Six Major Trends
Chinese chain catering faces new development opportunities
After three years of the pandemic, the catering environment has changed rapidly. Catering bosses have demonstrated an extremely strong adaptability and super-evolutionary ability in this tremendous transformation.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
Since 1978,The catering market has gone through an 'chaotic exploration period' and two 'golden development periods'. The scale of the catering market has soared from an initial 5.5 billion yuan to nearly 5 trillion today.
Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan Greater China, Co-founder and CEO of LeadLeo, believes that:The current high-frequency dining out in the catering market is driving rapid growth in the industry.The development of the catering industry in China is beginning to show six major development trends
The six trends are: brand chain operation, digital operations on the supply side, outstanding performance of fast food, digital and retail transformation, rapid development of the takeaway industry, and cross-border integration.
1. The concurrency rate continues to climb
From 2017 to 2022, the chain penetration rate of catering in China climbed from 9% to 20% in 2022.
Although the current chain penetration rate of Chinese catering still has a significant gap compared to Europe, America, and Japan, due to the promising prospects of the Chinese catering market, there is a high possibility that it will grow to 30%-40% in the future.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
2. The rise of takeaways has changed the consumption pattern
With the rise of the internet, takeout has become an integral part of the catering market.
China's food delivery market has maintained rapid development, with data predicting:From 2016 to 2025, the takeaway market will maintain a high compound growth rate of 26%.
Whether due to busy work, social engagements, or a reluctance to cook, this has propelled takeout to become an essential part of the catering industry's development. It has also enabled many brands to achieve faster, younger, and more efficient brand promotion methods and strategic business adjustments through online internet channels such as takeout.
Catering has also developed a multi-meal scenario featuring 'in-store dining + takeout + carry-out'.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
3. Integrated development, with multiple scenarios presenting development opportunities
Thirdly, the catering industry has witnessed cross-industry integration and segmented development.
In the current Chinese catering market, hot pot remains the industry track with the largest proportion. Moreover, in an increasingly professional market, segmented tracks are witnessing tremendous development potential.
Especially now after the pandemic, with the boost from the night economy,New scenarios such as meal + drinks, meal + milk tea, and meal + camping are emerging in large numbers, tapping into consumption opportunities across multiple scenarios.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
4. Supply-side reform, where efficiency becomes an advantage
Meanwhile, on the supply side, digitalization, intelligent commerce, and refined operations are significantly enhancing store operational efficiency and customer acquisition through platforms such as online payments and local life services.
The entire industry is undergoing a retail transformation driven by supply-side changes.
"In the future, catering must reach the scale of thousands of restaurants, which not only tests store management but also demonstrates the operational capabilities of industrial groups with restaurants as a form of display." Yang Xiaocheng stated, "This requiresDigitization, retailization, efficiency, and scientific management are what need to be done.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
5. Digitalization and retail transformation, with new drivers bringing new growth
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
Currently,The catering industry has entered the 3.0 era. This era is driven by digitization, retailization, and standardization, aiming to expand the market and create brand hits.
And 'retailization of catering' will also become an opportunity for chain catering enterprises to create the third growth curve through transformation.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
6. Branding is becoming increasingly ingrained, and competition is intensifying
In today's catering development, branding has taken root deeply in people's hearts.
In the future,Branding of catering, supply chain management, intelligence, chain operation, green development, specialization(training)It will become an inevitable focus and development priority for enterprise development.
Numerous thousands and tens of thousands of stores will also be born in batches as the six major trends develop.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
Catering Brand firepower index
Empowering the development of catering brands
This time, Frost & SullivanXLeadLeo are releasing for the first time -Catering brand firepower index and catering brand valuation assessment.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
This evaluation of the catering brand firepower index will select 30 leading brands from different sub-sectors for a comprehensive assessment of their brand competitiveness, generating a database of catering brand firepower index data;
Rank by firepower value index to filter out sub-sectors"Powerful Brand with All-round Firepower"/"Top Brand in Single Firepower Value";
At the same time, based on the calculation of catering brand value, the brand value ladder is sorted for each sub-segment (milion level, ten million level, hundred million level, one billion level …&hellip);
Finally, based on the lateral rotation of the catering brand value assessment model, the absolute value calculation of the brand's economic value was completed.
■ Source: 2023 New Consumption and Food & Beverage Industry Investment Summit
Catering Brand firepower index and catering brand valuation assessmentAimed at gaining insights into the market position of catering brands,Evaluate the intrinsic value of catering brands, empower them in operational decision-making, enhance market competitiveness, and optimize marketing strategies.
