In recent times, several renowned catering enterprises in mainland China have introduced low-priced combo meals to cater to the continuously declining consumer willingness to spend.
Many catering companies in mainland China have recently lowered the prices of their dishes. For instance, the mainstream price range for noodles at He Fu Lao Mian is now between 16 Chinese Yuan to 29 Chinese Yuan, with an overall price reduction of approximately 30%.
According to Caixin Net on June 24th, the new menu of the Chinese noodle chain brand He Fu Lao Mian, known for its noodle dishes, indicates an overall decrease of about 30% in mainstream prices.
Another Chinese restaurant chain, Jiu Mao Jiu, announced price adjustments for its Sōng Huǒ Hotpot in May. Another chain under the same group, Tai Er Pickled Fish, also introduced a two-person discount combo on group-buying platforms.
The low prices at the hotpot chain brand Ba Nu are being promoted through local lifestyle platforms. During live streams on Meituan, Ba Nu offers a two-person meal for an average of 115 yuan to 50 yuan off, while on Douyin (TikTok), the two-person meal averages from 115 yuan to 145 yuan.
Caixin Net believes the direct reason for the price cuts by catering brands is the decrease in per capita consumer spending in the catering industry. Financial data from the Jiu Mao Jiu Group shows that two out of their three sub-brands experienced a decline in average customer spending in 2023, with Sōng Huǒ Hotpot decreasing significantly by 15 yuan to 113 yuan, and Tai Er Pickled Fish dropping by 2 yuan to 75 yuan.
Another hotpot chain, Hai Di Lao, saw a decrease in average customer spending to 99.1 yuan in 2023, down by 5.8 yuan. For Hao Guo Hao Guo, the average customer spending in 2023 decreased by 1.7 yuan to 62.2 yuan, while their high-end hotpot brand, Cou Cou, had an average spending of 142.3 yuan last year, showing a year-on-year decline of 8.6 yuan.
Food industry analyst Zhu Danpeng told Caixin Net that in light of the declining consumer willingness to spend, offering price discounts on hotpot meals, which are popular among consumers, aligns with market trends.
In the broader context of the Chinese economy, the decrease in people’s income has led to a decline in their willingness and confidence to spend. According to statistics from the National Development Research Institute at Peking University, in March 2024, the overall consumer satisfaction index was 128.04, a decrease of 3.7 compared to the previous year, and a 4.5 decrease from December 2023.