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China corruption crackdown hits catering sector

Business Desk |
Update: 2014-02-09 05:24:52
China corruption crackdown hits catering sector

DHAKA: China’s catering sector grew at its slowest pace in more than two decades in 2013 as diners avoided splashing out in luxury restaurants during an anti-corruption campaign targeting official excess, according to state media.

Catering in China grew nine percent last year, the weakest growth in 21 years, the official Xinhua news agency reported late on Saturday, citing the China Cuisine Association. It did not give the growth pace for earlier years.

Restaurant earnings totalled 2.54 trillion yuan in 2013. Among those stomaching the biggest hit were high-end establishments, which reported annual revenue lower than in 2012, Xinhua said, reports The Straits Times.

China’s slowing economy has also dealt a blow to the catering industry, as cost-conscious diners go for cheaper spots with healthy, local food over multi-nationals like McDonald’s Corp and Yum! Brands Inc which have also been hit by food-safety scandals.

BDST: 1614 HRS, FEB 09, 2014

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