Branded restaurants fast gaining in popularity

When it comes to eating out, the Chinese public is increasingly turning to branded chains. New research from the Industry Development Department of China Cuisine Association, or CCA, shows that consumers are paying growing attention to food and service quality, and consumption has become more brandoriented than price-oriented.

Nothing exemplifies this better than the serpentine queues of customers waiting patiently to enter a Western restaurant in WF Central, a high-end shopping mall in Beijing at 2 pm on any given working day.

Much of that rush was centered on hungry customers wanting to enter Cafe Landmark, Jade Garden and The Cheesecake Factory, the three restaurants launched simultaneously by Hong Kong-based food

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and beverage company Maxim’s Group in Beijing. Incidentally Maxim’s is also popular for its Maxim’s mooncakes.

“I have been expecting the brand to launch in Beijing for a long time. To get seated, my friends and I waited for one and a half hours. The dishes and service, which are exactly the same as we had in the United States, are worth the wait,” said a consumer who just finished her meal at The Cheesecake Factory, an American restaurant that traces its origins to California in 1978.

“The reason why we introduced the three brands to Beijing at the same time is that we want to use the combination effect of the brands to set off a craze in the city, attracting customer loyalty,” said Martin Lee, chief operating officer of Maxim’s Caterers Ltd.

The huge queues in front of The Cheesecake Factory have already proved the success of the company.

The food and beverage market is continuously expanding, with branding being the biggest trend, boosting the development of the market. Driven by consumption upgrade and the rapidly evolving city construction, a growing number of international brands, such as Starbucks and Japanese ramen restaurant Ippudo, are now eyeing the local market.

Companies are now laying more emphasis on building and preserving brand image, and competition in the market has evolved from competition between product categories to a fullfledged brand battle, an indication that the development of the catering industry has come to a new stage.

According to the latest report by the National Bureau of Statistics, China’s total retail sales of consumer goods hit 36.6 trillion yuan ($5.80 trillion) last year, with the income from catering businesses taking up 10.8 percent, which was 3.96 trillion yuan. With a 10.7-percent year-on-year growth rate, the volume of the nation’s catering sector ranked just next to that of the United Kingdom.

The 2017 report by the CCA also pointed out that the nation’s catering income has been rising steadily year-on-year and having a positive impact on the whole consumer market. According to the report, in 2017, the catering market had an 11.3 percent contribution rate on the consumption market.

According to official statistics from the provincial statistics bureaus, first-tier cities such as Beijing, Shanghai and Guangzhou crawled out of recession in the catering market. In 2017, the catering income of Beijing and Shanghai reached 102.8 billion yuan and 102.5 billion yuan, growing 7.7 percent and 7.9 percent respectively. Meanwhile, the sales revenue of Guangdong’s catering industry rose 5.9 percent to 368 billion yuan, ranking first in the country.

Jiang Junxian, president of the CCA, said in an interview with Xinhua that branding of food and beverages is becoming increasingly apparent. Apart from the taste, the environment, service and user experience of a restaurant have all become core competitiveness points.

“As people’s living standards rise, rather than the price, they focus more on the taste, service quality and brand culture, which creates the distinctive character of a brand. This is why we have been devoted to building different unique brands,” said Lee from Maxim’s.

“We are confident about the catering market in China where tremendous growth potential lies. Therefore, we will continue to explore more characteristic brands, offering more choices for consumers of different consumption levels,” Lee added.

We are confident about the catering market in China where tremendous growth potential lies. Therefore, we will continue to explore more characteristic brands ...” Martin Lee,