As China’s economy continues to decline, mass consumption is also downgraded, with more young people pursuing high-cost-effective dining options. In response to this trend, supermarket cafeterias in major cities are now offering “convenience canteens.”
Recently, several supermarkets in Beijing, Guangzhou, Wuhan, Changsha, and other cities have opened “convenience canteens,” with an average consumption of around 20 yuan per person. Some supermarkets have even introduced self-service buffet models, attracting attention.
This wave of supermarket “convenience canteens” focuses on impressing consumers with extreme cost-effectiveness, especially attracting a group of young customers. According to reports from Economic Daily, Beijing Youth Daily, and Jiemu News, the “Wumei Cafeteria” at the Wumei store in Zhongguancun, Beijing, is located in the deli area of the supermarket, divided into two sections with prices of 13 yuan and 19 yuan. The 13 yuan section offers carb-based self-service meals like fried sauce noodles, tomato and egg noodles, while the 19.9 yuan section offers over 60 dishes for self-service main meals.
Can the 19.9 yuan buffet be profitable? “Yes, it is profitable, but the profit margin is very slim,” said a food and beverage manager from Wumei supermarket. The Wumei cafeteria mainly lowers prices by compressing profits.
Meanwhile, at the “Xiaohui Cafeteria” in the Yonghui supermarket at Guanshan Avenue, Wuhan, the self-service meal is priced at only 15 yuan.
“I work in the nearby office building, and this cafeteria has been open for about half a year. My colleagues and I often come here to eat because it’s affordable,” said a young white-collar worker in the cafeteria.
In addition to office workers, some students also come to dine. “We are students from nearby universities. We didn’t go home during the summer break and worked part-time in Wuhan. Coming here for lunch offers better value for money. For us male students, the unlimited food option is very appealing,” said a university student.
The store manager mentioned that due to the proximity to universities and office buildings, the main customers dining in the store are mostly young people.
It is understood that Wumei and Yonghui supermarkets operate directly, while Hema Fresh adopts more cooperative operations.
Public information shows that in June of this year, Hema launched affordable fast-food services at all its stores in Guangzhou, including 9 yuan pickled noodles and 17.8 yuan roasted duck rice. At a Hema store on Zhongnan Road in Wuhan, a consumer said, “With around 20 yuan, you can basically eat your fill.”
Meanwhile, Hualian Supermarket has also set up fast-food stalls in some of its stores; Gaoxin Retail (a listed company under Darunfa entity) has been investing heavily in the research and development of various baked goods and processed foods and has set up dining areas in some stores, also focusing on a low-price strategy.
So why are traditional supermarkets expanding into the cafeteria business and starting to do “supermarket cafeterias”? It is understood that with consumers becoming more rational, more young people are seeking high-cost-effective dining options, and the cafeteria format within supermarkets is in line with this trend.
Senior retail analyst Shen Jun believes that the operating pressure on physical stores is very high today, especially for traditional supermarkets. In order to attract more customer traffic, low-cost cafeterias hardly have any profit, and what supermarket operators value is increasing customer loyalty.