2021 China Urban Catering Market Analysis Report

Catering industry development scale

In 2020, the COVID19 epidemic caused a huge impact on the restaurant industry, with annual restaurant revenue of 395.27 billion yuan, down 16.6%. From the trend of changes in the growth rate of catering revenue in recent years, the Under overall downward pressure of the economy, the catering industry also faces greater downward pressure, and the growth rate of the catering industry continues to decline.

China’s restaurant revenue size and growth rate, 2011-2020 *Data source: National Bureau of Statistics

From 2014-2019, players continue to join the Chinese catering industry, and the overall merchant size of the market grows year by year. in 2019, the number of catering merchants nationwide exceeds 10 million, reaching 110.775 In 2020, due to the impact of the epidemic, the number of restaurant merchants closes more stores and the number of stores decreases to about 9,412,000.

Trends in the number of merchants in China’s food and beverage industry, 2015-2020 *Data source: China Restaurant Industry Association

Comparison of regional catering development

By province, Shandong, Guangdong, and Jiangsu are in the first order, with catering revenue of 443.05 billion yuan, 430.72 billion yuan, and 372.90 billion yuan respectively, while Henan, Sichuan, Zhejiang, and Hebei are in the second order.

By region, the eastern coastal provinces have significantly higher catering revenue than the central and western regions, accounting for 52.2%.

Comparison of Chinese food and beverage revenues by the province in 2019 *Data source: China Hotel Association
Restaurant revenue by the province in China’s three major regions in 2019 *Data source: China Hotel Association

The difference between the distribution of restaurant chains and the regional distribution of restaurant revenue is close, showing that restaurant chains prefer to be laid out in the eastern coastal provinces. Shanghai, Beijing, and Guangdong lead the other provinces by an absolute margin, with more than 5,000 chain restaurant stores.

Comparison of the number of chain restaurant stores by the province in China, 2018-2019 *Data source: China Retail and Restaurant Enterprises Statistical Yearbook 2020

In 2018-2019, all provinces, except Anhui and Inner Mongolia, saw an increase in chain restaurant stores. Guangdong and Shanghai had the largest increases, with more than 600 new stores, followed by Sichuan, Beijing, and Hubei, with more than 200 new stores.

Changes in the number of chain restaurant stores by the province in China, 2018-2019 *Data source: China Retail and Restaurant Enterprises Statistical Yearbook 2020

Top 100 Catering Company Stores

In 2020, the total operating revenue of China’s top 100 F&B companies was RMB 309.51 billion, down 3.1% year-on-year. The Chinese catering market is extremely fragmented. in 2020, the operating revenue of the top 100 catering companies accounted for 7.8% of the national catering revenue, and the concentration of the top 100 companies has increased.

Revenue size and growth rate of the top 100 restaurant companies from 2011-2020 *Data source: China Restaurant Yearbook 2019, China Cuisine Association

In 2020, the top 100 catering enterprises cover 20 provinces, autonomous regions, municipalities directly under the Central Government and special administrative regions catering top 100 enterprises distribution area is still dominated by the three municipalities of Beijing, Shanghai, and Chongqing, the sum of the number of companies on the list is 42, compared with 2019, the number has decreased.

Number of top 100 restaurant enterprises by province, autonomous region, municipality, and special administrative region in 2020 *Data source: China Cuisine Association
Distribution of top 100 restaurant enterprises by provinces, self-administered regions, and municipalities directly under the central government in 2020 * Data source: China Cuisine Association

The top 100 catering enterprises cover 35 cities, 15 of which have 2 or more stores. The top 100 catering enterprises are concentrated in Beijing, which has 17 catering enterprises on the list, accounting for 48.6% of all stores. This is followed by Shanghai and Chongqing, with 14 and 11 stores respectively. Overall, the cities are concentrated in the Yangtze River Delta and Pearl River Delta city clusters.

