Consumer Foodservice in China

Consumer Foodservice in China
Report Details:
Published:August 2012
No. of Pages:
Price: Single User License – US$1900

Discover the latest market trends and uncover sources of future market growth for the Consumer
Foodservice industry in China with research from Euromonitor's team of in-country analysts.
The Consumer Foodservice in China market research report includes:
•Analysis of key supply-side and demand trends
•Historic volumes and values, company and brand market shares
•Five year forecasts of market trends and market growth
•Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
•What is the market size of Consumer Foodservice in China?
•What are the major brands in China?
•How are economic or demographic factors impacting the foodservice industry in #Country»?
•How are multinational and local operators expanding in #Country»?
•How have consumer lifestyle trends and eating habits influenced foodservice in #Country»?
Why buy this report?
•Gain competitive intelligence about market leaders
•Track key industry trends, opportunities and threats
•Inform your marketing, brand, strategy and market development, sales and supply functions
EXECUTIVE SUMMARY
Dynamic growth supported by rising disposable income levels
Consumer foodservice saw dynamic growth for the review period as a whole, with this
underpinned by a number of factors but particularly by rising income levels. China’s strong
economic growth during the review period resulted in an increasingly affluent consumer base. In
addition, ongoing urbanisation not only offered consumers greater access to consumer
foodservice but also resulted in busier lifestyles. This boosted demand for convenience and thus
also for consumer foodservice.
Young consumers attracted by western lifestyles
Teenagers and consumers in their 20s and 30s were particularly important to the growth of
consumer foodservice during the review period. These consumers are increasingly affluent and
aspirational, while also being increasingly interested in western lifestyles. They increasingly shifted
from independent Asian full-service restaurants, fast food and street stalls/kiosks operators
towards fashionable multinational chains and concepts. Pizza consumer foodservice notably saw

strong growth as a result of these consumers, as did specialist coffee shops, chicken fast food and
bars/pubs.
Yum! Restaurants benefits from early investment
Yum! Restaurants was the clear leader in consumer foodservice in 2010, with the company
benefiting from its early entry and rapid expansion in the country. The company’s KFC and Pizza
Hut brands were both within the top five by 2010 and benefited from strong brand awareness and
extensive networks. The company notably expanded into second and third tier cities towards the
end of the review period. McDonald’s ranked second and had its strongest presence in first tier
cities, while the leading domestic player is Ting Hsin in third place with its Dicos chicken fast food
chain.
Independents continue to dominate
Sales continued to be highly fragmented at the end of the review period, however, with
independent operators accounting for close to 99% of outlet volume in 2010. Independent sales
are dominated by Asian full-service restaurants and fast food operators. Consumer foodservice is
an attractive proposition for entrepreneurs in China, with these channels continuing to see
numerous new entrants in 2010. However, chains gained share in the year, with leading players
such as Yum! Restaurants and Hua Lai Shi keen to expand rapidly across the country.
Strong growth for leading chains in forecast period
While independent operators will continue to dominate throughout the forecast period, there is
expected to be dynamic growth for chains. Both Yum! Restaurants and McDonald’s announced
ambitious expansion plans for the forecast period, while domestic leaders are also keen to expand
their networks. Chinese consumers will also fuel strong growth in consumer foodservice during the
forecast period, with rising disposable income levels encouraging a strong growth in expenditure in
this area. In addition to buying meals via consumer foodservice, the channel will also be
increasingly used for indulgent treats and hot drinks, with ice cream fast food and specialist coffee
shops set to see particularly strong growth.

