Local players

East Dawning outlets provide affordable Chinese food in a wide range of options. There were 18 East Dawning shops in China by the end of March.

"It is natural for global catering groups to eye the Chinese market because of its faster growth," said Kuang. "At the same time, there are no local players strong enough to pose a serious threat yet because domestic outlets don't have the same level of management and brand-building prowess."

He added: "Hundreds of thousands of dumpling restaurants in China just look the same and don't attempt to differentiate themselves from others."

Concern is growing in the domestic fast-food industry that local restaurants will be further squeezed by competition from global players, but others argue overseas chains help create a new market that benefits both parties.

"Overseas chains can't replace our own kitchen experts," said Dickson Xiao, a 24-year-old office worker who grew up with Western food but still favors Chinese cuisine.

"Fast-food chains can't really replicate authentic Chinese cooking," Xiao added. "Besides, prices in overseas restaurants are usually unreasonably high and the food is relatively unhealthy."

(Shanghai Daily July 14, 2009)