Summary of Key Points
Recently, Chinese-style quick-food restaurants (such as stir-fry shops and noodle houses) have been making a significant entry into mid-to-high-end shopping malls, even reaching prestigious areas like the Heshenghui mall in Chaoyang, Beijing. Not only has the number of these establishments increased dramatically (with the first-instance stores accounting for a 126% year-on-year surge), but their locations have also shifted from underground food courts to prime spaces on the upper floors. This phenomenon is not merely a unilateral effort by fast-food chains to enter shopping malls; it represents a mutual attraction between both parties. Shopping malls are in need of fast-food businesses to boost foot traffic and customer loyalty due to declining retail sales, while fast-food brands are upgrading their offerings (by transforming traditional meals into lighter versions and expanding social dining scenarios) to meet consumers' demands for value for money.
Unlike the situation a few years ago when Lanzhou-style ramen restaurants were introduced into malls with the help of capital, this trend is driven by genuine market demand. However, it also comes with the challenge of increased competition due to homogenization.
Why Have Shopping Malls Changed Their Attitude Towards Fast Food?
In the past, shopping malls reserved prime locations for more upscale dining options and hot pot, considering fast food to be less premium. Today, they are actively providing space for fast-food chains and even creating dedicated fast-food areas. The reason is simple: malls are facing financial difficulties.
- Declining Retail: According to 2025 data, the retail industry has a high closure rate (0.85), with sectors like clothing, beauty, and jewelry being particularly hit. Meanwhile, the food and beverage sector is the only one showing net expansion (1.06 in terms of new openings compared to closures).
- Fast Food as a Traffic Generator: Although the average transaction value at fast-food restaurants is low (30–50 yuan), they have high turnover rates and customer repeat rates, providing steady foot traffic for malls. For example, Heshenghui Mall has recently introduced several fast-food brands to attract customers.
- Malls Creating Integrated Food Environments: By combining complementary fast-food chains, they offer a variety of lunch options, enhancing customer satisfaction and loyalty.
How Does This Different from the Lanzhou Ramen Trend?
A few years ago, Lanzhou-style ramen restaurants (such as Ma Jiyong and Chen Xianggui) were brought into malls with capital investment but failed to sustain their success. This time, the approach is completely different:
- No More Capital-Driven Glamor: The focus is on genuine market demand, not on using capital to makeover street-style ramen into something more upscale (e.g., using wooden tables and blue-and-white bowls at higher prices). Without sustained investment, these brands struggled, with Ma Jiyong experiencing a 20% decline in business and Chen Xianggui losing 200 million yuan in 2025.
- Real Market Demand: Fast-food chains are redefining their models by adapting traditional dishes to fast-food formats (e.g., Taiwanese cuisine, local stir-fries, and clay pot dishes). The results are more appealing to consumers: smaller portions, flexible combinations, and lower prices while still maintaining the essence of the original recipes.
- More Mature Brands: The current leading fast-food brands (like Rural Base) have established strong foundations with well-developed supply chains, digital systems, and talent management. They are not products of short-lived capital-driven initiatives.
Fast Food Has Evolved Beyond “Box Meals”
Fast food in shopping malls is no longer just inexpensive boxed meals; it has evolved into a more premium “lighter” dining option:
- Price Increase: Prices have risen from 10–20 yuan to 30–50 yuan, but the quality and experience have improved. Customers can now enjoy freshly prepared dishes like Sichuan and Hunan stir-fries or Hangzhou-style meals, rather than pre-made food.
- Expanded Dining Scenarios: Fast-food areas in malls now cater to various occasions, such as romantic dates, friend gatherings, and family dinners. For example, the fast-food section on the third floor of Tianhe City in Guangzhou is a convenient spot for a quick meal without the high costs associated with formal dining.
- Different Value Proposition: The focus has shifted from low prices to quality, authenticity, and the experience of eating freshly prepared food in open kitchens.
Homogenization Is Just the Surface
Although fast-food brands in malls may seem similar (e.g., two restaurants offering similar dishes at similar prices), the real competition lies in other aspects:
- Service Efficiency: Can the restaurants maintain efficient service during peak hours without delays or long queues?
- Cost Management: Malls face high rent and labor costs, and without a competitive supply chain or standardized operations, it’s easy to incur losses.
- Customer Loyalty: Can the brands attract and retain customers over time? Only those that can provide consistent, high-quality service will thrive.
Conclusion
The entry of Chinese-style fast-food restaurants into shopping malls reflects a precise alignment of needs among malls, consumers, and brands. Malls need foot traffic, consumers want value for money, and brands seek to expand their customer base. To succeed in the long term, fast-food chains must differentiate themselves through efficient service, cost control, and high customer repeat rates. After all, temporary popularity is not enough; what truly matters is attracting customers daily.