China's domestic catering market — which topped 5.5 trillion yuan ($774.6 billion) last year — saw more chain brands making their mark, as the franchise model has proven to be more resilient.

On Monday, the China Chain Store & Franchise Association and delivery platform Meituan officially released the 2025 China Catering Chain White Paper.

The report found that in 2024, China's catering market size exceeded 5.5 trillion yuan, with the chain rate further increasing to 23 percent, from 19 percent in 2021.

The "Top 100 China Catering Franchise Brands in 2025" was also released. The total number of brands on the list reached 295,000, an increase of 26.2 percent compared to 2024.

The number of chain brand stores in the 500-1,000 store-size range saw a remarkable growth rate of 93.6 percent, becoming a new engine for sector growth.

This is attributable to the flexible expansion of the franchise model and also reflects the rising momentum of regional brands, said the report.

Chain catering brands are still growing rapidly. However, the lack of operational experience among new entrants has led to severe homogenization of catering categories and relatively weak market survival capabilities.

Meanwhile, leading chain brands have maintained rapid growth. By the end of 2024, the"10,000-Store Club" in the catering industry was still led by six major brands: Mixue Group, Luckin Coffee, Dicos, KFC, Zhengxin Food and Juewei Food.

The number of their stores grew by 69.3 percent year-on-year, showing a rapid development for chain catering businesses with 100 or more stores, said the report.

It also said the standardization, digitalization and supply chain capabilities of chain brands have become the core forces for risk aversion, and this is well recognized by many entrepreneurial franchisees.

In addition to long-standing stores that have built up market and brand loyalty, consumer reviews are also an important indicator of store operational capabilities. Data from the Meituan Research Institute show that in 2024, about 60 percent of consumers chose catering merchants with higher ratings. Among them, the dining consumption rate of high-quality merchants with ratings above four points (with five being maximum) increased by 13.7 percentage points compared to 2023.

Regarding the changes in the total number of merchants across different city tiers, the overall scale of merchants in cities of all levels increased at a slower rate in 2024 compared to 2023. First-tier cities — or the most populous urban areas — remained the preferred location for chain brands to expand, while competition in lower-tier city markets is becoming increasingly fierce.

In terms of catering categories, the white paper showed that the chain rate of various catering categories steadily increased in 2024. The top three categories with the highest chain rates were shops specializing in beverages, baked goods and desserts, as well as international fare.

The chain rate of beverage shops has remained stable at 49 percent in the past two years, indicating a certain level of market maturity.

Compared to beverages, buffet dining is gradually returning to public favor, with a significant increase in its chain rate over the past two years, and a further five percent increase in 2024.

In the lower-tier market, buffet restaurants are experiencing queues, with such eateries in first-tier and new first-tier cities also returning to popularity.

Another trend is that a large number of catering companies are expanding overseas. As domestic market competition intensifies and international market opportunities emerge, more and more catering companies are trying their luck in foreign markets. This not only helps spread Chinese culinary culture, but also brings new growth opportunities for businesses, said the association.

Hot pot franchising giant Haidilao International Holding Ltd showed strong momentum last year thanks to innovations. Shao Zhidong, deputy general manager of Haidilao International Holding Ltd, said the company has expanded its reach to enterprises and campuses to cater to the dining needs of corporate and student populations.

Additionally, Haidilao has been continuously exploring diversified scenarios through initiatives like camping hotpot, late-night food vehicles and delivery stores, enabling customers to enjoy hotpot "anytime, anywhere".

In terms of product innovation, Haidilao adopted a dual-track approach of nationwide and regional product launches, and now combines seasonal and local flavors. Recently, over 1,300 Haidilao stores nationwide introduced five new spring-themed products.

The hotpot chain has implemented a plan to encourage the incubation and development of new catering brands. Haidilao motivates talent to engage in innovation. In March 2024, Haidilao officially launched its franchise business.