San Francisco, CA (PRWEB) September 29, 2012
Full-service restaurants in China account for the largest share of revenue of all the industries in China's catering subsector. Chinese culture places great importance on food; historically, eating in full-service restaurants has been considered a great time to spend with friends and to enjoy the wide variety of Chinese cuisine and flavors. However, Full-Service Restaurant industry's proportion of the total catering subsector has been slightly decreasing in recent years, due to the fast growth of its main external competitor, the Fast-Food Restaurant industry in China, reports IBISWorld. Nevertheless, full-service restaurants have been experiencing steady growth, in line with steady growth in per capita incomes. Industry revenue has been increasing at an annualized rate of 16.5% in the five years through 2012 to $287.8 billion.
Competition in this industry is high and the market is very fragmented. The industry concentration level is expected to slightly increase in future years, with the growing importance of brand image, chain management and national presence. Some firms that have built strong brand images over many years have already begun to operate on a national scale with the development of chain operations. However, the development of chain operators slowed over the past five years due to difficulties making the operating model work. The main chain-operation models used in the industry are franchising and direct management of one's own restaurants. Some of the major players, such as China Quanjude Group, have shifted more toward the development of direct management, due to disadvantages in the legal framework regarding franchise operations and brand copyright infringement issues.
IBISWorld expects improvements in the legal framework for franchising and intellectual property rights will support the development of chain operations, and major players like Beijing Little Potato Catering Management Group, Zhongshan Seaport Catering Group, and Chongqing Taoranju Catering Culture Group, will continue enlarging their networks of branch restaurants and franchises. Technology changes within the Full-Service Restaurant industry in China will continue, largely in terms of credit card use. This will be strongly influenced by the development of China's financial markets and credit card businesses.
For more information, visit IBISWorld’s Full-Service Restaurants in China industry report page.
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IBISWorld industry Report Key Topics
Full-service restaurants in China provide food services to patrons who order and are served while seated and pay after eating (i.e. table service). Food provided by businesses in this industry include a large variety of Chinese cuisine as well as foreign cuisine.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.