Half of the surveyed companies expect their revenue to recover to 2019 levels, and the catering industry is accelerating its recovery. Catering | Brands | Enterprises
Beijing, July 18th - Recently, the National Bureau of Statistics released national economic data for the first half of this year. Among the nearly 22.8 trillion yuan total retail sales of consumer goods, catering revenue grew the fastest, reaching 21.4%. At the same time, multiple listed catering companies have released information on expected performance increases in the first half of the year. Reports indicate that the continuously warming "weekend economy" and holiday travel are accelerating the recovery of the catering market. More than half of the sample brands are expected to recover their revenue to the level of 2019 this year.
The latest data from the National Bureau of Statistics shows that from January to June, the total retail sales of consumer goods in China reached 22758.8 billion yuan, a year-on-year increase of 8.2%; The catering revenue was 2432.9 billion yuan, a year-on-year increase of 21.4%; The catering revenue of units above the designated size was 623 billion yuan, a year-on-year increase of 23.5%. In June, the total retail sales of consumer goods in China reached 3995.1 billion yuan, a year-on-year increase of 3.1%; The catering revenue was 437.1 billion yuan, accounting for 10.94% of the total retail sales of consumer goods in society, a year-on-year increase of 16.1%; The catering revenue of units above the designated size is 113.4 billion yuan, accounting for 25.94% of the total catering revenue, a year-on-year increase of 15.4%.
Quanjude stated that in the first half of 2023, with the recovery of passenger flow, the consumption in the catering market was significantly released. Coupled with the factors of the peak consumption season during the Spring Festival and May Day Labor Day, the catering market experienced a strong recovery. According to the 2023 semi annual performance forecast of Quanjude, the net profit attributable to shareholders of the listed company is RMB 26 million - RMB 28.5 million, with a month on month increase of 83.41% -110.66% in the second quarter.
Tongqing Building is expected to achieve a net profit attributable to the owners of the parent company of 125 million to 170 million yuan in the first half of 2023, an increase of 493.32% to 702.78% year-on-year compared to the same period last year. Guangzhou Restaurant achieved a revenue of approximately 1.745 billion yuan in the first half of 2023, an increase of 22.57% year-on-year; The net profit attributable to shareholders of the listed company was 76.1638 million yuan, an increase of 39.86% year-on-year. According to statistics from Xibei Youmian Village, people's demand for gatherings and family meals has significantly increased this year. In the first half of 2023, the number of customers from 341 stores nationwide increased by 42% compared to the first half of 2022. In some festive periods, such as the Dragon Boat Festival, the number of customers visiting stores has increased by nearly 100%.
In early July, during investor research, Anjing Food determined that this year, as a major year in the catering industry, is likely to have a weak season in the second half of the year compared to last year, which was affected by the sluggish catering market.
The 2023 series of reports on the capital path of Chinese chain catering enterprises jointly released by the China Chain Business Association and PwC mentioned that the constantly warming "weekend economy" and holiday travel are accelerating the recovery of the catering market, and more than half of the sample brands are expected to recover their revenue to the level of 2019 this year.
Respondents in the categories of Chinese fast food, main meals, and hot pot are relatively more confident in the recovery of the catering market, with over 67% of sample brands expecting their revenue to recover to 2019 levels in 2023. Among them, 50% and 42% of Chinese fast food and dining brands are expected to achieve positive growth, respectively. Western fast food and beverage sample companies are relatively pessimistic about 2023, with only 20% of respondents believing that their income will be on par with 2019.
The above report suggests that brands with direct and hybrid models have relatively more optimistic expectations for business recovery, with nearly 60% of respondents believing that their brands can recover or even exceed the revenue levels of 2019 in 2023. In the fiercely competitive categories of beverages and hot pot, where top brands compete for stock space, small and medium-sized franchise chain brands face challenges not only in terms of market space but also in rebuilding the confidence of franchisees compared to direct operated brands.
