Abstract
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive
environment
Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type;
Consumer foodservice by type and chained/independent
Executive summary
EXECUTIVE SUMMARY
Dining-out culture facilitates growth
In 2005, overall foodservice sales grew at a modest rate in value terms,
whilst outlet expansion was much stronger due to the rising small-capital
franchise business. A growing culture of dining-out continued to assist
transaction growth as it posted a healthier performance in 2005. Sources
showed that the dining-out culture in Taiwan grows every year and 80% of the
population dine out for lunch, whereas 60% of the population eat out for
dinner. Over the hard time, food service operators such as Mercuries, started
to look into their rising cost and adjusted outlet development plan.
Street stalls the most dynamic when economy weak
The economic problems seen during the review period led to high unemployment
with more people seeking to start their own small business. Street stalls,
which include vendor carts, were extremely popular and registered as the most
active performers in 2005. Franchising is successful where products are
simple, investment and technology are low and profits and consumer appeal are
high. Iced drinks, fried chicken fillets and teppanyaki are amongst the most
popular choices but there were also a lot of short-lived items which only
briefly gained popularity over the review period.
Local franchising embraces low price strategy
Outlets of chained and franchised consumer food service increased dramatically
in 2005 and are mainstream across all subsectors. Small-capital, low-priced
takeaway outlets started the trend. The low-price strategy is especially
prominent in specialist coffee shops, other cafés/bars, street stalls and
other fast food premises such as breakfast outlets. Low price rises were used
to confront big international conglomerates whose appearance caused disputes
regarding trademarks or similar décor. Over the review period, international
players Starbucks and KFC brought such issues with domestic players to the
attention of the Intellectual Property Office. Similarly, the successful
franchise model of low-price express chains usually witnessed local followers
copying their business operations.
Full-service restaurants remains largest sector
Full-service restaurants was the largest sector in Taiwanese consumer food
service in 2005. Japanese and Italian restaurants gained popularity over the
review period with new brands largely introduced into the market by either
international or domestic players. The mass trend that prevailed in other
subsectors such as cafés/bars also drove the market. Food conglomerates
increasingly own brands from all segments, to target ever-changing consumer
preferences. As a result of the robust opening of large shopping malls in
2000s, location in department stores/shopping complexes became popular since
they benefit from high traffic. As such, although stand-alone outlets
represent the majority, there is a trend toward FSR presence in retail sites.
Localised and healthy positioning expected to help brand image
The leading player McDonald' s worked to both localise its menu and to promote
healthy lifestyles to help sales. These efforts included new menu choices,
such as rice burgers and salads. In addition, McDonald' s teamed up with the
National Council on Physical Fitness and Sports in order to promote a campaign
aimed at encouraging healthy eating and exercise. Second largest player,
7-Eleven, also announced its launches of no-additive and no-MSG fast food and
it started to use locally-produced rice, meat and vegetables in its fast food
products. In 2005, the Council of Agriculture received wide support from
foodservice operators in the promotion of locally-bred chicken. New product
developments using healthy localised products is forecast to be mainstream
over the forecast period.
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