In recent years, China’s catering industry has been growing continuously. In 2023, the recovery speed of catering far exceeded that of other commodity retail sectors, and the momentum will continue in 2024. According to the data of the National Bureau of Statistics, the national catering revenue was about RMB 3.5 trillion yuan, an increase of 6.6% year-on-year.

The scale of catering brands is increasing day by day, and the pace of chain-isation is accelerating. The proportion of brands with more than 100 stores is increasing year by year. Moreover, the scale of the takeaway market is about RMB 1.2 trillion, which has become an important growth engine of the catering market.

Background of innovation

• Consumption upgrade: quality demand has improved, consumers pay attention to catering quality, experience needs are also diversified, and special theme restaurants are becoming more and more popular.
• Intensification of competition: The competition in the industry is fierce, and cross-industry competition is also under pressure, which promotes the continuous innovation of catering enterprises.
• Technological progress: The Internet and the application of intelligent devices bring new opportunities to the catering industry.
• Cultural integration: Different cultural exchanges provide materials for catering innovation.
• Popularisation of healthy eating: Consumers’ requirements for catering health are increasing.

Direction of Innovation and achievements

• Product innovation: integrating multiculturalism, combining scientific and technological elements, paying attention to healthy nutrition, and exploring special ingredients. There are excellent innovative restaurants such as Coucou Hot Pot, Taishan Food Festival, Fengxiyuan Restaurant, Western fast food brands, etc.
• Service innovation: personalised services and intelligent services. The children’s meal service of Xibei Noodle Village, the convenience and innovation of hometown chicken, the diversified service of Naixue‘s tea, and the intelligent service of Haidilao and Hefu Noodles are all excellent.
• Marketing innovation: social media marketing, experience marketing, cross-border cooperation. Tastin’s social marketing, the experience activities of hometown chicken and Xibei noodle village, and cross-border cooperation such as Laowang and Link are all very eye-catching.
• Business model innovation: popularisation of dining + drinking mode, omni-channel model, new retail + catering model, special store model, introduction of catering in home stores, etc.

Future development trends and prospects

• Business model and category development: the degree of chain-isation and branding has been improved, and the category has been subdivided and characterised by operation.
• Consumption experience and service: omni-channel operation has become the norm, and scenario-oriented and immersive experience are favoured.
• Product innovation and supply chain: healthy dish innovation, intelligent and digital supply chain management.
• Market competition and industry pattern: the potential of market failure is huge, and the brand’s overseas exit is accelerating.

Conclusion: China’s catering industry is booming and continues to innovate. Catering brands actively seek change and constantly open up new paths. In the future, catering enterprises should keep pace with the times, continue to innovate, and meet the diversified needs of consumers. Super brand strategic consulting will also contribute to the prosperity and development of China’s catering industry.

Peter Peverelli is active in and with China since 1975 and regularly travels to the remotest corners of that vast nation. He is a co-author of a major book introducing the cultural drivers behind China’s economic success. Peter has been involved with the Chinese food and beverage industries since 1985.