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Journal of Resources and Ecology >

2021 , Vol. 12 >Issue 5: 628 - 635

DOI: https://doi.org/10.5814/j.issn.1674-764x.2021.05.006

Resource Economy

Sustainable Development of the Catering Industry in China: Policy and Food Waste

  • CAO Xiaochang , 1, 2 ,
  • ZHANG Feng 3 ,
  • CHENG Shengkui 1 ,
  • LIU Xiaojie , 1, *
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  • 1. Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China
  • 2. University of Chinese Academy of Sciences, Beijing 100049, China
  • 3. School of Management Engineering, Shandong Jianzhu University, Jinan 250101, China
*LIU Xiaojie, E-mail:

CAO Xiaochang, E-mail:

Received date: 2020-08-20

  Accepted date: 2021-02-25

  Online published: 2021-11-22

Supported by

The National Natural Science Foundation of China(71874178)

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Abstract

The catering industry is an important industry related to the growth of the national economy and the needs of daily life. After 2012, the central government has successively introduced and implemented a series of policies to limit the official consumption and catering waste. These policies have had a huge impact on China's catering industry, especially the development of high-end catering. Based on expert scoring and interviews with government managers, the catering industry organizations, catering enterprises, researchers and consumers, this paper studies the impacts of the policies before and after 2012 on the sustainable development of the catering industry. The results show that: (1) Policies after 2012 have been very strong in their strength and duration, and this can ensure that the policies can effectively perform their restraint and management functions in the long term. (2) As affected by policies after 2012, the frequency and amounts of public expenditures in China have dropped significantly, and mass consumption is developing faster. (3) The impact of policies on income is quite controversial. On the whole, the policies have continued to promote the increasing of catering income after 2012, and have played a significant role in optimizing the catering structure and reducing food waste. However, the policies have had little effect on the improvement of industry standards and environmental protection. (4) The sustainable development of the catering industry requires the efforts of the government, industry organizations, restaurants and consumers. Steady income growth, a reasonable and healthy industry structure, sound industry standards, and low food waste are important standards and goals for the sustainable development of the catering industry.

Key words： sustainable development; catering industry; policy; food consumption; food waste

Cite this article

CAO Xiaochang , ZHANG Feng , CHENG Shengkui , LIU Xiaojie . Sustainable Development of the Catering Industry in China: Policy and Food Waste[J]. Journal of Resources and Ecology, 2021 , 12(5) : 628 -635 . DOI: 10.5814/j.issn.1674-764x.2021.05.006

1 Introduction

The catering industry plays an important role in the national economy, especially in promoting economic growth and increasing employment (Zhang, 2003; Gao, 2019). China has a long history of food culture traditions, and the catering industry has a unique position in China (Yu, 2002). In 2018, China’s catering industry had revenue of 4.27 trillion yuan, making it the world’s second largest catering market after the United States (Xing and Li, 2019).
The development of the catering industry is affected by many factors, including the level of national economic development such as the disposable income of residents, government consumption expenditures and Engel’s coefficient, as well as corporate management such as franchise management and corporate culture, and national policy (Liu, 2011). The catering industry is one that closely connects production and consumption (Lu et al., 2014). The sustainable development of the catering industry is crucial for the development of its related industries. Some researchers have presented preliminary discussions on the sustainable development of the catering industry, including the perspective of the circular economy, influencing factors, development paths and similar topics (Yuan et al., 2016). Most of these studies are qualitative analyses from a macro perspective, such as the management and branding of the catering industry, and only a few studies have been conducted on specific issues in the development of the catering industry, such as food security and food waste (Wang et al., 2012).
Policies play a vital role in the development of the catering industry. On the one hand, direct policies are used to regulate the development of the catering industry, such as the “VAT reform” (Cao et al., 2016). On the other hand, they indirectly affect the development of the catering industry by influencing other industries that are related to the catering industry. The year 2012 is an important node in the development of China’s catering industry, because since 2012 the Chinese government has successively introduced a series of policies such as the “Eight regulations” for official consumption. These policies have greatly curbed official catering support and have had a severe impact on the development of the catering industry (Jiang, 2013). However, determining what impact these policies have had on the catering industry, whether these impacts are positive or negative, and how they affect the development of the catering industry have not yet been fully studied.
Food waste is one of the main problems affecting the development of the catering industry (Gao et al., 2013). The large amount of food waste on the one hand causes the loss of water and soil resources for the production of these foods (Zhang et al., 2016). On the other hand, processing these foods also brings huge environmental costs (Wen et al., 2016). Reducing food waste has attracted the attention of academic circles and the government, and there have been some promising research results.
Based on the results of expert interviews, this article analyzes the impact of the policies before and after 2012 on the catering industry from the perspective of food consumption and food waste. This information can stimulate more thoughts and discussions on the sustainable development of the catering industry, and the results can provide scientific support for catering food waste reduction.

