1. Impact of the Epidemic on the Catering Industry
According to data from iiMedia Research, 95.0% of the catering businesses surveyed indicated that store revenue declined significantly during the epidemic. More than half also suffered a drop in turnover. With reduced foot traffic and pressure from rent, many businesses turned to online platforms and third-party food delivery as a survival strategy. By the outbreak’s peak, 78.0% of catering businesses were relying on online sales—a 63.1 percentage point increase compared to before the pandemic.
2. Embracing Online Takeout Platforms
About 70% of the businesses stated they would continue using takeaway platforms post-epidemic. Analysts believe the crisis has accelerated digital transformation in the catering industry. As both supply and demand for takeout services grow, the market is expected to exceed 650 billion yuan in 2020.
3. Government Policy Support
In response, government departments provided financial, tax, and employment policy support. Local governments issued consumer vouchers and encouraged consumption through official participation. These moves are expected to speed up industry recovery.
4. Trends in Business Numbers and Market Size
Between 2015 and 2019, the number of catering businesses grew at an average annual rate of 35.8%, reaching 11.075 million. However, 2020 saw a temporary decline due to the epidemic, while active takeaway businesses increased.
The online food delivery market grew 36.0% year-on-year in 2019, hitting 577.93 billion yuan, and was projected to grow further in 2020.
5. Key Challenges During the Pandemic
Over 60% of catering businesses cited two major issues:
- Declining offline customer flow
- Store rental pressure
Nearly 50% also faced staff shortages. The combination of high fixed costs and low cash flow threatened many businesses.
6. Shift to Online Operations
Nearly 80% of the surveyed catering businesses went “all in” on online takeout. Among them, 12.7% had never operated online before. Medium and large businesses, bearing higher costs, were especially motivated to digitize.
📸 [Insert image: Restaurant kitchen preparing orders for delivery]
7. Key Takeaway Strategies
Takeout became the main revenue channel. Businesses focused on "open source" (new income) rather than "throttling" (cost-cutting), with platform selection driven mainly by:
- Number of platform users
- Quality of delivery services
📸 [Insert image: Delivery app comparison or restaurant manager analyzing online dashboard]
8. Case Studies of Brands That Adapted
Nanchengxiang
Orders grew 69% in late February 2020. With Meituan’s support, daily orders rebounded to 70% of pre-epidemic levels.
Grandma's House (Laoyaji)
Maintained takeout during full dine-in closures, achieving success through platform exposure.
Xiaolongkan
Launched hotpot takeout and increased live-streaming to expand customer engagement.
Cha Yan Yue Se
Quickly rolled out takeaway services, expanding offerings from 4 to 14 products.
9. Post-Epidemic Outlook and Industry Transformation
The epidemic served as a "touchstone" that forced digitalization. Takeaway and digital platforms are now vital for survival and growth. Brands with strong online integration are expected to thrive, while platforms will shift to refined operations and higher service quality.
