 2016
For dinner, soft drinks, cake and ice cream are appealing to twenties
Figure 20: Side dishes consumed at dinner, by age, June 2016
HEALTH PERCEPTIONS OF DIFFERENT TYPES OF FAT
Fat from olive oil is considered to be the healthiest
Figure 21: Health perceptions of different types of fat, August 2016
Consumers with higher education degree tend to recognise the healthiness of fat from different sources
Figure 22: Agreement on the fat being “very healthy” and “somewhat healthy” from different sources, by demographics, August 2016
EATING OUT HABITS
Western fast food chains enjoy highest popularity when eating out
Figure 23: Venues for eating out, June 2016
Hot spot restaurants and specialty restaurants see decrease
Figure 24: Venues for eating out, June 2016 and November 2014
Consumers in their twenties are more exploratory about dining venues
Figure 25: Venues for eating out, by age, June 2016
Mid to high earners tend to visit more foreign-style restaurants
Figure 26: Venues for eating out, by personal income, June 2016
Buffets are more popular in tier two and three cities
Figure 27: Venues for eating out, by city tier and region, June 2016
MEAL BUDGET
Consumers’ budget for lunch and dinner falls into a wide price spectrum
Figure 28: Budget for eating out at breakfast, lunch and dinner, June 2016
Consumers in the North spend more on breakfast and lunch
Restaurants to offer various price ranges for breakfast and dinner
Figure 29: Average budget for eating out, by demographics, June 2016
EATING HABITS
Preference for eating out
Breakfast shows potential
Figure 30: Preference for eating out for three meals, June 2016
Families with children tend to have breakfast and lunch out, and those in their twenties are keener to have dinner out
Figure 31: Preference for eating out for three meals, be demographics, June 2016
Western-style staple food is generally more popular among consumers who prefer eating out
Figure 32: Staple food for three meals, by preference of dining out, June 2016
Drinks and dessert are important for consumers who prefer having dinner out of home
Figure 33: Side dish for three meals, by preference of dining out, June 2016
Preference for set meals
Set meals are more appealing to consumers with children
Figure 34: Preference for set meals over picking and mixing when eating out, by presence of children in the household and city tier, June 2016
Preference for Western food
Western restaurant enthusiasts skew to mid to high earners
Figure 35: Preference for Western restaurants, by demographics, June 2016
Western-style restaurant enthusiasts are willing to pay more when dining out
Figure 36: Average meal budget among consumers who prefer Western restaurants, June 2016
PERSONALISATION NEEDS
Optional portion sizes are the most attractive personalisation service
Figure 37: Preferences towards personalised services offered by restaurants, June 2016
Optional portion sizes can appeal to females and singles
Figure 38: Preferences towards personalisation services offered by restaurants, by demographics, June 2016
Opportunity to attract tier two and three city consumers by offering personalisation services
Figure 39: Preferences towards personalisation services offered by restaurants, by city tier, June 2016
MEET THE MINTROPOLITANS
Mintropolitans may be more attracted to a balanced diet
Figure 40: Agreement on the fat being “very healthy” and “somewhat healthy” from different sources, by consumer classification, August 2016
Mintropolitans are more likely to visit foreign-style restaurants
Figure 41: Venues for eating out, by consumer classification, June 2016
The difference of meal budget is the largest when it comes to breakfast
Figure 42: Average budget for eating out, by consumer classification, June 2016
Selection of cooking methods and specialised set meals are most attractive to Mintropolitans
Figure 43: Preferences towards personalisation services offered by restaurants, by consumer classification, June 2016
APPENDIX
Methodology
Abbreviations