2 Method

2.1 Data sources

2.1.1 Expert scoring method and semi-structured interviews
This article is based on the data collected from expert scoring method and semi-structured interviews in 2014.
Expert scoring method: The expert scoring method is a widely used method that uses the knowledge of experts to evaluate various indicators based on quantitative and qualitative analysis. In this paper, we selected stakeholders in the development of the catering industry as the experts, including government management departments, catering enterprises, catering industry organizations, catering researchers and consumers.
Semi-structured interviews: The semi-structured interview is an intermediate method between structured interviews and unstructured interviews. It is more flexible than the structured interview, and the researchers will have key topics to be studied, as well as an interview guide. During the interview process, they can ask questions with flexibility based on these key points, and they can also discuss new questions. In this paper we used semi-structured interviews to study how the policies have affected the development of the catering industry.
2.1.2 Sampling method
We selected the head of the checkpoint of the Sanitation Inspection Institute as the representative of the government manager. There are several districts in Beijing and we randomly selected Haidian, Dongcheng and Changping districts from the inner ring to the outer ring with two checkpoints each, for a total of six checkpoint masters as experts. We selected the managers of three large-scale restaurants, three medium-scale restaurants and three small-scale restaurants randomly in the three districts as our enterprise experts. Finally, we selected one consumer in each restaurant randomly as the consumer experts. We selected China Cuisine Association (CCA) and Chinese Academy of Sciences (CAS) as representatives of catering industry organizations and researchers, with six experts from each selected randomly (Table 1).
Table 1 The number of experts
Experts types Haidian Dong- cheng Chang- ping China Cuisine Association Chinese Academy of Sciences Total number
Checkpoint masters 2 2 2 6
Restaurant mangers 3 3 3 9
Consumers 3 3 3 9
Industry organizations 6 6
Researchers 6 6
Total number 8 8 8 6 6 36
2.1.3 Indicators and scoring
The main content of the expert scoring is the influence of policies before and after 2012 on the sustainable development of the catering industry. We evaluated it from the following three aspects: the strength of the policy, consumers and consumption options and catering industry development. The strength of the policy includes the strength and duration of the policy, which is determined by executive force and intensity of punishment, and by duration of policy and attenuation of policy, respectively. Catering consumption consists of official consumption and individual consumption, which include high-end consumption and mass consumption. To evaluate the development of the catering industry, we selected income, structure of the catering industry, food waste, industry standardization and environment protection as indicators (Table 2).
Table 2 Indicators of the influence of policy on catering development
Evaluation objects Compositions Indictors Abbreviations
Strength of policy Strength Executive force SEF
Intensity of punishment SIP
Duration Duration of policy DDP
Attenuation of policy DAP
Consumers and
consumption options		 Official consumption Consumption frequency OCF
Consumption expenditures OCE
Personal consumption Consumption frequency PCF
Consumption expenditures PCE
Catering industry
development		 Income Income and profit II
Structure of the catering industry Proportions of high-end and mass consumption SP
Food waste Food left by consumers FW
Industry standardization Cooking ISC
Amount of dishes ISA
Environmental protection Amount of kitchen waste EPA
Proportion of waste disposal EPP
Experts scored various indicators, with scores ranging from 0 to 9, representing the degree of influence of the policy on the development of the catering industry. Among the score values, 0 points means that the policy has no impact on the development of the catering industry, while 1-3 points, 4-6 points and 7-9 points represent the policy has slight, obvious and great influences, respectively. In addition, the experts also could use “+” and “-” to indicate the direction of the influence, where “+” means strengthening/increasing and “-” means weakening/decreasing.

