Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (948)	10/7/2003 3:09:07 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Café de Coral to give China more fast food By Justine Lau in Hong Kong Published: October 6 2003 5:00 \| Last Updated: October 6 2003 5:00 Café de Coral, the world's biggest Chinese fast-food chain, is to renew efforts to expand into mainland China in a bid to compete with western food rivals such as McDonald's and KFC. The Hong Kong-based chain - one of only two homegrown fast-food companies bigger than McDonald's in their domestic markets - plans to open about eight stores a year in southern China in the next five years. Despite an earlier bruising entry into China, Café de Coral has been forced to consider a comeback on the mainland because of a stagnant market in Hong Kong. In the year to March 2003, it suffered its first profit decline in eight years. Café de Coral first tried its hand across the border in 1992. But its food, though inexpensive by Hong Kong standards, was unaffordable for most mainland consumers. "For the mainlanders, Café de Coral was like a Planet Hollywood," Michael Chan, the com-pany's chairman, said. "People went there once, took pictures and never returned." Founded 35 years ago, the company has 20 per cent market share in Hong Kong in terms of revenue. It operates 120 "Café de Coral quick service restaurants" and 100 other outlets in the territory, which together contribute about 90 per cent of the group's profit. Even though the fast-food market in the mainland is largely untapped - it accounts for only 2 per cent of the entire food and beverages sector - competition is already fierce. KFC has about 900 outlets across the country and aims to open about 200 new stores a year. McDonald's, meanwhile, has more than 560 stores and plans to open about 100 more a year. The two have nearly 90 per cent market share. Café de Coral is also trying to capture the lower-income market through the acquisition earlier this year of 50 per cent of the New Asia Dabao restaurant chain in Shanghai. news.ft.com