In Focus
RESEARCH | Staff Reporter, China

Western QSRs shine amid slowing growth of China's foodservice market

Traditional Chinese main-dish-oriented channels were stagnant.

Western quick service restaurants continue to be on the positive amid slowing growth of China’s foodservice market.

Looking at out-of-home eating trends in China in Q4 2018, the NPD Group noted a 2% growth for QSRs compared to the previous period, which account for 31% of market share and 4% rise in spending in western QSRs. In contrast, spending in Chinese QSRs were flat.

Foodservice traffic surged in various dayparts, noting a 12% rise in morning snacking spending, 5% in lunchtime spending, mostly due to increased traffic, and 6% in afternoon snacking, due to a larger average check size.

Meanwhile, on-premises dining grew, notching 2% growth. NPD says 64% of total spending now happen on premises. Delivery growth slowed, tallying 9% year-over-year - making it the first quarter-over-quarter delivery market decline in the past two years.

Visits from younger consumers declined, but consumers aged 50 and older added more to market growth. They now, NPD says, make up 12% of the market, with double-digit growth in both spending and traffic and 16% higher than average in check size.

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