China’s Economy Slowing Down, Various Industries Facing Intense Competition. Some vegetable markets, convenience stores, supermarkets are now operating “canteens” to make money, impacting the restaurant business. Many in the food industry lament that with internal competition escalating and external pressure mounting, running a restaurant has become incredibly challenging.
Recently, in a beef stall at the Yantian District Neighbor Li Smart Agricultural Trade Market in Shenzhen, the stall owner has turned into a chef, not only slicing vegetables for customers but also cooking dishes for free, attracting public attention.
It is reported that the beef stall providing free cooking services has people lining up every day, becoming the “top stream” stall in the vegetable market.
The stall owner at the beef stall named Arlong, from Hunan, told Guangdong News Channel that the free cooking service is a reservation experience activity. Customers need to make reservations in advance, with the stall being able to process 8 to 9 orders in the morning and 15 in the afternoon.
Arlong explained that some customers pre-order their dishes before work and come to pick them up after work. Due to its convenience, the stall quickly attracted a batch of customers, with some even coming from other districts in Shenzhen just to check-in.
To accommodate the demand, Arlong has set up a WeChat group where regular customers can queue up for orders, as without prior booking, they might not be able to avail themselves of the cooking service during meal times.
Regarding whether there will be charges for the cooking service, Arlong stated that currently, processing is free of charge, “If we expand with new stores specifically for processing, we will charge an appropriate processing fee of 5-10 yuan.”
In addition to Arlong’s beef stall providing cooking services, there are many other cooked food stalls in this vegetable market selling items like wontons, dumplings, etc., not only selling freshly packaged products but also cooking for customers on the spot and providing dipping sauces.
The owner of the dumpling stall, Zhao Yulong, told Beijing Youth Daily that their stall sells freshly wrapped dumplings, wontons, and noodles. “We cook at our stall using the kitchen utensils we bring ourselves. We have two people at our stall, and once the customer orders, I prepare the fresh dumplings or wontons and cook them, which usually takes about eight to nine minutes. We also provide meal boxes and a selection of dipping sauces.”
Zhao Yulong revealed that this market opened recently this year, “At the beginning, there were fewer people visiting the new market. To attract more foot traffic, we started offering free processing services, and by the weekend, we had more customers. On an average day, we sell more than ten portions… We also offer free delivery within a one-kilometer radius of our stall.”
Zhao Yulong’s initiative has influenced other stalls in the market, he joked, “It’s catching on, and now many stalls are offering free cooking services.” He believes that as more businesses join in, the market will definitely see an increase in foot traffic.
An official from the market revealed that they are currently establishing a central kitchen and plan to officially open it to the public in mid-August, providing customers with more cooking services.
Many netizens are concerned about the hygiene of cooking in the market and question how the food operation license for the market was obtained.
However, it’s not only these suppliers in the market that are encroaching on the restaurant industry, but also convenience stores and supermarkets.
For example, 7-Eleven and FamilyMart have introduced affordable canteens in places like Guangzhou, focusing on freshly made, roasted, and fried products.
FamilyMart’s “National Canteen” series bento boxes start at 8.8 yuan.
Convenience store giant 7-Eleven has opened a dining area in its Guangzhou store, selling freshly made, roasted, and fried products, ranging in price from 6.9 to 22.9 yuan.
On the supermarket front, Wumart and RT-Mart, among other large supermarkets, have also ventured into the food service industry, offering buffet and pre-made meal services.
China’s professional catering website “Hongcan.com” stated that recently, Wumart Supermarket opened the “Wumart Dining Hall” in Beijing, offering two types of buffet meals: one is a carbohydrate buffet for 13 yuan, including braised noodles, fried pancakes, Yangzhou fried rice, and the other is a 19.9 yuan regular buffet meal covering over 60 dishes.
RT-Mart has launched 9.9 yuan cheese buns, 9.9 yuan ham sandwiches, and 9.9 yuan for two pork chop buns.
Meanwhile, Hema and Yonghui supermarkets are increasing their investment in the catering industry, introducing various affordable fast food options.
Currently, Hema has introduced “affordable fast food” services in Beijing, Jiangsu, Shanghai, including 9 yuan Meizhou marinated noodles, 19.8 yuan three-meat and one-vegetable fast food, and 16.8 yuan pork offal soup, with most customer prices below 30 yuan.
Yonghui Supermarket has launched an affordable canteen in Fuzhou and Zhejiang, focusing on fresh cooking and self-service fast food, priced at 15 yuan for an all-you-can-eat meal.
Reports suggest that markets, convenience stores, supermarkets… from outside the industry are venturing into the food business, becoming a trend, with waves of competition. Many restaurant operators lament that with internal and external competition intensifying, running a restaurant has truly become tough. One slight misstep could mean being eliminated from the game.