YIBADA

Mobile Apps Change China's Catering Market Landscape

| Feb 27, 2016 05:48 AM EST

Mobile apps have helped restaurants in increasing their operational efficiency.

With the advent of mobile Internet and mobile apps, China has been witnessing continuous transformation in its local catering market landscape.

In a China Daily article, the popularity of online to offline services (O2O) was cited as one of the main drivers in this shift, coupled with better infrastructure and wide use of smartphones and tablet computers.

Citing recent reports, the impact of these technological advancements now goes beyond China's key cities; even industries in smaller cities are also benefiting from these innovations.

Figures from the National Bureau of Statistics show that the overall Chinese catering market was valued at 3.2 trillion yuan in 2015, a 16-percent increase from the 2014 statistic. The market covers in-restaurant dining, catered events and take-outs.

The report also stressed the increase pulled in by the sector involving online ordering and online payment. Data shows that the sector posted a 48-percent increase from the 2014 value worth 140 billion yuan. The said figure is also 15 times higher compared to the statistic five years ago.

In a survey report issued by the China Cuisine Association earlier in January, it showed that 80 percent of the respondents agree that Internet services available on smartphones and other handheld gadgets have already taken over those that are available on desktop computers.

Included in these easy-access services are restaurant searching, booking and reviewing.

Additionally, the results showed that Chinese diners have labeled apps and food-review websites as the most important channels for choosing a restaurant.

Meanwhile, 40 percent stated that they use online platforms for reservations. While 30 percent said that they pay bills online, 20 percent said they still pay bills with cash, the report added.

According to Feng Engyuan, vice chairman of the China Cuisine Association, "restaurant owners are now more aware of the importance of using the Internet to enhance their sales and performance."

"For customers, Internet and smartphone apps make dining out and food delivery more convenient," Feng added.

Mobile apps feature various functions like taking an online queue to reserve a table prior to arriving at a dining place, ordering dishes, ordering take-outs, purchasing coupons and paying bills.

Feng noted that these services enhance the efficiency of a restaurant's operations. They also help restaurants attract more customers.

A Meituan-Dianping report also shows that there has been exponential growth in the number of online transactions in fourth- and fifth-tier cities.

The firm is regarded as the largest O2O Chinese company. It offers a wide range of services such as food delivery, restaurant reviews and movie ticket selling.

Most Popular

EDITOR'S PICK