Table of Contents
Overview
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- What you need to know
- Covered in this report
- Included
- Exclusions
- Definitions
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- Figure 1: Definition of low/mid/high MHI groups, by city tier
Executive Summary
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- The market
- Seeing gradual recovery
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- Figure 2: Best- and worst-case forecast for fast food and takeaway market value, China, 2011-21
- Key players
- Competitive landscape experiences few changes
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- Figure 3: Leading chains in the Chinese fast food and takeaway market, by market volume (number of outlets), 2014-15
- Leading companies reposition themselves as more casual
- International giants seek further localisation
- The consumer
- Although relaxing, fast food restaurants are not seen as good venues for socialising
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- Figure 4: Perceptions of fast food restaurants, May 2016
- Long waiting time is the top issue to be resolved
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- Figure 5: Unhappy fast food experience, May 2016
- Healthy menu innovations are in great demand
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- Figure 6: Attitudes towards healthy menu innovations, May 2016
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- Figure 7: Awareness of superfoods, August 2016
- Consumers are replacing fast food with food delivery service
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- Figure 8: Sources of food delivery business, May 2016
- What we think
Issues and Insights
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- Rise of experiential-driven dining: posing a challenge yet creating an opportunity
- The facts
- The implications
- What makes a healthy menu?
- The facts
- The implications
- Get innovative to win over young consumers
- The facts
- The implications
The Market - What You Need to Know
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- Recovery seen in 2016
- Fast food brands seek growth under fierce competition and rising costs
- Independent brands see a faster growth than chains
Market Size and Forecast
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- Figure 9: Sales value and growth of fast food and takeaway market, China, 2011-16
- Figure 10: Best- and worst-case forecast for fast food and takeaway market value, China, 2011-21
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- Figure 11: Best- and worst-case forecast for fast food and takeaway market volume, China, 2011-21
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Market Factors
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- Eating out becomes a key spending area
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- Figure 12: Revenue from food service, China, 2011-16
- Brand repositioning creates more occasions for fast food restaurant visits
- Healthy menu innovations can meet a real need
- Competition from other categories stiffens
- Rising costs pose a challenge
Market Segmentation
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- Chains are growing, but under pressure
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- Figure 13: Value sales of fast food and takeaway market, by market segment, China, 2011-16
- Figure 14: Best- and worst-case forecast for chained fast food and takeaway market value, China, 2011-21
- Independent stores continue to see robust growth
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- Figure 15: Best- and worst-case forecast for independent fast food and takeaway market value, China, 2011-21
Key Players - What You Need to Know
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- Competitive landscape experiences few changes
- Major companies make moves to reposition themselves as more casual
- International giants Yum! Brands and McDonald’s seek further localisation
- Innovation highlights
Market Share
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- Yum! Brands takes the lead
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- Figure 16: Leading chains in the Chinese fast food and takeaway market, by market volume (number of outlets), 2014 and 2015
- Hua Lai Shi follows closely on the list
- McDonald’s reports unsatisfactory results but ambitious growth plans
- Zhen Kungfu faces difficulty in expansion
- Subway enjoys high growth thanks to a healthy brand image
Competitive Strategies
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- New store format improves in-store experience
- Healthier ingredients attract wealthy consumers
- ‘Make your own’ service model enriches personalised experience
- International brands seek further localisation
Who’s Innovating?
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- McDonald’s
- Creative hosting of food banquet to present healthy concepts
- Targeting young consumers through social media
- Serving alcoholic drinks in South Korea
- KFC
- Engaging robots in taking orders
- Introducing fun cross-category products to attract attention
- Burger King
- Movie trailer-style advertisement rising in UK
The Consumer - What You Need to Know
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- Although relaxing, fast food restaurants are not seen as good socialising venues
- Long waiting time is the top issue to be solved
- Healthy menu innovations are in great demand
- Consumers are replacing fast food with food delivery service
Perceptions of Fast Food Restaurants
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- Fast pace and relaxing are top perceptions
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- Figure 17: Fast food restaurant perceptions, May 2016
- The young generation in particular see fast food as suitable for them
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- Figure 18: Percentage of consumers who associate fast food restaurants with being suitable for young, May 2016
- Not innovative or modern, fast food restaurants are a less good venue for socialising
- Differences between genders
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- Figure 19: Perceptions of fast food restaurants, by gender, May 2016
Most Frequently Visited Restaurant
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- KFC retains an unassailable lead, followed by McDonald’s
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- Figure 20: Most frequently visited fast food restaurant, May 2016
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- Figure 21: Selected most frequently visited fast food restaurant, by city tier, May 2016
- Difference across cities
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- Figure 22: Selected most frequently visited fast food restaurant, by city, May 2016
- Casual dining restaurants and coffee houses also on the list
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- Figure 23: Most frequently visited fast food restaurant, other categories, May 2016
Problems to Be Solved
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- Long waiting times are least tolerable issue
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- Figure 24: Unhappy fast food experiences, May 2016
- Difficulty in finding tables can also be annoying
- Young consumers are more sensitive over unhappy experiences
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- Figure 25: Top unhappy fast food experiences encountered and are annoying, by demographics, May 2016
Healthy Menu Innovations
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- Consumers demand meal sets with balanced nutrition the most
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- Figure 26: Attitudes towards healthy menu innovations, May 2016
- Women appear more health-conscious than men
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- Figure 27: Percentage of consumers who believe healthy menu innovations as absolutely necessary, by gender, May 2016
- Consumers in Shanghai prefer more and better beverages
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- Figure 28: Percentage of consumers who believe healthy menu innovations as necessary (absolutely and somewhat), by city, May 2016
Superfood Awareness
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- Blueberries and Goji berries enjoy high awareness amongst majority of public
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- Figure 29: Awareness of superfoods, August 2016
- Blueberries are particularly popular among young females aged 25-29
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- Figure 30: Blueberry awareness among females, August 2016
- Other superfruits, vegetables and ancient grains better-known among high income earners
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- Figure 31: Selected superfood awareness, by income, August 2016
Food Delivery Occasions
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- High penetration for lunch on working days
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- Figure 32: Food delivery occasions, May 2016
- Food delivery on days off is more favoured by young consumers
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- Figure 33: Food delivery occasions, by age, May 2016
Sources of Delivery Business
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- Fast food restaurants are likely to lose share in the popularity of food delivery
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- Figure 34: Sources of food delivery business, May 2016
Meet the Mintropolitans
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- Stronger desire for a healthy diet
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- Figure 35: Percentage of consumers who believe healthy food innovations absolutely necessary and somewhat necessary, by consumer classification, May, 2016
- More effort needed to satisfy Mintropolitans
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- Figure 36: Unhappy fast food experiences encountered that are annoying, by consumer classification, May 2016
- Ordering food delivery for workday lunches more often
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- Figure 37: Food delivery occasions, by consumer classification, May 2016
- Figure 38: Sources of food delivery business, by consumer classification, May 2016
Appendix: Methodology and Abbreviations
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- Methodology
- Fan chart forecast
- Abbreviations
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