Nevertheless, there were also success stories, such as the Changzhou-based Lihua Fast Food which was launched in 1993, followed by Malan Noodles, Yonghe King and Daniang Dumpling.

These chains expanded into China's major cities. Malan Noodles was even ranked as China's third most popular fast food chain in 1999, after KFC and McDonald's.

By 2000, there were 1,400 fast food chains in China with a combined network of 500,000 stores and annual sales of 80 billion yuan.

Chinese fast food chains are still overshadowed by their foreign counterparts, even with lower prices and food tailored to a Chinese palate. KFC and McDonald's continue to occupy the biggest share of the market, with KFC leading the way.

The reason may well be the management system of these global fast food chains. An AC Nielsen survey in 1999 showed that KFC was the most favored international brand in China. Since the very beginning, KFC's focus has been on "building a perfect system which governs every step of the way - from purchasing, to making, to delivering the food - and to the quick service," according to Sam Su, president of Yum! Brands Inc. China Division.