Table of Contents
Executive Summary
-
- The Market
- China’s fast food market is undergoing gradual recovery
-
- Figure 1: Total China fast food and takeaway market, by value sales, 2010-20
-
- Figure 2: Total China fast food and takeaway market, by market volume, 2010-20
- Individual fast food brands see faster growth than chained brands
- Key Players
- Fragmented fast food market with close competition between international and domestic brands
-
- Figure 3: Leading chains in the Chinese fast food and takeaway market, by market volume (outlets), 2013-14
- Penetrate into lower tier cities
- Key players embrace the mobile internet
- Innovation trends in customisation, delivery, cross-category strategy and ethical marketing
- The Consumer
- Ordering food for delivery becomes a habit for consumers
-
- Figure 4: Habits of ordering food for delivery, August 2015
- Lunch and breakfast see growth potential, while dinner may face challenges
- Casual and snacking occasions may drive business growth
-
- Figure 5: Penetration of eating fast food in different occasions, August 2015
-
- Figure 6: Fast food brand penetration, August 2015
- McDonald’s and KFC share similar brand image
- Subway is perceived to be trendy and innovative
- Food safety and variety may drive Zhen Kungfu and Yoshinoya to grow.
-
- Figure 7: Fast food brand image perception, correlation analysis, August 2015
- Clean environment is the most important to attract repeating visit
-
- Figure 8: Important factors leading to higher visit frequency to food restaurants, August 2015
- What we think
Issues and Insights
-
- Revival of international brands against competition
- The facts
- The implications
- Growing fast food business via food for delivery – targeting breakfast and snacking occasions
- The facts
- The implications
- Recovering from the impact of food safety issues
- The facts
- The implications
The Market – What you need to know
-
- China’s fast food market is expected to see gradual recovery
- Consumers’ increasing income and willingness to pay for service, the development of the online ordering platform and mobile payment are driving growth
- Food safety issues and the rise of casual dining restaurants are potential barriers
- Individual fast food brands see faster growth than chained brands
Market Size and Forecast
-
-
- Figure 9: China fast food and takeaway market, value sales and volume, 2010-20
-
- Figure 10: Total China fast food and takeaway market, by value sales, 2010-20
- Figure 11: Total China fast food and takeaway market, by market volume (number of outlets), 2010-20
-
Market Factors
-
- Market drivers
- Recovery of foodservice industry and continuous increase of disposable income
- Rapid development of online food ordering and delivery platforms
- Mobile pre-order and payment apps may help to drive purchase
- Market challenges
- Food safety issues – chicken products are losing trust
- The rise of casual dining restaurants
Market Segmentation
-
- Chains generate larger proportion of market value with fewer outlets
-
- Figure 12: China fast food and takeaway market, by market segments, 2010-15
- Figure 13: Independent fast food and takeaway market, by value sales, 2010-20
-
- Figure 14: Chained fast food and takeaway market, by value sales, 2010-20
- Individual fast food brands see faster growth than chained brands
Key Players – What you need to know
-
- Fragmented fast food market with close competition between international and domestic brands
- Fast growing domestic chains penetrating into lower tier cities
- Leading chains making efforts to develop franchise outlets
- Key players embracing the mobile internet and online food ordering and delivery platforms
- Innovation highlights
Market Share
-
- Fragmented fast food market
- Close competition between international and domestic players
-
- Figure 15: Leading chains in the Chinese fast food and takeaway market, by market volume (number of outlets), 2013-14
Competitive Strategies
-
- Winning the lower tier cities
- Developing the franchise outlets
- Embracing the mobile internet
- Strengthening food delivery services
Who’s Innovating?
