Analysis Of The Fast Food Restaurant Industry In China

China is not the easy market

The historical growth rate: In 2012, the revenue increased 12.6% and slowed to 9.8% in 2014. The revenue’s fast-food restaurant industry in China over the five years through 2016 has been growing at an annualized rate of 10.1%. The industry has a good performance over the past five years and now accounts for 20% China’s total catering sub-sector revenue.

The expected growth rate: According to ACMR-IBISWorld, the fast food restaurant industry in China is going to generate $135.6 billion in 2016, up 8.3% compared with 2015. The revenue is projected to increase 6.8% per year, with a value at $188.6 billion in 2021. While China’s economy is slowing down, the industry is maturing and growth.

Trend of the industry: There

Also the companies in the industry must have a license. Intellectual property rights are a key issue facing foreign companies that enter China. They have to make sure that their trademarks and patents are registered in China. Brand names are significantly important for chain or multi-establishment operators to build a strong brand presence in the region. Especially, product localisation is very important for overseas companies. China has different regions, so tastes and consumer differ by

The main competitions are quality, service, eating environment, brand and price. Mcdonald’s or KFC have good product quality and strong brand image and fast- growing market positions. People pay attention of food quality, safety and taste uniqueness. Service is also important since the entry of foreign companies. Local fast food companies using franchise face significant competition and pressures to improve their service. Many consumers today expect an exciting, vibrant and different dining experience. Brand advertises has become very important for multi-establishment operators, in particular children and young people, who are the main customers for the fast food restaurant industry. Price is also significant in the industry, especially in smaller cities and towns. Full-service restaurants are external rivals against the industry. Competition is higher in less-developed economic regions where life demands are