2.2 Data analysis

Open questions were used in the interview for assessing the influences of policies. In order to obtain more comprehensive and in-depth information on the impacts of policies on the catering industry, this study did not use large sample data for statistics, but used expert interviews. Therefore, in the data analysis, this article uses box plots to better reflect the true opinions of most experts.

3 Results

3.1 Policies before and after 2012

For a long time, high-end catering with official consumption as the main component has led the development of the catering industry, and phenomena such as luxury and waste can be seen everywhere in these types of consumption patterns. Facing a series of problems brought about by official consumption, the Chinese government has issued many laws and policies to restrict official consumption (Table 3). However, it was not until the implementation of the eight regulations in 2012 that official consumption and waste were significantly curbed. This article takes the policies before and after 2012 as the research object, and conducts an in-depth analysis of the impact of policies on the sustainable development of the catering industry.
Table 3 Policies before and after 2012
Policies Time Contents Notes
Standard of the State Banquet November, 1984 It is stipulated that a banquet featuring Chinese cuisine generally includes four dishes and one soup; the banquet featuring western cuisine is usually with two dishes and one soup or three dishes and one soup Ministry of Foreign Affairs
Several Provisions on Practicing Strict Economy and Curbing Extravagance and Waste of the Party and State Organs May,
1997		 We must strictly control the expenditure on various ceremonies and activities; we must strictly prohibit extravagant banquets using public funds and combat waste The 13th document issued by the CPC Central Committee and State Council
Management Provisions on Domestic Official Hospitality of Party and State Organs October, 2006 The domestic official hospitality should stick to the principles of benefiting the public, simplifying the rites, being pragmatic and frugal and eliminating waste. Also, extravagant banquets using public funds are not allowed. The host should control the entertainment expenses by strictly observing the standard General Office of the
Communist Party of China, and the General Office of the State Council
Relevant Provisions on the Deliberation of Improving the Working Style and Maintaining Close Ties With the Masses December, 2012 We should reduce the number of official vehicles and accompanying persons, and simplify the reception with no banquets arranged…We must practice strict diligence and economy The Political Bureau of the CPC Central Committee Meeting
Six Injunctions January, 2013 It is forbidden to spend public funds on reciprocal visits, gifts, banquets and other activities related to paying a New Year’s call. It is also not allowed to hold receptions without obeying the national standard CPC Central Commission for Discipline Inspection
Management Principle of the
Conference Expenses for the CPC Central Committee and the State
Organs		 September, 2013 All institutions are not allowed to organize meeting dinners or arrange receptions in the name of meetings or serve high-grade dishes at banquets The 286th document issued by the Administrative
Department of Political Science and Law of the Ministry of Finance in 2013
Regulations on Practicing Strict Economy and Combating Waste of the Party and Government Organs October,
2013		 The Party and government organs should strictly implement the national standard of official receptions and carry out the control system regarding the total entertainment expenses... strictly prohibit receptions that do not obey the national standard, such as expanding the reception scope, adding reception items and so on Communist Party of China, and State Council
The results show that the policies before 2012 had little effect while policies after 2012 have played an important role, especially in the implementation of the policies themselves. The experts gave 7.94, 7.88, 7.61 and 7.48 points, respectively, for executive force, intensity of punishment, duration of policies and official consumption frequency, which also means that the policies have strong influences in these four aspects. In addition, the policies also have obvious effects on the official consumption expenditures, proportions of high-end and mass consumption and food waste, with 6.88, 4 and 5.59 points, respectively, after 2012 (Table 4).
Table 4 The scores of policies’ effects before and after 2012
Evaluation object Indicator Before 2012 After 2012
Score Std. deviation Score Std. deviation
Strength of policy SEF 3.03 1.55 7.94 0.9
SIP 2.52 1.66 7.88 0.93
DDP 2.88 1.87 7.61 1.09
DAP 5.52 2.84 1.94 1.12
Consumers and consumption options OCF 2.39 2.18 -7.48* 1.03
OCE 2.49 2.37 -6.88* 1.54
PCF 1.67 1.81 2.61 3.13
PCE 2.03 2.51 2.94 2.96
Catering industry development II 2.63 2.51 0.16 4.86
SP 1.66 2.36 4 1.92
FW 1.87 2.03 -5.59* 1.52
ISC 0.45 0.75 2.33 1.49
ISA 1.24 1.89 2.85 2.08
EPA 2.00 2.32 -2.20* 0.68
EPP 1.39 1.68 1.79 1.45

