Core Insights - The Chinese fried chicken market is projected to grow from 260 billion yuan in 2020 to 470 billion yuan by 2024, with an annual compound growth rate of 16% [1] - Over 60% of fried chicken franchise brands are experiencing a decline in sales due to a lack of flavor innovation, with 72.3% of consumers indicating that the absence of new flavors is a primary reason for reduced repurchase [1][3] - The demand for unique flavors among the 25-35 age group is increasing, with 68.7% actively searching for new taste experiences, and the popularity of cross-flavor combinations is rising significantly [3] Market Trends - The rise of health consciousness is reshaping the market, with low-fat fried chicken orders increasing by 312% year-on-year in 2024, and air-fried options commanding a 22.6% higher average transaction value compared to traditional frying methods [3] - Regional flavor adaptations have shown a 35% increase in repurchase rates, indicating that localized flavor innovation is crucial for market success [3] Technological Advancements - Breakthroughs in food engineering, such as high-pressure pulse marination, have improved chicken tenderness by 40% and reduced marination time from 12 hours to 2 hours [5] - The introduction of vacuum tumbling equipment has increased sauce absorption rates from 60% to 92%, enhancing flavor penetration [5] - Smart frying systems have extended the crispiness of fried chicken for up to 45 minutes, and ultra-low temperature preservation allows for a 92.3% retention of juiciness after 30 days of storage [5] Quality Control and Brand Strategy - A three-tier quality control system implemented by a local chain ensures rigorous testing and consistency, allowing for rapid nationwide product launches [7] - Brands that introduce over 10 new flavors annually have a franchise renewal rate of 85%, significantly higher than the industry average, and a shorter customer repurchase cycle [7] - Strong innovation capabilities attract high-quality franchisees, with a new brand signing 73% of franchisees with prior industry experience, compared to the industry average of 50% [7] Competitive Landscape - The fried chicken industry is entering a phase of refined competition, where brands that can balance unique flavor offerings with health considerations and possess the ability to industrialize culinary innovations are setting new industry standards [8] - Research and development investment among leading brands has increased from 3% in 2020 to 8% in 2024, indicating a shift towards systematic flavor innovation supported by data and technology [8] - For franchisees, partnering with brands that have ongoing R&D capabilities is essential for mitigating homogenization risks and capturing a larger share of the expanding market [8]

Core Viewpoint - The chicken industry is experiencing a paradoxical competition landscape where some brands see rising monthly revenues while others face challenges shortly after opening [1] Group 1: Franchise Empowerment - The depth of empowerment provided by franchise brands is crucial, with some offering comprehensive support while others are lacking [3] - Brands ensuring profitability for franchisees have refined their single-store profit models and restructured revenue logic through six core strategies [3][10] - Traditional franchise models often fall into the "cutting leeks" trap, where brands collect franchise fees without providing substantial support, leading to self-sustaining store failures [3] Group 2: Survival Rates and Support Systems - Franchisees who undergo three rounds of interviews have a survival rate 47% higher than the industry average, indicating that restaurant entrepreneurship relies more on systematic support than luck [6] - Key factors driving significant revenue changes include a six-dimensional support policy that creates a profit flywheel [6] Group 3: Operational Efficiency - Location decisions are now based on heat maps and algorithms, significantly improving site selection accuracy [6] - A specific store model has increased space utilization by 60% and achieved a sales per square meter rate 1.8 times the industry average [6] - New training methods have reduced labor costs by 15% by enabling new staff to master standardized processes within seven days [6] Group 4: Digital Tools and Supply Chain Innovations - Digital tools are central to improving gross margins, with one brand's intelligent scheduling system increasing efficiency by 35% during peak dining hours [6] - Supply chain innovations, such as transparent pricing and direct supply from central kitchens, have reduced material costs by 18% compared to market prices [6][7] Group 5: Competitive Landscape and Market Strategies - Regional protection mechanisms are reshaping competition, with leading brands implementing a 1.5-kilometer franchise radius that has increased daily customer traffic by 23% and member repurchase rates by 41% [9] - Strategies to shorten the payback period have proven effective, with smaller store models achieving a return on investment in 6 to 12 months [9] - The "small but beautiful" strategy reflects a new phenomenon in the consumption downgrade phase, attracting increasing consumer attention and preference [9] Group 6: Franchise vs. Direct Operations - Entrepreneurs are finding a third path that involves purchasing not just a brand name but an entire profit system [10] - Successful brands have meticulously refined their single-store models to maximize profitability through algorithmic site selection, SOP training, digital tools, and supply chain innovations [10]

