An investigation of how Café de Coral Group expands the market in Portsmouth

Contents

Abstract……………………………………………………………………………..1

Introduction…………………………………………………………………………2

Background……………………………………………………………………….2

Main issues to be studied in the project ………………………………………….2

Chapter One: Literature Review…………………………………………………….3

1.1   Brief introduction of Café de Coral Group………………………………….3

1.2 Features and superiority of Café de Coral…………………………………….4

1.2.1 Features…………………………………………………………………4

1.2.2 Superiority………………………………………………………………5

1.3 Current situation of fast food market in the UK………………………………5

1.4 The further development trend of Chinese fast food industry.………………..6

Conclusion..………………………………………………………………………….7

Chapter Two: Methodology…………………………………………………………..8

2.1 Data collection method………………………………………………………..8

2.2 Selection of data………………………………………………………………8 

2.3 Structure of questionnaires…………………………………………………….8

2.4 Difficulties and Limitations……………………………………………………9

Chapter Three: Results and Findings………………………………………………..10

Chapter Four Analysis and summary……………………………………………….13

4.1 Analysis of the results…………………………………………………………13

4.1 summary of the results………………………………………………………...13

Strategies of the successful expansion for Café de Coral……………………………14

Notes………………………………………………………………………………….16

Bibliography………………………………………………………………………….17

 

 

Introduction

This part will introduce the background of the project and the reason of choosing the research question that how Café de Coral Group can expand their market in Portsmouth. The main issues to be studied in the project will also be presented.

 

Background
快餐，即餐廳事先準備好的可迅速提供給客戶的食物，如漢堡包，便當盒。無論是西式快餐還是中國快餐，無不體現方便、快速的功能，以及主食作為被服務的對象。在過去的幾十年中，快餐食品已遍布歐洲社會的各個角落。有些業內人士還認為一開始的少數熱狗和漢堡包先在英國傳開。當今世界，中國快餐廳越來越受歡迎，這是一個有趣的現象。中國現代快餐反映了洋快餐和中國傳統快餐的整合。它不僅注重對西式快餐的標準化管理，同時也保留了中國傳統風格的食物營養的特點。#p#分頁標題#e#

Fast food, it means meals pre-prepared can be quickly available to customers, such as hamburgers, Lunch box. Whether western fast food or Chinese fast food, all reflect the features of convenience, section, and being served as a staple. During the last few decades, fast food has permeatedd every corner of European society. This industry that began with a handful of modest hot dog and hamburger has spread all over the UK. Chinese fast food restaurant is more and more popular in the world. This is an interesting phenomenon. Modern Chinese fast food reflects the integration of western fast food and traditional Chinese fast food. It not only pays attention to the western fast food standardized management, but also keeps the characteristics of nutrition of traditional Chinese food style. The reason of choosing this topic is that there are many native people and also many Chinese living in Portsmouth always go to Chinese fast food restaurant, which make people doubt whether there is a famous Chinese fast food restaurant chain which already have good popularity in China existing in Portsmouth, so that people may prefer to choose it because its brand image. The research will mainly focus on the Café de Coral Group as it is a world-wide famous brand and reaches China, United States and Canada, in which the development of Café de Coral in Europe is relatively new.Chinese fast food restaurant was more and more popular in the world. With the people would like to consume in Chinese fast food restaurant, more and more Chinese fast food restaurant was built in Portsmouth. Café de Coral group is the largest Chinese Fast Food restaurant group in Hong Kong and in the world. Though more and more Chinese fast food restaurant was built in Portsmouth, Café de Coral group has not tried to expand their market there. This project aims to forecast whether there is an opportunity for Café de Coral expands their market in Portsmouth through Data collection method. Since we focus on how Café de Coral Group can expand their market in Portsmouth, we should firstly survey the development situation of Chinese restaurant in Portsmouth. A questionnaire survey has been made to find out factors relevant to a successful expansion. The result suggests that there may be an opportunity for Café de Coral group expands their market in Portsmouth and suggestions will be given to its expansion.

