Key facts
- China's catering sector is re-evaluating its growth strategies after a period of intense subsidy-fueled expansion.
- During the summer of 2025, e-commerce platforms engaged in a significant food delivery subsidy war.
- A milk tea shop owner, Li Ling, experienced a surge in orders due to discounts that reduced a 11 yuan drink to 1 yuan.
China's catering industry is undergoing a period of reflection on its growth models after a period of aggressive subsidy-driven expansion. The summer of 2025 saw major e-commerce players engage in an unprecedented food delivery subsidy war. This led to situations like that of Li Ling, a milk tea shop owner, whose store was inundated with orders. Consumers were able to purchase a milk tea drink, originally priced at 11 yuan ($1.60), for as little as 1 yuan due to substantial platform discounts.