Catering companies are some of many in the food sector that took a hard hit at the onset of the COVID-19 pandemic. These businesses are not only losing money because they need to stay closed during new surges, they also need to endure the fact that customers are losing confidence eating at crowded areas after the pandemic. 

However, some business owners, such as Huang Jingang, a restaurant owner in South China's Guangdong Province, have found success in a work-around.

Huang Jingang said he's been in the catering business since he was as young as 16. Just before the COVID-19 pandemic, he ran a chain of 23 restaurants in southern China's Pearl River Delta, but everything changed after the outbreak. He was forced to close 10 stores due to deficit, and this made him search for alternatives.

"We couldn't go out at that time, so I discussed options with our shareholders over the phone. Our customers couldn't visit our stores, but we had a central kitchen that could be turned into a factory and a distribution center, so we decided to produce pre-made meals," said Huang, the founder of Qiao Byrne Food.

Huang estimates that from the beginning of 2020 until June last year, his company lost in total over $5 million due to the pandemic, but he said the "heat and serve" dishes have helped him to cover some losses from losing restaurant customers. He's seen an average monthly sales growth of around 30 percent on the pre-made meals.

Huang's choice of producing pre-made meals could be a good option for some catering companies amid the pandemic, as the market for such products is growing. 

According to data from 2021, the scale of China's pre-made food market was estimated to reach 345.9 billion yuan ($54.39 billion), and it is expected reach 516.5 billion yuan in 2023, according to iiMedia Research.

However, becoming a market player does come with conditions.

"The size of the catering company doesn't really matter, but it has to have at least one of these two characteristics to succeed: first, specialty dishes that are suitable for re-heating; or a group of loyal customers built through offline services," said Cheng Gang, the secretary general of Guangdong Restaurant Association.

Whether they choose to try pre-made meals or not, direct and personal connections with customers will help restaurants survive during the pandemic, according to the association.

"Even a small food stall can build its own so-called private domain. Just put up a WeChat QR code in front of the stall and ask customers to add the account. This way, you don't have to rely on third-party platforms. It's the cheapest way to communicate and lock in customers," said Cheng.

Cheng added that good food still remains key for restaurants. He said based on his observation, those that could not offer what's considered a delicious meal shut down fast during the pandemic.

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