Industry Analysis & Industry Trends
In recent years, lifestyle changes and reduced leisure time have contributed to a consumer shift from traditional full-service restaurants toward fast-food establishments. In addition, increased Western influences in China and higher incomes have seen increased demand for fast-food. With the rapid development of fast-food service providers, improvements in chain store and franchising management, and new brands and food styles, industry growth has been very strong in the past decade.
ACMR-IBISWorld estimates that the Fast-Food Restaurant industry in China will generate revenue of $94.2 billion in 2013, up 8.0% from 2012. Over the past five years, industry revenue has been growing at an annualized rate of 13.0%.
There are over two million fast food restaurant locations (i.e.... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are low in the Fast-Food Restaurant industry in China, particularly for independent operators that do not utilize special equipment and that are small-scale.
Enterprises engaged in chain/multi-establishment operations meet slightly higher barriers to entry, including the need for higher technology and therefore equipment, investment in better eating environments, advertisement costs for brand establishment, increasing competition, and related factors. These, however, account for a relatively small number of total enterprises.
Entry to this industry can also occur through a franchise agreement. The number of franchisees has recently increased along with the improved legal framework... purchase to read more