Author: Mintel Group Ltd.
Last saved by: HTTP server

Casual Dining - China - January 2017

OVERVIEW
What you need to know
Covered in this Report
Definitions
Figure 1: Definition of low/mid/high MHI groups, by city tier
EXECUTIVE SUMMARY
The market
Robust growth in the past five years
Figure 2: Best- and worst-case forecast for sales value of casual dining market, China, 2011-21
Increasing experiential spending and favourable government policies driving future growth
Booming food delivery service brings opportunity as well as challenge
Key players
A fragmented casual dining market
Figure 3: Casual dining market volume (number of outlets), by key brands, China, 2016
Brands establishing secondary lines and employs fun dish names
The consumer
Families dine out less often than friends gathering and lovers dating
Figure 4: Visiting purposes of casual dining restaurants, November 2016
Specialty and Sichuan/Hunan cuisines most popular
Figure 5: Penetration of casual dining restaurants, November 2016
Food taste exceptionally important, followed by in-store ambience
Figure 6: Key points of attraction, November 2016
Fresh and fit meals trending
Figure 7: Meals/dishes ordered in casual dining restaurants, November 2016
Traditional commercials losing significance to new media marketing
Figure 8: Reasons for visiting a new restaurant
What we think
ISSUES AND INSIGHTS
Defining a focus
The facts
The implications
Setting your brand apart: creative menu innovation and unique in-store experience
The facts
The implications
A winning communication strategy
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A historical value CAGR of 12.0% from 2011 to 2016
Increasing consumer spending and favourable government policies driving future growth
MARKET SIZE AND FORECAST
A fast growing market
Figure 9: Sales value and growth of casual dining market, china, 2011-16
Growth momentum expected to continue
Figure 10: Best- and worst-case forecast for sales value of casual dining market, China, 2011-21
MARKET FACTORS
Increasing spending on eating out as a way of indulgence
Figure 11: Revenue from food service, China, 2011-16
Favourable government policies
Booming food delivery service posing opportunity as well as challenge
Increasing competition from fast food restaurants and coffee houses
KEY PLAYERS – WHAT YOU NEED TO KNOW
A fragmented casual dining market
Brands establishing secondary lines and employing fun dish names
Innovation highlights:
LEADING PLAYERS
Fragmented market
Figure 12: Casual dining market volume (number of outlets), by key brands, China, 2016
Western-style casual dining: Pizza Hut, Babela’s kitchen and Houcaller
Pizza Hut
Babela’s kitchen
Houcaller
Hotpot: Hai Di Lao
Shanghai/Zhejiang-style casual dining: Wai Po Jia
Figure 13: Number of outlets, by region, Wai Po Jia, 2016
Emerging brands: Coucou (湊湊) and Pizza Marzano
Coucou (湊湊)
Pizza Marzano
Figure 14: Number of outlets, Pizza Marzano, 2016
New entrants: Fine dining brands entering casual dining sector
COMPETITIVE STRATEGIES
Multi-brand operation
Creative dish names
WHO’S INNOVATING?
Pizza Hut’s Star Plaza experiential store: various events hosting
Yi Long Xiao Que Xing: fun dish appearance and name
Figure 15: Polo turtle bun, Yi Long Xiao Que Xing, Shanghai
Play King: 3D holographic projection creating unique atmosphere
Nagi Ramen: weekly mysterious dish
Figure 16: Weekly mysterious ramen, Nagi Ramen, Shanghai
Quaker Oats: engaging consumers in menu innovation
Sasayama ramen: VR dates
THE CONSUMER – WHAT YOU NEED TO KNOW
Specialty and Sichuan/Hunan cuisines most preferred
Food taste exceptionally important, followed by in-store ambience
Fresh and fit meals trending
Traditional commercials losing significance amid new media marketing
CASUAL DINING OF REGIONAL CUISINES
Specialty restaurants most popular
Figure 17: Penetration of casual dining restaurants, November 2016
Spicy food highly preferred
Higher preference of non-Chinese restaurants among women aged 25-29
Figure 18: Penetration of casual dining restaurants, by demographics, November 2016
Families dine out less often than friends gathering and lovers dating
Figure 19: Visiting purposes of casual dining restaurants, November 2016
VISITING OCCASION
Exotic restaurants more popular for dinner than lunch
Figure 20: Visiting occasions of casual dining restaurants, November 2016
Figure 21: Visiting occasions of casual dining restaurants, lunch and dinner, November 2016
Western casual dining strongly associated with afternoon tea occasion
Figure 22: Visiting occasions of casual dining restaurants, afternoon tea and Western restaurants, November 2016
Opportunity for weekend breakfast/brunch and working day midnight meals
MOST FREQUENTLY VISITED CASUAL DINING RESTAURANT
Pizza Hut leads in a fragmented market
Figure 23: Most frequently visited casual dining restaurants, November 2016
Figure 24: Most frequently visited casual dining restaurants, word cloud, November 2016
Regional influence
Figure 25: Most frequently visited casual dining restaurants, by city, November 2016
Fast food restaurants and Coffee houses also on the list
KEY POINTS OF ATTRACTION
Meals/dishes tasting good most valued
Figure 26: Key points of attraction, November 2016
In-store ambience followed
Figure 27: Key points of attraction, good in-store ambience, by city, November 2016
Meals/dishes: wide choices and innovations
Beverages and desserts welcomed by young women aged 20-24
Figure 28: Key points of attraction, a wide variety of beverages/desserts, by gender and age, November 2016
MEALS/DISHES ORDERED
Fresh ingredients trending
Figure 29: Meals/dishes ordered in casual dining restaurants, November 2016
Fit meals appealing especially to older males
Figure 30: Meals/dishes haven’t ordered in casual dining restaurants but interested in trying out, by demographics, November 2016
Young women aged 25-29 are more exploratory
Figure 31: Meals/dishes have ordered and liked in casual dining restaurants, by demographics, November 2016
NEW RESTAURANT EXPLORING
Recommendations from relations are the most trustworthy
Figure 32: Reasons for visiting a new restaurant, November 2016
Traditional commercials losing significance to new media marketing
Other influential factors
Capturing impulse visitors
Figure 33: A Date with the Moment You Crave for, Shanghai, 2017
Driving the promotion work
New media embraced by high earners, while youngest favour recommendations from their networks
Figure 34: Selected reasons for visiting a new restaurant, by income level, November 2016
MEET THE MINTROPOLITANS
Engaging in new media when deciding on new restaurants
Figure 35: New restaurant exploring, by consumer classification, November 2016
Higher level of sophistication in evaluating a restaurant
Figure 36: Key points of attraction, by consumer classification, November 2016
APPENDIX – MARKET SIZE AND FORECAST
Figure 37: Value sales of casual dining market, China, 2011-21
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Abbreviations

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.