Caterers eye up slice of Olympic pie
By Liu Jie (China Daily)
Updated: 2004-08-09 08:54

The 2008 Beijing Olympic Games is expected to provide over 300 billion yuan (US$36.14 billion) in business opportunities -- and the capital's caterers are vying to gobble up their share.

Experts predict around 18 billion yuan (US$2.17 billion) or 6 per cent of the total cash wind fall from the games will go to the catering industry as visitors and locals alike munch and slurp while watching the Olympians compete.

Profit will be carved up between IOC-approved sponsors and providers and local catering operators.

According to Xu Zheng, manager with the operation department of the Olympic Village, the 2008 games are expected to receive 11,900 athletes and coaches, 245,000 working staff, 3,000 judges, 7,000 journalists and 7 million visitors from various nations and regions.

"To provide catering service for such a huge population over a month, 24 hours a day is rather a challenging job but a profitable business also for the catering operators," said Xu.

Li Shunli, vice-director of Beijing Municipal Commerce Bureau, said the catering operators should supply various food to meet the different tastes of the customers from over 200 nations and regions.

"The different nationalities, religions and cultural backgrounds result in various appetites, so operators should arm themselves with enough knowledge to satisfy palates," said Li.

Other high-grade services are required to satisfy healthcare issues such as diet arrangements, food hygiene and safety.

Specific food and services provided for the athletes and customers with special demands should be considered, said Li.

In line with the marketing development plan formulated by the Beijing Organizing Committee, enterprises involved the catering service will be divided into three categories who obtain different operation rights at variable prices.

"A sponsor will monopolize a segment of the catering market, such as Coca Cola, which is the only beverage sponsor designated by the International Olympic Committee," said Xu.

Other brands are forbidden to sell in the Olympic stadiums and gyms.

The sole providers will act as contractors to operate the catering services in stadiums, gyms and the Olympic Village. They are to handover a percentage of their revenue to the organizing committee.

Other sectors of the catering market, such as food, facilities, equipment and services, are now open for competitive tendering.

Li said that the capital city's catering sector should take the chance of 2008 Olympic Games to upgrade its operation, as millions of visitors from home and abroad will visit the sporting showcase.

"While wishing to avoid a price war, the competition should focus on service quality, environment, brand and good culture," said Li Shunli.

Li Jingping, a director with the commercial reform department of the Ministry of Commerce, pointed out that Beijing's catering industry had long been a world leader.

"The Olympic Games will provide a good opportunity for the capital city to standardize the market and optimize the industrial structure," said Li Jingping.

So far, the ministry is conducting research on the nation's catering industry, and a conference expected to be held in October will announce the results and discuss how best to improve the regulation system and promote sustainable development.

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