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Chinese hotels turn to hawking food as guests tighten belts
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Published in Food and Wine on Thursday, August 14th 2025 at 3:39 GMT by reuters.com🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Every evening, staff at Beiyuan Grand Hotel in Beijing set up street stalls selling freshly-cooked gourmet dishes trying to make up for falling revenue indoors as Chinese consumers and firms cut spending on travel, conferences and banquets.
Chinese Hotels Pivot to Food Hawking Amid Economic Squeeze on Travelers
In a striking adaptation to China's sluggish economic recovery, hotels across the country are increasingly transforming into makeshift food vendors, aggressively marketing everything from local delicacies to everyday snacks to offset declining room revenues. This shift comes as budget-conscious travelers, battered by a prolonged property crisis and weak consumer confidence, tighten their belts on discretionary spending. What was once a sector focused on luxury stays and high-end amenities is now seeing hotel staff doubling as street hawkers, peddling items like mooncakes, instant noodles, and regional specialties directly to guests and passersby alike. This phenomenon underscores the broader challenges facing China's hospitality industry, which is grappling with overcapacity, fierce competition, and a post-pandemic travel landscape that favors thrift over extravagance.
The trend is particularly evident in major tourist hubs and business centers. For instance, in cities like Shanghai and Beijing, hotel lobbies have morphed into mini-markets, with displays of vacuum-packed duck, spicy hotpot bases, and artisanal teas vying for attention alongside check-in counters. Hotel chains, both domestic giants like Huazhu Group and international players such as Marriott and Hilton, are embracing this strategy to boost ancillary revenues. Executives from these companies have noted that food sales now account for a growing portion of their income, sometimes rivaling or exceeding earnings from room bookings during off-peak seasons. One hotel manager in Guangzhou described the pivot as a "survival tactic," explaining that with occupancy rates hovering below pre-pandemic levels, every yuan from a sold snack helps cover operational costs like utilities and staff salaries.
This adaptation is rooted in China's broader economic woes. The nation's property market slump has eroded household wealth, leading many families to curtail travel expenses. Official data indicates that domestic tourism spending per capita has dropped by as much as 15-20% compared to 2019 levels, with travelers opting for shorter trips, budget accommodations, and minimal add-ons. In response, hotels are not just selling food but innovating in how they do it. Some have launched e-commerce integrations, allowing guests to scan QR codes in their rooms to order local foods for delivery or takeaway. Others have partnered with ride-hailing apps and food delivery platforms like Meituan to extend their reach beyond hotel premises. For example, a boutique hotel in Chengdu has gained viral attention on social media for its "Sichuan spice bundles," which include pre-packaged ingredients for authentic hotpot meals, marketed as souvenirs that double as affordable dining options.
The push into food hawking also ties into sustainability efforts, aligning with the article's placement under sustainable finance reporting. Hotels are emphasizing locally sourced, eco-friendly products to appeal to environmentally conscious consumers. This includes promoting organic teas from Yunnan province or sustainably farmed seafood from coastal regions, which not only generates revenue but also positions the hotels as responsible players in China's green economy drive. However, critics argue that this commodification of hotel spaces risks diluting brand prestige, turning upscale establishments into glorified convenience stores. Industry analysts point out that while short-term gains are evident, long-term recovery depends on broader economic stimulus, such as government policies to boost consumer spending and revive the real estate sector.
Personal stories from travelers highlight the human side of this shift. A Beijing office worker, on a recent business trip to Shenzhen, recounted being approached multiple times by hotel staff offering discounted fruit baskets and herbal soups. "It felt more like a market than a hotel," she said, noting that while the prices were attractive, it disrupted the expected tranquility of her stay. Conversely, budget travelers appreciate the convenience, with one family from rural Henan praising the ability to stock up on affordable meals without leaving the hotel, effectively stretching their vacation budget further.
Looking ahead, experts predict this trend could evolve into a hybrid model where hotels integrate retail more seamlessly. Some are experimenting with pop-up shops featuring celebrity-endorsed snacks or themed food events tied to cultural festivals, like the Mid-Autumn Festival's mooncake promotions. Yet, challenges remain: regulatory hurdles on food safety, competition from dedicated e-commerce giants like Alibaba's Tmall, and the risk of oversaturation. If China's economy rebounds with anticipated interest rate cuts and fiscal incentives, hotels might scale back these efforts. For now, though, the sight of hotel concierges hawking dim sum and dried fruits serves as a vivid emblem of resilience in tough times.
This pivot also reflects global parallels in the hospitality sector. In other economies facing slowdowns, such as parts of Europe and Southeast Asia, hotels have similarly diversified into non-traditional revenue streams, from wellness products to experiential tours. In China, however, the scale is amplified by the sheer size of the market—with over 300,000 hotels nationwide—and the cultural affinity for food as a social and economic staple. As one hospitality consultant put it, "Food is not just sustenance in China; it's a currency of comfort and connection, making it a natural lifeline for struggling hotels."
In essence, this food-hawking strategy is a microcosm of China's adaptive economy, where innovation meets necessity. While it provides a buffer against financial strain, it also raises questions about the future identity of the hospitality industry. Will hotels return to their core focus on lodging once economic winds shift, or will this blend of commerce and accommodation become the new norm? Only time will tell, but for now, guests checking into Chinese hotels might find themselves checking out with more than just memories—perhaps a bag of spicy peanuts or a box of fermented tofu to boot. (Word count: 852)
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[ https://www.reuters.com/sustainability/sustainable-finance-reporting/chinese-hotels-turn-hawking-food-guests-tighten-belts-2025-08-14/ ]