 

Main issues to be studied in the project

The main issues that will be researched in this project are the factors that affect the people to choosing the Chinese fast food restaurants and the success factors restaurant business. First of all, the review of literatures will present the information of Café de Coral Group and the development situation of Chinese fast food restaurants before the start of the research. Secondly, we need to investigate people’s attitudes towards Chinese food. Thirdly, to discover what would be the factors influencing people choose Chinese fast food restaurants. Fourthly, to confirm any opportunity for the Café de Coral Group expands their market in Portsmouth. Lastly, the Café de Coral Group should be examined, as a result of this company has the different business strategy compared to the traditional Chinese fast food restaurant.#p#分頁標題#e#

 

Chapter One: Literature Review

This chapter is to critically review literature about information of Café de Coral and the development of Chinese fast food. Specific information will be showed through the following topics:

? Brief introduction of Café de Coral Group

? Features and superiority of Café de Coral Group

? Current situation of catering trade in the UK

? The development situation of Chinese fast food restaurants in Portsmouth

 

1.1 Brief introduction of Café de Coral Group

Café de Coral Group (0341) is the largest Chinese Fast Food restaurant group in Hong Kong and in the world with a French-sounding name. Founded in 1968, the Café de Coral group opened its first Café de Coral restaurant in the Causeway Bay district of Hong Kong in 1969. Café de Coral (2012) operates over 100 locations in the Hong Kong region and 24 locations in Mainland China.[1]

With over 330 outlets in Asia Pacific region, and over 200 quick service restaurants in North America, The company is a leading restaurant operator in Hong Kong, where it has more than 120 of its signature Café de Coral fast-food eateries. It owns and operates fast food chains and restaurants including Café de Coral, The Spaghetti House, Bravo le Café, Oliver's Super Sandwiches, Ah Yee Leng Tong, as well as the well-established institutional catering business under the trade name of Asia Pacific Catering. In North America, Café de Coral operates more than 200 Manchu Wok quick-service Asian restaurants in Canada and the US. Other brands include New Asia Dabao and Oliver's Super Sandwiches. In addition to restaurants, Café de Coral has catering and food processing operations. In Hong Kong alone, the Café de Coral chain caters to over 300,000 people on an average day.[2]

In 2006, Café de Coral began rolling out its "fourth generation concept" across all of its locations, effectively renovating many restaurants to bring them up to modern standards.[3] Last year (2011), Café de Coral made an investment in the Tao Heung Group, a smaller restaurant group that operates 11 brands all over China and Hong Kong.[4]

 

1.2 Features and superiority of Café de Coral Group

This part covers the content that analysis how the Café de Coral successfully operate and run in the cutthroat market. Café de Coral Group is the largest publicly listed Chinese Fast Food restaurant group in the world and has become the market leader of the fast food sector for over three decades. [5] Thus, it can be seen Café de Coral Group is the most competitive fast food restaurant to others. The reason why Café de Coral Group is so successful in China or even the whole world can owe to its unique superiority and features.#p#分頁標題#e#

 

1.2.1 Features

1).In the restaurant, both typical Chinese and international dishes are offered. The restaurant offers meals in different periods: breakfast during the morning, lunch during the noon hours, tea time meals during the afternoon and dinner during the night; 

2).It offers a variety of flavors and tastes for a variety of customers.  Many of these customers who come as ‘repeat customers’ are most students and staff workers etc;

3).Its menu design is outstanding and concise, which reduces the customer’s time on the choice of food ; In addition, its menu is frequently varied with seasonal favorites and designed with four time segments to fulfill different needs of customers;

4). Food in the restaurant is produced in great quantities in the assembly line, so production cost is low and the prices are cheaper;

5). the restaurant particularly focuses on customer services. The service is quick and efficient. The food ordered can be eaten inside the restaurant, and can be brought out of it;

6). Café de Coral Group encourages customer feedback on services and products they received.  They also welcome new ideas and recommendations from customers in order to improve the ability of services and products;

7).The principle business of the Group is the development and management of quick service restaurants chain. Quick service restaurant further strengthen the Group's leading market competitiveness in the fast food industry in Hong Kong. After strategic collection of Machu Wok in North America and New Asia Dabao in Shanghai, the Group's quick service restaurant business has now been globalized to cover different parts of the world including Canada, U.S.A., Philippines and China.

