Taiwan Today

Taiwan’s food service industry is evolving to please palates and meet customer demand.

When Raymond Seah from Singapore traveled to Taipei City in February for a six-day visit, he had no set expectations or plans beyond relaxing and savoring the local food scene. By the time he departed, he was blown away by the variety of dishes and flavors on offer, especially at the city’s many night markets. “I couldn’t believe how incredibly tasty everything was,” he said.

Seah is far from alone in being impressed by Taiwan’s culinary bounty. Results from a 2018 survey conducted by the Tourism Bureau under the Ministry of Transportation and Communications showed food was the biggest draw for international visitors, followed by scenery, shopping and folk culture.

With cuisine featuring highly on tourist agendas, the government is placing food and drink front and center in promoting Taiwan to visitors. The bureau’s website provides detailed information in multiple languages about attractions, festivals and shopping, as well as food culture. It introduces fare ranging from local snacks to gourmet cuisine, in addition to giving recommendations for Michelin-rated, Muslim-friendly and vegetarian restaurants.

Eateries large and small are so abundant the bureau’s website states pedestrians are never more than a few steps from one on practically any street countrywide. From north to south, these offer an array of traditional and regional dishes, as well as specialties from all corners of the globe, making Taiwan a paradise for food lovers.

Growth Spurt

Tourists support the food service industry, but they are far from the only driver of growth. Domestic demand is rising as more people opt to eat out or have food delivered to their homes. Tallies by the Ministry of Finance show the number of restaurants operating in Taiwan increased from 85,135 in 2013 to 116,311 in 2018, with sales climbing from NT$313.86 billion (US$10.46 billion) to NT$456.76 billion (US$15.23 billion) over the same period.

The restaurant sector’s expansion broadens the selection of foods available, said Li Shyh-jane (李世珍), deputy director general of the Business Model Innovation Research Division at Taipei-based Commerce Development Research Institute. “The most distinguishing characteristic of Taiwan food is its diversity,” he said. “Thanks to high-quality local ingredients and the creativity and skill of homegrown chefs, our cuisine is winning hearts around the world.”

Lucrative business opportunities are tempting more entrepreneurs into food service. “Opening a cafe or restaurant is a popular option among people seeking to start their own business or change careers,” Li said. “Huge numbers are entering the market, but many lose money and pull out, demonstrating how fierce the competition is.”

To grow business, restaurateurs must make innovation central to operations. Emphasizing professionalism is not enough; they must continuously adapt to emerging customer preferences, Li added.

A number of trends are contributing to the food service industry’s evolution. Among them are new brands launched by parent companies and the proliferation of chain store locations. “The chain business model is increasingly popular because it helps achieve economies of scale by reducing production and procurement costs,” Li said. “It also ensures quality and promotes operating efficiency through standardization.”

Success Models

With five major brands operating 41 restaurants nationwide, Hi-Lai Foods Co., headquartered in southern Taiwan’s Kaohsiung City, has embraced this model. Its locations specialize in regional cuisines like Cantonese and Shanghainese as well as seafood and vegetarian options.

“Our company employs a multibrand strategy to meet differing customer needs. We’re also endeavoring to increase our presence through store expansion,” said Maggie Wu (吳若寧), director of marketing and planning at Hi-Lai Foods. “This allows us to tap into different market segments and boosts our overall market share.” Last year, revenue reached NT$3.78 billion (US$126 million) and the annual growth rate hit a historic high of 9.14 percent, proof positive the company’s methods are paying off.

Believing overall customer experience separates a great restaurant from an average one, Wu attributes the company’s success to giving patrons value for money. “We put emphasis on high-quality ingredients and excellent customer service, as well as on ambience-enhancing elements such as background music, decor, lighting and seating,” she said. “All these factors give our restaurants an edge over the competition.”

Hi-Lai Harbor, the company’s most profitable brand, is an example. According to Wu, the buffet restaurant is thriving because it ticks all the boxes for an exceptional meal. The chain currently has seven outlets in Taiwan, all headed by chefs with prior kitchen experience at five-star hotels.

Similarly, Mala International Catering Group based in Taipei is seeking new ways to provide clientele with one of a kind experiences. The group runs 26 restaurants under seven brands serving hot pot and Japanese cuisine.

Last year, Mala launched Don Ji Seafood, a hybrid eatery combining supermarket-style shopping with hot pot dining. Customers choose from around 100 prewashed and pre-cut fresh products stacked on shelves before paying and settling themselves at a table to cook up their selections. For a small fee, they can enjoy unlimited self-serve rice, noodles, drinks and ice cream.

“We were actually a little surprised how popular the restaurant was when it launched a year ago, with people waiting in long lines to enter,” said Vina Lin (林庭薇‬), a marketing and public relations manager at Mala. “Offering something new helps attract more customers.” The store’s success prompted the company to open a second location just three months later.

According to Lin, innovations adopted by Mala’s other brands include touch-screen ordering systems with interactive menus, children’s playrooms and free costume, manicure and massage chair services. “By adopting the latest technology and offering supplementary amenities at no extra charge, we’re able to differentiate ourselves from competitors and maximize customer satisfaction,” she added.

Top Qualifications

With an emphasis on creativity, choice and excellent price-performance ratios, restaurant operators have made crucial contributions to Taiwan’s vibrant food scene. But these might mean little without the refined cooking techniques required to take food to the next level.

Over the years, hundreds of organizations have been established to help elevate local food industry standards and guarantee professionalism. One such group is Taipei-based Taiwan Food and Beverage Art Association (TFBAT), which runs training courses for chefs seeking to obtain official qualifications.

According to the association’s chairperson, Hsu Mei-yun (許美雲‬), the chef certification exam set up by the Ministry of Labor covers culinary prowess, sanitation and safety regulations. The accreditation system encourages kitchen workers to sharpen their skills and fosters public trust in the food industry.

“To pass the exam, candidates must demonstrate compliance with standard operating procedures,” Hsu said. As many leading hotels and restaurants require chef applicants to hold a professional license, those who are certified can gain an edge when competing with traditionally trained cooks for jobs, promotions or salary raises, she added.

Thanks to growing ranks of accomplished culinary artists, Hsu believes Taiwan’s gastronomy is becoming ever more sophisticated. “Chefs are paying more attention to the aroma, color, taste, nutrition and presentation of dishes. Cooking is an art form, just like painting, and a solid grasp of aesthetics ensures meals are a feast for the eyes and stomachs of diners,” Hsu added. “We expect the latest generation of talent to lead the country’s food culture into a new era.”

Boasting everything from night market stalls dishing out affordable local specialties to lavish, upscale restaurants serving exotic eats, Taiwan is a destination where gourmands can savor a range of delectable food to suit all tastes and budgets. The country’s gastronomic bona fides are best summed up by the words of dedicated foodie Josef Vidakovits. Despite having been to many of the world’s most renowned food destinations, he said, nowhere has he eaten a more tantalizing meal than in Taiwan.

Write to Kelly Her at kher@mofa.gov.tw