Meituan: China’s Bar Economy is Recovering with a 90% Surge in Orders

Recently, Meituan, China’s leading online retail app known for offering deals on food, entertainment, and services like KTV, SPA, and billiards, released its 2024 Bar Guide. The guide reveals a significant increase in both the number of bars and the volume of consumer orders over the past year, with wine bars experiencing growth of over 250%.

90% Increase in Bar Orders, Over 250% Growth in Online Wine Bar Listings

On April 28, Meituan released its 2024 Bar Guide, listing 630 unique bars across 40 cities nationwide. Since the beginning of this year, bar orders have increased by 90% compared to last year.

According to a report by the Beijing News, 630 unique bars in 40 cities made it to the guide, with 99 of them making their debut. Shanghai, Beijing, and Chengdu have the highest number of listed bars. Among the various bar formats, Live Houses remain highly popular, with 86 locations listed, while specialty small bars also stood out, with 122 establishments making the list.

Notably, emerging formats such as wine bars have become a growth driver in bar category, with Meituan’s online listings for wine bars increasing by over 250% year-on-year.

The trend of market penetration into lower tier cities is evident, with a significant increase in the popularity of small bars in county-level cities. Over the past year, the number of bars in these areas listed on Meituan grew by more than 70%.

Industry Experts: No Significant Growth Felt

2023 was a challenging year for bar operators, as we have reported before. Data from Qichacha indicated that 1.056 million restaurants closed from January to October 2023, including many bars. Bar owners who talked to Vino Joy also complained about low foot traffic and poor business, with some even leaving the industry.

So, has business improved in 2024? We asked four wine merchants who either run or supply to bars. All four reported no significant recovery in business compared to 2023.

William, who runs a wine bar in Shanghai, also noted that he hasn’t seen any clear signs of recovery for wine bars in the city.

Yang Hang, who operates a wine bar in Chengdu, shared a similar view, stating that business has not improved and remains about the same as last year.

Claire, who handles sales for Charles Heidsieck, Piper Heidsieck, and Rare Champagne in China and well-versed in the wine bar industry, pointed out: “As we enter 2024, there are signs that business at some small bars is improving, but the change is not very noticeable.”

William pointed out that Meituan’s data likely reflects growth from wine bars starting to appear in second and third-tier cities, contributing to some of the increase.

More Openings, Slow Vibe

Regarding the increased numbers of bar openings, William acknowledged that there has indeed been growth in wine bar establishments, including in Shanghai, where some have closed, but many new ones have opened.

Fang Yi, general manager of Changsha Puyi Boutique Wine, which was among the first to start a wine bar business in Changsha, noted a significant increase in wine bars this year. Many young entrepreneurs, who previously ran coffee shops, switched to wine bars after realizing that while coffee shops have lower costs, it is hard to achieve high per-customer spending and they have shorter operating hours.

“These small bars operate as coffee shops during the day and as wine bars at night. As long as they don’t offer complex meals, costs remain low, but per-customer spending can increase,” Fang Yi explained. “Although wine also has its challenges, many young people have obtained WSET-2 certification and gained confidence in their expertise, prompting them to open their own establishments.”

However, Fang Yi admitted that he hasn’t noticed a significant increase in business performance, though he has observed a change in wine consumption patterns. “Many young people now drink wine not just to build relationships, as the older generation did, but to enjoy a glass at these bars. This might be a reason for the rise in wine bars. Of course, the atmosphere hasn’t yet caught up with the pace of new openings,” he said.