China’s restaurant industry is booming as young professionals stay hungry amid trade war, slowing economy
- China’s restaurant sector is enjoying breakneck growth and could soon overtake the US as the world’s biggest market
- Rapid growth and a tight focus on profitability make the new class of Chinese restaurant chains enticing investment targets
Chinese consumers are not allowing trade war uncertainty or a slowing economy to affect their appetite.
The country’s food and drinks sector is booming and will become a trillion-dollar industry in the next few years if it continues on its current trajectory. It could soon displace the US as the biggest catering market on the planet.
The growth engine is the increasing numbers of young professionals heading out for a late dinner or ordering home delivery after a long day at the office, according to analysts.
Jacky Wong, hospitality and services sector lead partner, Deloitte China, said people born in the 1990s contributed just over half of catering sales in 2018.
“They usually work overtime, stay up late and thus require instant gratification, leisure, and trending lifestyle. Restaurants, F&B outlets or O2O F&B delivery services are becoming their first choice,” said Wong, using an industry term meaning “online to offline”.