If you have the time it would be quite valuable to check out the website, chinaskinny, a marketing, research and online agency for China. They have a recent post titled “The Science of Choosing Which Cities To Target.” You can submit your home city and then the site will tell you have many cities in China are bigger, the total population and total spending. I put in my home town, Las Vegas, a city of 2 million, and found out that there are 233 cities in China which are bigger with total spending of US$2.7 Trillion. Quite eye popping to say the least. http://chinaskinny.com/tools/city-nator
Did you know that by 2020, 75% of China’s 220 million affluent consumers will be living in smaller cities?
Evaluate your restaurant concept and decide where your future market really is. Depending on the brand, you may be able to bypass the expensive Tier 1 cities and head straight for the smaller ones.
Something to definitely think about before making the big investments. If I were a private equity fund, I would only invest in chains with the potential to penetrate these smaller cities.