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Major points covered in Table of Contents of this report include
Table of Contents
Consumer Foodservice in China - Industry Overview
EXECUTIVE SUMMARY
Dynamic growth supported by rising disposable income levels
Young consumers attracted by western lifestyles
Yum! Restaurants benefits from early investment
Independents continue to dominate
Strong growth for leading chains in forecast period
KEY TRENDS AND DEVELOPMENTS
Richer and busier consumers turn to consumer foodservice more regularly
Consumers increasingly concerned by food safety
Post-80s consumers drive growth for westernised concepts

Multinationals shift focus to lower tier cities
Domestic players push for a national brand profile
CITY KEY TRENDS AND DEVELOPMENTS
Guangzhou
MARKET DATA
Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2005-2010
Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2005-2010
Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2010
Table 4 Consumer Foodservice by Eat in Vs Takeaway 2010
Table 5 Consumer Foodservice by Food Vs Drinks Split 2010
Table 6 Sales in Consumer Foodservice by Location 2005-2010
Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2010
Table 8 Chained Consumer Foodservice Company Shares 2006-2010
Table 9 Chained Consumer Foodservice Brand Shares 2007-2010
Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2010-2015
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth
2010-2015
APPENDIX
National Consumer Expenditure
Table 12 Consumer Expenditure on Consumer Foodservice 2004-2009
Operating environment
DEFINITIONS
Summary 1 Research Sources
Consumer Foodservice in China - Company Profiles
Ajisen (China) Holdings Ltd in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
COMPETITIVE POSITIONING
Summary 4 Ajisen (China) Holdings Ltd: Competitive Position 2010
Country Style Cooking Restaurant Chain Co Ltd in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 7 Country Style Cooking Restaurant Chain Co Ltd: Competitive Position 2010
Inner Mongolia Xiao Wei Yang Chained Food Service Co Ltd in Consumer Foodservice
(China)
STRATEGIC DIRECTION
KEY FACTS

COMPANY BACKGROUND
SUPPLIERS
Summary 9 Inner Mongolia Xiao Wei Yang Chained Food Service Co Ltd: Competitive Position
2010
Little Sheep Group Limited in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 12 Little Sheep Group Limited: Competitive Position 2010
McDonald's China Development Co Ltd in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 14 McDonald's China Development Co Ltd: Competitive Position 2010
Starbucks (China) Co Ltd in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 16 Starbucks (China) Co Ltd: Competitive Position 2010
Suzhou Dio Food Service Management Co Ltd in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 18 Suzhou Dio Food Service Management Co Ltd: Competitive Position 2010
Ting Hsin International Group in Consumer Foodservice (China)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 20 Ting Hsin International Group: Competitive Position 2010
Yum! Restaurants China in Consumer Foodservice (China)
STRATEGIC DIRECTION

KEY FACTS
COMPANY BACKGROUND
SUPPLIERS
Summary 22 Yum! Restaurants China: Competitive Position 2010
100% Home Delivery/Takeaway in China - Category Analysis
HEADLINES
TRENDS
Growth in 100% home delivery/takeaway continued to be driven by dominant player Yum!
Restaurants, with this player continuing to expand its Pizza Hut Express chain. The chain
benefited from the opening of an additional 19 outlets, bringing its total to 120. There are
meanwhile only a handful of other 100% home delivery/takeaway outlets present in China, with
smaller players seeing no expansion in the year. Consumer foodservice outlets that offer home
delivery and/or takeaway services also typically offer seating, enabling consumers to eat their
purchases on-site.
COMPETITIVE LANDSCAPE
Yum! Restaurants is the only significant player in 100% home delivery/takeaway and accounted
for 93% share in value and outlet volume in 2010. This player was a pioneer in 100% home
delivery/takeaway and continued to be responsible for the channel’s expansion in 2010. The
company increased outlet volume by 19% in 2010 over the previous year, thus rising by over a
percentage point in outlet volume share. This expansion also supported a percentage point growth
in value share in the year.
PROSPECTS
There is expected to be rapid expansion for Pizza Hut Express in lower tier cities during the
forecast period. Yum! Restaurants particularly plans to continue to develop west China, in order to
benefit from economic development in the region. However, the company is expected to expand
throughout the country as consumers in lower tier cities become more affluent and sophisticated in
their tastes. In addition, the company will take advantage of improved infrastructure across the
country, while also build on synergies offered by its KFC chicken fast food chain. This chain
expanded successfully into lower tier cities during the review period and is likely to be rapidly
followed by Pizza Hut Express.
CATEGORY DATA
Table 13 100% Home Delivery/Takeaway by Category: Units/Outlets 2005-2010
Table 14 100% Home Delivery/Takeaway by Category: Number of Transactions 2005-2010
Table 15 100% Home Delivery/Takeaway by Category: Foodservice Value 2005-2010
Table 16 100% Home Delivery/Takeaway by Category: % Units/Outlets Growth 2005-2010
Table 17 100% Home Delivery/Takeaway by Category: % Transaction Growth 2005-2010
Table 18 100% Home Delivery/Takeaway by Category: % Foodservice Value Growth 2005-2010
Table 19 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2006-2010
Table 20 Brand Shares of Chained 100% Home Delivery/Takeaway 2007-2010
Table 21 Forecast Sales in 100% Home Delivery/Takeaway by Category: Units/Outlets 2010-2015
Table 22 Forecast Sales in 100% Home Delivery/Takeaway by Category: Number of Transactions

