Getting rich and eating out: Consumption of food away from home in urban China

The overall goal of this study is to better understand food-away-from-home (FAFH) consumption in urban China. We use national statistical sources and our own data to examine the trends in FAFH during the late reform period and to analyze the determinants of FAFH demand, examining how different groups of consumers have participated in this new area of consumption. Besides the normal Tobit model for total food expenditure away from home, a system of multivariate Tobit equations was estimated simultaneously for three categories of foods consumed outside of the home. The results show that the rapid increase of FAFH demand, a rise that is fueled by higher incomes, is changing consumption patterns in China's post-reform urban economy. We also use our findings to illustrate how omission of accounting for FAFH trends by China's official statisticians has affected the reported trends in national meat supply and demand statistics.