Note: * indicates that positive values mean impacts of strengthening/increasing and negative values mean impacts of weakening/decreasing.

3.2 Strength of the policy

Both the intensity and the durability are much stronger for the policies after 2012 than the policies before 2012, which is also the basic requirement to ensure that the policies can work. The results show that most experts gave more than 8 points to the executive force, intensity of punishment and duration of policies after 2012 (Fig. 1). Although there is considerable controversy, overall, the results show that policies before 2012 had quick attenuation but after 2012 it decayed weakly. In actual operation, the central government has always insisted on investigating and prosecuting those
who violate the policies monthly since 2012. Statistics show that the central government investigated and notified 8960 cases of violations of the policies on catering consumption in 2019, involving 13639 people①(①Data source: Central Commission for Discipline Inspection and State Supervision Commission website, http://www.ccdi.gov.cn/special/jdbg3/imgnews_jdbg3/202001/t20200121_208279.html.).
Fig. 1 Strength of policies before and after 2012

3.3 Consumers and consumption options

The policies after 2012 are mainly aimed at official consumption, but due to the integrity of the catering industry, these policies will also have an impact on personal consumption. The impact mainly includes two aspects: the consumption frequency and the consumption expenditure.
The rapid economic development itself will promote national consumption, especially catering consumption. But the data show that the promotion of personal consumption is not as effective as that of official consumption for the policies before 2012, which means that official consumption was not restricted but increased. Although some experts believe that the policies before 2012 had a certain restrictive effect in the early stage, on the whole that effect was limited.
Because of the great strength of policies after 2012, there is a significant reduction in official consumption (Fig. 2). From the central government to the local governments, the budget of the three public expenses has been significantly reduced, especially for official receptions. According to expert interviews, the frequency of official consumption was reduced by about 80%-90% after 2012, and relevant news media have also reported similar data.
Fig. 2 Influence of policies around 2012 on catering consumption

Note: Positive values mean impacts of strengthening/increasing and negative values mean impacts of weakening/decreasing.

Regarding the impact of policies on personal consumption, the various experts have different opinions. Although the policies are aimed at official consumption, public officials will also be extra cautious in personal consumption, and the frequency of personal consumption of such personnel has declined. But for most consumers, the reduction in official consumption has caused restaurants to implement discount promotions or transformation, which instead promotes personal consumption. The policies after 2012 have a more pronounced and positive impact on personal consumption than those before 2012.

