FAST FOOD AND ORGANISED CATERING IN CHINA: A MARKET ANALYSIS

SUMMARY

Access Asia has published this updated edition of Catering China to cover the rapidly growing fast food, family restaurants and QSR sectors.

EXTRACT FROM INTRODUCTION

Other Access Asia reports related to this sector include:

• Fast-Food in Hong Kong
• Retailing in Hong Kong
• Retailing in China
• Hotels in Hong Kong
• Hotels in China
• Travel and Tourism in Hong Kong
• Travel and Tourism in China
• Travel and Tourism in Macau

Fast food, quick service restaurants (QSR) and organised catering in China is not a new creation. Noodle and jiaozi (dumpling) stalls and restaurants are a traditional part of Chinese culture.

 In the late 1990s, urban China, dining out is increasingly popular with consumers. It has become a big business for western restaurant chains and local entrepreneurs. For professional urban couples, eating out provides a welcome break from daily home cooking. Children and teenagers enjoy nights out over the weekend when dining out is often mixed with window-shopping and entertainment as well as a way of finding private space. Increasingly, urban Chinese are sampling new foreign cuisine's.

The big names have all mostly arrived in China ·McDonald's, KFC and Pizza Hut. Fast food restaurants are a flourishing business opportunity and a rapidly normal part of urban life. The western chains must compete for custom with the traditional Chinese fast food restaurants offering dishes such as noodles, dumplings, steamed bread and congee.

 An interesting development is the rise of companies such as Can Can chicken, a local operator emulating western competitors by devoting greater attention to service and decor.

 Chinese-style fast food restaurants only really emerged after Western fast-food companies such as KFC and McDonald's entered China in 1987. Since then, the Chinese fast food sector has learned Western advanced management techniques and developed rapidly.

 The Chinese Government designated the catering industry as 'a new economic growth point·in 1998 year urging local chains to start-up, expand and improve their management and operations the better to compete with foreign chains. This is now happening though often in odd forms. One enterprising Beijing restaurant owner has patented a recipe for fast food baked pig's head. The restaurateur is hoping to compete with the American chains and told the press, "China needs special new dishes like pig's face that can be standardised and patented.·..'

