China's Restaurants Adapt to Solo Diners Amid Economic Slowdown

SHENZHEN — Pizza Hut Wow, a new concept by Yum China, is targeting solo diners with smaller, more affordable pizzas. A 19 yuan ($2.70) cream cheese pizza is less than half the size of a regular pepperoni pie. This strategy is designed to cater to China’s growing number of single-person households, which now account for 25.4% of the total.

Yum China plans to double the number of Wow stores by the end of the year, from 100 to 200. Performance has exceeded expectations.

Hot pot chain Yi Wei has also adapted by offering single-serving pots and conveyor belt ingredients. The chain plans to expand to 200 locations by 2026.

China’s sluggish economy is driving consumers to seek value. Restaurant sales rose just 3% in July, the slowest since COVID restrictions ended. High-end restaurant sales fell 0.7%.

Online food delivery apps like Meituan are highlighting solo combos. Small dishes have seen an 11% increase this year, totaling 8.32 million.

Japanese chains like Rou Rou Da Mi and Monogatari have found success with counter-style dining. Monogatari reports that solo diners make up half of its weekday lunch customers.

Profitability from price-sensitive solo diners is challenging. Pizza Hut Wow customers spend an average of 30-40 yuan. The menu avoids filling items like hamburgers. Monthly membership cards aim to boost repeat visits.

Jason Yu of Kantar notes that differentiation is key in China’s competitive restaurant market. Consumers remain cautious but have substantial savings.