Page 350 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China

2.12 Food Services

Key Take-Aways Kong based Black Sheep Restaurants released
a guidebook to managing the pandemic. This
China’s food industry is rapidly changing, and went viral became influential towards businesses
providers are adapting to the changes. New across the world, laying out practices that are
technology is being introduced to the food service now commonplace. Even though there are strict
industry. The stay-at-home culture that has quarantine rules, businesses are able to sustain
developed encourages people to cook at home, themselves. Restauranteurs are still remaining
altering food needs and habits. As its population cautious but are optimistic about the future.
continues to grow, food service operators have Consumers are returning in droves, to the point
to meet new consumer demands as tastes are where restaurants are often booked to capacity,
changing and becoming westernized. Protections with some looking to expand their businesses
are being put in place to protect the workers in to accommodate the interest. Some credit the
the food industry from potential dangers of the increase in eating out with limitations or hesitation
pandemic. China adopts law against food waste; to travel. Because people are traveling less, they are
binge eating, excessive leftovers to face fines. more willing to spend more on food (Jung).
Alibaba consolidates community group buying
operations under new Taocaicai brand. Taocaicai Background
is expected to offer more than 1 million products
from around the world to community group buying The Chinese food industry is rapidly changing.
users in China. Despite some restrictions, the As its population continues to grow, foodservice
restaurant industry is coming back strong. operators have to meet new consumer demands
as tastes are changing and becoming westernized,
Covid-19 Repercussions and new technology is being introduced to the
foodservice industry. GlobalData’s report found
Stricter measures were implemented during the that Chinese consumers are being influenced by
third and fourth waves of the coronavirus: at various the global trend towards healthy eating; consumers
times only two diners were allowed per table (which are becoming more conscious about their overall
especially affected those serving Chinese food), health and pay more attention to the nutritional
restaurants had to close between 6pm and 5am (so value of dishes and food. Organic restaurants are
there goes the more profitable dinner business), growing in popularity as Chinese consumers are
and there was a very brief prohibition on dining becoming more conscious of food safety scandals.
in – only takeaway was allowed. In South China The Chinese food industry is now offering organic
and Hong Kong for instance, eating out has come menus featuring home-grown pesticide-free
back with a vengeance. Throughout the pandemic, herbs and vegetables. Some of the restaurants
restaurateurs and the government have worked doing this include The Rug and The Orchard that
diligently to ensure and secure the safety of both let customers know where their vegetables and
service industry workers and customers. Since meats are sourced on the menu. Veganism has
the fourth wave ended in February, business has also become more popular among the Chinese
stabilized and has been on a constant rise. Chinese food industry; according to statistics from South
restaurants proved themselves to be leaders China Morning post the vegan market is expected
in improving operating procedures during the to rise by more than 17% from 2015 to 2020. The
pandemic. One instance of this was when the Hong use of new technology is thriving in the Chinese

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