2010-2015
Table 23 Forecast Sales in 100% Home Delivery/Takeaway by Category: Foodservice Value
2010-2015
Table 24 Forecast Sales in 100% Home Delivery/Takeaway by Category: % Units/Outlets Growth
2010-2015
Table 25 Forecast Sales in 100% Home Delivery/Takeaway by Category: % Transaction Growth
2010-2015
Table 26 Forecast Sales in 100% Home Delivery/Takeaway by Category: % Foodservice Value
Growth 2010-2015
Cafés/Bars in China - Category Analysis
HEADLINES
TRENDS
Cafés/bars benefited from growing interest among young adults towards the end of the review
period. Mid- and high-income urban consumers in their 20s, 30s and 40s benefited from growing
affluence during the review period and also began to show a growing interest in western culture.
These consumers increasing welcomed the concept of socialising over coffee in specialist coffee
shops or over alcoholic drinks in bars/pubs. These consumers were also responsible for a
burgeoning coffee culture in the country, with a growing focus on the origins and preparation of
coffee.
UBC Coffee Food was the leading player in cafés/bars in 2010, with this player accounting for
24% of chained value sales. The company’s share is even stronger in GBO terms, reaching 31%
as the company’s UBC Café chain is also operated as a franchise by Suzhou Dio Food Service in
a number of regions. This chain was a pioneer in Taiwanese-style cafés and enjoys strong
nationwide brand awareness. It also benefits from its large network, with 1,100 outlets present in
first tier cities but also in lower tier cities and rural areas.
PROSPECTS
Socialising in bars/pubs is expected to become increasingly mainstream in China during the
forecast period. Young urban consumers are likely to increasingly meet up with friends in these
outlets after work or in the evenings. This trend will in turn encourage the opening of a growing
number of bars/pubs in urban areas, supporting a dramatic 13% outlet volume CAGR during the
forecast period. With consumers increasingly meeting up with friends for a few hours, the channel
is also expected to see the strongest constant value growth during the forecast period, with a
CAGR of 15%.
CATEGORY DATA
Table 27 Cafés/Bars by Category: Units/Outlets 2005-2010
Table 28 Cafés/Bars by Category: Number of Transactions 2005-2010
Table 29 Cafés/Bars by Category: Foodservice Value 2005-2010
Table 30 Cafés/Bars by Category: % Units/Outlets Growth 2005-2010
Table 31 Cafés/Bars by Category: % Transaction Growth 2005-2010
Table 32 Cafés/Bars by Category: % Foodservice Value Growth 2005-2010
Table 33 Global Brand Owner Shares of Chained Cafés/Bars 2006-2010

