Guoquan Defies China Dining Slump With Bet on At-Home Meals
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Chinese at-home dining retailer Guoquan Food Shanghai Co. Ltd. reported an 88.2% surge in net profit last year by rapidly expanding its network of franchised stores deep into the country’s smaller cities and rural townships.
The standout profitability highlights the growing consumer appetite for branded grocery products and untapped retail potential in China’s vast lower-tier markets, even as the broader catering industry faces mounting pressure.
The Hong Kong-listed company operates the franchised “Guoquan Shihui” chain, selling prepackaged ingredients for hotpot and barbecue, including meat, fish balls, soup bases and drinks. Guoquan generated a net profit of 454 million yuan ($65.9 million) in 2025, while revenue grew 20.7% year-on-year to 7.8 billion yuan. The company currently operates 11,566 locations nationwide and has 64.9 million registered members.
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- Guoquan Food Shanghai Co. Ltd. saw net profit surge 88.2% to 454 million yuan ($65.9 million) in 2025, with revenue rising 20.7% to 7.8 billion yuan.
- Over 75% of its 11,566 stores operate in China’s third-tier cities or smaller, with expansion focused on township markets.
- The company leverages direct supply chains and lower rural costs, planning to add 2,934 new stores in 2026 and build a global food park in Hainan.
- Guoquan Food Shanghai Co. Ltd.
- Guoquan Food Shanghai Co. Ltd. is a Hong Kong-listed at-home dining retailer specializing in prepackaged hotpot and barbecue ingredients. The company reported a net profit of 454 million yuan in 2025, an 88.2% surge, largely due to expanding its 11,566 franchised stores into China's smaller cities and rural townships. Over 75% of its stores are in third-tier cities or smaller, with further expansion planned in these regions.
- Haidilao
- The provided article mentions Haidilao as a traditional restaurant chain, contrasting its higher operating costs and pricing strategies with Guoquan's cost-effective, direct factory-to-store approach in the at-home dining market. The article does not offer further details about Haidilao's operations or strategy.
- Xibei
- Xibei is a traditional restaurant chain that has entered the promising at-home dining market. However, they face higher operating costs compared to companies like Guoquan, leading to different pricing strategies. The article does not give further details on Xibei’s specific activities within the at-home dining market.
- Mixue
- Mixue is a successful Chinese budget chain that operates as a bubble tea brand. The company's expansion into lower-tier markets, similar to Guoquan, has proven successful by offsetting lower product prices with significantly cheaper rent and labor. This strategy helps dilute fixed supply chain and administrative expenses, demonstrating a viable model for growth in rural regions.
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