Once focused on Chinese tech companies, venture-capital funds are pouring money into new noodle chain brands that sprung up in the country. Even tech giants like Tencent, the social and gaming behemoth, and an active investor, are doubling their bets on the sector. The capital inflow and media attention on a very specific food and beverage vertical highly resembles China’s coffee craze four years ago – and has many observers referencing the spectacular rise of Luckin Coffee.
Chinese-style noodle chain restaurants first became tech investor darlings in 2021 when the industry faced tightened regulation while the country’s consumers became increasingly willing to spend more on quality products and experiences. There were twelve noodle chain investment deals in the first half of that year, with a combined total of RMB 1 billion injected into the emerging area. The market scale of Chinese noodle restaurants is expected to be worth RMB 346 billion ($52 billion) by 2022, according to Chinese data analytics firm iiMedia Research.
So will China’s noodle chain market see the emergence of the “next Luckin”? Or, more importantly, will the market craze maintain its momentum?
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Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at [email protected].
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