Vouchers among tools helping food and drink companies to recover
The recovery of the domestic food and beverage industry is gaining momentum thanks to a series of favorable policies and measures.
The F&B industry had a rough ride in the first half of the year due to a resurgence of COVID-19. Figures from the National Bureau of Statistics showed that the industry’s revenue reached 1.62 trillion yuan ($239.44 billion) from January to May, falling 8.5 percent yearon-year.
With that outbreak now under control, Beijing began offering restaurant coupons worth a total of 100 million yuan on Monday to boost catering consumption and accelerate the industry’s recovery, according to the Beijing Commerce Bureau.
Funded by the city government and online platforms such as Meituan and Eleme, the digital vouchers are valid in more than 70,000 food and beverage businesses around the city, the bureau said.
The issuance spurred a rush among local residents. Meituan reported that its coupons were snapped up within six minutes on July 18.
“We are busy handling takeout orders at lunchtime, which saw a marked rise thanks to the coupons,” a manager from the time-honored catering brand Ziguangyuan said to the financial media outlet Yicai.
Zhang Yanmei, vice-president of the catering group Xiabu, said that the promotional campaign has attracted lots of diners, driving an uptick in turnover of its three subsidiary brands. Xiabu now operates some 300 restaurants in Beijing and about 90 percent of them participated in the event.
Hangzhou, the provincial capital of Zhejiang, has handed out three batches of vouchers so far with a combined value of 365 million yuan.
The first two batches of vouchers brought in trade amounting to 3 billion yuan. About one-third of them were used at restaurants, according to the city government.
Pan Helin from the Research Center for Digital Economics and Financial Innovation at Zhejiang University said issuing vouchers is an effective way to enhance the confidence of the industry as they reduce costs for consumers and motivate consumption.
In addition to promotional events, many provinces and cities introduced preferential policies to help catering businesses — especially small and micro-sized ones — shake off the effects of the pandemic.
In Northeast China’s Liaoning province, F&B companies can enjoy different benefits depending on their eligibility. These include tax relief, rent reduction, extensions to insurance payments, and subsidies for pandemic prevention, according to the provincial commerce department.
Authorities in Hunan province encouraged businesses in the catering, tourism and retail industries to extend operating hours to boost the nighttime economy. Meanwhile, restaurants in Henan were allowed to set up tables and stalls outside to attract more customers and increase revenue.
“We now run a food stall near the metro station selling breakfast and lunchboxes. The income can cover our restaurant’s daily rent,” said a chef named Wang Fengjie from Zhengzhou, Henan province.
Restaurant operators also sought a way out by going digital and developing new products. Hotpot chain Haidilao established a new department last month, which will mainly focus on online business including takeaways and livestreams.
Before that, Haidilao launched its online takeout service platform via WeChat, as part of its efforts to stay afloat amid the recent outbreaks. Now all its qualified outlets nationwide have started takeaway services on the platform.
It has created a new revenue stream for outlets and makes them adaptable if dine-in services are suspended due to COVID-19, said Zhang Ying, director of the department.