As the recovery of offline consumption this year, the catering industry has ushered in a long-awaited resurgence. GenBridge believes that catering chains would enter a new stage of development, and we will continue to focus on chain catering as an investment theme this year.
On the supply side, individual catering has gradually declined in the past three years, and chain catering brands have accelerated their national development: direct-operated chains with hundreds of stores such as Mr.Ma’s Noodle, and franchise chains with thousands of stores such as Tastien. On the demand side, consumers’ requirements for quality continue to rise, but their willingness to pay has not increased significantly. We believe that consumers’ implicit demand for “high cost performance” will be one of the biggest opportunities in the catering industry.
By in-depth research GenBridge believes that the new generation of catering chains first needs to deeply polish the combination of dishes and the operation system, find the extreme balance point between “quality” and “efficiency”, and then develop a nationwide chain based on this to obtain scale advantages. We have conducted in-depth research on the Japanese Italian food chain brand Saizeriya: it produces extreme cost-effective products and scales up chain operations, enabling it to continue to grow to about 10 billion yuan in revenue over the past 30 years. We believe that Saizeriya’s method of achieving “extreme cost-effectiveness” is the core capability that is most worth learning for China’s current catering chains.