COVID-19’s Impact on Catering Investment of Venture Capital in China

Abstract

This article aims to provide the public and practitioners of catering and venture capital an analysis of catering transformation under COVID-19 pandemic and capital intervention via statistics from catering and venture capital market, in combination with secondhand information from publications and new media in the industry. The research shows that COVID-19 pandemic caused loss to catering business in China. At the same time, Chinese venture capital market was in depression, too. Now they have recovered from the strike of the epidemic. The catering industry has developed a business model combining supply chain and online to offline food distribution platform to shorten and simplify the on-site food process. This business model may bring profits to new entrepreneurs looking for investors. Statistics show that the investors are attracted and some investment cases have been completed. For catering, enterprises realize the possibility of challenge in financial stress, cooperating with venture capital institutions is a choice. Catering is not considered to be in the mainstream options for venture capital investors, so completely relying on investment is not rational. The balance between simplified business mode and quality, is also a balance between investment and market. Only improving management and reducing unnecessary cost is a suitable method.