Core Insights - The Chinese catering industry is experiencing a slowdown in growth, with a significant decline in revenue growth rates and a shift in consumer spending habits [2][16][18] - The industry is undergoing a transformation characterized by increased chain operations, innovative marketing strategies, and a focus on product differentiation [5][24][35] Market Overview - National catering revenue from January to August 2025 reached 3.6 trillion yuan, with a year-on-year growth of 3.6%, down 3 percentage points from the same period in 2024 [2] - The number of catering outlets in China exceeded 7.6 million by August 2025, a decrease of 1.9% compared to 2024 [3] Chain Operations - The chain rate in the catering industry has accelerated, with the overall chain rate increasing from 15% in 2020 to an estimated 25% in 2025 [5][6] - The fast food segment saw a 4 percentage point increase in chain rate from 2023 to 2024, reaching 29% [6] Delivery Market Dynamics - The national food delivery market exceeded 1.27 trillion yuan in 2024, growing by 6.2% year-on-year, and is expected to exceed 1.4 trillion yuan in 2025 [9][10] - Daily food delivery orders peaked at over 200 million by August 2025, doubling from 2024 [10] Consumer Behavior - Consumer spending on dining is becoming more cautious, with a significant drop in the proportion of consumers expecting to increase their dining expenditures in 2025 [16][18] - The average per capita consumption in the catering sector fell to 36.6 yuan by August 2025, a decrease of 7.7% from 2024 [18] Industry Trends - The catering industry is witnessing a "listing wave," with several major brands going public in 2025, although many are facing financial challenges [19][22] - The average lifespan of catering outlets has decreased, with many businesses closing within two years of operation [22] Product Innovation - Brands are focusing on product innovation, with over 5,263 new products launched from January to July 2025 [25][28] - Regional ingredients and flavors are becoming key areas for product development [28][29] Marketing Strategies - Short drama marketing is emerging as a new trend, with many brands producing series to engage consumers [35] - User-generated content (UGC) marketing is gaining popularity, with brands launching interactive campaigns to enhance consumer engagement [37] Digital Transformation - The catering industry is increasingly adopting digital and AI technologies to enhance operational efficiency and customer engagement [38][41] - Brands are implementing digital systems for supply chain management and customer relationship management [39][42] International Expansion - Chinese catering brands are exploring overseas markets, with over 30 brands opening their first international locations since 2024 [43] - However, many brands are adopting a more cautious approach to international expansion in 2025 [45][46] Segment Highlights - The "small stir-fry" segment is gaining popularity, particularly in Jiangxi cuisine, with significant social media engagement [52] - The hot pot market is experiencing a decline in outlet numbers and average spending, while smaller hot pot formats are thriving [55][58] - The fast food segment is growing steadily, driven by consumer demand for value [61] - The ready-to-drink beverage market is stabilizing, with tea drinks entering an adjustment phase while coffee drinks continue to grow [64][67]

Core Viewpoint - The article discusses the evolving landscape of the restaurant industry, particularly focusing on the shift from dine-in only to incorporating delivery services, highlighting the reasons behind this trend and the types of restaurants that still choose to remain dine-in only [7][21]. Group 1: Shift to Delivery Services - Many previously dine-in only restaurants are now adopting delivery services to supplement their revenue, driven by changing consumer behaviors post-pandemic [6][8]. - A notable example is Haidilao, which expanded its delivery offerings to include affordable meal options, resulting in a 59.72% growth in its delivery business despite a 3.66% decline in overall revenue [7][8]. - In a survey of restaurants in Beijing's Qinhai area, 80.65% of dining establishments have adopted delivery services, with 73.33% of mid-to-high-end restaurants also offering delivery [8][10]. Group 2: High-End Restaurants and Delivery - High-end restaurants are increasingly entering the delivery market, with 7.87% of the Black Pearl restaurants listed in a recent evaluation offering delivery services [8][10]. - The data indicates that higher-rated restaurants (three-diamond) have a higher delivery service adoption rate (40%) compared to lower-rated ones [10]. - Examples include Da Dong, which offers specially curated delivery menus at lower price points than dine-in, allowing for a broader consumer base while maintaining the quality of its offerings [11]. Group 3: Reasons for Not Offering Delivery - Certain restaurants choose not to offer delivery services due to various reasons, including maintaining a high-quality dining experience, the nature of their menu not being suitable for delivery, or already having sufficient dine-in business [19][21]. - Three categories of restaurants that typically do not offer delivery include high-end establishments that focus on ambiance and service, casual eateries with stable local customer bases, and low-cost fast food outlets where delivery would not be profitable [19][20][21]. - The decision to remain dine-in only is often based on the restaurant's unique strengths and market positioning, which can provide a competitive edge in a crowded market [26][27]. Group 4: Future Outlook - The local dining market is expected to continue evolving, with opportunities for businesses that can effectively bridge the gap between high-quality dining experiences and delivery services [28][29]. - The article suggests that as competition intensifies, restaurants with strong value propositions may continue to thrive without adopting delivery, while others may need to adapt to meet changing consumer demands [27][28].