The restaurant industry in China took a tumble post Xi Jinping’s anti-corruption measures in 2012 that aimed to curb excessive spending of government officials, much of which, was at banquet tables laden with pure baijiu, shark fin and other extravagances. To replace the previous extravagances, high end Chinese restaurants are now providing high level of customisation to their customers to meet VIP demands. Meanwhile, more than 50% of Chinese Restaurants are incorporating online systems into their offer in O2O models to expand their market share.
Many restaurants are reacting with a shift in focus to mass market consumers, developing their casual dining brands and newer market trends like healthy options or quality western ingredients as opposed to traditional luxuries now seen as old fashioned. Hot Pot restaurants have fared well with this change in consumer behaviour, including a revival of Chaoshan-style hot pot which uses fresh beef for a healthier fresher hot pot taste than its Sichuan counter-part.
Along with the 'waimai' (takeaway) age, which is big business in China, Chinese restaurants are tapping into the home delivery market by adjusting their dishes/opting to create dishes that deliver well i.e. that are package-able and sendable.
The industry is expected to see slow but steady growth in the next few years, with perhaps more development in the e-commerce realm.