TABLE OF CONTENTS

CHINA CONTACT I

CONTENTS II

INTRODUCTION

Report Coverage

Free Monthly Online Newsletters

1 EXECUTIVE SUMMARY

2 CHINA? CATERING MARKET

2.1 Total Market Size

2.1.1 Total Market Size: Overall Trends

2.1.2 Total Market Size: Fast Food Trends

2.1.3 Total Market Size: Consumption Significance

2.1.4 Total Market Size: Food Market Significance

2.1.5 Total Market Size: Per Capita Significance

2.1.6 Total Market Size: Catering Revenues by Province

2.1.7 Total Market Size: Sales of Beverages & Food by Catering Establishments by Province

2.2 Catering Establishments

2.2.1 Catering Establishments: Total Establishments

2.2.2 Catering Establishments: Establishments by Sector

2.3 Catering Employees

2.3.1 Catering Employees: Total Employees

2.3.2 Catering Employees: Total Employees By Province

2.3.3 Catering Employees: Employees by Sector

2.3.4 Catering Employees: Regional Significance

2.4 Outlook

2.4.1 Outlook: Forecast Trends

2.4.2 Outlook: Total Market Size

2.5 Current Issues

2.5.1 Current Issues: Legislation

2.5.2 Current Issues: Styrofoam Controls

2.5.3 Current Issues: Hygiene

2.5.4 Current Issues: Franchising

2.5.5 Current Issues: Food Courts & Clustering

2.5.6 Current Issues: Internet Cafes

2.5.7 Current Issues: Dining Out

2.5.8 Current Issues: The Influence of Hong Kong & Macau

2.5.9 Current Issues: Foreign Penetration in Shanghai

2.5.10 Current Issues: Hostess Taxes

2.5.11 Current Issues: Visitor Attraction Catering

2.5.12 Current Issues: Food Poisoning

2.6 Cuisine Trends

2.6.1 Cuisine Trends: Xinjiang Cuisine

2.6.2 Cuisine Trends: Australian Cuisine

2.6.3 Cuisine Trends: Japanese Cuisine

2.6.4 Cuisine Trends: Latin American Cuisine

2.6.5 Cuisine Trends: Banshichu Brings Regional Cuisines to Beijing

2.6.6 Cuisine Trends: Coffee Shops

2.6.7 Cuisine Trends: Noodles

2.6.8 Cuisine Trends: Middle Eastern Cuisine

2.7 New Players

2.7.1 New Players: Fruito Ricci

2.7.2 New Players: Hooter? of America Inc.

2.7.3 New Players: Lan Kwai Fong Restaurant Group

2.7.4 New Players: Pizza Now

2.7.5 New Players: Shanghai Maya Online

3 MARKETING

3.1 Advertising

3.2 New Trends

3.3 Meal Deals

3.4 Consumer Food Preferences

3.5 Consumer Profile

3.5.1 Consumer Profile: Professional Urban Dwellers

3.5.2 Consumer Profile: Teenagers

3.5.3 Consumer Profile: Children

3.6 Catering Brand Profiles

4 SWOT ANALYSIS

4.1 Strengths

4.2 Weaknesses

4.3 Opportunities

4.4 Threats

5 MAJOR COMPANY PROFILES

5.1 Caf·de Coral (CDC) Holdings Ltd

5.1.1 Caf·de Coral: Company Details

5.1.2 Caf·de Coral: Company Background

5.1.3 Caf·de Coral: China-Related Activities

5.1.4 Caf·de Coral: Financial Results

5.1.5 Caf·de Coral: Future Strategy

5.2 Fairwood Holdings Ltd

5.2.1 Fairwood Holdings: Company Details

5.2.2 Fairwood Holdings: Company Background & China-Related Activities

5.2.3 Fairwood Holdings: Financial Results

5.2.4 Fairwood Holdings: Future Strategy

5.3 McDonald? Corporation

5.3.1 McDonald?: Company Details

5.3.2 McDonald?: Company Background

5.3.3 McDonald?: China Related Activities

5.3.4 McDonald?: McDonald? Cafes

5.3.5 McDonald?: Recent Developments

5.3.6 McDonald?: Financial Results

5.3.7 McDonald?: Future Strategy

5.4 Delifrance Asia/Vie de France (Beijing)

5.4.1 Delifrance Asia: Company Details

5.4.2 Delifrance Asia: Company Background

5.4.3 Delifrance Asia: China?elated Activity

5.4.4 Delifrance Asia: Financial Results

5.4.5 Delifrance Asia: Future Strategy

5.5 Yum! Foods

5.5.1 Yum!: Company Details

5.5.2 Yum!: Company Background

5.5.3 Yum!: KFC

5.5.4 Yum!: Pizza Hut

5.5.5 Yum!: Taco Bell

5.5.6 Yum!: Financial Summary

6 SECONDARY COMPANY PROFILES

6.1 A&W Restaurants Inc.

6.1.1 A&W: Company Details

6.1.2 A&W: Company Background & China Activities

6.2 Beijing Capital Airport Star Cafes

6.2.1 Beijing Airport: Company Details

6.2.2 Beijing Airport: Company Background

6.2.3 Beijing Airport: The New Terminal

6.2.4 Beijing Airport: Future Strategy

6.3 California Beef Noodle King

6.4 California Fried Chicken

6.5 China Quanjude Group

6.5.1 China Quanjude: Company Details

6.5.2 China Quanjude: Company Background & Activities

6.6 ChowKing Food Corporation

6.7 Dairy Queen

6.8 Domino? Pizza

6.9 Donglaishun

6.10 Doujiang Dawang

6.11 Feiyu Internet Cafe

6.12 Gino? Pasta-Cappuccino Cafe

6.13 H?gen-Dazs/Diageo

6.13.1 H?gen-Dazs: Company Details

6.13.2 H?gen-Dazs: Company Background & China-Related Activities

6.13.3 H?gen-Dazs: Financial Summary

6.14 Hard Rock Caf·International Inc.

6.14.1 Hard Rock Caf· Company Details

