China’s restaurant industry to grow 40%

The China Association of Chain Stores and Franchises projects that the Chinese restaurant market will increase 40.4% from 2021 to 2024.

Thus, the size of the restaurant market would reach RMB 6.6 trillion by 2024.

In particular, Chinese food accounts for 79.4% of the restaurant market in China, more than the market for Western food and other cuisines.

Fulum Group Holdings Limited believes that consumption is an important driver of economic growth in mainland China, and catering will be the industry that most quickly reflects consumer demand, and will be an integral part of promoting the internal circulation of the economy.

For the People’s Republic of China (PRC) market, according to the «China Chain Restaurant Industry Report 2021» released by the China Chain Store and Franchise Association, the PRC restaurant market increased from RMB2.9 trillion in 2014 to RMB4.7 trillion in 2019, with a compound annual growth rate of 10.1 percent.

In light of the pandemic, the market size of the catering sector decreased to RMB4.0 trillion in 2020 and is expected to recover to RMB4.7 trillion with the healthy growth of China’s catering market and the expected easing of the pandemic.

Fulum Group is an investment holding company and its subsidiaries are mainly engaged in the restaurant business in Hong Kong and mainland China.

Restaurant

According to statistics from the Hong Kong Census and Statistics Department, Hong Kong’s Gross Domestic Product (GDP) throughout 2021 increased by approximately 6.4% year-on-year in real terms compared to 2020.

As for the quarterly growth trend, the year-on-year growth rate for each quarter of 2021 declined from approximately 8% in the first quarter to approximately 4.8% in the fourth quarter.

According to the forecast, GDP declined by approximately 4% in real terms in the first quarter of 2022 compared to the corresponding period last year, ending a four-quarter year-on-year growth trend, and there was a quarter-on-quarter decline of approximately 2.9% after seasonal adjustment.

This revealed that anti-pandemic measures in response to the fifth wave of the pandemic in Hong Kong dampened economic activities and economic sentiment, again triggering signs of economic depression in Hong Kong.

During the same period, the value of total restaurant industry revenue was tentatively estimated at HK$15.2 billion, representing a year-on-year decline of approximately 23.1 percent and a quarter-on-quarter decline of 40.2 percent after seasonal adjustments; among them, the value of total Chinese restaurant revenue had declined by approximately 33.5 percent.