For a long time, KFC and McDonald's have been the absolute leaders in China's chain restaurant market, with a market share of as high as 57%. However, in the past two years, due to sharp increases in taxes, rents, labor, etc., the profit margins of foreign fast food have been continuously compressed, and their market share has plummeted. In 2015, the market share of KFC and McDonald's in the fast food market has dropped to 37.7.
McDonald’s weak performance also reflects the current general difficulties in the domestic Western-style fast food industry. Reference to Qianzhan's "China Fast Food Industry Market Prospects and Investment Strategic Planning Analysis Report" shows that first of all, Western-style fast food needs to focus on healthy eating. First, it launches nutritious and healthy products. Second, it vigorously promotes the brand image of healthy catering to regain consumption. People like it.
Secondly, compared with traditional Chinese fast food, Western fast food’s unique store decoration style, dining environment and service are deeply loved by young people. Western fast food companies need to grasp the consumption psychology of this group of people and start from Continuous improvements are made in products, decoration and services.
Finally, in view of the fact that Western fast food dishes do not change much and easily cause consumer fatigue, Western fast food companies need to introduce new products in a timely manner. In the Chinese market, cultural differences between Chinese and Western catering have restricted the development of Western fast food. Therefore, Western fast food brands should also consider integrating with Chinese catering or local tastes when enriching their product structure.