Catering industry hit by austerity campaign
China’s catering industry registered its slowest growth in 20 years in 2013 as the country’s anti-corruption campaign targeting official excess took its toll on high-end businesses, an industry report shows.
According to the report by the China Cuisine Association, the total revenue of the country’s catering sector grew by 9 percent to a total of 2.56 trillion yuan ($410.75 billion) last year.
The association’s figures also show that the top 100 businesses in the catering industry grew by only 5.7 percent last year, down 10.8 percentage points from 2012.
Among those, 42 enterprises saw their net profit decrease and six suffered major losses in 2013.
The report said other factors, including rising costs of labor, rent and water, electricity and fuel also contributed to the slump in growth.