Share this post

paulfrench
Paul French

Lunch and dinner might already be taken over by foreign fast-food chains in China, but the battle for the breakfast has just started, explains retail analyst Paul French in the Economist.

The Economist:

Paul French of Mintel, a research firm, reckons that the Chinese foreign fast-food market, valued at RMB 87.8 ($13.9) billion, is “underpenetrated” at breakfast time. Only 21% of Chinese eat fast food in the morning, compared to over 75% at lunch time. Why is this? “People want congee [a sort of porridge with goodies in it] for breakfast, not a sausage sandwich,” says Mr French.

Domestic restaurants see a gap in the market, and are rising early to fill it. They are copying the foreigners’ chief selling points—fashionable decor and clean tables—but keeping the menu strictly Chinese. Local fast-food chains such as Manfadu and 82 degrees are building new stores with plastic menus and western-style layouts. They serve congee with pickled vegetables and youtiao (deep-fried dough). Hungry locals flock in. Mr French reckons that 82 degrees is opening two stores a week to meet growing demand. He also reckons Manfadu now holds 10% of the Shanghai breakfast market, up from 2% in 2008.

More in the Economist

Paul French is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers’ request form.

Enhanced by Zemanta

Share this post