China’s delivery war intensifies as Meituan, JD.com build central kitchens for takeaways
China’s catering industry is transforming, as internet platform operators become more involved in the food supply chain
On-demand local delivery giant Meituan is expected to continue leading the market through its launch of 1,200 so-called Raccoon Restaurants over the next three years, a plan it revealed early last month.
These facilities are designed as food court-like hubs that host various restaurant chains, which operate their kitchens only for takeaways. These sites are expected to help drive down costs and boost efficiency for Meituan’s restaurant chain partners, according to a company statement.
JD.com, meanwhile, announced a plan to invest 1 billion yuan (US$139 million) to recruit “cuisine partners”, as part of the firm’s roll-out of 10,000 self-operated 7Fresh kitchens over the next three years. This infrastructure would enable the company to promote 1,000 different sets of menus to a nationwide audience.