Data source: Euromonitor Database, Guotai Junan Securities Research
The low industry concentration means higher operating costs and loss of bargaining power within a certain range, which means that the industry’s subsequent development is weak.
Until the emergence of chain restaurants.
2. Who is the “lock” maker
In recent years, the restaurant model of chain operations has shown strong growth. In the Chinese catering market, the revenue share of chain restaurants has steadily increased to 20%, and chain restaurants have grown faster, with a CAGR of 11.2% from 2014 to 2018, which is 1.1pct higher than non-chain restaurants.
▼ The average number of chain restaurants has increased, showing a trend toward scale
Data source: wind, Guotai Junan Securities Research
This is not unrelated to the strategic location of commercial real estate in China.
In the early days, commercial real estate lacked the support of professional operation, mainly in the form of a centralized market composed of stores or department stores composed of counters. With the continuous advancement of urbanization, the shopping mall shape of “supermarket + counter + food court”