The Asian markets listed here are varied in terms of their growth potential for brands.
“Looking at restaurant industry performance in both Japan and South Korea, we are observing trends that are actually quite similar to what is occurring in the United States,” says Kevin Schimpf, manager of industry research for Technomic. “The markets are mature, there are a number of historically established chain players, and consumers have an overabundance of foodservice choices. Since there is minimal room for the development of new restaurant locations, industry sales growth in these saturated markets is likely to remain modest.”
On the flip side, he says, Asian markets such as China, Malaysia, and Indonesia still have tremendous growth potential. There are favorable population dynamics in play, and the number of consumers with discretionary income to spend on foodservice continues to rise. “Chains still have plenty of headroom to build in these markets, which is why investments from U.S.-based chains continue to pour in,” he says.
Click ahead to see the five largest chains by unit count in each market, according to Technomic Ignite company data.