SALES IMPROVE AS BRANDS APPEAL TO A WIDER AUDIENCE
The catering industry experienced doubled-digit growth in 2015, according to the China Cuisine Association, as business picked up for the first time since the government inaugurated its crackdown on extravagant spending and public corruption.
The industry benefited from increased consumer a uence and the ongoing shift in attitudes towards eating out, once viewed as an experience reserved for special occasions and now seen as a more routine and a ordable convenience.
Market repositioning was among the factors that drove the brand value improvement. Brands formerly dependent on a narrow band of more a uent diners broadened their appeal to a wider audience.
However, as the market rebounded, consumer choice increased and brands competed fiercely. Some of the international brands, which had struggled to restore trust after food safety scandals, faced local Chinese operators empowered by mobile home delivery apps a liated with Baidu, Alibaba or Tencent.
One catering brand dropped out of the BrandZTM Top 100 Most Valuable Chinese Brands 2016, leaving only Quanjude, which operates over 100 roast duck restaurants. Because of the change, the category declined 29 percent.