Full-Service Restaurants in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
6710Revenue
$643.5bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
24,110
Businesses
2,409
Wages
$XXX.Xbn
Full-Service Restaurants in China industry analysis
Full-service restaurants in China account for the largest revenue share of China's catering subsector. Approximately 80% of the total catering subsector's revenue came from the Full-Service Restaurant industry.The Full-Service Restaurants industry's proportion of the total catering subsector has decreased slightly in recent years, due to the rapid growth of its main external competitor, the Fast-Food Restaurant industry. Nevertheless, industry revenue has grown steadily over the past five years. Industry revenue is expected to increase at an annualized rate of 3.6% over the five years through 2023. This includes 18.7% growth in 2023, to total $643.5 billion, reflecting recovery after the COVID-19 pandemic outbreak in 2020.Competition is high and the market is highly fragmented. The combined market share of the top four companies, Sichuan Haidilao Catering Company Limited; Inner Mongolia Xibei Catering Group, China Quanjude (Group) and Shaoshan Maojia Restaurant Development Co., Ltd. , is estimated to be only 1.6% in 2022.Some firms that have built strong brand images over many years have begun operating at a national scale by developing chain operations. However, this development has slowed in recent years due to operating model development difficulties. The main chain-operation models used in the industry are franchising and direct management of one's own restaurants. Some of the major players have shifted toward direct management due to legal frameworks disadvantaging franchise operations and brand copyrighting.Industry revenue is projected to rise at an annualized 16.3% over the five years to 2028, to total $1.4 billion. Improvements in the legal framework for franchising and intellectual property rights will likely stimulate chain operation growth, and major players are projected to continue expanding their networks of branch restaurants and franchises. Technology changes will likely continue, primarily regarding credit card use. The development of China's financial markets and credit card businesses is forecast to strongly influence this technological change.
Trends and Insights
- Industry revenue is expected to grow. It is driven by rising demand for business lunches and dinners, and increasing per capita incomes.
- Low-end restaurant demand comes mainly from household consumers. Mid-range restaurants tend to serve both household needs and businesses.
- Full-service restaurants are generally located in regions with large populations. This includes provinces in East China, Middle South China and North China.
- Food varieties and specialties are the main basis of competition within this industry. This is particularly seen among larger-scale enterprises with established brand images and those with chain operations.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 3.6 % over the past five years, to reach an estimated $643.5bn in 2024.
Trends and Insights
Fast-food restaurant expansion has squeezed industry growth
- The industry has contributed a decreasing share of revenue to China's catering subsector due to the rapid expansion of the Fast-Food Restaurants industry in China (IBISWorld report 6720).
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A recovering economy and growing living standards will boost the industry
- Increasing per capita incomes and growth in demand from the business segment are projected to contribute to industry revenue growth over the next five years.
Biggest companies in the Full-Service Restaurants in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Full-Service Restaurants in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Chinese cuisine restaurant, Western-style food restaurant and Japanese Cuisine and other food restaurant. Chinese cuisine restaurant is the largest segment of the Full-Service Restaurants in China.
Trends and Insights
Chinese cuisine restaurants are the largest product segment
- Chinese cuisine is a holistic paradigm that utilizes traditional Chinese cooking, fermentation, and shredding techniques to produce food and chopsticks.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Hotels in China
- Fast-Food Restaurants in China
- Cafes, Bars & Other Drinking Establishments in China
Complementors
- There are no industries to display.
International industries
- Chain Restaurants in the US
- Single Location Full-Service Restaurants in the US
- Italian Restaurants in the US
- Mexican Restaurants in the US
- Sushi Restaurants in the US
Table of Contents
About this industry
Industry definition
Full-service restaurants in China provide food services to patrons who order and are served while seated and pay after eating (i.e. table service). Food provided by businesses in this industry include a large variety of Chinese cuisine as well as foreign cuisine.
What's included in this industry?
Operating full-service restaurants in hotelsOperating standalone full-service restaurants Operating hot pot and barbecue restaurantsOperating full-service restaurants in stations, airports or docksOperating full-service restaurants in trains and boatsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
CUISINEFULL-SERVICE RESTAURANTFRANCHISINGPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Industry revenue is expected to grow. It is driven by rising demand for business lunches and dinners, and increasing per capita incomes.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Low-end restaurant demand comes mainly from household consumers. Mid-range restaurants tend to serve both household needs and businesses.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Full-service restaurants are generally located in regions with large populations. This includes provinces in East China, Middle South China and North China.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Food varieties and specialties are the main basis of competition within this industry. This is particularly seen among larger-scale enterprises with established brand images ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The largest four enterprises are expected to generate less than 2% of total industry revenue in 2022. Approximately 2.6 million restaurants are operating in the industry in 2...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Competition from the Fast-Food Restaurants industry has increased in recent years. This competition is particularly high in large cities, where people have busier lifestyles ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures vary significantly across regions and restaurant scales. Rent expenses are high compared with other industries.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Full-Service Restaurants industry in China in 2024?
The market size of the Full-Service Restaurants industry in China is $643.5bn in 2024.
How many businesses are there in the Full-Service Restaurants in China industry in 2024?
There are 2,409 businesses in the Full-Service Restaurants industry in China, which has declined at a CAGR of 0.5 % between 2019 and 2024.
Has the Full-Service Restaurants industry in China grown or declined over the past 5 years?
The market size of the Full-Service Restaurants industry in China has been growing at a CAGR of 3.6 % between 2019 and 2024.
What is the forecast growth of the Full-Service Restaurants industry in China over the next 5 years?
Over the next five years, the Full-Service Restaurants industry in China is expected to grow.
What does the Full-Service Restaurants in China include?
Operating full-service restaurants in hotels and Operating standalone full-service restaurants are part of the Full-Service Restaurants industry.
How competitive is the Full-Service Restaurants industry in China?
The level of competition is high and steady in the Full-Service Restaurants industry in China.
