Table of Contents
Introduction
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- Definition
- Fast food and takeaways
- Exclusions
- Methodology
- Abbreviations
Executive Summary
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- The market
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- Figure 1: China fast food and takeaway market sales, 2007-17
- Figure 2: China fast food and takeaway market, number of outlets, 2007-17
- Companies and brands
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- Figure 3: Leading companies in the Chinese fast food market, outlets, 2011
- The consumer
- Chinese fast food is the most popular choice for regular fast food eaters
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- Figure 4: Frequency of using fast food restaurants in the last six months, February 2013
- Lunch is still the key occasion for fast food, and breakfast also has potential
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- Figure 5: Occasions of easting at fast food restaurants, February 2013
- Food quality and safety are the key consideration factors for selecting fast food venues
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- Figure 6: Important factors considered when selecting a fast food restaurant, February 2013
- Attitudes towards fast food restaurants
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- Figure 7: Attitude towards fast food restaurants in general, February 2013
- Wider range and localisation are important to Western fast food chains
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- Figure 8: Attitudes towards Chinese and Western fast food restaurants, February 2013
- Key trends
- Domestic chains’ rapid expansion highlights the need for product innovation
- Food safety scares of 2012 put fast food market under scrutiny
- Healthy living and fast food in China
- Breakfast opportunities
The Market
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- Key points
- Fast food market doubles in size from 2007-12
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- Figure 9: China fast food and takeaway market, value sales and outlets, 2007-17
- Fast food sector reached RMB500 billion in 2007
- The financial crisis of 2008/09 hit discretionary spending and fast food
- Soaring prices of raw materials and labour pose new challenges
- Forecast: steady growth amid challenges ahead
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- Figure 10: China fast food and takeaway market, value sales, 2007-17
- Figure 11: China fast food and takeaway market, number of outlets, 2007-17
- Fast-expanding consumer base with greater spending power
- Low consumer trust in food safety
- More comprehensive food safety standards, rigorous testing and inspection, and stricter regulations put in place after food scandals
- Higher food prices put pressure on fast food operators’ margins
- Growing interest in healthy lifestyles may pose a challenge to the fast food industry
Companies and Brands
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- Key points
- Market shares
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- Figure 12: Leading companies in the Chinese fast food and takeaway market, by market share (outlets), 2010 and 2011
- Yum! Brands
- KFC
- Pizza Hut
- East Dawning
- McDonald’s
- Hua Lai Shi Catering Management and Service Co., Ltd.
- Shanghai Shihao Catering Co., Ltd.
- Ting Hsin International Group
- Dicos
- Master Kong Chef’s Table
The Consumer
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- Key points
- Frequency of using fast food restaurants in the last six months
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- Figure 13: Frequency of using fast food restaurants in the last six months, February 2013
- Occasions of eating at fast food restaurants
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- Figure 14: Occasions of eating at fast food restaurants, February 2013
- Important factors when choosing a fast food restaurant
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- Figure 15: Important factors when choosing a fast food restaurant, February 2013
- Attitude towards fast food restaurants
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- Figure 16: Attitude towards fast food restaurants, February 2013
- Attitude towards Chinese and Western fast food restaurants
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- Figure 17: Attitude towards Chinese and Western fast food restaurants, February 2013
Domestic Chains’ Rapid Expansion Highlights the Need for Product Innovation
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- Key points
- A Bite of China: the unbreakable link between Chinese food and culture
- Local tastes spark new interest
- Chinese fast food outlets enjoy more frequent usage than Western
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- Figure 18: Frequency of eating in fast food restaurants, February 2013
- Strong demand for innovative menus
- Chinese fast food poses an increasingly credible challenge to Western chains
- Western fast food is rarely seen as better than local
- The emergence of Chinese fast food chains
- Local food can help Western chains maintain their ground
- Introducing more localised dishes
- Tier one cities and high-income consumers show most interest in localised dishes
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- Figure 19: Agreement with the statement “I would like to see more ranges offered at Western fast food restaurants (eg reduced calories, new flavours)”, by income and city tier, February 2013
- Figure 20: Agreement with the statement “I prefer to go to Western fast food restaurants which provide localised products (eg soymilk, porridge)”, by income and city tier, February 2013
- Localised kids’ dishes offered by Western fast food restaurants
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- Figure 21: Selected attitudes towards fast food, by presence of children in the household, February 2013
- What it means