-
- McDonald’s launches “Create Your Taste” program
-
- Figure 16: Customised burgers in the McDonald’s “Create Your Taste” program
- Figure 17: Ordering machine for the McDonald’s “Create Your Taste” program
- Fun Box allows order and pick-up service at vending machines
- Dadong opens Dadong Duck outlets offering roast duck burgers
- KFC and McDonald’s foraying into the fashion world
- Burger King gives away Peace Day Burgers
The Consumer – What you need to know
-
- Eat-in is as popular as take-out for fast food restaurants
- Ordering for food for delivery has become a habit for consumers
- When ordering food for delivery, consumers prefer using online food delivery platforms and ordering from chained restaurants
- Lunch and breakfast see growth potential, while dinner may face a challenge
- Casual dining and snacking are emerging occasions to drive growth
- Western-style fast food brands are more popular, while non-western style brands appeal to consumers aged 25 or above
- McDonald’s and KFS share similar brand image, Subway is considered innovative and trendy; Zhen Kungfu and Yoshinoya are perceived as safer
- Clean environment is key to attract repeat visits
Dining Habits
-
- Eating out and ordering food for delivery are both common ways of dining
-
- Figure 18: Dining Habits, August 2015
- Eat-in is as popular as take-out for fast food restaurants
-
- Figure 19: Dining Habits when eating out, August 2015
- Mobile apps are the most commonly used way of ordering food for delivery
-
- Figure 20: Ways to order food for delivery, August 2015
Food for Delivery
-
- Ordering food for delivery becomes habit for consumers with busy lifestyles
-
- Figure 21: Habits of ordering food for delivery, August 2015
- Consumers prefer to order from online food delivery platforms
-
- Figure 22: Mostly used ways of ordering food for delivery, August 2015
- Chained restaurants are preferred when consumers order food for delivery
-
- Figure 23: Preferred restaurants when ordering food for delivery, August 2015
- Target consumers for food delivery service from fast food chains
-
- Figure 24: Attitude and habit of ordering food for delivery (% agreeing with the statements), August 2015
Trend in Eating Fast Food
-
- Lunch is the most popular fast food occasion, and still growing
- Consumers are lowering fast food visiting frequency for dinner purpose
- Breakfast shows growth potential for fast food consumption
-
- Figure 25: Penetration and trends of eating fast food in breakfast, lunch and dinner, August 2015
- Casual and snack occasions are opportunities for fast food
-
- Figure 26: Penetration and trends of eating fast food on casual and snacking occasions, August 2015
-
- Figure 27: Percentage of consumers who have eaten fast food more often for casual dining and snacking, by demographics, August 2015
Fast Food Brand Penetration
-
- KFC and McDonald’s remain the most popular brands
-
- Figure 28: Fast food brand penetration, August 2015
- Non-western style brands appeal to consumers aged 25 or above
-
- Figure 29: Fast food brand penetration, by age, August 2015
- User profile of leading fast food brands
- KFC, McDonald’s
- Dicos
- Burger King
- Hua Lai Shi
- Subway
- Yonghe
- Zhen Kungfu
- Daniang Dumpling
- Jill Wonton
- Malan Ramen
- Yoshinoya
Fast Food Brand Image
-
- KFC and McDonald’s perceived brand image is similar
- Subway may attract affluent consumers with a ‘healthy’ proposition
- Emphasising food safety and variety may drive growth for Zhen Kungfu and Yoshinoya
-
- Figure 30: Fast food brand image perception, correlation analysis, August 2015
Important Factors in Attracting Repeat Visits
-
- Clean environment is the most important factor
- Taking advantage of technology to serve food faster
-
- Figure 31: Important factors leading to higher visit frequency at fast food restaurants, August 2015
- Location is more important to young consumers
-
- Figure 32: Important factors leading to higher visit frequency at fast food restaurants, by age, August 2015
- Home delivery services can attract high earners
-
- Figure 33: Important factors leading to higher visit frequency to fast food restaurants, by income, August 2015
- Households with kids look for large menus
-
- Figure 34: Important factors leading to higher visit frequency to fast food restaurants, by household composition, August 2015
Meet the Mintropolitans
-
- Mintropolitans are more used to ordering food for delivery
-
- Figure 35: Dining Habits, by consumer classification, August 2015
- Figure 36: Ways of ordering food for delivery, by consumer classification, August 2015
- Mintropolitans are more likely to have fast food for casual and snacking occasions
-
- Figure 37: Penetration of eating fast food in different occasions, by consumer classification, August 2015
- Mintropolitans show preference towards non-western style brands
-
- Figure 38: Fast food brand penetration, by consumer classification, August 2015
- Subway, Yoshinoya and Burger King attract more Mintropolitans
-
- Figure 39: Comparison of fast food brand penetration, by consumer classification, August 2015
- Mintropolitans pay more attention to the variety of dishes, organic ingredients and whether there are delivery services or not
-
- Figure 40: Important factors leading to higher visit frequency to food restaurants, by consumer classification, August 2015
Appendix – Market Size and Forecast
-
-
- Figure 41: Total China fast food and takeaway market, by value sales, 2010-20
- Figure 42: Total China fast food and takeaway market, by market volume, 2010-20
-
Appendix – Market Segmentation
-
-
- Figure 43: China fast food and takeaway market value, by market segments, 2010-20
- Figure 44: China fast food and takeaway market volume, by market segments, 2010-20
-
Appendix – Methodology and Abbreviations
-
- Methodology
- Fan chart forecast
- Consumer research
- Mintropolitans
- Why Mintropolitans?
- Who are they?
-
- Figure 45: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
- Figure 46: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
- Abbreviations
Back to top