Page 314 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
to address a staff shortage with hardware, only Thus, it is not just the sheer size of the international
to shut down in the end. Other Chinese startups playing filed that drives brands to focus on foreign
are combining food and robotics in new ways. markets such as China (QSR).
Walter Stanish, managing director of Zhuhai-
based Infinite Food, called his company “a rethink The China food service restaurant market
of food distribution in urban environments.” is expected to grow at a CAGR of 11.5 percent
The company’s core product is essentially an during the forecast period of 2017-2022. China
automated vending machine that creates and is the largest market for foodservice restaurants,
dispenses meals on demand. While manufacturing globally, ahead of the US, which is the second largest
tests are still underway, the company is close to market. The primary factors driving the market
finishing its second round of funding. Stanish for food service restaurants are the increased
envisions deploying the machines in “hundreds dining out for socializing, business meetings,
of retail locations” across Macau, Hong Kong, and family gatherings, gathering with friends and the
southern Guangdong province by the end of 2020. unwillingness of consumers to cook at home. The
growth of multinational industries in China has
For years, other companies have been quietly increased international business travelling. This
manufacturing machines that chop and cook has made way for the interest among consumers
ingredients. While their efforts may not seem as for exotic and various international cuisines,
futuristic, they have paved the way for the age which is driving the food service sector market
of automated food preparation. Automation has in China. Moreover, the Chinese consumers have
the potential of raising the quality of dishes and shown great interest towards coffee consumption
making restaurants easier to manage. Two years in recent years, despite, being a tea-consuming
after a Robotics Industry Development plan was nation given the influence of the Western work
released, analysis firm ResearchInChina predicted culture. However, an increase in the cost of living
the field would grow 20 percent each year, and high costs of ingredients have affected the
reaching a total $4.9 billion in 2022. In the case of market growth. The economic slowdown in China
food preparation, automation could be a boon for and many food safety concerns have had their
more than just cutting costs. negative impact on the foodservice industry in the
country (R&M).
Food safety has long been a concern for
consumers. Chinese tech companies have Meanwhile, Chinese consumers are being
attempted to address these issues with the help influenced by the global trend towards healthy
of blockchain and AI, including the unforgettable eating; consumers are becoming more conscious
development of facial recognition for pigs. about their overall health and pay more attention
Introducing standardized recipes and preparation to the nutritional value of dishes and food. Organic
methods, as well as automated cooking, could restaurants are growing in popularity as Chinese
help restore consumer trust (Hu). China has consumers are becoming more conscious of food
been pushing hard to enhance food safety, so safety scandals. The Chinese food industry is now
far a total of 25 enterprises were rewarded as offering organic menus featuring home-grown
national model units for their innovative moves pesticide-free herbs and vegetables. Veganism has
in improving food safety. also become more popular among the Chinese food
industry; according to statistics from South China
Full Service Restaurants Morning post the vegan market is expected to rise
by more than 17 percent from 2015 to 2020 (Lintott).
Though many operators insist the US is still a
major focal point for brand growth, some brands Fast Food
are reaching their saturation point domestically.
In addition, a tough economic climate at home The use of new technology is thriving in the
has placed increasing pressure on brands to look Chinese food industry with foodservice operators
elsewhere for revenue and avenues of growth. using e-menus, online reservations, mobile
314
to address a staff shortage with hardware, only Thus, it is not just the sheer size of the international
to shut down in the end. Other Chinese startups playing filed that drives brands to focus on foreign
are combining food and robotics in new ways. markets such as China (QSR).
Walter Stanish, managing director of Zhuhai-
based Infinite Food, called his company “a rethink The China food service restaurant market
of food distribution in urban environments.” is expected to grow at a CAGR of 11.5 percent
The company’s core product is essentially an during the forecast period of 2017-2022. China
automated vending machine that creates and is the largest market for foodservice restaurants,
dispenses meals on demand. While manufacturing globally, ahead of the US, which is the second largest
tests are still underway, the company is close to market. The primary factors driving the market
finishing its second round of funding. Stanish for food service restaurants are the increased
envisions deploying the machines in “hundreds dining out for socializing, business meetings,
of retail locations” across Macau, Hong Kong, and family gatherings, gathering with friends and the
southern Guangdong province by the end of 2020. unwillingness of consumers to cook at home. The
growth of multinational industries in China has
For years, other companies have been quietly increased international business travelling. This
manufacturing machines that chop and cook has made way for the interest among consumers
ingredients. While their efforts may not seem as for exotic and various international cuisines,
futuristic, they have paved the way for the age which is driving the food service sector market
of automated food preparation. Automation has in China. Moreover, the Chinese consumers have
the potential of raising the quality of dishes and shown great interest towards coffee consumption
making restaurants easier to manage. Two years in recent years, despite, being a tea-consuming
after a Robotics Industry Development plan was nation given the influence of the Western work
released, analysis firm ResearchInChina predicted culture. However, an increase in the cost of living
the field would grow 20 percent each year, and high costs of ingredients have affected the
reaching a total $4.9 billion in 2022. In the case of market growth. The economic slowdown in China
food preparation, automation could be a boon for and many food safety concerns have had their
more than just cutting costs. negative impact on the foodservice industry in the
country (R&M).
Food safety has long been a concern for
consumers. Chinese tech companies have Meanwhile, Chinese consumers are being
attempted to address these issues with the help influenced by the global trend towards healthy
of blockchain and AI, including the unforgettable eating; consumers are becoming more conscious
development of facial recognition for pigs. about their overall health and pay more attention
Introducing standardized recipes and preparation to the nutritional value of dishes and food. Organic
methods, as well as automated cooking, could restaurants are growing in popularity as Chinese
help restore consumer trust (Hu). China has consumers are becoming more conscious of food
been pushing hard to enhance food safety, so safety scandals. The Chinese food industry is now
far a total of 25 enterprises were rewarded as offering organic menus featuring home-grown
national model units for their innovative moves pesticide-free herbs and vegetables. Veganism has
in improving food safety. also become more popular among the Chinese food
industry; according to statistics from South China
Full Service Restaurants Morning post the vegan market is expected to rise
by more than 17 percent from 2015 to 2020 (Lintott).
Though many operators insist the US is still a
major focal point for brand growth, some brands Fast Food
are reaching their saturation point domestically.
In addition, a tough economic climate at home The use of new technology is thriving in the
has placed increasing pressure on brands to look Chinese food industry with foodservice operators
elsewhere for revenue and avenues of growth. using e-menus, online reservations, mobile
314
