Summary of Key Points
The takeaway industry has moved beyond the era of costly price wars and subsidies, entering a "post-subsidy era." Businesses no longer blindly expand their takeaway operations but adjust their takeaway percentages based on their business models (reducing the proportion for dine-in services and maintaining a high proportion for fast food and beverages). Platforms have shifted from focusing on volume to improving quality, targeting high-value customers and profitability. The relationship between businesses and platforms has evolved from fierce competition to collaborative development, leading to more refined operations in the industry as a whole.
I. Divergent Strategies of Businesses in Their Takeaway Operations
The attitudes of different types of businesses towards takeaway services vary significantly:
- Dine-in restaurants (such as Xiaocaiyuan, Haidilao): They are reducing the proportion of takeaway services. Xiaocaiyuan, which specializes in pot-based dishes, believes that takeaway delivery affects the taste of the food, and the high costs of platform commissions and subsidies have led them to lower the takeaway percentage from 40% to 32.6% last year. Instead, they focused on reducing the price per dine-in customer, which resulted in a 18% increase in dine-in revenue. Haidilao has taken it even further, with only 6% of its business coming from takeaway, as the social aspect of hot pot is more suitable for dine-in experiences. These businesses prefer to maintain profits and brand integrity rather than sacrificing them for higher takeaway sales.
- Fast food and beverage businesses (such as Laoxiangji, Burger King, and HiChai): Takeaway is their lifeline. Laoxiangji has a 40%-50% takeaway proportion, while Burger King and similar chains have as high as 54%. HiChai relies almost entirely on online sales. These businesses, with lower average order values and higher levels of standardization, rely on takeaway to maintain their scale, even though platform commissions are high. They are also trying to reduce costs by charging for packaging and attracting customers to their physical stores.
II. From Volume to Quality: Higher Profitability through Better Quality
In the past, businesses offered low-price subsidies to compete for orders, resulting in greater losses. Now, they are more strategic:
- Businesses: They are abandoning low-value orders and focusing on high-value customers. For example, Wang Lei, a business owner in Wenzhou, saw a decrease in orders from 170 per day during peak times last year to 50-60 orders per day this year, but the average order value increased to 28-30 yuan, resulting in higher profits. He now filters out low-value orders and targets customers willing to spend more.
- Platforms: They are upgrading their promotional activities to encourage higher-order values. Last year's strategies, such as "Competitive Meals" and "Best Sellers Groups," focused on driving volume with low prices. This year, platforms have shifted to initiatives like "Sharpshooter" and "Super Popular," sharing subsidy costs 50-50% with businesses (previously, the entire cost was borne by the businesses). Platforms are also promoting "Dine-in Only" labels and "Open Kitchen" live broadcasts to attract customers who value quality.
III. Shift in Platform Strategies: From Competing on Expenses to Collaborating for Profit
The three major takeaway platforms (Meituan, Taobao Flash Shopping, and JD.com) have changed their approaches:
- Meituan: It is leading with efficiency and higher average order values. The company invested 20 billion yuan in upgrading its AI dispatch system to improve delivery speeds and focusing on high-value orders worth over 30 yuan (which account for 70% of its market share), stating that "futile competition is meaningless; we need to engage in meaningful competition."
- Taobao Flash Shopping: It has moved from incurring heavy losses to pursuing profitability. The platform is focusing on making each order profitable and using AI to help businesses find the best locations for their stores. It has also experimented with high-end "home dining" services (e.g., Michelin-rated restaurants with one-day delivery reservations), adopting a differentiated approach.
- JD.com: It has reduced losses and improved logistics efficiency. Although takeaway orders have increased, the company has cut costs by over 50% and decreased the average subsidy per order. It has integrated its takeaway delivery services with JD.com's logistics to enhance overall efficiency and supported its own brand, "Qixian Xiaochu," in providing quality takeaway services.
IV. Collaborative Development in the Industry
The relationship between businesses and platforms has shifted from a zero-sum game (where platforms took a large share of profits and businesses struggled) to a more cooperative one:
- Shared subsidies: Both businesses and platforms are contributing equally to subsidies. For example, Wang Lei notes that this year, platform promotions no longer place the entire burden on businesses, with costs being split 50-50%, reducing their financial pressure.
- Satellite stores: Brands like WoWo and Grandma's Home have opened smaller, low-cost stores dedicated to takeaway and takeout services, which do not affect the dine-in experience and can handle online orders. WoWo plans to open 30 such stores this year.
- Digital assistance: Platforms use AI to help businesses with location selection and delivery scheduling, while businesses use data to adjust menus and pricing. Together, both parties are working to expand the market rather than competing against each other.
Conclusion
The takeaway industry no longer revolves around who offers the most subsidies but who can generate the most profit. Businesses are adjusting their strategies based on their circumstances, and platforms are focusing on high-value customers and profitability. The future of the industry lies in more refined operations and digital capabilities.