Revenue from China's biggest restaurant chains rose 16.5% in 2012, with a slower growth rate and a slightly greater concentration, according to a report released by the China Cuisine Association.
The top 100 restaurant operators generated in a total of ¥185.06 billion ($30.2 billion) in revenues in 2012, up 16.5% from 2011. Although it was 3.2 percentage points faster than the industry average, the growth rate was 11.52 percentage points slower than that of the top 100 in 2011, the report says.
Yum Brands Inc (NYSE: YUM) turned out to be biggest restaurant operator in China, the report says. The fast food giant's revenue from China grew 24% to almost $6.9 billion in 2012; the amount represented over 50% of its total revenue.
The report says McDonald's Corp (NYSE: MCD) is not in the list because it declined to reveal data.
In terms of revenues, 11 reported a decline, 22 reported growths below 10%, 33 reported growths ranging 10-20% and 20 reported growth of 30% or faster.
The top 10 companies posted a combined ¥87.75 billion in revenues, or 47.4% of the total. The share was up 0.67 percentage points from 2011.
In terms of earnings, 15% of the companies reported growths above 10%, 10% of companies reported growths below 1%, 30% of companies reported growths between 1% and 5%, and four companies reported a loss.
The top 100's net profit margin fell to a multiyear low of 7.73%, shedding 3.85 percentage points from 2011.
The conditions will be harsher this year as expenses, particularly rental and labor costs, rise and China's new leadership cracks down on government-funded dinner, the report warns.
Spending on dining out rose 8.3% year on year to ¥771.2 billion in the first four months of 2013, according to the National Bureau of Statistics. It was the first time in a decade that the growth rate – measured either on a monthly basis or on a year-to-date basis – slowed to a single digit.
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