 

1.2.2 Superiority

1). the number of customers to the restaurant is always in large flow. Customers come from different nationalities and are not limited to certain regions but they spread all around the world;

2).Café de Coral Group constantly discusses and plans to increase the benefits for their customers, employees and management. Business culture is the customer as the center;

3).The Group has also diversified into all-around specialty restaurant operations. The Spaghetti House, in 1991, enabled the Group to achieve a more diverse earning base through the wider market exposure. New concept development of Bistro M in Hong Kong is recent members added to the Group's family of specialty restaurants;

4). The Group's venture into the institutional catering industry with the Asia Pacific Catering since the early 90's has gradually developed into a competitive and  strong market leader in the field. Major customers being served cover a wide scope of institutions ranging from most hospitals, universities, private and public corporations, both in Hong Kong and China. As to date, the Group's institutional catering business has been internationally recognized with both the ISO9001 and HACCP accreditation;#p#分頁標題#e#

5). As one of the fast food industry’s most important operational logistics, the Group possesses a food processing plant in Guangzhou, China as well as other countries. These facilities include all kinds of fully mechanized and automated food processing lines, quality control laboratory, cold and dry storages, and distribution process;

6).The restaurant also concentrates on employees' development and promotion in order to improve their work performance, focuses on strengthening employee relations and promoting corporate citizenship.

 

1.3 Current situation of fast food industry in the UK

The fast-food restaurant industry has been one of the fastest growing industries in the UK. Perhaps no other industry can pay, both literally and figuratively, so much attention to the nature of mass consumption. The typical English consumes about three hamburgers and four orders of no matter what kind of fries every week. Roughly a quarter of this nation's population buys fast food every day .Yet few people give the slightest thought to who makes the fast food or where it comes from. Not only for children, almost all companies today target many of their ads to "heavy users" - men between the ages of sixteen and twenty-four, who often eat fast food three or four times a week.

 

Since the fast food industry has been developing so fast, the numbers of fast food restaurants at the present time is increasing with an incredible speed. A survey of American schoolchildren found that ninety-six percent could identify Ronald McDonald. The only fictional character with a higher degree of recognition was Santa Claus. [6] This phenomenon is also applied to Britain. So the impact of fast food on the nation's culture, economy or even every aspect is hard to overstate. Now fast food is served not only at restaurants but also at stadiums, airports, college campuses and elementary schools, gas stations and even hospital cafeterias. In the past few decades, the United Kingdom spent about $6 billion on fast food. But last year they spent more than $100 billion on fast food. As McDonald’s (2011) stated in their website that McDonald’s is the largest fast food restaurant chain in the world, they also have nearly 1200 fast food restaurants existing in different places in UK. Moreover, according to Burger King (2011), there were more than 11500 Burger King fast food restaurants opening in 72 countries and nearly 1400 opening in UK while Subway (2011) also indicated in their webpage that by the end of 2010, there were already 1513 Subway fast food restaurant opening in UK and Ireland.

The changes caused by fast food have appeared so quickly and have been so profound and lasting that it is now hard to conceive of a world without hamburgers served in brightly colored paper boxes, without drive-thru windows, without the different  restaurants making the same food the same way in almost every Britain city and town. Those are true value meals, with each transaction and low prices on the menu disguising the real costs of the fast food. #p#分頁標題#e#

 

1.4 The future development trend of Chinese fast food industry 

Food is driving Chinese food consumption as a kind of important power for the increase in consumer demands. Among them, the fast food industry as a new power is emerging. Many entrepreneurs chose fast food trade, because they see the development of fast-food status. So what is the future of China's fast-food industry and what will be its development trends?

In the last few years, China’s fast food industry has experienced some hardships: this industry has developed from disorder to order, from start to maturity. Meanwhile some experts pointed out that because the Chinese people’s eating habits and long-term development of the irresistible delicious Chinese food, although Western fast food has a good development, the trend of the future will continue to be dominated by Chinese fast food.  Investigation shows, in Chinese fast food market, 78.9% people choose Chinese fast food restaurants, 21.1% people choose is western fast-food restaurants. This is no doubt shows the potential development Chinese fast food industry whether in China or abroad. Recently, a "food and beverage industry in China 2009-2013 development plan," said “China's catering industry in general is still small, scattered, weak state, 90% of the catering business for small businesses. In 2007 the 100 largest turnovers of catering enterprises accounted for only 8.5% of the entire food and beverage market with world-renowned food and beverage companies, the Chinese well-known catering company, firm size, profitability, management and experience gap between the larger, showing a low level of industrialization of the poor development situation.”[7]

 

Conclusion

In conclusion, although Western fast food restaurants exist around the UK and develop rapidly, there are many chances for Chinese fast food to expand in this nation or in Portsmouth. At present, Chinese fast food industry has paid great attention to the establishment of the brand and the expansion of the scale of the enterprise. Through the chain and franchise and many other kinds of ways, China's catering industry is actively in overseas market. Western fast food is given priority to, KFC, McDonald's, and pizza hut and so on, they take over the main market, but Chinese fast food will vigorously be able to compete with "the favored". With China's special features and high-quality service, the catering industry has a bright future in the coming years. China's fast food industry will be diversified developed, internationalization will be speeded up, and green food will become fashion.