Food Safety Scares of 2012 Put Fast Food Market Under Scrutiny
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- Key points
- Recent scandals make food safety a key concern in China
- Su Sheng Ji (‘hormone chicken’) scandal and its aftermath hit the fast food market
- Concerns over food safety see consumers curb eating out
- Food safety and quality become the key factors for choosing fast food outlets
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- Figure 22: Top ranked factors for selecting a fast food restaurant, February 2013
- Leading operators look to reassure customers of their supply chains
- Middle earners show greater interest in food quality
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- Figure 23: Quality of food as a factor in choosing a fast food restaurant and regular usage of Western fast food restaurants, by gross income, February 2013
- Converting food safety into competitive advantages
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- Figure 24: Quality of food as a selection factor and regular use of Chinese fast food restaurants, by gross income, February 2013
- What it means
Healthy Living and Fast Food in China
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- Key points
- The pursuit of healthy lifestyle poses a threat to fast food industry
- Nearly half of respondents are willing to pay the premium for healthier food
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- Figure 25: Agreement with the statement “I would pay more for healthier foods”, by income, November 2012
- Marketing campaigns should put more attention on middle earners
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- Figure 26: Agreement with the statement “Eating at fast food restaurants in moderation is not bad for your health”, by income, February 2013
- Treats and snacks: the escape from diet routines
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- Figure 27: Attitude towards healthy diets, November 2012
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- Figure 28: Agreement with the statement “Eating at fast food restaurants in moderation is not bad for your health”, by occasion at which users have eaten at fast food restaurants, February 2013
- Redesigning fast food dishes to make them healthier
- Functional ingredients can improve the image of fast food
- Healthy seasonal dishes can tap into interest in new launches
- What it means
Breakfast Opportunities
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- Key points
- Breakfast is a popular fast food occasion
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- Figure 29: Occasions of eating at fast food restaurants, February 2013
- The changing landscape of the out-of-home breakfast market
- Food safety scares make quality of food a key consideration
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- Figure 30: Top ranked factors for selecting a fast food restaurant by those who have eaten breakfast at a fast food restaurant, February 2013
- Soaring food costs force street stalls to raise prices
- Opportunities to target various consumer segments
- Breakfast users are more drawn to new dishes offered by fast food chains
- Opportunity for Chinese fast food operators to target breakfast occasion in larger cities
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- Figure 31: Occasions of and attitude towards eating at fast food restaurants, by city tier, February 2013
- Convenient breakfast can appeal to consumers in tier one and two cities
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- Figure 32: Agreement with the statement ‘Convenience is the main reason I buy fast food’, by city tier, February 2013
- Traditional and less convenient dishes – congee, noodle, and wonton – can help fast food chains to target consumers in their forties
- Potential for premium Western-style breakfast
- What it means
Appendix – Market Size and Forecast
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- Methodology
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- Figure 33: Best- and worst-case forecasts for China fast food market, by value, 2012-17
- Figure 34: Best- and worst-case forecasts for China fast food market, by number of outlets, 2012-17
Appendix – Frequency of Using Fast Food Restaurants in the Last Six Months
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- Figure 35: Frequency of using fast food restaurants in the last six months, February 2013
- Figure 36: Frequency of using fast food restaurants in the last six months, February 2013
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- Figure 37: Frequency of using fast food restaurants in the last six months, by occasions of eating at fast food restaurants, February 2013
- Figure 38: Most popular frequency of using Western fast food restaurants in the last six months, by demographics, February 2013
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- Figure 39: Next most popular frequency of using Western fast food restaurants in the last six months, by demographics, February 2013
- Figure 40: Frequency of using McDonald’s restaurants in the last six months, by demographics, February 2013
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- Figure 41: Frequency of using KFC restaurants in the last six months, by demographics, February 2013
- Figure 42: Frequency of using Subway restaurants in the last six months, by demographics, February 2013
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- Figure 43: Frequency of using Burger King restaurants in the last six months, by demographics, February 2013
- Figure 44: Frequency of using Dicos restaurants in the last six months, by demographics, February 2013
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- Figure 45: Frequency of using other Western fast food restaurants in the last six months, by demographics, February 2013
- Figure 46: Most popular frequency of using Chinese fast food restaurants in the last six months, by demographics, February 2013