3.4 Catering industry development

Most of the policies before 2012 were designed to promote economic development and encourage consumption, which had an effect of increasing catering income (Fig. 3). But the experts have varying options in the impact of policies after 2012 on catering income (Fig. 4). The results show that all government managers and researchers, and most organization staff members, believe that the policies will provide a slight boost to catering income. Restaurant managers gave different opinions based on the situation of their own restaurants. According to expert interviews, restaurants whose main source of income is official consumption have closed down due to a sharp decline in income, and the policies after 2012 are a cold winter for them. But restaurants that focus on mass consumption ushered in a development opportunity.
Fig. 3 Influence of policies before and after 2012 on catering enterprises and industries

Note: Positive values mean impacts of strengthening/increasing and negative values mean impacts of weakening/decreasing.

Fig. 4 Influence of policies after 2012 on catering income according to various experts

Note: Positive values mean impacts of strengthening/increasing and negative values mean impacts of weakening/decreasing.

A good catering structure maintains the coexistence of high-end catering and mass catering, and high-end, middle-end and low-end restaurants are in suitable positions and occupy a reasonable market. The results show that policies after 2012 had a more obvious optimization effect on catering structure (Fig. 3). According to the experts, the catering industry structure before 2012 was shaped like a dumbbell, being dominated by high-end and low-end restaurants (Deng, 2008). As affected by the policies, the shape of the catering structure changed from a dumbbell before 2012 to a spindle after 2012 as the middle-end restaurants began to play a more important role. This is a healthier and more sustainable structure for the development of catering industry.
Food waste has become a huge drain on food supply and consumption. There are about 417890 t of food wasted annually in the catering industry in Beijing (Cao et al., 2020). According to UN Sustainable Development Goals (SDGs) 12.3.1, reducing food waste is an important goal for achieving sustainable consumption and production. Food waste is affected by restaurant types, and consumer numbers, genders, ages, education levels, and consumption motivations (Wang, 2014). Policy is an important means to reduce food waste (Gao et al., 2017). Before 2012 there were few policies specifically aimed at reducing food waste and policies related to the catering industry had little effect on reducing food waste. Although the policies after 2012 are aimed at official consumption, they still obviously influenced the reduction of food waste (Fig. 3).
Ordering too much is an important cause of food waste, and it is often caused by consumers’ ignorance of the weight and nutritional composition of the dishes provided by the restaurant. The current catering industry standards mainly focus on food safety and health, catering services and other aspects. Very few restaurants print the weight and nutritional composition of dishes on the menu. If the food weight and nutritional content labeling can be used as the catering industry standard, it will help the catering industry to reduce food waste, which will not only control the cost of catering, but also reduce waste and save resources. Studies show that although the policies after 2012 could be more conducive to the establishment of standardization of catering companies, the overall impact of the policies on standardization is still limited (Fig. 3).
The policies before and after 2012 have little impact on environmental protection, both on the kitchen waste production and disposal of food waste (Fig. 3). This is because relevant policies mainly restrict official consumption and encourage the development of the catering industry.

3.5 The process by which policies impact the catering industry

The policies after 2012 mainly affect the development of the catering industry by influencing official consumption, which in turn affects mass consumption. As affected by the eight regulations, China’s consumption while on official business has been significantly curbed, with consumption frequency and waste greatly reduced. Meanwhile, some consumption while on official business has been transferred to canteens and clubs. Under these circumstances, high-end catering, which mainly focuses on official consumption, has been transformed or closed down, and mass catering has flourished, which has also led to a large amount of food waste. Under the guidance of a series of central advertisements, regulations and tips from catering enterprises, food waste in the public catering industry has been reduced as a whole (Fig. 5). These changes are of great significance to the sustainable development of the catering industry.
Fig. 5 Process by which the policies have influenced catering around 2012
In the early stage since 2012, the growth rate of China’s catering revenue has declined sharply due to the downturn in the high-end catering market. But with the subsequent development of mass catering, the growth rate of catering revenue has rebounded strongly, and the catering industry has developed well (Fig. 6). Furthermore, as affected by the policies after 2012, a series of public welfare activities such as the CD Action have been widely carried out. At the same time, public consumption has become more and more rational under the promotion of public service advertisements, posters of various catering companies, and prompts. The amount of food waste has been significantly reduced.
Fig. 6 Catering income and its growth in China after 2000 Note: Data source: China Cuisine Association.
As the frequency and expenditures of public consumption dropped significantly, public consumption was effectively curbed, which forced high-end catering to develop from the original level of luxury to one of economy. All these changes made mass consumption begin to take the leading position within catering consumption, and the catering industry began to show a healthy development trend.
In general, stable income growth, reasonable and healthy industry structure, sound industry standards and regulations, and a small amount of food waste are important standards and goals for the sustainable development of the catering industry.

