Digital technologies are reshaping China’s traditional catering industry, as large catering enterprises are increasingly investing in digitalization and small and medium-sized companies ramp up efforts in digital transformation, a recent report said. The report, issued by Beijing-based research consultancy Acewill, said digitalization is the current main trend in China’s catering industry. Kong Lingbo, Founder of Acewill, said: “No matter which type of business mode, or what kind of cuisine, the propelling engine for the rapid growth of catering chain stores is digital transformation. “The ambition of every entrepreneur is different. However, the route of digital transformation is the same. The digitalization trend in the catering industry is gaining momentum.” Data from the National Bureau of Statistics (NBC) show that in 2020, despite challenges brought by Covid-19, China’s catering industry revenue totaled nearly CNY4 trillion, and digital catering took up an increasing share.
In recent years, a great number of catering chain stores have been embracing digitalization. Hotpot chain Haidilao launched a smart restaurant in Shanghai in April. Apart from dish-serving robots, robotic arms manipulate raw materials in warehouses. The restaurant also adopted the Insight Knowledge Management System to conduct real-time monitoring, management and maintenance of the entire unmanned back-stage operations. From ordering to serving, the dishes are produced automatically. Haidilao said the system can save nearly 37% of back kitchen labor costs. Heytea Go, an ordering app developed by China’s leading milk tea chain Heytea, acquired 6 million registered users in seven months after it was launched, and raised milk sales by 300%.
A report issued by on-demand service platform Meituan said online food orders surged 107.9% on a yearly basis. The report added that although Covid-19 struck China’s catering industry in 2020, online ordering in the catering industry quickly recovered to 2019 levels, and experienced explosive growth in the next seven months. “Online ordering on takeaway platforms, WeChat mini programs, catering platforms and brands’ self-built online ordering platforms have pushed the migration to online,” the Meituan report said. Catering enterprises are integrating online and offline, no longer limit services to physical restaurants, and extend their service range from within 100 meters to over 10 kilometers. Wang Donghao, an independent expert of digital catering, said that digital marketing helps enterprises capture consumer demand and collect user data. It also enables enterprises to more quickly satisfy consumer needs, the China Daily reports.