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- Figure 47: Next most popular frequency of using Chinese fast food restaurants in the last six months, by demographics, February 2013
- Figure 48: Frequency of using Zhen Kungfu restaurants in the last six months, by demographics, February 2013
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- Figure 49: Frequency of using Yonghe restaurants in the last six months, by demographics, February 2013
- Figure 50: Frequency of using East Dawning restaurants in the last six months, by demographics, February 2013
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- Figure 51: Frequency of using Da Niang Dumpling restaurants in the last six months, by demographics, February 2013
- Figure 52: Most popular frequency of using street snacks in the last six months, by demographics, February 2013
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- Figure 53: Next most popular frequency of using street snacks in the last six months, by demographics, February 2013
- Figure 54: Frequency of using self-dish selection restaurants in the last six months, by demographics, February 2013
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- Figure 55: Frequency of using other Chinese fast food restaurants in the last six months, by demographics, February 2013
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Appendix – Occasions of Eating at Fast Food Restaurants
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- Figure 56: Occasions of eating at fast food restaurants, February 2013
- Figure 57: Occasions of eating at fast food restaurants, by demographics, February 2013
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- Figure 58: Consideration factors for selecting fast food restaurants, by occasions of eating at fast food restaurants, February 2013
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Appendix – Important Factors when Choosing a Fast Food Restaurant
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- Figure 59: Important factors when choosing a fast food restaurant, February 2013
- Figure 60: Most popular top ranked important factors for choosing a fast food restaurant, by demographics, February 2013
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- Figure 61: Next most popular top ranked important factors for choosing a fast food restaurant, by demographics, February 2013
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Appendix – Attitudes towards Fast Food restaurants in General
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- Figure 62: Attitudes towards fast food restaurants in general, February 2013
- Figure 63: Most popular attitudes towards fast food restaurants in general, by demographics, February 2013
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- Figure 64: Next most popular attitudes towards fast food restaurants in general, by demographics, February 2013
- Figure 65: Attitudes towards fast food restaurants in general, by occasions of eating at fast food restaurants, February 2013
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- Figure 66: Attitudes towards fast food restaurants in general, by most popular frequency of using Western fast food restaurants in the last six months, February 2013
- Figure 67: Attitudes towards fast food restaurants in general, by next most popular frequency of using Western fast food restaurants in the last six months, February 2013
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- Figure 68: Attitudes towards fast food restaurants in general, by most popular frequency of using street snacks in the last six months, February 2013
- Figure 69: Attitudes towards fast food restaurants in general, by next most popular frequency of using street snacks in the last six months, February 2013
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- Figure 70: Attitudes towards fast food restaurants in general, by most popular frequency of using Chinese fast food restaurants in the last six months, February 2013
- Figure 71: Attitudes towards fast food restaurants in general, by next most popular frequency of using Chinese fast food restaurants in the last six months, February 2013
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Appendix – Attitudes towards Chinese and Western Fast Food Restaurants
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- Figure 72: Attitudes towards Chinese and Western fast food restaurants, February 2013
- Figure 73: Attitudes towards Chinese and Western fast food restaurants, by demographics, February 2013
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- Figure 74: Attitudes towards Chinese and Western fast food restaurants, by occasions of eating at fast food restaurants, February 2013
- Figure 75: Attitudes towards Chinese and Western fast food restaurants, by most popular frequency of using Western fast food restaurants in the last six months, February 2013
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- Figure 76: Attitudes towards Chinese and Western fast food restaurants, by next most popular frequency of using Western fast food restaurants in the last six months, February 2013
- Figure 77: Attitudes towards Chinese and Western fast food restaurants, by most popular frequency of using Chinese fast food restaurants in the last six months, February 2013
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- Figure 78: Attitudes towards Chinese and Western fast food restaurants, by next most popular frequency of using Chinese fast food restaurants in the last six months, February 2013
- Figure 79: Attitudes towards Chinese and Western fast food restaurants, by most popular frequency of using street snacks in the last six months, February 2013
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- Figure 80: Attitudes towards Chinese and Western fast food restaurants, by next most popular frequency of using street snacks in the last six months, February 2013
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