4 Discussion and conclusions

4.1 Discussion

This paper analyzed the impact of policies before and after 2012 on the development of China’s catering industry, but there are still three points worth discussing.
(1) What is the sustainable development of the catering industry?
While the general concept of sustainable development has been widely known, there is currently no unified understanding of what sustainable development is specifically in the catering industry. Yang thinks that sustainable catering industry development is national, scientific, and popular (Yang, 2014). There are also those who think that catering sustainable development is the optimization of human capital management, efficient energy allocation, and green treatment of catering waste from a management perspective (Wu et al., 2017).
We think that the sustainable development of the catering industry includes four aspects: 1) The catering income is guaranteed, 2)The catering industry structure is reasonable and stable, 3) The catering industry standards are sound and standardized, and 4) The catering consumption is nutritious and healthy with less food waste.
(2) What factors affect the sustainable development of the catering industry?
Policies have a major impact on the sustainable development of the catering industry, but other factors can also play important roles, such as the fresh food supply chain (production, storage and transportation), a central kitchen (processing), and consumer preferences and consumption patterns (consumption). The development of new consumption concepts and new technologies, such as the rapid development of food delivery, has an important impact on the traditional catering industry. In addition, mass emergencies such as COVID-19 will also have an impact on the catering industry.
Therefore, the sustainable development of the catering industry not only requires policy regulation, but it also requires catering companies to respond flexibly, quickly and scientifically to the emergence of new technologies and occurrence of new events.
(3) Long-term monitoring and research are needed.
Related policies in the catering industry are constantly being optimized and adjusted. For example, the central government’s policy on food waste in the catering industry in 2020 has an impact on the catering industry. Long-term monitoring and research on the impact of policies on the sustainable development of the catering industry are needed. This effort could provide feedback on the effects of the policies, so that the central government can make timely improvements to the policies.

4.2 Conclusions

The catering industry is an important part of the national economy and it is also related to the daily lives of the people. Its sustainable development is crucial. This article is based on an expert scoring method and semi-structured interviews regarding the effects of policies before and after 2012 on the sustainable development of the catering industry. The results show that policies after 2012 have played a more important role in the sustainable development of catering. That role mainly includes the following aspects.
First of all, the strength of the policies after 2012 is much greater than that before 2012. The experts gave 7.94, 7.88 and 7.61 points, respectively, for executive force, intensity of punishment and duration of policies. Secondly, policies after 2012 greatly curbed official consumption, including consumption frequency and consumption expenditure. Changes in official consumption indirectly affect mass consumption. Thirdly, because of the policies after 2012, catering income, the structure of the catering industry and food waste have undergone relatively large changes which are different from those under the policies before 2012.
But there are still several areas where the influence of policies is relatively weak. First of all, it is necessary to strengthen the standardization of catering, such as labeling recipe composition and nutritional content to guide the consumption. Secondly, the policies after 2012 are mainly aimed at official consumption, but there is currently no policy to restrict public consumption and food waste (Cheng et al., 2020). Thirdly, policies for the disposal of wasted food are urgently needed, especially in recycling and resource utilization.
On the whole, compared with the previous policies, the policies after 2012 have greatly promoted the development of China’s catering industry towards a healthy, rational, economical, environmentally friendly and dynamic direction, which is also an inevitable requirement for the sustainable development of the catering industry. The sustainable development of the catering industry in the future also needs the joint efforts of the government, catering industry, catering enterprises and consumers.

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