Source: Photo.com
On December 15, KFC opened its 10,000th store at Wulinmen Terminal in Hangzhou, which is also the first overseas brand in China's catering market to reach such a scale. It is worth noting that before this, the catering brands that opened 10,000 stores in China were Mixue Bingcheng, Wallace, Zhengxin Chicken Steak, Juewei Duck Neck and Luckin Coffee.
Interestingly, KFC launched MENU X, an AI food creation platform at the event, which combines digital technology with product development to allow more consumers to participate in the creation of recipes. This could mean that the next burger will be created by AI.
Yum China's CEO Qu Cuirong said that by 2026, KFC's food and services will reach more than 700 million consumers in China, and the size of the population will increase by more than 50%. It is reported that KFC will accelerate the expansion of stores in the Chinese market, and strive to gradually cover 1,100 cities and towns to be entered.
According to the financial report, Yum China achieved revenue of $2.91 billion in the third quarter, an increase of 8.3% year-on-year. Meanwhile, Yum China's net profit was $244 million. According to public information, Yum China has a number of food and beverage brands, among which KFC and Pizza Hut contribute most of the revenue in the Chinese market.
The size of the Chinese fast food market accounted for 7 percent
With the development of social economy and the improvement of people's living standards, people's consumption concepts are constantly changing. The proportion of dining out is getting higher and higher, and catering consumption is becoming more rational. In general, the current mainland fast food market can be roughly divided into two categories: Chinese fast food and Western fast food.
In terms of the composition of the fast food industry, according to Frost & Sullivan statistics, the current mainland fast food industry is still dominated by Chinese fast food, and since 2016, the proportion of the Chinese fast food market has remained at about 70%; The Western-style fast food market accounts for about 25% of the market. By 2021, the national market share of Chinese fast food will be 70.04%, which is still significantly ahead of Western fast food.
By 2027, the market size of the fast food industry is expected to exceed 1.7 trillion yuan
The central kitchen is the foundation for the restaurant chain to become bigger and stronger, and in the context of the development of popular catering with simple meals as the main body, the central kitchen will develop along with the development of the restaurant chain. The main function of the central kitchen is to make and process raw materials into semi-finished products or finished products, and distribute them to chain stores through cold chain logistics, reducing the processing time and procedures of stores. The central kitchen model has the advantages of standardization and improved efficiency, which effectively reduces the cost of materials and labor, and also ensures food safety and stable taste. With the support of national policies, the central kitchen model will become the mainstream form of catering development in the future.
On the basis of the consumption of 1.4 billion people in the mainland, with the improvement of urbanization level and consumers' pursuit of food safety and fast convenience, the mainland fast food market will continue to grow in the future. It is estimated that in 2027, the market size of the mainland fast food industry will exceed 1.7 trillion yuan.
Fan Zhihong, an associate professor at the Department of Nutrition and Food Safety at the College of Food Science and Technology of China Agricultural University, believes that fast food cannot be equated with junk food, and the key lies in whether the ingredients are healthy and whether the nutritional combination is scientific. Fan Zhihong said that many busy office workers cannot ensure that they eat every meal at home every day, and eating fast food outside is inevitable. Fan Zhihong said that eating fast food outside can still be very healthy, and it is good to ensure that the nutritional ratio is basically balanced.
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For more research and analysis of this industry, please refer to the "Market Prospect and Investment Strategic Planning Analysis Report of China's Fast Food Industry" by Qianzhan Industry Research Institute
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