Full-Service Restaurants in China

PROSPECTS

Diverse culinary traditions across China

The full-service restaurants offer varies greatly across different regions in China, as the country is home to a diverse range of culinary traditions across its broad geographic range. People in Hunan and Sichuan Provinces, for example, tend to prefer spicy food, while people in Jiangsu prefer sweet food.

Hot pot the most popular food type

The hot pot category has become the most popular food type in full-service restaurants in China. However, in common with the broader category, hot pot demand is diverse across the country and the hot pot category is fragmented.

Restaurant operators explore potential of delivery services

With busy consumers increasingly placing a premium on convenience in the midst of hectic lifestyles and looking for meal solutions that require minimal time and effort, full-service restaurant operators are exploring the potential of delivery services. Leading players such as Hai Di Lao, Xibei and Waipojia are planning to increase their income from delivery services.

COMPETITIVE LANDSCAPE

A highly fragmented category

While various types of full-service restaurant are present in China, and consumers displayed a growing interest in exotic culinary traditions at the end of the review period, Asian cuisine continues to dominate. The strength of independent operators, founded on years of tradition, makes for a highly fragmented category, with the combined value share of the top three players accounting for less than 1% of category value in 2019.

Leading players extending the range of their operations

The major players in China’s full-service restaurants market are proving to be dissatisfied with only operating restaurants. Once they have reached a certain level, they are trying to move their businesses both upstream and downstream in order to cover the whole industry.

Players looking to expand into third and fourth tier cities

Major full-service restaurant players such as Xibei, Xiabuxiabu, and Hai Di Lao, have opened many restaurants in China’s first and second tier cities. With these markets approaching maturity and opportunities growing in other cities as a result of ongoing urbanisation and the expansion of the middle class, the next step for these players is to shift their focus to third and fourth tier cities.

Files are delivered directly into your account within a few minutes of purchase.