How is China’s catering industry evolving under the impacts of COVID-19?

According to the latest data from China’s National Bureau of Statistics, the total revenue of the catering industry decreased by 44.3 percent to CNY602.6 billion in the first quarter of this 2020. But is the industry showing signs of recovery?
calendar icon 28 April 2020
clock icon 9 minute read

"1 February 2020 - Our cash flow can only sustain operation for three months at most."

-Chairman of Xibei Oat Noodle Village Restaurant-
A delivery driver picks up food parcels for delivery during the coronavirus outbreak in China
China’s innovated contactless delivery for take-out dishes and online sale of fresh food (fruits, vegetables, chilled & semi-finished meat, etc.); for each contactless delivery order, the courier will put the order at a designated place and then call the customer to pick it up, without a face-to-face meeting

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Work resumption schedule of China's catering industry
Work resumption schedule of China's catering industry

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"5 April 2020 - Considering the epidemic situation and corresponding costs increase in raw materials and additional sterilisation, we would raise the dish price by 6 percent on average."

-Spokesman from Haidilao-
Haidilao’s popular dish Fried Crispy Pork Sticks
Haidilao’s popular dish Fried Crispy Pork Sticks

© IQC Insights

"6 April 2020 - You (the restaurant) can choose to increase prices, and I can choose not to come."

-Comments from a local citizen-

"10 April 2020 - We apologise for making the wrong decision to increase prices and damage the interests of our customers. We will restore the original prices to those in January 26, 2020 (before the lockdown)."

-spokesman from Haidilao-
citizens wait eagerly outside of a restaurant in China that has recently re-opened after the coronavirus lockdown
The long queue in front of a popular HK-style rice noodle (with chopped pork on top of the noodle) restaurant, taken 22 April and located in the city centre of Shanghai, China

© IQC Insights

Angela Zhang

Head of Business Intelligence Division, IQC Insights

For more data and insights related to China's pork market, please contact the author [email protected] or subscribe at IQC Insights here.

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