Meituan and JD Open Kitchens: Opening a New Battlefield Beyond Price Wars

Reported by Zhou Hui and intern Li Mohan from 21st Century Business Herald in Beijing, this year's food delivery market is particularly lively. In addition to subsidy wars focused on low prices, another competition centered on food safety has also begun.

Under regulatory pressure, on the morning of August 1, Meituan, Ele.me, and JD.com successively issued statements on official channels, pledging to standardize promotions. Whether the price war can be "halted" remains to be seen. However, it is evident that delivery platforms are making optimizations and improvements regarding the rights and interests of riders, merchants, and other stakeholders, as well as food safety concerns raised by consumers.

Regarding food safety, Meituan officially launched its "Raccoon Kitchen" brand on July 1, operating under the principle of "full visibility and traceability." The company plans to invest in building 1,200 Raccoon Kitchens nationwide over the next three years. In late July, JD.com opened its first "7Fresh Kitchen" in Beijing, with plans to invest over 10 billion yuan in three years to establish more than 10,000 7Fresh Kitchens across the country.

Whether it's JD's 10,000-store target for 7Fresh Kitchen or Meituan's 1,200-store plan for Raccoon Kitchen, these initiatives are introducing new models to the traditional food delivery industry. For consumers, this means more dining options, while the industry takes a step forward in exploring visibility, traceability, and supply chain guarantees for ingredients.

Some restaurant owners believe that tech giants entering the food delivery space will take business away from small "mom-and-pop" shops. The F&B industry itself is a reservoir for employment and a relatively low-barrier sector for individual entrepreneurship. As competition intensifies, what changes will internet giants bring to the industry? Currently, both 7Fresh Kitchen and Raccoon Kitchen are in an "exhibition-style" exploratory phase, and their sustainability and impact remain to be seen.

The difference between 7Fresh Kitchen and Raccoon Kitchen lies in their operational models. The former leans toward self-operation, claiming it aims to "take business away from 'ghost kitchens.'" Meituan, on the other hand, has stated it "will absolutely not engage in self-operation and will not compete with merchants."

The two platforms' statements about self-operation carry a hint of rivalry. JD's 7Fresh Kitchen model involves "self-cooking, self-selling, and self-delivery." Media reports have described it as "JD self-operated stores," meaning JD participates in the ingredient supply chain and operates stores under a partnership model where it covers rent, labor, and operational costs, while merchants focus solely on menu development.

"We are not a collection of delivery stores but a cooperative food production platform," said Liu Bin, head of 7Fresh Kitchen, emphasizing the collaborative nature of the model.

Chu Zheng, head of Raccoon Kitchen, stated that their goal is to act as a "helper" for merchants, providing infrastructure to ensure their investments in food safety yield returns and generate more orders.

At the Raccoon Kitchen in Liangmaqiao, Beijing, all 15 stalls were fully occupied, featuring chain brands like Lao Xiang Ji and Zhen Gong Fu, as well as smaller merchants like Li Zhazha Tea, which had only one store before joining.

According to staff, Raccoon Kitchen is open to merchants across the industry who share its philosophy. Before joining, merchants must undergo training to understand the digital and visible processes, meet Meituan's food safety standards, and operate transparently.

Reporters observed that each stall was equipped with two 24-hour, 180-degree surveillance cameras positioned diagonally to achieve 360-degree coverage. Speakers installed nearby would issue prompts if improper operations were detected.