Shanghai tops country in number of leading food and beverage franchises

Shanghai has the largest number of leading franchise food and beverage brands in China, according to the latest industry ranking tracking top restaurants, snack and beverage retailers in the country.

The joint report by the China Chain Store & Franchise Association and Meituan said the city's franchise food and beverage stores make up about 19 percent of the total number of catering businesses in the country, up from around 12 percent in 2018.

The rankings show the number of Shanghai-headquartered brands was 27, followed by 10 in Chengdu. These include popular beverage vendors Mixuebingcheng and Luckin Coffee as well as brands like Burger King and Papa John's.

Leading food and beverage chain stores have a stronger momentum in expanding their footprints across the country but emerging brands are catching up quickly, said Wang Hongtao, deputy secretary general of the China Chain Store & Franchise Association.

The franchising model would help local restaurant chains better expand their operation networks and leverage their core competence, he noted.

The ranking was based on the growth potential of brands, overall business performance and customers' satisfaction level.

The fastest-rising franchises in the past year were located mostly in the Guangdong-Hong Kong-Macau Greater Bay Area and central Hubei and Hunan provinces, and they had been quick to adapt to consumers' preferences and tastes.

According to the National Bureau of Statistics, catering businesses recorded a 9.2 percent income increase in the first two months of this year and had been ahead of other industries as consumer sentiment rebounded.

The amount of transactions made through digital channels, such as online food takeaway orders and digital menus, had increased 2.9 percent in 2022 from a year earlier.

Since March, Shanghai customers' dine-in orders paid through online channels ranked top in the country according to Meituan.