Table 34 Brand Shares of Chained Cafés/Bars 2007-2010
Table 35 Forecast Sales in Cafés/Bars by Category: Units/Outlets 2010-2015
Table 36 Forecast Sales in Cafés/Bars by Category: Number of Transactions 2010-2015
Table 37 Forecast Sales in Cafés/Bars by Category: Foodservice Value 2010-2015
Table 38 Forecast Sales in Cafés/Bars by Category: % Units/Outlets Growth 2010-2015
Table 39 Forecast Sales in Cafés/Bars by Category: % Transaction Growth 2010-2015
Table 40 Forecast Sales in Cafés/Bars by Category: % Foodservice Value Growth 2010-2015
Consumer Foodservice by Location in China - Category Analysis
HEADLINES
TRENDS
There was rapid growth in the number of shopping malls present in China during the review
period, with an estimated 500 being constructed between 2004 and 2009. These centres are also
increasingly combining retailing with leisure and recreational facilities such as cinemas,
amusement parks and green areas, thus attracting both tourists and local residents seeking a
family day out. These centres offer strong scope for consumer foodservice expansion and a large
semi-captive consumer base and consequently boosted retail and leisure locations during the
review period, supporting outlet volume growth of 9% and 10% respectively.
Multinationals were particularly active in developing retail and leisure locations during the review
period. Yum! Restaurants is the leading player in both retail and leisure locations, with the
company keen to ensure a high footfall for its outlets. Pizza Hut has a strong presence in both
retail and leisure locations, while the 100% home delivery/takeaway formats Pizza Hut Express
and Pizza Hut Delivery have a strong and growing presence in retail locations. KFC also has a
strong focus on retail locations. McDonald’s also placed a growing emphasis on retail locations
during the review period, with McCafé also gaining a strong presence in leisure locations in 2010.
PROSPECTS
There is expected to be rapid expansion in the availability of retail locations during the forecast
period, with considerable investment in the construction of shopping malls being seen at the end
of the review period. Investors are expected to particularly focus on second and third tier cities,
with these set to see a flourishing of four- or five-storey malls offering retailing and consumer
foodservice options. Within first tier cities, a smaller number of mega malls are likely to be
constructed during the forecast period, with these also offering entertainment and recreation
facilities. Investors are keen to capitalise on expected economic growth in China during the
forecast period, with shopping set to become an increasingly popular leisure pursuit. As a result of
this trend, retail locations is expected to see strong growth within consumer foodservice, with an
outlet volume CAGR of 9%. Growth is expected to be particularly strong within specialist coffee
shops, with many consumers keen to stop for coffee and a chat with friends while out shopping.
CATEGORY DATA
Table 41 Consumer Foodservice Sales by Location: Units/Outlets 2005-2010
Table 42 Consumer Foodservice Sales by Location: Number of Transactions 2005-2010
Table 43 Consumer Foodservice Sales by Location: Foodservice Value 2005-2010
Table 44 Consumer Foodservice Sales by Location: % Units/Outlets Growth 2005-2010