Core Insights - The Chinese fried chicken market is projected to grow from 300.66 billion yuan in 2019 to 479.6 billion yuan by 2024, with a compound annual growth rate (CAGR) of 8.13% [1] - The popularity of "fresh fried chicken racks" is increasing, as evidenced by Douyin's topic views rising from 100 million in 2022 to 500 million in 2024 [1] - The opening of the first store of Manwei Ming Fresh Fried Chicken Rack in Shenzhen marks the entry of the "Fried Food 3.0 Era" into the market [1] Market Overview - Shenzhen's retail sales of consumer goods exceeded 950 billion yuan in 2023, providing a fertile ground for brand expansion due to its economic density and location advantages [4] - The city's average annual temperature of 22.4°C allows for extended operating hours, crucial for snack food businesses [5] Company Development - Manwei Ming Fresh Fried Chicken Rack opened its first store in Changchun in 2020 and has rapidly expanded, with over 200 new stores opened annually [7] - The brand has established a central kitchen and has plans for further expansion, including the establishment of multiple regional headquarters by 2025 [7] Product Strategy - The company offers a diverse product matrix with over ten SKUs, including chicken racks and necks, complemented by six proprietary sauces, catering to all-day consumption [9] - The brand's unique selling proposition is its "no batter" frying technique, which aligns with modern health-conscious consumer preferences [7] Channel Strategy - Manwei Ming operates in shopping centers rather than traditional street-side locations, achieving high foot traffic and sales efficiency [10] - The brand has opened 26 stores in the top 100 shopping malls across China, demonstrating its strong market presence [10] Operational Efficiency - The company has achieved impressive store performance metrics, with small store formats yielding high customer traffic and revenue [11] - The operational model is designed to be low-cost and high-repurchase, providing franchisees with a quick return on investment [11] Supply Chain Management - Manwei Ming has established a robust supply chain, partnering with major brands for ingredient sourcing and operating multiple distribution centers [12] - The company utilizes a one-stop cold chain delivery service to ensure fresh ingredients reach its stores directly from the source [12]

Investment Rating - The report indicates a positive investment outlook for the Chinese fried chicken industry, highlighting the rapid growth and potential for further development in the sector. Core Insights - The Chinese-style fried chicken market is experiencing significant growth, driven by the popularity of spicy chicken snacks and the overall transformation of the dining landscape towards more diverse and value-oriented offerings [4][30]. - The market for snack fast food is expected to exceed 1 trillion yuan by 2024, with a notable increase in the chain rate from 14.5% in 2019 to 24.6% in 2023 [3][7]. - The report emphasizes the importance of supply chain maturity, product differentiation, and innovative cooking techniques as key drivers of growth in the fried chicken sector [32][38]. Summary by Sections Current State of the Snack Fast Food Industry - The snack fast food market in China is transitioning from fragmented operations to a more scaled approach, with a projected market size of 823.7 billion yuan in 2023, reflecting a year-on-year growth of 12.6% [9][10]. - The industry is characterized by a high level of competition due to low entry barriers, leading to dynamic market conditions [3][10]. Development of the Fried Chicken Industry - The Chinese fried chicken market is on an upward trajectory, with significant room for development. The sector has seen multiple rounds of financing for various brands since 2023, indicating strong investor interest [3][23]. - The rise of spicy chicken snacks as a cost-effective option has contributed to the market's growth, with these products being quick to prepare and relatively inexpensive compared to traditional restaurant offerings [3][4]. Trends in the Fried Chicken Industry - The report notes a clear trend towards the diversification of the fried chicken market, with an increasing number of brands and product offerings. The emergence of new brands and the expansion of existing ones are reshaping the competitive landscape [27][30]. - The report highlights the growing popularity of Chinese-style fried chicken, which is becoming a significant player in the market, alongside traditional Western and Korean styles [25][30]. Driving Factors for Industry Growth - The maturity of the supply chain, characterized by stable raw material costs and efficient logistics, is a crucial factor supporting the growth of the fried chicken industry [32][35]. - The report also points to the rich product matrix and innovative cooking methods as essential elements driving the evolution of the fried chicken sector, allowing for a wide range of offerings that cater to diverse consumer preferences [38][40].