Food services in China - statistics & facts
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Scan-and-go: digitalization has come for food service. Whether it's scanning the QR code of street food hawkers or reading menus online, the COVID-19 pandemic accelerated a long-awaited restructuring of the food service industry, leading to record revenues in 2023. Online food delivery has grown strongly against the general market trend, with chain stores gaining momentum, and foreign food service brands such as Starbucks achieving popularity in the Chinese market.
In addition to dominant Chinese cuisines, foreign food service brands are also sharing this fast-growing market. Foreign café brands like Starbucks have gained immense popularity in China, and although drinking coffee does not belong to the traditional Chinese lifestyle, the number of Starbucks outlets has grown year-on-year to reach over 6,800 in 2023. Japanese cuisine is also particularly popular among younger generations, and Ajisen China is one of the beloved Japanese casual dining style brands.
Driven by rising disposable income and increasing demand for diverse dining options, China's food service market has strong growth prospects. Digitalization and online food delivery platforms are also boosting market expansion, especially among younger consumers. However, common challenges such as possible regulatory changes and supply chain disruptions may impact growth, requiring adaptability from market players. Overall, the sector is expected to continue its robust development in the coming years.
Booming online services
With the advanced development of online-to-offline (O2O) services, in 2023, a record 545 million people used online food delivery in China. Online services have become so integrated, that diners can read the menu and order food through restaurant apps while waiting for a table. And instead of paying with cash, consumers can easily pay by scanning a QR code − both in traditional restaurants and with street food hawkers as well. Food delivery services did not only boom thanks to the pandemic but also because of low logistic costs and a decreasing interest in cooking at home. Besides consumer behavior changes, the more food services moves online, the more catering providers can utilize a smart management system based on big data to help them better understand consumers’ preferences and make changes accordingly.Growing chain restaurant market
Chain operation has become the fastest expanding business model for the food service industry in the country. In 2022, the revenue generated from larger catering chain stores amounted to 233 billion yuan. Yum China is one of the largest national full-service restaurant operators in China, and in 2023, the number of Yum China restaurants reached nearly 15,000 outlets. As the parent company of KFC, Pizza Hut, and Taco Bell operations within China, a breakdown of Yum China restaurants by brand shows that over 10,000 of these outlets were KFC, by far the biggest share. Other prominent local players include the time-honored brand Quanjude, which is famous for its Beijing roast duck, hot pot chains like Haidilao, and its imminent rival Xiabu Xiabu. After its huge success in China, Haidilao opened its first restaurant in London in April 2019, which attracted long queues of enthusiastic diners.In addition to dominant Chinese cuisines, foreign food service brands are also sharing this fast-growing market. Foreign café brands like Starbucks have gained immense popularity in China, and although drinking coffee does not belong to the traditional Chinese lifestyle, the number of Starbucks outlets has grown year-on-year to reach over 6,800 in 2023. Japanese cuisine is also particularly popular among younger generations, and Ajisen China is one of the beloved Japanese casual dining style brands.
Driven by rising disposable income and increasing demand for diverse dining options, China's food service market has strong growth prospects. Digitalization and online food delivery platforms are also boosting market expansion, especially among younger consumers. However, common challenges such as possible regulatory changes and supply chain disruptions may impact growth, requiring adaptability from market players. Overall, the sector is expected to continue its robust development in the coming years.
