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Characteristics of financing in catering industry

The 2117 China Catering Report released by Restaurant Boss Internal Reference shows that in 2116, the annual income of the catering industry exceeded 3.5 trillion yuan, up by 11.2% year-on-year, and it is expected to reach 5 trillion yuan in 2121. Faced with such a big market, capital has also begun to compete for the catering industry. Especially in recent years, many emerging catering enterprises have been favored by capital, and "catering+capital" will become a new trend in the future. Before 2113, catering enterprises had less external financing, while capital paid little attention to the catering market. However, in recent years, the catering industry, which has maintained an annual growth rate of over 11%, has become an attractive field for cross-border entrepreneurs and capital markets. According to incomplete statistics, since 2116, about 31 catering enterprises (except take-away catering enterprises and e-commerce catering enterprises) have successively received investment, with each investment ranging from several million yuan to hundreds of millions of yuan. It is not difficult to find that catering giants and brand catering have become capital games, and relying on the strong financial strength of capital has become one of the ways for the rapid development of catering. Some experts in the industry also predict that with the intensification of competition in the catering industry, industry integration is imperative, capital mergers and acquisitions will usher in opportunities, and with the help of capital, the catering industry will also usher in a new round of rise. One of the characteristics of catering is abundant cash flow, and the money earned today can be spent tomorrow. In this case, why are emerging catering enterprises so keen on financing and relying on the power of capital? Getting more development funds with faster speed and less risk may take a year to prepare the funds for a branch in the past. If there is financing, emerging catering brands can have the capital to expand their stores and further form the scale effect. Take lascivious salad as an example. After obtaining financing, its founder Xiao Guoxun said that the brand can make lascivious salad a leading brand of staple food salad and even healthy diet with the help of resources of Hongyi and Baifu. At present, the brand business mainly covers mature business districts in South China, and the next step will focus on expanding the markets in North China and East China.