Catering sector recovery slow in first-tier citiesBusiness | 2 Jun 2020 1:12 pm
The coronavirus outbreak has improved market concentration in the consumption sector in the mainland, especially in the household appliance sector, said Christine Peng, head of Greater China Consumer Sector at UBS.
The catering sector in first and second-tier cities is recovering at a slower pace than lower-tier cities, due to stricter restrictions on outdoor dining in the first and second-tier cities, Peng said.
She added that Chinese restaurants are more susceptible to the coronavirus than western fast-food restaurants.
“Most Chinese restaurants have a wider range of products and bigger kitchens, and they need cooks, so the decline in customer traffic has a greater impact on revenue,” Peng said.
She also said some medium-scale restaurants have closed since April as many shopping mall operators no longer offer rental reductions.
Meanwhile, the supermarket industry in the mainland reported double-digit growth in revenue in the first quarter, but growth has slowed since May as outdoor consumption has recovered, Peng said.
Customer traffic of some first-tier retailers in the mainland has recovered to 80-90 percent of their normal level, she said.