 

Chapter Two: Methodology

This chapter is to introduce the method which has been used in the project and the process to select the data. The difficulties and limitations will be also included. Several parts consisting of data collection method, Selection of data, Structure of questionnaires and difficulties and limitations will be presented as following.#p#分頁標題#e#

 

2.1 Data collection method

This study, it will be used the questionnaire as the primary data collection, as a result of the more useful and more efficient. The reason for choosing the questionnaire is this method can get the result from different people with different customer behavior and the respond rate will be more idealization. The questionnaire will be given to different respondents by hand or email, as a result of it can be made the result more efficiency. Because of the useful of questionnaire survey as well as the lack of time and budget during the survey, questionnaire was chosen as the data collection method in this project. Moreover, the aim of this project is to investigate the opinion of people who live in Portsmouth towards Chinese Fast food; therefore, a quantity research seems to be necessary for this project.

 

2.2 Selection of data

The questionnaire will be contributed to the people who aged between 20 and 50. Due to this paper takes the Café de Coral group as the case study, which is the Chinese fast food company. This age group’s people have the real experience about choosing the fast food restaurant so that the result will reflect their real opinion about the Chinese fast food restaurant. As a result of the limited time, the questionnaire will be distributed to one-hundred people in the age group from twenty to fifty by random sample.

 

2.3 Structure of questionnaire

The questionnaire of this study will be mainly in a multiple choice format. Interviewees will be given different choices for each question. The aim of the questionnaire is to analyze how many people think that the customers’ attitude and opinion on Chinese fast food. The objective of the questionnaire is to know about the perception of the respondents towards different Chinese fast food restaurant and the reasons for why or why not choice Chinese fast food restaurant.

In addition, there will be about 6 factors which can affect the people’s decision that includes: taste, type, price, quality, service and design. And it will ask a few questions about the Chinese fast food restaurant. First question is the people’s opinion about the Café de Coral if open in Portsmouth and the other one is the factors effect for the people choosing the Chinese fast food restaurant.

In this questionnaire, it provides the multiple choice question and open question for the interviewees. Because of the factors that affect the customers decisions may differ as they have quite different cultural background.

 

2.4 Difficulties and Limitations

In this project we just use one method—questionnaire survey, so there are many difficulties and limitations in the process of investigation. Questionnaire investigation method can only obtain written social information, and cannot be understood to be lively and concrete social situation. This is one of the biggest weaknesses. In the process of questionnaire survey, since some respondents did not know their answers are serious to the investigator, they just dealt with the questionnaire casually or pleased help. #p#分頁標題#e#

 

Meanwhile, the questions could not be understood and the answers are not very clear, so they would not be used as detailed guidance and instructions. Many people in Portsmouth did not have a general impression of what Chinese fast food restaurant is, they might not give you valuable information even you had explained much. The results of the survey are wide but not deep. Questionnaire survey is a dialogue with the writing method. If too many questions are given, respondents will feel the boring; therefore, the general questionnaire is short, also can not be further and reasonably discussed a problem;

And in this project, a special age level was surveyed, and most of them are students in Portsmouth, so the result only represents part of people’ opinions, which means that more questionnaires should be made in the future.

The factors that influence people when choosing Chinese fast food restaurants are presented in the following graph. It can be seen from the figure, about 39 percent of respondents indicated quality of the food was the most important factor when they choose the Chinese fast food restaurants. The second important factor was the taste of the food in the restaurants, while the environmental factors accounted for 19 percent. There were also a small percentage of people who tended to be influenced by the service of the restaurants, which was 15 percent. There are other factors such as price and design that also influenced people’ choices.

 

 

 

Chapter Four Analysis and summary

The purpose of this chapter is to analyze the findings and results of the questionnaire and find whether Café de Coral Group has opportunities to expand their market in Portsmouth.

