China's community canteens explore ways of staying afloat

In Jiulongwan Community in Yangzhou, east China's Jiangsu Province, the community canteen buzzes with activity at mealtime, drawing long lines of residents. For them, the community canteen is a preferred option as they provide high-quality meals at affordable prices.

"The flavors are particularly appealing to the elderly, with dishes that are well-prepared and not overly salty. In fact, they taste better than what we make at home," said Zhou Xinmei, a resident of the community.

This community is home to nearly 3,000 seniors, about one-third of whom require food assistance. The canteen operates with a focus on public welfare, providing meal subsidies to seniors based on a standardized pricing. It also offers a delivery service, ensuring that residents with limited mobility receive meals directly at their homes.

"The 15-yuan set meal includes one large meat dish, one small meat dish, and one vegetarian dish, with unlimited refills of rice and soup," said Huang Mingxuan, a staff working in Jiulongwan Community. "Those aged 60 or above receive a subsidy."

Even with government backing, community canteens face financial hurdles, especially with the discounted pricing for senior meals against the backdrop of constant operational costs. In response, many are exploring innovative business models to navigate these challenges.

In the Yangzhou Economic and Technological Development Zone, a community restaurant initially faced financial pressures due to its low pricing—vegetarian dishes at 2 yuan and meat dishes between 3 to 6 yuan, 30 to 60 percent cheaper than similar quality options elsewhere. This led to tight profit margins and difficulty covering costs such as staff wages, food procurement and utilities.

To address the challenges, the community canteen expanded its services by incorporating a central kitchen into the community restaurant. This innovation not only meets local residents' dining needs but also supplies meals to over 10 nearby businesses, recognizing the area's mix of enterprises and young population.

"We buy directly from the source in bulk at low prices, giving us an advantage in centralized purchasing," said Wang Ru, who oversees a local community canteen. "The profit margins for community restaurants are quite slim, so they depend on high volume sales to earn profits."

"While government subsidies play a role, a deeper integration with the market is essential. The evolving needs of the elderly population are shaping market development, and corresponding services will evolve to meet these indispensable needs," Sun Juanjuan, professor at School of Sociology and Population Studies, Renmin University of China told CGTN.

Also, the shift towards greater personalization is opening up more opportunities. For instance, considering dietary preferences and particular health conditions, such as diabetes, highlights the need for community canteens to cater to the specific dietary requirements of elderly individuals on special diets, Sun noted.

Apart from those in Jiangsu, other cities like Chongqing, Lanzhou and Guangzhou are also adopting innovative approaches to ensure the continued operation of local community canteens.

For instance, Guangzhou is looking into ways to appeal to young population, suggesting that senior canteens introduce off-peak dining hours in addition to their traditional services for the elderly. This strategy would enable younger diners to enjoy the same meals at market prices, helping to secure a diverse and consistent customer base.

"Elderly patrons tend to dine early, typically between 11 and 12 o'clock at noon, while younger people often come in after work, around 12 o'clock," noted Liao Jun, a staff member at an elderly care service center.

Beyond welcoming younger patrons, some community canteens are also partnering with commercial restaurants, universities, and government-run dining facilities.

Moreover, some community restaurants have expanded beyond just serving meals, diversifying their offerings. For example, in Zhengzhou, they now serve as social hubs, creating "social circles" where community members connect. With additions like a book bar and a games room next to the dining area, these spaces have become popular leisure and entertainment destinations for residents.

"It's incredibly warm and welcoming," said Zhang Hongya, a resident from Zhengzhou. "People who were strangers before now have the opportunity to forge stronger connections through shared meals and conversations."