New trends and diversified operations are essential to the survival of the restaurant chain

Editor’s notes:

New trends in various industries have caught the attention of lawmakers during the two ongoing sessions in China. For the restaurant sector, it is important to diversify and innovate, especially in the context of the pandemic.

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Established and new restaurants set trends, but those no longer considered trendy are dying out.

Market uncertainty and changing consumer preferences re-emphasize the importance of diversifying the business activities of restaurant chains.

Established and new restaurants set trends, but those no longer considered trendy are dying out.

Yum China recently announced that it will cease operations of East Dawning, a Chinese-style quick-service restaurant that has been badly hit by the COVID-19 pandemic.

The restaurant chain opened its first store in Shanghai in 2015, and so far there are only five outlets in the country that will close this year.

Food demand in transportation hubs has fallen sharply during the pandemic due to reduced foot traffic.

While other Yum Chinese food brands such as Little Sheep and Huang Ji Huang also struggled during COVID-19, the company decided to focus its resources on the Chinese hot pot brand, according to CEO Joey Wat. and director of Yum China.

New trends and diversified operations are essential to the survival of the restaurant chain

Ti Gong

East Dawning, a Chinese-style quick-service restaurant that has been badly hit by the COVID-19 pandemic, will end its operations on the Chinese mainland.

Li Ling, a consultant with local news portal Linkshop, said a successful restaurant brand requires a strong operational network and promotional activities as well as a signature and attractive product.

“It’s not easy to replicate the success of a quick serve brand,” she said.

Other established brands are also having a tough time.

Restaurant chain Hotpot Haidilao International warned of a net loss in 2021 of 3.8 billion ($600 million) to 4.5 billion yuan, compared with a net profit of 309.5 million yuan in 2020.

Less than satisfactory business performance forced it to close or suspend more than 300 restaurants in 2021, and market watchers said its store expansion plans in previous years were premature.

Last year, the total revenue of Chinese restaurants had yet to return to pre-pandemic levels despite growing 18.6 percent year-on-year and 4.69 trillion yuan in total revenue, according to a report by the China Cuisine Association in January.

Meanwhile, more and more hotpot cafes and restaurants have sprung up in recent years, as diners expect a range of options.

Even established brands are adopting new looks, decorative styles and exterior design patterns to meet diners’ preference for relaxing and refreshing dining environments.

KFC’s new canteen in Xuhui District, decorated to look like a retro 1950s American fast food joint, has been a hit with people who like to dine out.

The waterfront green spaces have been particularly attractive to those with pets and who enjoy outdoor sports.

New trends and diversified operations are essential to the survival of the restaurant chain

Dong Jun / SHINE

Established brands like KFC are adopting new looks, decorative styles and exterior design patterns to meet diners’ preference for relaxing and refreshing dining environments. Xuhui District’s new KFC cantina, decorated to look like a retro 1950s American fast food joint, has been a hit with people who like to dine out.

Christine Peng, head of China’s consumer sector at UBS Investment Research, remains cautious about the general business performance of restaurant chains as many buyers have turned to home dining and food delivery services and traffic. pedestrianization has yet to fully return to pre-pandemic levels.

Many foodservice providers also took premature expansion measures in 2020, and short-term store closures over the past year hurt overall financial performance a bit.

New trends and diversified operations are essential to the survival of the restaurant chain

SHINE

Last year, Chinese restaurant business revenue had yet to return to pre-pandemic levels despite growing 18.6 percent year-on-year and total revenue of 4.69 trillion yuan, anti-pandemic restrictions having curbed pedestrian traffic.

Shanghai has been home to unique local cuisine and new dining options for many years.

Data Quest China, a local commercial real estate consultancy, said up to 60% of new stores that opened for the first time in the city last year are restaurants and food and drink vendors.

The city attracted 1,078 new brands and retail stores in the past year, an 18% year-on-year increase.

The city’s accommodation, catering and catering sectors saw a 22.7 percent increase in revenue to 1.46 trillion yuan in 2021.

New trends and diversified operations are essential to the survival of the restaurant chain

HelloRF

The last opening in the city by Hong Kong-listed Jiumaojiu International Holdings was Song Chongqing Hot Pot Factory in mid-2021, as the company diversified its brand portfolio.

The last opening in the city by Hong Kong-listed Jiumaojiu International Holdings was Song Chongqing Hot Pot Factory in mid-2021, as the company diversified its brand portfolio.

In Jiumaojiu’s preliminary earnings report last month, it forecast profit of 330 million yuan in 2021, more than double the 2020 figure of 124 million yuan, while revenue rose 51% to 4 .1 billion yuan.

Tai Er Canteen, which serves spicy and sour fish, and Song Chongqing Hot Pot Factory make up the majority of its business portfolio among a total of five canteen brands.

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