Quick Service Restaurants Contribute Significantly to the Revenue Generated by the Malls in China

Published Date : May 20, 2015

Malls in China are finding it increasingly difficult to survive as consumers focus more on e-commerce and online shopping. However, unlike cosmetics and clothes, enjoying meals with friends cannot be digitized. Hence, the most prominent and famous malls in China are welcoming restaurant chains in their campus to fill up the void created by retailers struggling to pay rent for the showrooms in malls. 

The changing trend is working fine for malls but again this isn’t reaping much benefit for mall-type restaurants that are now beginning to lose ground to the new entrants in the restaurant market. 

Opening up restaurants in malls although is a great idea helping the malls to survive the ebb and tide triggered by the emergence of online shopping. However, the same has also intensified competition in the Chinese restaurant market. It is obvious that most prominent and big names in the quick service chain restaurants will venture in malls, as told by Charlie Chen, a leading analyst working with the BNP Baribas in his recently published report. 

Stressing on the growth trends exhibited by Chinese malls Chen said, shopping malls in Shanghai generated total revenue of 165 billion yuan or KH$209 billion in 2011. Restaurants represented only 15% of the total revenue generated by malls in 2011. 

However, last year the income of shopping malls plummeted to 90 billion yuan, with restaurants contributing to not less than 28% of the total revenue generated. Chen said, that analysts are expecting rest of the malls located in other countries of China will also start showcasing the trends exhibited Shanghai malls very soon. Further Chen mentioned that the leading restaurant chains in China such as Shanghai cuisine Xiao Nan Guo, Ajisen, and Xiabu Xiabu are seeking to expand their operations by this year.