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 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 $135.6 billion in 2016, up 8.3% from 2015. Over the five years through 2016, industry revenue has been growing at an annualized rate of 10.1%.
There are about 2.2 million fast food restaurant locations (i.e.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on wages in this industry, only about seven cents are invested in capital. This industry is typically labor-intensive, particularly for Chinese-style independent fast-food providers. These offer food that is mostly handmade and cooked within the facility. This makes the industry even more labor-intensive than it is for Western fast-food chains, where the main food-making process is highly automated and carried out in factories outside of the dining restaurants.
Chinese-style fast-food operators have started using modernized equipment in recent years, after these had been introduced by foreign operators such as KFC and McDonald's. Thus, the capital intensity ratio is increasing, although overall the industry will remain strongly labor-intensive... purchase to read more