China's cuisines tickle global taste buds
Catering brands expand overseas even as they seek growth in domestic market
As early as March last year, Luckin Coffee, a Chinese coffee chain in the mold of Starbucks, expanded its presence in Singapore, growing its store count to 12. Tea-based chain HeyTea entered Europe by opening its first store in London last August. Beverage operator Tianlala said it will open 300 stores in Indonesia and aims to expand its reach in other Southeast Asian countries.
Teahouse chain operator Chabaidao saw its overseas operations' revenue grow 40 percent year-on-year in the first quarter of this year.
The Chinese catering industry saw a recovery last year, according to the China Chain Catering Enterprises' Road to Capital Report 2024, released jointly by the China Chain Store & Franchise Association and PwC. The report surveyed 29 catering chains with a presence on the Chinese mainland.
But the momentum slowed in the first five months of this year, resulting in more fierce competition and pushing restaurant players to seek operational models that prioritize value-for-money, quality food and better experiences, said the report.
"The domestic market still has significant opportunities, particularly in the lower-tier cities," said Song of Xibei.
"We are prioritizing the recast of protein-based categories such as beef to continue to attract consumers who value quality food on the menu."
The report said thanks to considerations like supply chains, Southeast Asian countries that are geographically more convenient, Japan and South Korea are top priorities for catering chains seeking to expand abroad.
