China Restaurant Market Growth Propelled by Digital Transformation & Adoption of Western Fast Food

Dublin, March 22, 2024 (GLOBE NEWSWIRE) -- The "China Restaurant Market: Analysis By Transaction Volume, By Type, By Ownership, By Food Type, Size and Trends with Impact of COVID-19 and Forecast up to 2029" report has been added to's offering.

China's restaurant market value stood at US$625.21 billion in 2023, and is expected to reach US$939.32 billion by 2029. Transaction volume (dining frequency) of the Chinese restaurant market was 175.65 billion in 2023.

Increasing integration of online food delivery platforms, growing interest in international and fusion cuisine, increasing company focus on digital marketing & branding, ongoing adoption of cutting-edge technology, and shifting emphasis on sustainability and responsible sourcing, will continue to boost the growth of China's restaurant market at a CAGR of 7.02% in the forecasted period of 2024-2029.

Market Segmentation Analysis:

By Type: Full-service restaurants is the largest segment of China restaurant market owing to rapid urbanization, rising demand for high-quality dining experience, widespread adoption of central kitchens, rising demand for healthy and sustainable food options, and chained restaurant's presence of well-established brands and a loyal customer base. While FSR (in terms of percentage in China's restaurant industry consumption) has been dominating the overall restaurant industry in China, the weights in LSR and Cafes (bars) are gradually increasing. Cafes/ bars is the fastest growing segment of China restaurant market owing to increasing coffee culture, presence of young vibrant population, increasing demand for casual meeting places, rise of hipster culture, growing popularity of social media platforms, and increasing emphasis on socializing and networking.

In addition, on the basis of segment, China full-service restaurant market is further divided into Asian food, pizza, and others. Similarly, China limited-service restaurant market is further segmented into Asian food, burger and chicken related, pizza, and others; and China cafes/bars market is further segmented into coffee & tea shops, bars/pubs, and Cafes, respectively.

Burger & chicken cuisine (i.e. Western fast food) growth, has outperformed the Chinese food category in the past few years. The burger & chicken segment demand to remain resilient as top fast food brands' menus have caught up with consumers' meat consumption trend in China. The Pizza segment is currently led by the FSR type while the LSR share has slightly increased. Pizza LSR's stronger growth should partly result from delivery service pickup. It can be seen that the continuous growth of food delivery services should help support consumers' preference shift to LSR in the future.

China's restaurant market transaction volume is also segmented into four types, namely, full-service restaurants, limited-service restaurants, cafes/bars, and others. In terms of transaction volume, limited service restaurants is the largest segment of China restaurant market.

Market Dynamics:

Growth Drivers: The Chinese restaurant market has been rapidly growing over the past few years, due to factors such as, rise in disposable income, rapid urbanization, increase in number of fast-food restaurants, rising social media penetration, increase in number of shopping malls, rapid digitalization and increasing penetration of smart devices, etc. Rise in number of young working class population, busier lifestyles, growing influence of western dietary patterns on Chinese population, and emerging coffee culture trend among younger generation, has been positively contributing to the increased demand for convenient, fast and affordable dining options, a niche readily filled by fast-food restaurants.

Also, the introduction of international fast-food chains to China and the adaptation of local brands to Western tastes has been facilitating cultural exchange and exploration of diverse culinary experiences, enriching the overall restaurant market in China. Furturemore, increase in number of digitally-savvy users relying heavily on social media platforms like Douyin, Kuaishou, Xiaohongshu, and Weibo for discovering information, evaluating restaurant ratings and reviews, and choosing restaurants based of positive customer feedbacks will continue to boost the growth of China restaurant market over the forecasted years.

Challenges: However, the China restaurant market growth would be negatively impacted by various challenges such as fluctuating labor costs, volatile inflation rate of food products, etc. Labor costs accounts for a significant portion of restaurant companies' overall expenses as the restaurant industry is labor intensive, and so any upward or downward pressure on wages can result in narrower profit margins or increased menu prices for clients, as restaurants may struggle to maintain profitability if they cannot accurately predict and manage the labor costs, acting as a major restraining factor for restaurant market growth in China. Additionally, managing inventory also becomes more complex due to uncertainty about future prices and potential spoilage from price drops.

Trends: The China restaurant market is projected to grow at a fast pace during the forecasted period, due to increasing trend of solo diners, shifting emphasis on sustainability and responsible sourcing, increasing focus on digital marketing and branding, growing demand for theme based restaurants, increasing demand for prepared or on-the-go food, rising adoption of cutting-edge technology, etc. Increasing number of restaurant operators in China are introducing new and unique innovative themes to attract more customers & increase revenue. Theme-based restaurants provide unique & immersive dining experiences that appeal to customers seeking novelty and excitement, attracting local residents and tourists looking for something unusual & memorable, resulting in large foot traffic, repeat visits, and higher restaurant revenue. Also, established restaurant chains are constantly introducing new menu items that cater to health-conscious consumers, including offerings like organic ingredients, superfoods, and customizable options. Therefore, increasing demand for prepared or on-the-go food is expected to boost the growth of overall China restaurant market in the forecasted period.

Competitive Landscape:

Chinese-food brands will likely continue to face intensive competition in a highly fragmented market. It has been observed that Chinese customers prefer Western fast food (burgers and chicken-related cuisines) over Chinese food owing to the country's highly fragmented food market. Based on the ongoing developments in restaurant industry, China's food industry is still at an early stage and company concentration ratios are expected to grow in the forecasted period.

The key players of the market are:

  • Yum China Holdings
  • McDonald's
  • Jollibee Foods
  • Papa John's International
  • Jiumaojiu International Holdings
  • Ajisen (China) Holdings
  • Yoshinoya Holdings
  • Xiabuxiabu Catering Management
  • DPC Dash
  • Haidilao International
  • China Quanjude (Group)
  • Nayuki Holdings

Key Topics Covered:

1. Executive Summary

2. Introduction
2.1 Restaurants Overview
2.2 Restaurants Segmentation

3. China Market Analysis
3.1 China Restaurant Market Analysis
3.2 China Restaurant Market Type Analysis

4. Impact of COVID-19

5. Market Dynamics

Growth Drivers

  • Rise in Disposable Income
  • Rapid Urbanization
  • Increase in Number of Fast-food Restaurants
  • Rising Social Media Penetration
  • Rapid Digitalization and Increasing Penetration of Smart Devices
  • Increase in Number of Shopping Malls


  • Fluctuating Labor Costs
  • Volatile Inflation Rate of Food Products

Market Trends

  • Increasing Trend of Solo Diners
  • Shifting Emphasis On Sustainability And Responsible Sourcing
  • Increasing Focus on Digital Marketing And Branding
  • Growing Demand for Theme Based Restaurants
  • Rising Adoption Of Cutting-edge Technology
  • Increasing Demand For Prepared Or On-the-go Food

6. Competitive Landscape
6.1 China Chain Brand Restaurants by Market Share
6.2 China Restaurants Players: Brand Comparison
6.3 China Chain Restaurants Players: Restaurants Owned Comparison
6.4 China Brand Restaurants Players: Store Allocation Comparison
6.5 China Restaurants Players: Brand Profile

7. Company Profiles

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