Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

CRI-report Status Quo And Future Strategy Of Fast Food Industry

(CRI-report) - Fast food is a pre-served meal available for customers to take promptly, such as hamburgers, box lunch and so on. In Hong Kong and Taiwan, it is interpreted as instant food or handy food. It originates from western countries and appears as a quick meal. No matter what they are called, they all share the traits of popular, time-saving and convenient playing as a role of major food. After introduced into China, fast food industry have prosperously developed and even been infused with Chinese characteristics.

Chinese fast food is literally a localized form of western-style fast food. When KFC and McDonald become fashionable, Chinese food and beverage structure has changed as well. As the life pace accelerates, the traditional Chinese feast is not so popular as usual.

In 2007, a harvest year for China's food and beverage industry, the market scale surmounted CNY 1,000 billion, with an increase of 18% YOY. Among the industry, Chinese fast food burst out a favorable development trend, the turnover of which achieved a high point of over CNY 200 billion, occupying nearly 80% of the whole fast food market with an annual growth rate of 30%, far surpassing that of western-style fast food. In 2008, the year of Beijing Olympics and global financial crisis, the revenue of fast food industry reached CNY 50.34 billion, while that of the whole food and beverage industry was CNY 346.14 billion. It could be concluded that the fast food industry in China in that period still developed unsteadily and sensitively.

In recent years, the fast food industry, together with the whole food and beverage is booming again. In 2010, the revenue of national food and beverage industry reached CNY 1,764.8 billion, rising by 18.1% YOY, accounting for 11.24% of the total volume of social retail consumer goods. In 2011, the retail amount of accommodation and food industry achieved CNY 2,488.5 billion, with an increase of 18.5% YOY, among which the fast food market scale reached CNY 691 billion, according to "Report of China's Chain Catering Industry, 2012" by cri-report.com.

Meanwhile, the food and beverage industry is experiencing a revolution according to consumers' demand for convenience and individualization, which pushes the fast food industry on the flow. As Chinese people have a fixed eating habit of having traditional Chinese food, fast food industry is dominated by Chinese style. It's surveyed that 78.9% of the fast food market is Chinese-style, while only 21.1% is the western one. However, household brands of Chinese fast food are not enough compared to western style, such as KFC, McDonald, Pizza Hut and so on. So there are still challenges for Chinese fast food enterprises.

As to Chinese fast food, standardized production is needed in urge compared to western-style fast food, i.e. normalized management on the chain of food material selecting, distribution, cooking and service. Meanwhile, expansion and innovative marketing are essential for brand establishing, for example, providing services for community residents. As to the western-style fast food, catering to the flavor of Chinese people is important. The era of setting up concepts of western fast food has passed since people pay more attention to themselves rather than the enterprises than ever have.

Related report: www.cri-report.com/506-report-of-chinas-...