Source: Photo.com
Following the tea and coffee industry, the Western-style fast food industry has also entered the "9.9 yuan era". Since the beginning of this year, many brands have lowered the price of hamburgers to less than 10 yuan.
According to reports, KFC launched a limited-time activity of "9.9 yuan burger coupons" including 4 products including original chicken burgers and spicy chicken leg burgers, and the scope of activities was expanded from last year's "delivery only" to "delivery + dine-in"; Tustin has launched a number of low-cost packages on major platforms, including two hamburgers for 14.9 yuan, buy 1 get 1 free for 10 yuan snacks; Burger King China has also stepped up its promotional efforts, and on August 2, it announced that it will launch a "Signature Burger, 9.9 Yuan a Week" campaign on August 5, reducing the price of four signature burgers to 9.9 yuan for four consecutive weeks.
The industry is fighting a price war, and McDonald's is facing a lot of pressure. Since the beginning of this year, McDonald's has launched the "10 yuan eating burger" promotion for three consecutive times, and each activity lasts for half a month. During the event, McDonald's signature burgers and snacks were priced at only 10 yuan, and the scope of the event also covered two major channels: in-store and McNuggie delivery.
In addition, according to the Jihai brand monitoring data, in the past year, McDonald's China has mainly focused on the towns and villages of developed cities. Among them, the township areas of first-tier and new first-tier cities account for nearly 50%, and the performance of township areas in Beijing, Guangzhou, Shanghai, Suzhou and other places is particularly prominent. In addition, due to the disadvantage in the number of stores in the East China market compared with KFC, McDonald's opened 563 new stores in the East China market in the past year, contributing 41% of the store increment.
Market concentration of China's catering industry
Although the leading enterprises in the mainland catering industry are large, the market concentration in the industry is not high based on the scale of trillions of the catering industry. Competition in the industry is fierce.
Summary of the competitive state of China's catering industry
Using Porter's "Five Forces" model, it can be seen that the competition in the catering manufacturing industry is relatively stable in the analysis of the competitive environment of the catering industry. According to the above analysis, the foresight quantifies the competition in all aspects of the catering industry, 1 represents the largest, 0 represents the smallest, and the competition in the mainland catering industry is shown in the figure below. Among the "five forces" of the catering manufacturing industry in mainland China: the competition between existing enterprises is fierce; The bargaining power of catering enterprises in the upstream of the industrial chain is acceptable; The bargaining power of the downstream of the industrial chain is acceptable; There is a high threat from potential entrants in the industry; Alternatives are less threatening.
Supply chain capabilities are core competencies
With the increasing trend of online and offline integration in the catering industry in mainland China, supply chain capabilities have become the core competence of catering enterprises, and catering has gradually become retail, small-area and branded.
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For more research and analysis of this industry, please refer to the "Analysis Report on the Business Model and Development Trend of China's Catering Chain Industry" by the Prospective Industry Research Institute
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