Editor’s Note
As global supply chains reconfigure, the food and beverage industry is shifting from simple brand exports to full-chain overseas expansion. This article explores how companies are investing in local supply chains—such as central kitchens and cold chains—to reduce costs and navigate trade barriers, marking a new phase in the “supply chain is king” era.
Against the backdrop of global supply chain restructuring, the international expansion of the catering industry is evolving from “brand export” to “full-chain expansion.” While the traditional model relied on “direct operation + franchising,” more companies are now investing in overseas central kitchens and cold chain facilities. This “supply chain localization” strategy helps circumvent cross-border transportation costs and trade barriers. For instance, after Haidilao built a factory in Singapore, it could “source and distribute locally.” Mixue Bingcheng has established local factories in core markets like Indonesia, achieving a closed-loop supply chain of “local procurement + cold chain logistics.” Some Chinese food brands have simultaneously set up raw material procurement points in China, Vietnam, and Mexico to reduce reliance on a single market. Chinese cuisine’s global expansion has entered a new phase where “supply chain is king.” Those who can build a composite model of “local stable supply + export of Chinese characteristics” will go further and stand firmer.
However, for many Chinese catering brands expanding overseas, the Chinese diaspora remains a crucial audience. The resurgence of outbound tourism by Chinese travelers also brings new demand for overseas Chinese restaurants. Accustomed to finding food and sharing reviews online, Chinese tourists prompt overseas restaurants to update their presence on platforms like Dianping and Meituan, offering deals and reservation services. For example, Singapore’s Restaurant Born, specializing in Sino-French fusion cuisine, actively manages bilingual accounts on Instagram and local food review sites while maintaining a presence on Chinese apps like Dianping, posting Chinese content and responding to reviews.
Rising trade protectionism and the Sino-US tariff war have forced supply chain adjustments across many industries. Chinese manufacturing is no longer solely focused on “North America” but is proactively expanding globally. As Zhao Xiande, Dean of the China-Europe Supply Chain Innovation Research Institute, mentioned, Trump’s new tariff policies objectively provide China with opportunities to deepen cooperation with South Korea, Japan, Southeast Asia, and even Europe.
The catering industry, highly dependent on ingredients and logistics, is significantly impacted by trade friction and transport restrictions. Facing these challenges, operating locally has become an effective strategy for catering companies to manage supply chain uncertainty.
Simultaneously, the enactment of regional trade agreements like RCEP has lowered tariff barriers within Asia, providing favorable conditions for Chinese cuisine’s global expansion.
At the national level, there is active promotion for the catering industry to explore overseas markets. In March 2024, nine departments including the Ministry of Commerce issued guidelines explicitly stating the need to “accelerate the ‘going global’ of Chinese cuisine.” The policy supports catering enterprises in actively developing overseas markets.
Driven by both supply chain restructuring and policy encouragement, Chinese cuisine’s global expansion is flourishing across Southeast Asia, North America, Europe, Australia, and the Middle East. Southeast Asia, with its similar palate preferences, cultural proximity, and large Chinese diaspora, has become the first stop for many brands.
Notably, the variety of Chinese cuisine expanding overseas is increasingly rich, ranging from street food to high-end dining. While overseas Chinese food was once dominated by Cantonese restaurants, regional cuisines like Sichuan, Hunan, and Huaiyang, as well as creative fusion dishes, are now reaching the world.
In overseas markets, the adage “good wine needs no bush” is not just a reality but a primary challenge. Beyond product or taste, “being seen” has become a more difficult hurdle. Especially in a social media-dominated environment, if a catering brand cannot secure a place in the target audience’s content feed, it may remain obscure despite excellent offerings.
Different categories face vastly different promotional challenges. Youth-oriented sectors like hot pot and milk tea can easily gain exposure through short videos and KOL recommendations, necessitating promotions on TikTok and Instagram. However, fine-dining brands, especially high-end Chinese restaurants, often find it harder to “break through the circle” in marketing.
Overseas, both Chinese and local consumers increasingly rely on food reviews and rankings to choose restaurants. According to the “2023-2024 Cross-Border Tourism Consumption Trend Report,” Chinese tourists place high importance on dining experiences during outbound travel, with food accounting for 28% of total travel expenditure. However, they often find that popular international food guides, like certain Michelin and TripAdvisor high-rated restaurants, do not align with Chinese tastes.
The “Black Pearl Restaurant Guide,” launched in 2018, established the first systematic “Chinese palate” evaluation system, filling a gap in international dining guides for Chinese cuisine. This year, Black Pearl held its award ceremony overseas for the first time in Singapore.
Beyond the rankings, Black Pearl will leverage Meituan’s platform resources to provide traffic support, ranking endorsement, and operational strategies for cross-border catering operations, helping them break cultural barriers.
The globalization of Chinese catering is not a one-way street but a process of two-way integration. On one hand, excellent Chinese catering enterprises go abroad to spread Chinese food culture; on the other hand, high-quality foreign catering continuously enters the Chinese market, fostering exchange and collision with the local industry.
Since the reform and opening-up, numerous international catering giants have entered China, from early KFC and Pizza Hut to recent Starbucks and Shake Shack, all viewing China as a crucial growth market. However, compared to highly standardized fast-food brands, high-end Western fine-dining brands face multiple challenges entering China, similar to Chinese fine-dining going global.
In China, consumer perceptions of quality and refinement are changing. People are willing to pay for expensive food but not for overpriced food, showing a clear trend towards value-for-money. Data also shows an increase in the proportion of cross-border dining consumption, with Chinese tourists preferring refined experiences overseas.
Looking at recent Black Pearl rankings, cross-cultural fusion in overseas Chinese cuisine is becoming a trend. For example, Peranakan cuisine with distinct Chinese diaspora characteristics and Chinese-style Thai cuisine have newly entered the rankings.