Foreign catering brands grab bite of Chinese market

First impressions

To make a good impression when they launch in China, overseas brands pay great attention to the decor and menus at their outlets.

Some choose to retain their original style of decor, while others feature local culture in the design, such as on menus. Some stick with their original menus, while others feature local dishes to attract customers.

Italian coffee company Lavazza launched its flagship store in Shanghai at the end of April－its first branch outside Italy.

The store, located in Jing'an, an old district in the heart of the city, boasts high ceilings, artistic murals and marble decor, as well as the 125-year-old brand's iconic Moka Carmencita coffee maker.

The outlet is run by Chinese restaurant giant Yum China, which operates the KFC brand in the country.

Joey Wat, CEO of Yum China, said: "This is great news for consumers seeking a premium coffee experience. We see great potential for coffee in China, and Lavazza shares this enthusiasm. By using our deep understanding of Chinese consumers, we look forward to working together with Lavazza to explore the coffee market in China."

According to Statista, the German statistics portal, this market is expected to grow annually by 11.6 percent, with revenue this year reaching $11.65 billion. The International Coffee Organization said that over the past five years, coffee consumption globally grew by an average of 2.7 percent.

Canadian coffee chain Tim Hortons opened its first store in Beijing at The Place shopping mall at the end of July, where it offers its signature coffee, sandwiches and desserts. The decor integrates Canada's maple leaf symbol with Chinese cultural elements.

Tim Hortons, which opened in Shanghai a year ago, is expanding rapidly in China, and now has 70 branches in the country and is aiming to have 1,500 in the next decade.

Siddiqui, from RBI, said, "When we think about expansion, we concentrate on specific areas before going to new cities."

He said Tim Hortons prides itself on having a high-quality product and affordable prices in convenient locations. "The more restaurants we open, the more convenient we become," he added.

He thinks the coffee market in China is becoming more competitive, but is also growing so quickly that there is room for more brands.

"I think Chinese customers see good value for money when they purchase Tim Hortons coffee," he said, adding that restaurant designs have been tailored to attract local customers.

The company's coffee beans are roasted in Canada before being shipped to China, where, apart from the coffee, most of its ingredients are sourced.

In May, internet giant Tencent decided to invest in Tim Hortons. The two are collaborating on a range of digital and marketing activities, including e-sports, and are also working on new restaurant locations and communication through WeChat and other platforms.

The brand was founded by Canadian hockey player Tim Horton, and many of its customers are sports lovers.