Table 45 Consumer Foodservice Sales by Location: % Transaction Growth 2005-2010
Table 46 Consumer Foodservice Sales by Location: % Foodservice Value Growth 2005-2010
Table 47 Consumer Foodservice Sales through Standalone: Units/Outlets 2005-2010
Table 48 Consumer Foodservice Sales through Standalone: Number of Transactions 2005-2010
Table 49 Consumer Foodservice Sales through Standalone: Foodservice Value 2005-2010
Table 50 Consumer Foodservice Sales through Standalone: % Units/Outlets Growth 2005-2010
Table 51 Consumer Foodservice Sales through Standalone: % Transaction Growth 2005-2010
Table 52 Consumer Foodservice Sales through Standalone: % Foodservice Value Growth 2005-
2010
Table 53 Consumer Foodservice Sales through Leisure: Units/Outlets 2005-2010
Table 54 Consumer Foodservice Sales through Leisure: Number of Transactions 2005-2010
Table 55 Consumer Foodservice Sales through Leisure: Foodservice Value 2005-2010
Table 56 Consumer Foodservice Sales through Leisure: % Units/Outlets Growth 2005-2010
Table 57 Consumer Foodservice Sales through Leisure: % Transaction Growth 2005-2010
Table 58 Consumer Foodservice Sales through Leisure: % Foodservice Value Growth 2005-2010
Table 59 Consumer Foodservice Sales through Retail: Units/Outlets 2005-2010
Table 60 Consumer Foodservice Sales through Retail: Number of Transactions 2005-2010
Table 61 Consumer Foodservice Sales through Retail: Foodservice Value 2005-2010
Table 62 Consumer Foodservice Sales through Retail: % Units/Outlets Growth 2005-2010
Table 63 Consumer Foodservice Sales through Retail: % Transaction Growth 2005-2010
Table 64 Consumer Foodservice Sales through Retail: % Foodservice Value Growth 2005-2010
Table 65 Consumer Foodservice Sales through Lodging: Units/Outlets 2005-2010
Table 66 Consumer Foodservice Sales through Lodging: Number of Transactions 2005-2010
Table 67 Consumer Foodservice Sales through Lodging: Foodservice Value 2005-2010
Table 68 Consumer Foodservice Sales through Lodging: % Units/Outlets Growth 2005-2010
Table 69 Consumer Foodservice Sales through Lodging: % Transaction Growth 2005-2010
Table 70 Consumer Foodservice Sales through Lodging: % Foodservice Value Growth 2005-2010
Table 71 Consumer Foodservice Sales through Travel: Units/Outlets 2005-2010
Table 72 Consumer Foodservice Sales through Travel: Number of Transactions 2005-2010
Table 73 Consumer Foodservice Sales through Travel: Foodservice Value 2005-2010
Table 74 Consumer Foodservice Sales through Travel: % Units/Outlets Growth 2005-2010
Table 75 Consumer Foodservice Sales through Travel: % Transaction Growth 2005-2010
Table 76 Consumer Foodservice Sales through Travel: % Foodservice Value Growth 2005-2010
Table 77 Forecast Consumer Foodservice Sales by Location: Units/Outlets 2010-2015
Table 78 Forecast Consumer Foodservice Sales by Location: Number of Transactions 2010-2015
Table 79 Forecast Consumer Foodservice Sales by Location: Foodservice Value 2010-2015
Table 80 Forecast Consumer Foodservice Sales by Location: % Units/Outlets Growth 2010-2015
Table 81 Forecast Consumer Foodservice Sales by Location: % Transaction Growth 2010-2015
Table 82 Forecast Consumer Foodservice Sales by Location: % Foodservice Value Growth 2010-
2015
Table 83 Forecast Consumer Foodservice Sales through Standalone: Units/Outlets 2010-2015
Table 84 Forecast Consumer Foodservice Sales through Standalone: Number of Transactions

2010-2015
Table 85 Forecast Consumer Foodservice Sales through Standalone: Foodservice Value 2010-
2015
Table 86 Forecast Consumer Foodservice Sales through Standalone: % Units/Outlets Growth
2010-2015
Table 87 Forecast Consumer Foodservice Sales through Standalone: % Transaction Growth
2010-2015
Table 88 Forecast Consumer Foodservice Sales through Standalone: % Foodservice Value
Growth 2010-2015
Table 89 Forecast Consumer Foodservice Sales through Leisure: Units/Outlets 2010-2015
Table 90 Forecast Consumer Foodservice Sales through Leisure: Number of Transactions 2010-
2015
Table 91 Forecast Consumer Foodservice Sales through Leisure: Foodservice Value 2010-2015
Table 92 Forecast Consumer Foodservice Sales through Leisure: % Units/Outlets Growth 2010-
2015
Table 93 Forecast Consumer Foodservice Sales through Leisure: % Transaction Growth 2010-
2015
Table 94 Forecast Consumer Foodservice Sales through Leisure: % Foodservice Value Growth
2010-2015
Table 95 Forecast Consumer Foodservice Sales through Retail: Units/Outlets 2010-2015
Table 96 Forecast Consumer Foodservice Sales through Retail: Number of Transactions 2010-
2015
Table 97 Forecast Consumer Foodservice Sales through Retail: Foodservice Value 2010-2015
Table 98 Forecast Consumer Foodservice Sales through Retail: % Units/Outlets Growth 2010-
2015
Table 99 Forecast Consumer Foodservice Sales through Retail: % Transaction Growth 2010-2015
Table 100 Forecast Consumer Foodservice Sales through Retail: % Foodservice Value Growth
2010-2015
Table 101 Forecast Consumer Foodservice Sales through Lodging: Units/Outlets 2010-2015
Table 102 Forecast Consumer Foodservice Sales through Lodging: Number of Transactions 2010-
2015
Table 103 Forecast Consumer Foodservice Sales through Lodging: Foodservice Value 2010-2015
Table 104 Forecast Consumer Foodservice Sales through Lodging: % Units/Outlets Growth 2010-
2015
Table 105 Forecast Consumer Foodservice Sales through Lodging: % Transaction Growth 2010-
2015
Table 106 Forecast Consumer Foodservice Sales through Lodging: % Foodservice Value Growth
2010-2015
Table 107 Forecast Consumer Foodservice Sales through Travel: Units/Outlets 2010-2015
Table 108 Forecast Consumer Foodservice Sales through Travel: Number of Transactions 2010-
2015
Table 109 Forecast Consumer Foodservice Sales through Travel: Foodservice Value 2010-2015

