A pizza is typically shared by families or friends, but a new Pizza Hut store in China’s southern tech hub of Shenzhen aims to change that perception as it grapples with the country’s demographics.
One of the main offerings on the menu of Pizza Hut Wow—a new format that operator Yum China launched in May—is a cream cheese pizza that is less than half the size, in grams, of a pepperoni pie at the brand’s regular locations. It is also a fraction of the price, at just RMB 19 (USD 2.7). The small serving leaves room for customers to try out other dishes—baked escargot, matcha cake, toast pudding—even if they are dining alone.
A spokesperson said the company aims to cater to the growing number of small households, which want smaller servings along with a relaxed dining experience. Yum China has already converted over 100 of its 3,500 Pizza Hut stores into the Wow format and plans to double the count by year-end. The spokesperson said that, so far, the locations’ performance has exceeded expectations, without disclosing specific figures.
Yum China, which also runs KFC stores in the nation, is not the only one adjusting its strategy to cater to solo diners. Like pizzas, hot pots are usually popular for gatherings, but Chinese chain Yi Wei has generated a buzz by adopting a unique counter-seating arrangement. The pot and meat arrive in a single-person size, and diners pick out other ingredients from a conveyor belt in front of them. Launched in August last year, the chain has already opened about 50 such restaurants across major cities and plans 200 more by 2026, according to local media.
The rise of lone diners in China illustrates the country’s rapid demographic shift. There were 125 million single-person households in 2020, according to the national census, more than double the figure a decade ago. Their percentage of total households rose from 14.5% to 25.4% in the same period.
“In the past, there was not much supply of products and services for single-person households,” said Jason Yu, managing director of greater China at Kantar, a consultancy. “More and more brands are realizing that this is a great opportunity for them.”
A sluggish economy is also prompting consumers to seek out cheap solo meals, rather than splurging in group settings. Restaurant sales rose 3% year-on-year in July, government figures show, the slowest pace since China ended its strict Covid-19 policy in December 2022. High-end restaurants have been hit especially hard—sales at those with annual revenue of RMB 2 million (USD 284,210) or more fell 0.7% on the year.
A 32-year-old man who was eating at Pizza Hut Wow said he dines out two or three times a month now, compared to five or six times before the pandemic. “Why? Because I have no money,” he said. “Even when I dine out, I am more eager to choose a place with good value for money.”
The growing share of single-person households is also affecting the online food delivery industry. Restaurants on major apps like Meituan now highlight combos aimed at solo customers atop their digital storefronts. As of June, about 1.52 million food merchants on Meituan were offering small dishes, up 11% from the beginning of the year. The total number of such dishes came to 8.32 million, up 7%.
The app operator said small dishes are also part of a trend to curb food waste and eat healthily.
The trend may work in favor for players from markets like Japan, which has been adapting to shrinking households for decades. Rou Rou Da Mi, a counter-style restaurant chain that serves hamburger steaks on a sizzling hot plate with rice, generated long lines when it opened in Shanghai in 2022. Monogatari, its Japanese operator, says its store was not specifically intended to serve solo diners, but the demographic makes up about half of total customers during weekday lunchtimes at restaurants near office buildings.
Despite the marketing opportunities, generating profits from lone diners who are also price sensitive is no easy task. Customers at Pizza Hut Wow spend an average of RMB 30–40 (USD 4.3–5.7). To encourage them to order multiple dishes, the menu at the Shenzhen outlet does not include hamburgers, which are popular at regular Pizza Huts but are filling. Other strategies include monthly “membership cards” that aim to keep customers coming back.
Yu of Kantar said differentiation will be vital for survival in the Chinese restaurant industry, where players are notorious for copying each other’s menus.
“Chinese consumers will likely be very cautious about their spending in the near future,” he said. “But they are sitting on a big amount of savings. On the one hand, restaurants need to be prepared to actually offer a value for money menu for their customers. But at the same time, don’t forget that consumers are also willing to pay for a unique experience.”