Cater­ing in­dus­try hit by aus­ter­ity cam­paign

China Daily (Canada) - - NEWSCAPSULE -

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.

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