Table 110 Forecast Consumer Foodservice Sales through Travel: % Units/Outlets Growth 2010-
2015
Table 111 Forecast Consumer Foodservice Sales through Travel: % Transaction Growth 2010-
2015
Table 112 Forecast Consumer Foodservice Sales through Travel: % Foodservice Value Growth
2010-2015
Fast Food in China - Category Analysis
HEADLINES
TRENDS
For much of the review period, multinationals mainly focused on first tier cities in China, where
their global brands attracted mid- and high-income consumers with an interest in western
lifestyles. However, growing competition in these cities resulted in a growing focus on lower tier
cities, particularly from Yum! Restaurants’ KFC. KFC notably introduced lower franchising fees for
second and third tier cities in 2007, with the chain subsequently expanding more rapidly in these
cities as a result. Simultaneously, domestic players with a lower-priced positioning increasingly
turned their attention to gaining share in first tier cities as they sought to expand. Ting Hsin for
example launched its Dicos and Master Kong Chef's Table chains in first tier cities such as Beijing
from 2008 onwards. Consequently, fast food saw rising competition in all cities across China
towards the end of the review period.
Yum! Restaurants was the clear leader in value terms in 2010, with the company accounting for
40% chained value share. Owner Yum! Brands increasingly focused on building up sales in China
during the review period, with rapidly rising profits from the country compensating for a slowing
performance in North America. The company’s KFC chain benefits from a number of key
strategies, including the offer of lower franchising fees for second and third tier cities and the
introduction of traditional Chinese dishes such as congee to its menu. The strong appeal of the
KFC brand and its well-chosen locations are reflected in the company’s high chained transaction
volume share of 35% in 2010 despite accounting for just 11% of chained outlet volume.
PROSPECTS
The leading multinationals are expected to invest heavily in China during the forecast period.
McDonald’s notably announced in July 2011 that it planned to open a McDonald’s outlet every day
in China for the next three to four years. The company also announced that it would recruit 50,000
employees in China in 2011, including 1,000 management trainees. McDonald’s is keen to
compete more strongly with Yum! Brands in China, believing the country to offer a strong potential
for continued sales growth. The company is also keen to further develop burger fast food, which
continued to lag behind chicken fast food and Asian fast food at the end of the review period.
CATEGORY DATA
Table 113 Fast Food by Category: Units/Outlets 2005-2010
Table 114 Fast Food by Category: Number of Transactions 2005-2010
Table 115 Fast Food by Category: Foodservice Value 2005-2010
Table 116 Fast Food by Category: % Units/Outlets Growth 2005-2010
Table 117 Fast Food by Category: % Transaction Growth 2005-2010