6.14.2 Hard Rock Caf· Company Background & China-Related Activities

6.14.3 Hard Rock Caf· Financial Summary

6.15 Hawaii Express Inc.

6.16 Henry J Beans

6.17 Honggaoliang

6.18 Jack? Place

6.19 Jollibee Foods Corporation

6.19.1 Jollibee Foods: Company Details

6.19.2 Jollibee Foods: Company Background

6.19.3 Jollibee Foods: Financial Summary

6.20 Kenny Rogers Roasters

6.21 Liyang Taifeng Food and Beverages Corporation

6.22 Malan Noodle Fastfood

6.23 Melrose Pizza Caf·

6.24 Mister Donut/Duskin Company

6.25 Moon Shanghai

6.26 MOS Food Services

6.26.1 MOS Food Services: Company Details

6.26.2 MOS Food Services: Company Background & China-Related Activities

6.26.3 MOS Food Services: Financial Summary

6.27 Nescafe

6.27.1 Nescafe: Company Details

6.27.2 Nescafe: Company Background

6.27.3 Nescafe: China Activities

6.28 Ni Wo Ta

6.29 Pizza Italia

6.30 Planet Hollywood

6.30.1 Planet Hollywood: Company Details

6.30.2 Planet Hollywood: Company Background & China-based Activities

6.30.3 Planet Hollywood: Financial Summary

6.31 Planet Shanghai

6.32 Popeye? Chicken & Biscuits

6.32.1 Popeye?: Company Details

6.32.2 Popeye?: Company Background

6.32.3 Popeye?: China Activities

6.33 Rainforest Caf·

6.33.1 Rainforest Caf· Company Details

6.33.2 Rainforest Caf· Company Background

6.33.3 Rainforest Caf· China Activities

6.34 Ronghua Chicken

6.35 Sammies

6.36 Shanghai Dah Chong Cooked Food Chain Store

6.37 Shanghai KFC Company Ltd

6.38 Shanghai Renjia Group

6.39 Shanghai Friendship & Overseas Chinese Group/ Shanghai Wishes Restaurant

6.39.1 Shanghai Friendship & Overseas Chinese Group: Company Details

6.39.2 Shanghai Friendship & Overseas Chinese Group: Company Background

6.39.3 Shanghai Friendship & Overseas Chinese Group: Subsidiaries & Divisions

6.39.4 Shanghai Friendship & Overseas Chinese Group: Shanghai Wishes Restaurant

6.40 Shijiazhuang? Xinyanchun Group

6.41 Shlotzsky?

6.42 Sparkice Info System Engineering Ltd

6.42.1 Sparkice: Company Details

6.42.2 Sparkice: Company Background & Activities

6.42.3 Sparkice: Internet Cafes

6.43 Star East Holdings

6.43.1 Star East: Company Details

6.43.2 Star East: Company Background, Financials & China Activities

6.44 Starbucks

6.44.1 Starbucks: Company Details

6.44.2 Starbucks: Company Background

6.44.3 Starbucks: China Related Activities Background

6.44.4 Starbucks: Recent Developments

6.44.5 Starbucks: Financial Summary

6.45 Subway

6.45.1 Subway: Company Details

6.45.2 Subway: Company Background

6.45.3 Subway: China-Related Activities

6.46 Sumo Sushi

6.46.1 Sumo Sushi: Company Details

6.46.2 Sumo Sushi: Company Background & China-Related Activities

6.47 Swensen? Ice Cream Company

6.48 TCBY Systems Inc.

6.48.1 TCBY: Company Details

6.48.2 TCBY: Company Background & China Activities

6.49 TGI Friday?

6.49.1 TGI Friday?: Company Details

6.49.2 TGI Friday?: Company Background & China-Related Activities

6.50 Tieban Steak Restaurants

6.51 Tinghsin International Group/Dicos

6.52 Tony Roma?

6.53 Xiao Ting Catering Management (Shanghai) Company Ltd.

6.54 Xinya Group Company Ltd

6.55 Yellow Submarine

6.56 Zhen Ding Chicken

7 CONTACTS

7.1 Trade Organisations

7.1.1 China International Franchisers Association (CIFA)

7.1.2 China Chain Stores and Franchising Association (CCSFA)

7.1.3 China Advertising Association

7.1.4 Guangdong Chain Operations Association

8 RELEVANT TRADE FAIRS & EXHIBITIONS

8.1 International Packing, Printing, Food Processing & Packaging & Plastic Machinery Fair (Hangzhou)

8.2 Tianjin Exhibition on Food Machinery & Packing

8.3 Trade Show of Machinery for Print, Packaging, Plastic Products & Food

8.4 Food Ingredients & Food Ingredients Asia

8.5 Agro-Foodtech

8.6 SIAL China

8.7 International Fast Food Products Exhibition

8.8 Zhengzhou Sugar, Alcoholic Drink & Food Trade Show

8.9 Guangzhou Exhibition on Machinery for Food, Packaging, Printing & Plastics

8.10 China Northeast International Exhibition on Food, subsidiary Material, Processing Technology & Equipment

8.11 International Exhibition For Food & Drink South China

8.12 International Exhibition For Hotel & Bakery South China

8.13 International Quick Frozen Food Exhibition

8.14 Beijing National Food & Food Processing Machine & Packaging Machinery Show

8.15Food China

8.16 International Food, Packaging, Print, Plastic Products Exhibition

8.17 Zhejiang Food & Drink Summer Sales Show

8.18 Dalian International Food Manufacturing & Packaging Machine Exhibition/Dalian International Food, Raw Materials & Food Additives Show

