Research and Markets: Fast Food Chain KFC Plan to Open At Least 300 Stores in China in 2009, And the Planned Opening of McDonald's Stores Are Cut Down Slightly but Still About 150

DUBLIN--(Business Wire)--
Research and
Markets(http://www.researchandmarkets.com/research/290c5a/research_report_of)
has announced the addition of the "Research Report of the Fast Food Industry in
China, 2009" report to their offering.

The fast food market in China can be divided into the western style and Chinese
style according to the specific characteristics. At present, the major western
style fast food brands are KFC, McDonald's and Dicos. Chinese style fast food
mainly includes Lihua fast food, Kungfu, Malan noodle, Yonghe King and Daniang
dumplings etc. KFC has had more than two thousand stores in China and McDonald's
stores in China are over one thousand, but the scale of Chinese style fast food
is all very small.

The fast food industry in China started late and only had about 20 years of
history. In 1987, KFC opened its first fast food store in Beijing, opening the
fast food preclude in China. During the 1980s and 1990s, other western style
fast food entered the Chinese market in succession with purpose of attracting
the consumers to try the new taste food. As a result, marked achievements had
been attained than the expected. In recent decades of years, with the speed-up
of social life, the fast food industry has been keeping growth at the annual
rate of 10 to 15 percent. In 2008, the general scale of the fast food industry
in China had exceeded 30 billion USD. There is huge potential in the fast food
industry in China; meanwhile, there are also investment and concept errors.

The incomes per capita are not very high in China and the development of the
fast food industry is retrained from the consumption level and consumption
power. Besides, the economic development in various regions is serious
disparate, the economy developing faster in the coastal areas than the inlands
and the central and western areas; faster in the large cities than the medium
and small cities. Even though in the same city, the characteristics of the
different consumption levels and the unbalanced development are also prominent.
In the Chinese market, the average price of a fast food varies from 0.5 USD to 3
USD. The fast food industry in China is imperfect in market environment,
inadequate in laws and regulations, imperfect in the distribution systems,
non-standard in the consumption environment and numerous in the food safety
problems. Therefore, the investors should take the policies, places, the
consumers incomes and cultural elements into consideration when investing into
the fast food industry in China.

Urbanization is speeding up in China. Large quantities of rural populations flow
into the cities, intensifying the consumption power of the original urban
populations. Due to the numerous populations and the continuous fast growth of
the Chinese economy, China has gradually become the largest catering market in
the world under the cultural background of hunger breeds discontentment.

All the time, KFC and McDonald's, the two largest western style fast food
giants, have left Chinese fast food enterprises far behind, but what cannot be
ignored is that Chinese style fast food still occupies near 80% market shares.
Among Chinese style fast food, according to the incomplete statistics, at least
over 60% fast food is the rice. There are numerous Chinese style fast food
enterprises, but the single enterprise is weak in strengths. Besides, the
financial crisis has also affected the catering market in China, especially cut
down the expenditures in the high-end business banquet. As far as the fast food
is concerned, the opportunities exceed the crisis. With the extension of the
financial crisis, the consumers and operation situation of the catering market
all change quietly. According to the market researches in Shanghai and Beijing
etc, many enterprises which patronized the medium and high-end restaurants
formerly cut down the expenditures on the business banquet and obviously cut
down the dinner frequency and dining standards due to the serious reduction in
the profits, leading to the influences on the Chinese restaurants in various
degree. Many customers of the restaurants turn to the medium and high quality
fast food.

Under the circumstances of the international financial crisis, the fast food
industry in China does not stop the expansion pace.

For example, KFC is planning to open at least 300 stores in China in 2009, and
the planned opening of McDonald's stores are cut down slightly but still about
150. The giant enterprise of Chinese style fast food, Kungfu Catering Management
Co., Ltd and Changzhou Lihua Fast-Food Ltd also speed up the expansion. As far
as the fast food industry is concerned, the financial crisis turns down the
costs for the labor forces and house rents in China and provides more
development space.

Under the circumstances of the financial crisis, many domestic and foreign
enterprises take aim at the fast food industry in China, exclusive the
possibility of new western style fast food entering China. Taking the Jollibee
Foods Corp. for example, it has already entered Chinese market through merging
Yonghe King.

More of the following information can be obtained in this report:

* Development Environments of the Fast Food Industry in China
* Development Situation of the Western Style Fast Food Industry in China
* Development Situation of Chinese Style Fast Food Industry in China
* Major Enterprise and Their Operations of the Fast Food Industry in China
* Competition Situation and Marketing Strategies of the Fast Food Industry in
China
* Influences of International Financial Crisis on the Fast Food Industry in
China
* Prediction the Development Trends of the Fast Food Industry in China
* Investment Opportunities of the Fast Food Industry in China

For more information visit
http://www.researchandmarkets.com/research/290c5a/research_report_of

Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

Copyright Business Wire 2009