Table 118 Fast Food by Category: % Foodservice Value Growth 2005-2010
Table 119 Sales of Bakery Products Fast Food by Type 2007-2010
Table 120 Global Brand Owner Shares of Chained Fast Food 2006-2010
Table 121 Brand Shares of Chained Fast Food 2007-2010
Table 122 Forecast Sales in Fast Food by Category: Units/Outlets 2010-2015
Table 123 Forecast Sales in Fast Food by Category: Number of Transactions 2010-2015
Table 124 Forecast Sales in Fast Food by Category: Foodservice Value 2010-2015
Table 125 Forecast Sales in Fast Food by Category: % Units/Outlets Growth 2010-2015
Table 126 Forecast Sales in Fast Food by Category: % Transaction Growth 2010-2015
Table 127 Forecast Sales in Fast Food by Category: % Foodservice Value Growth 2010-2015
Full-Service Restaurants in China - Category Analysis
HEADLINES
TRENDS
Full-service restaurants benefited from China’s economic growth throughout the review period,
with players in the channel keen to benefit from consumers’ increasing willingness to spend on
eating out. Growth rates dipped slightly in 2009 due to economic uncertainty related to the global
economic downturn and deflation. However, China maintained growth in this year and in 2010
players of all sizes were more willing to invest in opening new full-service restaurants. The three
leading players in outlet volume all invested in double-digit outlet volume growth in the year, with
Yum! Restaurants, Little Sheep and Inner Mongolia Xiao Wei Yang opening over 150 outlets in
total. Smaller chains also expanded, with “other” chained full-service restaurants opening 616
outlets in 2010 over the previous year. Many independent entrepreneurs also entered, with almost
266,000 new independent outlets opening in the year.
Full-service restaurants is highly fragmented, with “others” accounting for close to 100% of outlet
volume and 99% share of value sales in 2010. Most outlets are independent Asian full-service
restaurants, with these generally focused on regional food. Even within chained full-service
restaurants sales continued to be fragmented at the end of the review period, with the leading
players Yum! Restaurants, Little Sheep and Inner Mongolia Xiao Wei Yang accounting for just 4%
value share each in 2010. These players benefit from strong brand names Pizza Hut, Little Sheep
and Xiao Wei Yang. They also benefit from large outlet networks, with each operating around 500
outlet at the end of the review period.
PROSPECTS
Full-service restaurants could well see consolidation at the start of the forecast period, with leading
player Yum! Brands attempting to purchase Little Sheep in 2011. This acquisition would be likely
to result in dynamic growth for the Little Sheep chain, which would benefit from Yum! Brands’ large
budget for advertising and outlet volume expansion. Yum! Brands’ Pizza Hut is also expected to
see dynamic expansion in outlet volume during the forecast period, with the company keen to
expand the chain into lower tier cities across China.
CATEGORY DATA
Table 128 Full-Service Restaurants by Category: Units/Outlets 2005-2010
Table 129 Full-Service Restaurants by Category: Number of Transactions 2005-2010

