Michelin Guide expands biz in China

The Michelin Guide, a global provider of restaurant and hotel information and ratings, will expand its culinary footprint in China by introducing two new provincial guides, driven by optimism about sustained growth in China's retail market, an executive said.

Gwendal Poullennec, international director of the Michelin Guide, said the Chinese dining market is growing steadily, constantly exhibiting new dynamics with consumers getting younger and younger, with better spending power, and showing signs of being more willing to open their wallets wider for quality dining experiences.

"Despite having established a presence in China for about eight years, the company's expansion is still in its early stages. There are constant new dynamics. More people are spending on lifestyle rather than just products. The market is moving up, and purchasing power is growing. Our readership is more than doubling annually. There are more food lovers than ever, and they are younger. Eating quality food is becoming increasingly important," he said.

Rolled out by the French tire company Michelin, the Michelin Guide serves as a resource of information for international travelers and food enthusiasts.

Following its coverage of five major cities in China, the Michelin Guide will release its first provincial restaurant lists, starting with Fujian and Jiangsu provinces. Fujian's list will be unveiled by the end of 2024, and Jiangsu's results will be announced in early 2025.

Poullennec said this move aims to better connect with Chinese consumers while promoting China's rich and authentic culinary culture on the international stage.

"There is an increasing demand for quality dining experiences from both local residents and travelers, domestic and overseas. They are eager to discover not only good restaurants but also the rich culture and variety of Chinese cuisine," Poullennec added.

A recent report by iiMedia Research indicates that China's catering industry market size has recovered to pre-COVID levels of 2019 and is expected to grow steadily in the short term. With ongoing consumption promotion policies across the country, demand in the catering market is continually being stimulated, and is projected to reach 5.7 trillion yuan ($783.5 billion) by 2025.

Latest data from the National Bureau of Statistics show that in the first half, national catering revenue reached 2.6 trillion yuan, up 7.9 percent year-on-year, surpassing the 3.7 percent year-on-year growth rate of total retail sales of consumer goods, showing strong growth momentum and development vitality.

The iiMedia report highlighted that in response to increasingly personalized and diverse dining demands and the rise of social media, restaurants are expanding their offerings from basic products to quality dining experiences, alongside a broader range of other services. Some providers have established their own multichannel network agencies for branding, extending services to influencer cultivation, group purchases and social media marketing, thus offering more comprehensive solutions to enhance market competitiveness.

Wu Ying, vice-president of the China Cuisine Association, said the catering industry is among the sectors to recover quickly and steadily after the pandemic, thus showcasing robust development trends and reflecting the resilience and vitality of China's overall economy.

Poullennec affirmed the company's long-term confidence and business plans for the Chinese market. "We established our presence eight years ago, and we want the market to last and continue to expand. It's a long-term project. Step by step, we are gradually increasing our coverage."