Catering sector sees rapid recovery in July after dine- in services resume

The recovery of the catering sector has progressed steadily in the past month after Shanghai resumed dine- in service from June 29, with many restaurants seeing the return of customers. In addition to dine- in business, which was a weak link amid COVID- 19 outbreaks, many restaurants are actively exploring new models such as takeout meals and semi- finished products to explore development strategies.

According to Chinese food delivery platform Meituan, as of Wednesday, transactions online at restaurants soared by 20.2 percent from the same period in June across the country, boosted by the resumption of the catering business in Shanghai.

A manager surnamed Hou from a Haidilao hotpot chain store in Shanghai told the Global Times that the store saw strong pent- up consumption after it resumed dine- in service at the end of June.

“The customer flow tends to be stable. It’s mainly regular customers,” Hou said. In addition to dine- in eating, the store still offers take- out meals, with daily take- out orders reaching 30 to 40, Hou added.

At the height of recent outbreaks, many restaurants actively participated in the supply of daily necessities through community group purchase, take- out and other forms of business, which have become new growth points for restaurants.

According to a statement sent by Haidilao to the Global Times, take- out orders in Shanghai soared by 582.2 percent in June from a year earlier and profits grew by 23.7 percent.

Nearly 68 percent of the restaurants in Beijing have seen business recover to over 50 percent of the normal level, after dine- in service resumed on June 6, according to a survey launched by Beijing Cuisine Association.