Report: Food Delivery Price Wars Affecting Restaurant Supply Chain, Nearly 70% of Restaurants Have Collectively Demanded Price Cuts from Upstream Suppliers

Lixin Consulting recently conducted surveys and interviews with over 2,000 catering businesses across 31 provincial-level administrative regions in China. The survey results show that 39% of merchants are starting to switch to suppliers offering lower-cost raw materials, and 30% are strengthening their bargaining with suppliers. This means that 69% of businesses are affected by price wars and are seeking price reductions in their upstream supply chains to address cost issues. Notably, among the remaining 30% of merchants, 20% have already increased the proportion of low-cost dishes. This cost-cutting in supply also has new impacts on the upstream industry chain. These data indicate that downward price pressure is continuously being transmitted from merchants to the food ingredient supply chain. (Jiemian News)