Chongqing - Have you ever seen a five-star hotel selling street food? In China, a new trend is rising—luxury hotels are setting up food stalls outside their doors, serving chef-made local favorites at snack-bar prices. It’s fine dining gone fun, and Chongqing is leading the way.
'High-end but not elitist,' says hotel chef
At 4:30 PM on July 31, Chongqing’s River & Holiday Hotel in the bustling Guanyinqiao business district opened its food stall featuring Chinese spiced braised dishes like secret-spiced luwei, quickly drawing crowds. Several popular items sold out within 30 minutes.
Customers lined up at the entrance of Chongqing River & Holiday Hotel to purchase the luwei. (Photo/Zheng Ran)
"Chongqing River & Holiday Hotel was the first five-star hotel in the city to set up a food stall outside. We were fortunate to hit a high-traffic period from Douyin, and our business quickly took off," said Shen Qiuyan, head of the hotel's marketing and sales department.
Shen added, "We now operate this stall daily, generating around 60,000 yuan ($8,360) in daily revenue. While this income isn't our primary revenue source, it has been excellent for driving foot traffic to our hotel."
Shen emphasized that the hotel upholds its high-quality standards while offering affordable options like roast goose, five-spice smoked fish, and freshly baked bread. They aim to balance their luxury image with accessibility, providing a premium experience that is enjoyable for everyone.
"The food is fresh and prepared by our chefs every day," he said. "We are high-end but not elitist."
Chefs from Chongqing River & Holiday Hotel prepared luwei before serving it at the food stall outside the hotel. (Photo/Zheng Ran)
This hotel is not alone in this trend. Across China, this wave of "hotel street food" has spread to several major cities. In Tianjin, the Ritz-Carlton has set up a mobile burger truck selling gourmet "Wagyu burgers" at prices starting at 58 yuan.
Similarly, in Shanghai, the St. Regis Hotel has brought its famous coffee and muffins to local neighborhoods, offering residents a taste of luxury at a fraction of the usual cost.
Related posts appear on Xiaohongshu when searching for "hotel street food stalls." (Graphic/Xiaohongshu)
These new initiatives have generated mixed reactions among consumers. On social media platforms like Xiaohongshu, the Ritz-Carlton's sleek, high-end burger truck has gained a following, with many customers willing to wait up to 30 minutes to buy a burger.
Reports show that some customers find the burgers more affordable than those at trendy chains like Shake Shack, especially considering the prestigious brand of the Ritz-Carlton.
The burger truck in front of the Ritz-Carlton Tianjin. (Photo/Xiaohongshu)
Street food thrives, profits slim
The trend of star-rated hotels setting up street food stalls is part of a larger shift in China’s restaurant industry. The China Hospitality Association’s 2024 Annual Report on China’s Catering Industry highlights the growing demand for affordable and accessible dining options, especially in county-level areas where both the economy and consumer spending power have expanded.
The report highlights that the rise of mass-market consumer dining is becoming the mainstream direction for China's catering sector. It further notes that this shift is a response to a growing demand for affordable, convenient, and high-quality food that fits the changing lifestyle of Chinese consumers, especially as younger generations seek value-for-money dining experiences.
As traditional high-end dining becomes less accessible, more consumers are turning to affordable yet quality food options. This shift is being embraced by both local restaurants and major hotel chains.
While the rise of street food stalls represents a shift toward a more accessible dining experience, it's also an effort by high-end hotels to stay competitive in a rapidly evolving market. The luxury hotel business, particularly in terms of food and beverage services, has faced significant pressure.
Data from Beijing Hotel-Sight shows that the average catering income for high-end hotels in 2024 dropped 38.3% from 2019, totaling 10.2 million yuan. Meanwhile, the Ministry of Culture and Tourism reports a decline in China’s five-star hotel industry, with the number of five-star hotels falling from 850 in 2020 to 736 in 2024, and the average room price dropping 5% to 599 yuan.
In response to these challenges, hotels have had to innovate. For instance, MGM Qingdao is offering annual buffet passes priced at up to 12,888 yuan, granting guests unlimited meals for the year. Similarly, hotels in Shanghai are converting unused guest rooms into long-term rental apartments, leveraging existing assets to generate extra income.
Despite the success of these street food initiatives, industry experts caution that they may not be sustainable in the long run. Tang Xin, director of the Hongcan Industry Research Institute, noted that while these efforts can expand market reach, the profit margins are typically slim.
"Hotel restaurants have high fixed costs, including ingredients, labor, and rent, often consuming up to 70% of total revenue. For high-end hotels, these costs are even higher, making it difficult for street food operations to sustain overall restaurant profits," Tang said.
Yunsheng, a popular Chongqing restaurant, opens a luwei food stall in the food court on the basement level of If Plaza, Yubei District. (Photo/Zheng Ran)
Yang Aixiang, co-founder and CEO of Liziba Liangshan Chicken, shared concerns about the shifting market dynamics, noting that the rise of street food stalls at five-star hotels is putting pressure on the mid-range restaurant sector.
He explained that the industry is undergoing a phase of cost and profit reduction, where only the most resilient brands will endure. Liziba Liangshan Chicken, a signature dish and culinary landmark of Yuzhong District in Chongqing, has been a staple since its inception in 1981.