Full-Service Restaurants in China

2020 IMPACT

COVID-19 pandemic hits full-service restaurants hard during 2020

Due to the COVID-19 pandemic, almost all full-service restaurants were forced to close for around two months, which included the Spring Festival holiday, the traditional peak season for China’s consumer foodservice industry. Following the reopening of the economy, many restaurants gradually resumed their business, although full-service restaurants continued to struggle due to limited eat-in customer traffic and the lack of returned workers over a prolonged period of time.

Leading chained players ramp up expansion to grasp more market share

While the COVID-19 crisis had a massive impact on the whole full-service restaurants industry, chained players undoubtedly performed better than their independent counterparts to a large extent due to their substantial capital resources and stable supply chain. For instance, when many small independent restaurants shut down, leading chained players consider it a good opportunity to acquire these foodservice outlets thanks to their high bargaining power, as this enables them to rapidly expand their business territory.

Full-service restaurants facilitate digital transformation

Compared to limited foodservice restaurants, the penetration of delivery services among full-service brands has been much lower in China. During the global pandemic, the advantages and benefits of online food delivery and e-commerce platforms were obvious, even proving a lifeline for some operators.

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