 

4.1 Analysis of the results

As it can be seen in the findings section, most respondents occasionally go to the Chinese fast food restaurants and they feel the food or service are very good.  Some even eat Chinese fast food frequently, since they think the food is excellent and very tasty. And respondents who never go to the Chinese food restaurants before indicated that they do not know much about the food, but they would like to try in the future. Therefore, people’s general attitude is positive towards Chinese fast food. So there is still a big fast food market for the development of Chinese fast food restaurants.

People’s opinion on Chinese fast food seem to be Chinese food is high-quality and tasty. There was a small percentage of people indicated that Chinese food is terrible, because they were not used to the flavor Chinese fast food, and it might be also because the atmosphere of Chinese fast food failed to meet the requirement of native people.

The findings also indicated that comparing with other factors; the quality and taste of Chinese fast food seem to be more important than other factors. The results also showed a large of people stressed on the service and the environment of the restaurants. A lot of people chose Chinese fast food restaurants may because a clean environment might provide people with healthy and safe food.#p#分頁標題#e#

 

4.2 summaries of the results

Although the figure cannot represent the opinions of all people in Portsmouth, it indicates the general impression to the people’s welcome of Chinese fast food. The results of the questionnaire suggest that people more intend to be influenced by the quality and taste of food. Services and atmosphere in restaurants also have great influence on choices for Chinese fast food restaurants. Therefore, with the positive attitude of people toward Chinese fast food there would be an opportunity for Café de Coral Group to expand their market in Portsmouth. Moreover, in order to expand their market in Portsmouth, there are several factors that Café de Coral Group needs to pay attention, such as the quality of food, taste of food, the price of food, the service and the environment in the restaurants.

 

Strategies of the successful expansion for Café de Coral

Since Chinese fast food is so welcomed in Portsmouth and Café de Coral Group has huge opportunity to extend their market in Portsmouth, then some strategies and suggestions of the successful expansion will be listed below:

 

? Control the brand and extend "quantity”. First it should be clear, the extension of products is no better. If one wants his restaurant more specialized, he will try to narrow road a bit. Only in absolute control of the existing market, can the Café de Coral Group enter into new markets. As the first to realize globalization Chinese fast food should standardize enterprise and make true effort in quality, service, taste and so on.

? A competitive- oriented marketing strategies and specific marketing plans and programs must be developed. To develop Chinese-style fast food enterprises we must change the traditional mode of operation and strive to overcome the weaknesses of traditional operations and to borrow and absorb the benefits of Western-style fast food. At the same time, Café de Coral Group can maintain its own Chinese characteristics and create a new development path.

? The principle of fast food restaurants should be located in business district, shopping areas, office and residential areas such as population density or traffic convenient location. These places generally possess higher passenger flow volume and have the convenience to customers to reach.

? Chinese fast food restaurants should discard the traditional more depressing atmosphere, and adapt the atmosphere according to the consumption demand. To create a relaxed intimate atmosphere and provide a kind of pleasant, bright and spacious environment.

? Fast food dish design should pay attention to nutrition and health. Chinese fast food product positioning is very important, in view of the different dining group, we should put more emphasis on the various tastes. The fast food restaurants should also pay attention to modern life rhythm, correspond modern way of life, and adapt to the social development demands. The traditional Chinese culture and the modern elements and fashion will show the particular characteristics of Chinese fast food. A hamburger contains all the necessary to ensure human health and nutrition that Chinese fast food should pay attention to in the process of development.#p#分頁標題#e#

? Stick to Chinese characteristic, and reduce prices. Chinese fast food low price features with competitive price, owe to the results of the comprehensive effect, such as quality, dining time limit, food service efficiency, dining environment, health conditions, and other factors.

? Fast food focuses on the value of time in people’ psychology. As we live in a fast-paced life style, people pay more and more attention on timesaver and the time value has been under the request. In order to meet the needs of people saving time from the contracted meal way, fast food restaurants’ remarkable characteristic is reflected in the "fast", so the main demand is appeared as: time consuming, convenient, dining short and trade contracted. Therefore, Chinese fast food should develop the competitive features: “fast”. No matter how many consumers there are facing repast, the operators of the Chinese fast food must make a strict time consuming to avoid consumer waiting for too long, this is attributes of Chinese fast food and the fatal method to survive.

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