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Description

Description

Covered in this report

The report looks at consumers’ consumption behaviour, attitudes towards the leading brands in the Western-style fast food market and expectations of the food and drinks. Western-style fast food restaurants refer to those that have a restricted or set menu, provide limited table service and offer takeaway which accounts for a significant proportion of turnover. Takeaway revenue is counted if it’s part of a Western-style fast food restaurant. Market value is based on expenditure including sales tax in these outlets; market volume is based on the number of outlets.

“Consumers are concerned that having high-calorie and greasy Western-style fast food very often could cause health issues. Western-style fast food businesses could start to introduce healthy drinks, such as probiotic drinks, NFC drinks and infusion teas to mitigate the problems. Besides healthy drinks, consumers also show a high expectation of light meals which could have a long way to go. If businesses want to develop this part, they can consider introducing light meals on family get-togethers.”

– Belle Wang, Associate Analyst, Food and Drink

This report examines the following issues:

  • Put efforts into developing healthy drinks
  • Fusion food is a great innovation idea
  • Functional children’s meals and nutritious labelled light meals are welcomed

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • The market
            • Strong growth of market value in 2018
              • Figure 1: Best- and worst-case forecast for Western-style fast food, by value, 2013-23
            • Quick expansion in volume
              • Figure 2: Best- and worst-case forecast for Western-style fast food, by volume, 2013-23
            • Store expansion to highways
              • Get the help of local enterprises
                • Companies and brands
                  • Further localisation and quick expansion helped brands gain market share
                    • Build more consumption occasions
                      • “Plant-based” is the new trend
                        • The consumer
                          • Win more consumers by understanding them
                            • Figure 3: Brand penetration, China, December 2018
                          • Develop afternoon tea occasion
                            • Figure 4: Selected consumption occasions, by brand, China, December 2018
                          • The ways of increasing soft drinks and desserts penetration
                            • Figure 5: Product penetration, China, December 2018
                          • High expectation of healthy drinks
                            • Figure 6: Expected upgrade, China, December 2018
                          • Brands’ performance in restaurant satisfaction
                            • Figure 7: Brand satisfaction, China, December 2018
                          • Consumers are more satisfied with external attributes
                            • Figure 8: Service satisfaction, China, December 2018
                            • Figure 9: Overall satisfaction with most visited Western-style fast food restaurants – Key driver output, December 2018
                          • What we think
                          • Issues and Insights

                            • Put efforts into developing healthy drinks
                              • The facts
                                • The implications
                                  • Fusion food is a great innovation idea
                                    • The facts
                                      • The implications
                                        • Functional children’s meals and nutritious labelled light meals are welcomed
                                          • The facts
                                            • The implications
                                            • The Market – What You Need to Know

                                              • The market will keep growing in both value and volume
                                                • Revolution in highway service zone
                                                  • Localised operation right helps international brands expand
                                                  • Market Size and Forecast

                                                    • Great performance in 2018 while a slowing growth in the future
                                                      • Figure 10: Best- and worst-case forecast for Western-style fast food, by value, 2013-23
                                                    • A double-digit growth rate in volume
                                                      • Figure 11: Best- and worst-case forecast for Western-style fast food, by volume, 2013-23
                                                  • Market Factors

                                                    • Marketisation of foodservice in highway service zone
                                                      • Chinese acquirers bring advantages to international brands
                                                        • Competitors in other business formats pose threats
                                                        • Key Players – What You Need to Know

                                                          • KFC had an increasing market share
                                                            • McDonald’s and Dicos lose make share
                                                              • Burger King and Wallace had a good performance
                                                              • Market Share

                                                                • KFC dominates and even grows faster than the others
                                                                  • Figure 12: Leading players in the Western-style fast food market, by percentage of market value, China, 2017-18
                                                                • McDonald’s and Burger King compete with each other
                                                                  • Dicos had an unsteady year
                                                                    • Wallace has gained more market share
                                                                    • Competitive Strategies

                                                                      • Enlarge the proportion of consumers aged 20-29
                                                                        • Use membership system to reach more consumers
                                                                          • Upgrade and enrich consumers’ experience
                                                                            • Figure 13: Dicos in-store environment, China, 2019
                                                                            • Figure 14: KFC dessert shop, China, 2019
                                                                        • Who’s Innovating?