The top 500 restaurant stores cover 95 cities, 44 of which have 2 or more stores. 500 restaurant stores are concentrated in Beijing, with 129 restaurants on the list, accounting for 25.8% of all stores. The next largest cities are Chongqing and Shanghai, with 20 stores respectively. By region, Beijing, Tianjin, Hebei, Yangtze River Delta, and Pearl River Delta regions have obvious characteristics of gathering and distribution.

Number of top 500 restaurant stores by the city in 2020 *Data source: China Cuisine Association

Typical city catering profile

Beijing, Shanghai, Guangzhou, Shenzhen, Suzhou, Zhengzhou, Chengdu, and Changsha are selected for analysis. 8 cities have an excellent catering development environment, stable urban economic development, and large consumer base.

Introduction to the development environment of the restaurant industry in a typical city *Data source: Local statistical offices

Beijing:

In 2020, Beijing’s catering revenue was 87.17 billion yuan, down 29.9% year on year. Among them, the operating income of the catering industry above the limit is 62.57 billion yuan, accounting for 71.78%. From the above-limit catering business income by industry, the highest revenue from formal food service, reaching 33.615 billion yuan, accounting for 54%; followed by fast food, accounting for 30%.

Shanghai:

In 2020, Shanghai’s accommodation and catering industry revenue were 117.83 billion yuan, down 19.6% year-on-year. Data from the Shanghai Municipal Bureau of Statistics show that the operating income of Shanghai’s catering industry above the limit in 2019 is 95.874 billion yuan. From the operating income of the catering industry above the quota by industry, the revenue of formal food service is the highest, reaching 59.394 billion yuan, accounting for 62%; followed by fast food, accounting for 16%.

Guangzhou:

In 2020, Guangzhou’s catering revenue was about 121.722 billion yuan, down 4.8% year on year. In recent years, Guangzhou city catering revenue accounted for the proportion of the province’s catering revenue, although maintaining the first place, but the overall trend of continuous decline.

Data from the Guangzhou Municipal Bureau of Statistics shows that the operating revenue of Guangzhou’s catering industry above the limit in 2019 is 38.944 billion yuan. From the operating income of the catering industry above the limit by industry, the revenue of formal food service is the highest, reaching 19.738 billion yuan, accounting for 51%; followed by fast food, accounting for 33%.

Shenzhen:

In 2020, Shenzhen’s catering revenue was about 81.67 billion yuan, down 2.0% year-on-year. In recent years, Shenzhen’s catering revenue has been climbing as a proportion of the province’s catering revenue, and the proportion reached 19.4% in 2019, nearly 2 percentage points higher than in 2015.

Data from the Shenzhen Bureau of Statistics show that the operating income of the catering industry above the limit in Shenzhen in 2019 was RMB 38.639 billion. From the operating income of the catering industry above the limit by industry, the revenue of formal food service is the highest, reaching 21.300 billion yuan, accounting for 55%; followed by fast food, accounting for 27%.

Industry Epidemic Impact Analysis

Research by the China Hotel Association shows that, compared to the 2019 Spring Festival, 78% of catering enterprises lost more than 100% of their business revenue during the epidemic; 9% lost more than 90% of their revenue; 7% lost between 70% and 90% of their revenue, and only 5% lost less than 70% of their revenue.

During the epidemic, most catering companies were unable to operate normally and had to bear several costs and expenses while incurring significant losses in business revenue. in January 2020, the costs and expenses to be borne by the surveyed catering companies mainly included the loss of expired reserve materials, rent, labor costs, and procurement costs of epidemic prevention and control materials, among which labor and rent accounted for more than 80% of the total costs.

For the catering industry, the epidemic has accelerated the development of China’s catering industry from manual labor to industrialization, intelligence, Internet, and data; the profit model of restaurants has been upgraded to “dine-in + take-out + retail”; and customers’ consumption philosophy has changed to higher requirements and standards of food safety, health, and hygiene.

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Mr.Zhang is the founder of MaxFon.com

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