Core Viewpoint - The restaurant industry in China is undergoing a "slimming" trend due to changes in consumer decision-making and price wars among delivery platforms, leading to reduced store numbers and lower average prices, with overall industry profits declining [1][6]. Group 1: Industry Challenges - The China Cuisine Association reports a slowdown in revenue growth, profit decline, and intensified competition in the restaurant sector during the first half of the year [6]. - National statistics show that in June 2025, national restaurant revenue was 470.8 billion yuan, a year-on-year increase of only 0.9%, while revenue from above-designated size units decreased by 0.4% [5][6]. - For the first half of 2025, total restaurant revenue reached 27,480 billion yuan, a year-on-year growth of 4.3%, but the growth rate for above-designated size units was only 3.6%, indicating significant challenges for larger enterprises [5][6]. Group 2: Brand Adjustments - Many brands are responding to market pressures by reducing the number of stores; for instance, a hot pot chain has cut its average store price by 15% and reduced its profit margin from 50% to 35% [4][5]. - Some brands are closing underperforming locations while others are downsizing their store formats to reduce costs, such as moving from higher floors in malls to lower-cost locations [7][12]. Group 3: Impact of Delivery Platforms - The ongoing price war among delivery platforms is significantly affecting the restaurant industry, with many consumers opting for cheaper delivery options over dining in, which is eroding traditional pricing structures [8][9]. - High subsidies from delivery platforms are leading to a situation where restaurants face high operational costs while competing on price, resulting in a "no profit" scenario for many [9][10]. Group 4: Strategic Shifts - The industry is encouraged to return to the essence of food, adopt lighter asset operations, and focus on precise positioning to navigate current challenges [2][11]. - Experts suggest that restaurants should implement refined strategies to reduce costs and enhance efficiency, such as optimizing store locations and adopting smaller formats [12]. - There is a growing trend towards "light asset" projects that require lower initial investments and offer quicker returns, making them more attractive in the current market environment [13].