8.19 Shanghai International Food Machine & Package Machine Expo

8.20 China International Fair For Food, Food Processing & Packaging

8.21 Shanghai International Supermarket Expo

8.22 Shanghai International Food Expo

8.23 Packtech & Foodtech

8.24 Liaoning Food Show

8.25 Food & Hotel China

8.26 Food & Hotel South China

8.27 Chengdu International Food , Food Processing & Packaging Show

8.29 International Food Show

8.30 Interfood Shanghai

8.31 International Food Processing & Packaging Machinery Exhibition

8.32 China Food Industry Exhibition

8.33 China International Franchise Exhibition & Conference

8.34 International Franchise Conference & Exhibition

8.35 International Franchise Exhibition & Symposium

8.36 China International for Hotel & Restaurant Facilities, Equipment & Services, Food & Beverages (Hotel China)

1 MARKET BACKGROUND

1.1 Fast Facts

1.2 Regions of China

Map 1.1 CHINA: PROVINCES AND MUNICIPALITIES

1.3 Demographics

1.3.1 Demographics: Total Population

1.3.2 Demographics: Population by Location

1.3.3 Demographics: Population Breakdown by Location

1.3.4 Demographics: Population by Province

1.3.5 Demographics: Population Density by Province

1.3.6 Demographics: Population Concentration

Map 1.2 POPULATION CONCENTRATIONS BY PROVINCE, 2002

1.3.7 Demographics: Population by Gender

1.3.8 Demographics: Population by Age Group

1.4 Consumer Attitudes

1.4.1 Consumer Attitudes: Overview

1.4.2 Consumer Attitudes: Response to Political Change

1.4.2 Consumer Attitudes: Response to Economic Change

1.4.3 Consumer Attitudes: Changes in Lifestyle

Livelihood

Individual loans

Housing

Possessions

Travel

Entertainment

Health and Fitness

Purchasing Influences

Taboos

1.5 Consumer Wealth

1.5.1 Consumer Wealth: GDP and Cost of Living

Dealing with WTO

Confident Shoppers

1.5.2 Consumer Wealth: Provincial Differences in GDP

1.5.3 Consumer Wealth: GDP Growth by Province

1.5.4 Consumer Wealth: GDP Per Capita by Province

1.5.5 Consumer Wealth: Concentration of Wealth by Province

Map 1.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2002

1.5.6 Consumer Wealth: The Major Cities

1.6 Households

1.6.1 Households: Overview of Household Conditions

1.6.2 Households: Total Households by Size

1.6.3 Households: Total households by Urban/Rural Split

1.6.4 Households: Income Earners Per Household

1.7 Employment

1.7.1 Employment: Number of Workers by Sector

1.7.2 Employment: Growth by Sector

1.7.3 Employment: Number of Workers by Gender

1.7.3 Employment: Number of Workers by Habitation

1.7.4 Employment: Urban Unemployment

1.8 Consumer Income

1.8.1 Consumer Income: Average Incomes by Sector

1.8.2 Consumer Income: Growth by Sector

1.8.3 Consumer Income: Average Incomes by Region

1.8.4 Consumer Income: Growth by Region

1.9 Consumer Market

1.9.1 Consumer Market: Spending Trends

1.9.2 Consumer Market: Per Capita Consumer Expenditure

1.9.3 Consumer Market: Retail Sales and Consumer Spending

1.9.4 Consumer Market: Urban Income and Spending Compared

1.9.5 Consumer Market: Average Urban Weekly Shopping Basket

1.9.6 Consumer Market: Average Rural Weekly Shopping Basket

1.9.7 Consumer Market: Average Urban & Rural Weekly Shopping Baskets Compared

1.10 Exchange Rates

1.10.1 Exchange Rates: China

1.10.2 Exchange Rates: Hong Kong