In recent years, the hot pot industry has experienced a relatively tortuous development journey.
From 2017 to 2019, the market size of the hot pot industry increased from 480.2 billion yuan to 552.1 billion yuan, showing the vigorous development momentum of the industry. However, the sudden outbreak of the new crown epidemic in 2020 has caused an unprecedented impact on the catering industry, and the hot pot market has not been spared, and the market size has declined significantly.
With the gradual easing of the epidemic, the hot pot industry began to gradually recover. In 2023, the scale of the hot pot market will once again usher in the spring of growth, returning to the 500 billion mark, which will undoubtedly inject a shot in the arm for the entire industry.
In terms of the number of stores, according to the monitoring of the Location Data Center, the total number of hot pot stores in operation in China has exceeded 530,000. Compared with other formal meal categories, hot pot is easier to achieve scale expansion with its high degree of standardization, mature management system and broad mass base. However, compared with other catering forms such as drinks and fast food, the overall investment of hot pot is larger, the requirements for stores are higher, and the store opening cycle is also longer, which also means that the difficulty of expanding stores and chaining is relatively high.
The store size of the hot pot chain brand presents a pyramid structure. Among them, 90% of the brands have less than 50 stores, and most of these brands are deeply rooted in the local market and use flexible operation strategies as the way to survive. Less than 5% of the stores are more than 100 brands, which usually have strong brand power, mature management level and scale advantages.
On the whole, the competition in the chain hot pot track is extremely fierce. Smaller brands face the challenge of surviving, while large brands need to innovate while maintaining a successful store opening rate while steadily expanding their stores to maintain their market leadership.
In terms of the city-level layout of stores, the number of hot pot restaurants in the new first-tier cities is the largest, accounting for 23%. Most well-known hotpot chains prefer to open new stores in high-tier cities to increase market share and brand awareness.
It is worth noting that with the development of the economy and the improvement of consumption capacity, hot pot has ushered in a new wave of growth in third-tier cities and below. According to the monitoring of the location data center, the proportion of hot pot stores in third-tier cities has exceeded 21%. Many emerging hot pot brands are rising in the "sinking market", and the emergence of cutting-edge brands has gradually changed the pattern of the localized catering market.
In the hot pot industry ushering in a new round of growth, the importance of digital and intelligent site selection is becoming increasingly prominent. A scientific location strategy can greatly improve the success rate of new stores and reduce investment risks. Using big data analytics, artificial intelligence** and a new retail model that integrates online and offline, hot pot brands can more accurately identify target customer groups, optimize store location selection, and anticipate potential business opportunities.
With the advancement of technology and the change of consumer behavior, attaching importance to digital and intelligent site selection and using scientific and technological means to open stores scientifically will become the key points of the sustainable development of the hot pot industry. This can not only help brands gain a foothold in the new market environment, but also promote the healthy and orderly development of the entire industry.
In the face of new opportunities and challenges in the hot pot industry, brands need to pay attention to the strategy of digital and intelligent site selection, and use scientific data analysis to guide the opening of new stores. On this basis, combined with the core competitiveness of the brand, continuous innovation of products and services, in order to maintain a leading position in the fierce market competition and open up a broader market space.
In the future, we look forward to working with more hot pot brands to achieve sustainable growth and prosperity through smart site selection and technological innovation."