                                                                          • Plant-based burger brings a healthier image
                                                                            • Figure 15: The heme process, by Impossible Foods, US
                                                                          • Mini-burgers give more choices at once
                                                                            • Figure 16: Mini-burger, by Bite Me, UK
                                                                          • Use Chinese herbs with the claim of beauty and health benefits
                                                                            • Figure 17: Soft drink and porridge with Goji, by Dicos, China
                                                                        • The Consumer – What You Need to Know

                                                                          • More 30-49s visit on lunch occasion
                                                                            • Consumers are highly interested in healthy drinks
                                                                              • Innovate in healthier desserts
                                                                              • Brand Penetration

                                                                                • Brands have attracted different age groups
                                                                                  • Figure 18: Consumer age structure, by brand, China, December 2018
                                                                                • Brands’ popularity in different regions
                                                                                  • Figure 19: Consumers of each brand, by region, China, December 2018
                                                                                • McDonald’s has more consumers in tier three cities
                                                                                  • Figure 20: Outlets and consumers of McDonald’s, by city, China, December 2018
                                                                              • Consumption Occasion

                                                                                • More 30-49s choose Western-style fast food for lunch
                                                                                  • Figure 21: Consumption occasions, by generation, China, December 2018
                                                                                  • Figure 22: Visitation rate on lunch occasion, by brand, China, December 2018
                                                                                • Subway and Wallace could enhance afternoon tea occasion
                                                                                  • Figure 23: Selected consumption occasions, by brands, China, December 2018
                                                                                • Competition on breakfast occasion from other foodservice businesses
                                                                                  • Figure 24: Consumption occasions, China, December 2018
                                                                                  • Figure 25: Breakfast occasions, by brand, China, December 2018
                                                                              • Product Penetration

                                                                                • Potential of adding fresh juice and infusion tea on menu
                                                                                  • Figure 26: Product penetration, China, December 2018
                                                                                • Develop healthy and fun light meals for families with children
                                                                                  • Innovate in desserts with healthy features
                                                                                  • Expected Upgrade

                                                                                    • It’s time to do healthy drinks
                                                                                      • Figure 27: Expected upgrade, China, December 2018
                                                                                    • 25-29s show a great interest in fusion food
                                                                                      • Consumers have different expectations regarding brands
                                                                                        • Figure 28: Selected expected upgrade, by brand, China, December 2018
                                                                                    • Service Satisfaction

                                                                                      • Convenience and cleanliness impress consumers the most
                                                                                        • Figure 29: Service satisfaction, China, December 2018
                                                                                    • Restaurant Satisfaction

                                                                                      • KFC story
                                                                                        • Figure 30: Brand satisfaction, China, December 2018
                                                                                        • Figure 31: Key drivers of overall satisfaction with KFC, December 2018
                                                                                      • McDonald’s story
                                                                                        • Figure 32: Key drivers of overall satisfaction with McDonald’s, December 2018
                                                                                      • Burger King story
                                                                                        • Figure 33: Key drivers of overall satisfaction with Burger King, December 2018
                                                                                      • Wallace story
                                                                                        • Figure 34: Key drivers of overall satisfaction with Wallace, December 2018
                                                                                      • Dicos story
                                                                                        • Figure 35: Key drivers of overall satisfaction with Dicos, December 2018
                                                                                    • Meet the Mintropolitans

                                                                                      • Mintropolitans prefer light meals and coffee
                                                                                        • Figure 36: Difference of product penetration between Mintropoilitans and non-Mintropolitans (as benchmark), China, December 2018
                                                                                      • Health and nutrition are top expectations among MinTs
                                                                                        • Figure 37: Expected upgrade, by consumer classification, China, December 2018
                                                                                    • Appendix – Market Size and Forecast

                                                                                        • Figure 38: Total market value of Western-style fast food, China, 2013-23
                                                                                        • Figure 39: Total market volume of Western-style fast food, China, 2013-23
                                                                                    • Appendix – Methodology and Abbreviations

                                                                                      • Methodology
                                                                                        • Fan chart forecast
                                                                                          • Abbreviations

                                                                                          About the report

                                                                                          This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                          • The Consumer

                                                                                            What They Want. Why They Want It.

                                                                                          • The Competitors

                                                                                            Who’s Winning. How To Stay Ahead.

                                                                                          • The Market

                                                                                            Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                          • The Innovations

                                                                                            New Ideas. New Products. New Potential.

                                                                                          • The Opportunities

                                                                                            Where The White Space Is. How To Make It Yours.

                                                                                          • The Trends

                                                                                            What’s Shaping Demand – Today And Tomorrow.

                                                                                          Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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