Table 130 Full-Service Restaurants by Category: Foodservice Value 2005-2010
Table 131 Full-Service Restaurants by Category: % Units/Outlets Growth 2005-2010
Table 132 Full-Service Restaurants by Category: % Transaction Growth 2005-2010
Table 133 Full-Service Restaurants by Category: % Foodservice Value Growth 2005-2010
Table 134 Global Brand Owner Shares of Chained Full-Service Restaurants 2006-2010
Table 135 Brand Shares of Chained Full-Service Restaurants 2007-2010
Table 136 Forecast Sales in Full-Service Restaurants by Category: Units/Outlets 2010-2015
Table 137 Forecast Sales in Full-Service Restaurants by Category: Number of Transactions 2010-
2015
Table 138 Forecast Sales in Full-Service Restaurants by Category: Foodservice Value 2010-2015
Table 139 Forecast Sales in Full-Service Restaurants by Category: % Units/Outlets Growth 2010-
2015
Table 140 Forecast Sales in Full-Service Restaurants by Category: % Transaction Growth 2010-
2015
Table 141 Forecast Sales in Full-Service Restaurants by Category: % Foodservice Value Growth
2010-2015
Self-Service Cafeterias in China - Category Analysis
HEADLINES
TRENDS
Only a limited number of brands and outlets are present within self-service cafeterias, which
continued to be negligible in China at the end of the review period. There are only two chained
players present in this channel, namely IKEA and LB Peoples.
LB Peoples is the most significant player in self-service cafeterias. This player created the
foodservice concept of a “fast food supermarket” offering Chinese dishes in a self-service format.
The chain focuses on offering a fast service and cheap prices, thus mainly targeting young people.
This player had over 100 outlets at the end of the review period.
PROSPECTS
Self-service cafeterias is expected to remain close to negligible during the forecast period. Most
consumers prefer Asian to be freshly prepared and served piping hot. They are concerned about
the flavour, freshness, temperature and hygiene of food that has been kept warm. Consequently,
there are likely to be few new entrants to self-service cafeterias during the forecast period, with
players instead focusing on more popular and proven consumer foodservice channels.
Street Stalls/Kiosks in China - Category Analysis
HEADLINES
TRENDS
Operators of street stalls/kiosks faced growing challenges towards the end of the review period.
There were higher rental costs for most operators as cities became busier. In addition, operators
faced growing costs for food and beverage ingredients, fuel and wages. Furthermore, the
government sought to impose stricter controls on street stalls/kiosks towards the end of the review
period, especially independent operators, with a growing focus on operators having the correct
license and meeting safety standards. As a result of these controls, street stalls/kiosks saw only

6% growth in outlet volume in 2010 over the previous year. Growth remained strong due to the low
cost of entering this channel and due to growing demand for consumer foodservice. However,
growth would have been considerably stronger in 2010 had conditions for street stalls/kiosks
remained similar throughout the review period.
Street stalls/kiosks is highly fragmented, with independent players accounting for 72% value share
in 2010. Even within chained street stalls/kiosks shares are fragmented, with smaller chains within
“others” accounting for 85% of chained value in the year. There are numerous small chains
operating in one or two Chinese cities, with low entry barriers encouraging entrepreneurs to
expand into a number of street stalls/kiosks. The leading player Shanghai Jack Hut Food &
Beverage accounted for 7% chained value share in 2010, benefiting from its large outlet volume
and low pricing. Meanwhile all other significant players accounted for 2% value share or less.
PROSPECTS
Chained players in street stalls/kiosks are expected to focus on expanding into lower tier cities and
towns during the forecast period. This format is already saturated in many locations in first tier
cities, with Shanghai and Beijing for example approaching maturity in street stalls/kiosks. In
People’s Square in Shanghai, there were for example over 20 juice street stalls/kiosks within a
500 sq. m area.
CATEGORY DATA
Table 142 Street Stalls/Kiosks: Units/Outlets 2005-2010
Table 143 Street Stalls/Kiosks: Number of Transactions 2005-2010
Table 144 Street Stalls/Kiosks: Foodservice Value 2005-2010
Table 145 Street Stalls/Kiosks: % Units/Outlets Growth 2005-2010
Table 146 Street Stalls/Kiosks: % Transaction Growth 2005-2010
Table 147 Street Stalls/Kiosks: % Foodservice Value Growth 2005-2010
Table 148 Global Brand Owner Shares of Chained Street Stalls/Kiosks 2006-2010
Table 149 Brand Shares of Chained Street Stalls/Kiosks 2007-2010
Table 150 Forecast Sales in Street Stalls/Kiosks: Units/Outlets 2010-2015
Table 151 Forecast Sales in Street Stalls/Kiosks: Number of Transactions 2010-2015
Table 152 Forecast Sales in Street Stalls/Kiosks: Foodservice Value 2010-2015
Table 153 Forecast Sales in Street Stalls/Kiosks: % Units/Outlets Growth 2010-2015
Table 154 Forecast Sales in Street Stalls/Kiosks: % Transaction Growth 2010-2015
Table 155 Forecast Sales in Street Stalls/Kiosks: % Foodservice Value Growth 2010-2015

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Consumer Foodservice in China

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