Dallas, TX (PRWEB) January 04, 2014
Against unfavorable factors such as a slowdown in growth rates for domestic and overseas economies, in-depth implementation of a series of regulations like “Eight Requirements” and “Six Bans” issued by the Central Government, H7N9’s bird flu as well as ever-growing food safety issue, China catering industry encountered grave pressure, with the revenue in 2012 increasing by 13.6% year-on-year to RMB2.3448 trillion, touching the bottom in the industrial growth rate since 1991. Likewise, the revenue of chain catering enterprises above designated size posted RMB128.3 billion, up 14.6% year-on-year.
Since 2013, Chinese catering firms have witnessed a contraction in terms of profit cut. From January to November, the revenue in the industry grew only by 9.0% year-on-year to RMB2.2913 trillion.
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Under the influence of opposing extravagance and waste launched by the central government, a great many of catering enterprises saw a great loss since many officials were no longer allowed to have lavish public banquets, which contributes in a large part to the drop in revenue of the high-end catering sector. Furthermore, the net income of major listed industrial players witnessed a drop in the main. A case in point was Xiangeqing, which posted a year-on-year drop of 375.4% when it comes to the net income in the first three quarters of 2013.
A series of adverse situations such as ever-growing operation cost, declining profit and massive change in demand forces industrial players to seek for breakthroughs by means of transformation. For example, they glue their eye on family feast, gathering, wedding banquet and other popular markets. Besides, they present low-priced dishes and drinks to attract consumers.
Take Xiangeqing as an example, it took over 90% stake of Shanghai Qiding Food Development Co., Ltd. in April 2012, and embarked on “students’ meal” field; in July, it purchased a 100 % stake of LongDeHua Restaurant Management to make inroads into group meal catering service market; in August, it merged 90% stake of Beijing WeiZhiDu Catering Management to set foot in the fast food business.
In June, 2012, Xiao Nan Guo Restaurants Holdings Limited (XNG) unveiled the third mid-range oriented brand- Dining Room; in Oct.2012, QUANJUDE joined the rank to invest in a group meal enterprise “Beijing Quanjude Mayerton Restaurant Management Co., Ltd; in May 2013, Tang Palace (China) Holdings Limited opened PappaRich, the first of its kind in Shanghai.
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