QUICK SERVICE RESTAURANTS

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The sector is still growing rapidly despite grappling with issues such as internal competition, wages costs, rising rent and most importantly, the difficulty of sourcing safe supplies at desired prices. Consumer trust is vital to this industry, major chains endured significant blows in 2012 and 2014 with food safety scandals.

Big players also have to adapt as rapidly as the Chinese consumer to keep up with competition. Every year the industry is having to with one hand control costs and with the other innovate new offers to keep up. This year pressure is on healthy and active options (see KFC new chain with salads and smoothies).

If you are serious about this channel we suggest you invest in understanding the whole business so you can tailor concepts and solutions to suit their individual business models. If you can show yourself as a partner and provide solutions to their problems and innovation to their consumers you could do well.

This is technically a challenging channel and so you really need to know what you are doing, what the channel is doing and how you fit into that in order to get anywhere. This channel is for the more mature.

WHAT IS IMPORTANT TO FAST-FOOD BUYERS IN CHINA?

  • FOOD SAFETY: This is a concern everywhere in China but is absolutely integral to the reputation and survival of these chains. For this reason, most will choose to source through a large, well-known and reputable distributor.
  • CONCEPTS: Simply offering a product is not enough, you need a whole food concept that they can plug into hundreds of stores. If they have to work it out on their own you could end up in the “too hard” basket.
  • SOLUTIONS: Each chain faces a set of challenges and so are a more willing audience if you can solve a problem rather than just offer a new idea. If you can do both you may be onto a winner!

HARD DATA MATRIX

OUTLETS FOUNDED HOLDING ORIGIN
YUM! BRANDS / 百胜中国 9,200 N/A 1993 USA
MCDONALD’S / 金拱门 3500 1955 Listed Chicago, USA
DUNKIN’S DONUT / 唐恩都乐 20 1950 Listed Massachusetts, USA
KUNG FU / 真功夫 600 1990 Private Guangzhou, China
AJISEN RAMEN / 味千拉面 770 1968 Listed Japan
DICOS / 德克士 2,500 1994 Private China
PAPA JOHNS / 棒约翰 210 1984 Listed USA
SUBWAY / 赛百味 530 1965 Private Connecticut, US
DOMINO’S / 达美乐比萨 260 1960 Listed Michigan, US
BURGER KING / 汉堡王 1000 1954 Listed USA

COMMENTS

  1. Aaron says:

    this is awesome! do you have one of these for the transport channel?

    1. Eleni Yianna says:

      Hi there Aaron, we used to profile transport, but have just updated to the current selection. Was there a particular transport group you were keen to learn more about? I may be able to pull something from our archive.

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