Multinational catering companies are more interested in the Chinese market

Subway, one of the world's largest fast food chain brands, has reached an agreement with a development company in Shanghai, planning to add 4,000 stores in mainland China in the next 20 years. This is the largest total franchise agreement in Subway's history. According to the report, other international catering companies have also expanded their business in China, seeing China's huge consumer group as a key opportunity for development.

Subway, one of the world's largest fast food chain brands, has reached an agreement with a development company in Shanghai, planning to open 4,000 more stores in mainland China in the next 20 years. This is the largest total franchise agreement in Subway's history. Other international catering companies have also expanded their business in China, seeing China's huge consumer group as a key opportunity for development. Chain brand giant Starbucks plans to add about 1,000 new stores every year in China by 2025. Earlier this year, McDonald's announced the expansion of its China business, half of the proposed 1,900 new stores will be located in China. The burger chain has more than 4,500 restaurants in mainland China and Hong Kong.

At present, the total number of stores of multinational catering companies in China exceeds 30,000. In terms of the number of stores of well-known international catering brands in China, KFC, Starbucks, and McDonald's rank the top three. Even in 2020, when the new crown epidemic broke out, foreign catering brands are still active in expanding in China. In 2020, KFC will open 149 stores in mainland China, 679 Starbucks stores, and 461 McDonald's stores, which shows the determination and ambition of these multinational catering companies to expand in China.

In recent years, the number of multinational catering companies accounted for less than 20% of China's chain catering companies, but their turnover accounted for more than 40%. In addition, multinational catering companies are no longer limited to direct sales for expansion, but have begun to focus on improving brand effects, gradually delegating management rights to franchisees, and their expansion speed has increased significantly.

In the first half of 2023, multinational catering companies have accelerated their expansion in China. At present, with the continuous development of economic globalization and the increasing frequency of international business activities, these multinational catering companies are actively expanding their global business to obtain market profits. China is rich in food resources, has a huge population base, and has broad market prospects. These favorable conditions have attracted many multinational catering companies. China provides strong policy support for foreign investment, creating an open business environment for them, and attracting many multinational catering companies to develop in China.

China's huge catering market is favored by multinational catering companies. At present, China's economy is developing well, people's living standards have improved significantly, and the demand for catering is strong. The catering industry is entering a new stage of high-quality development. In recent years, the proportion of China's catering revenue in the total retail sales of consumer goods has been increasing, and has generally remained above 10%. In 2019, the revenue of the catering industry was 4,672.1 billion yuan, accounting for 11.35% of the total retail sales of consumer goods. In 2022, China's catering market has withstood multiple tests such as the impact of the epidemic and the overall economic downturn, and its revenue will still reach 4,394.1 billion yuan, fully demonstrating the characteristics of China's catering economy such as strong resilience, great potential, and full vitality.

Multinational catering companies adopt localized business strategies to adapt to the Chinese market environment. There are big differences between Chinese and Western cultures. In order to gain a competitive advantage in the Chinese market, international brands such as KFC, McDonald's, Pizza Hut, and Haagen-Dazs are actively absorbing "Chinese food elements." According to the eating habits of Chinese people, KFC has continuously launched various Chinese fast foods and developed various regional specialties, such as deep-fried dough sticks, preserved egg and lean meat porridge, old Beijing chicken rolls, etc., to meet the needs of Chinese consumers.