Food Delivery Takes Big Bite: Shanghai

        Nearly one third of Shanghai's 30,000 restaurants have launched a delivery service in recent years due to rising demand for fast and hygienic food as part of the modern and hectic lifestyle that people are adopting.According to He Yizhao, chairman of Shanghai Restaurants Association, the delivery market takes a big bite of Shanghai's 30 billion yuan (US$3.6 billion) catering industry. There are already 30 companies which operate a delivery service only.Lihua Fast Food (Shanghai) Co Ltd is one such company.Its average daily sales are worth more than 100,000 yuan. Nearly 70 percent of Lihua's clients are office staff.The company provides traditional Chinese food costing from 6 yuan to 20 yuan per set."There are few professional and influential players on the market. Lihua plans to add another 10 outlets to the current 13 in the city in 2004 to cover more districts," said Chao Yun, Lihua's general manager in the Shanghai area.However, foreign giants have also eyed the potential of the business sector.KFC and McDonald's restaurants are already providing a delivery service. Pizza Hut Delivery, an independent brand under the Yum! Restaurants China, will expand its delivery service in the future.Papa John's International Inc, the world's No. 3 pizza chain owner, plans to open 200 outlets in Shanghai and neighboring cities within seven to nine years.(Eastday.com)