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China Has Huge Potential in Catering Industry 16:30, July 04, 2007

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China Has Huge Potential in Catering Industry 16:30, July 04, 2007 China has huge potential in catering industry 16:30, July 04, 2007 In recent years, China's catering industry has registered a rapid growth. According to statistics, the industry is growing at a rate 10 percentage points higher than other industries. Experts predict China will undergo a great development in the industry; and potential in this sector is large and will grow rapidly. In 2006, the operational revenue of the food industry in China increased by 16.4 percent, reaching 1034.55 billion Yuan. This resulted in a net increase of 140 billion Yuan over 2005. Vice chairman of China's Cuisine Association, Yang Liu, said the tourism industry is closely related to the food industry. He said that China's domestic tourism industry earned 623 billion Yuan in 2006, a rise of 17.9 percent over 2005. According to international practice, food revenue accounts for around one fifth or one fourth of the total tourism income. China's tourism contributed 120 to150 billion Yuan to the food industry in 2006, according to Yang. In addition, the rise in food businesses in China has caused unprecedented and fierce competition. Take Beijing for example; the city registers a total of 45,000 restaurants, each day- about 100 are opened, and 100 are closed, said Zhang Weixin, professor of Oriental Cuisine College. Zhang also said the prosperity in the food market can be attributed to China's rich traditional foods and culture. China boasts a long history of food culture and has a reputation in the world for its culinary arts. Chinese cuisine consists of different genres. The most influential and typically known are the 'Eight Cuisines': Shandong, Sichuan, Guangdong, Fujian, Jiangsu, Zhejiang, Hunan, and Anhui cuisines. Additionally, different regions and cities also have their own distinctive cuisines or snacks. A food's features are related to the geography, climate, local products and eating habits. Some are time-honored traditions, such as the Beijing Duck, Daoxiangcun cake, and Donglaishun hot pot. From dining tastes to dining culture and dining fashion, the Chinese concept of dining is changing. Thus, they have diversified China's dining industry. Nowadays, some families choose to dine out on weekends or in their leisure time. In order to meet such demands, many themed restaurants, recreational dining, and old-fashioned restaurants have popped up in China. From this new concept, China's food industry is changing; and many trends, including the pursuit of specialty and novelty, have been blended into Chinese eating habits, creating a more colorful and diverse food industry in China. Since foreign food businesses entered into China, they have become competitors for many Chinese restaurants. According to a report on China's fast-food development, KFC has established 1,200 restaurants; and McDonalds had set up 600 restaurants in China by the end of 2004. KFC's and McDonalds' success has made many Chinese recognize the benefit of franchise businesses. Some see chain stores as their key to future success. According to a supervisor from Tianjin Goubuli, a famous brand of baozi from Tianjin, Goubuli has established more than seventy franchises in twenty-four provinces. Goubuli baozi (dogs-won't-touch dumplings) has also expanded its business to Tokyo, New York, and Singapore. After many years of competition with western fast food companies, many Chinese businesses have realized that they should absorb the successful experience from their western counterparts and improve their level in dining environment, dishes and service level. Yang Liu predicts that China's catering consumption will keep a growth rate of 17 percent in 2007, with a retailing revenue of 1210 billion Yuan. He also expects that the turnover in the food industry will reach 2 trillion Yuan by 2010, and per capita food consumption will reach 1,500 Yuan. Yang said that seeking healthy, green foods; and further regulating and establishing a good, energy-saving food market, will be the mainstream of China's catering industry in 2007. By People's Daily Online .
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