Big Pizza rushes to Hong Kong Stock IPO: Behind nearly 400 stores, declining customer spend and debt pressure to be addressed

After Green Tea Group and Meet Fresh successfully listed on the Hong Kong Stock Exchange, the catering industry is once again experiencing an IPO boom. Recently, Bigg Catering International Holdings Limited (referred to as “Bigg Pizza”) officially submitted its prospectus to the HKEX, planning to list on the Main Board in Hong Kong, with CICC serving as the sole sponsor. As a leading brand in China’s domestic pizza market, Bigg Pizza’s push into the capital market has attracted market attention.

China’s catering market is the second-largest consumer market globally, with a total transaction volume of 5.6 trillion yuan in 2024. However, the out-of-home dining rate is only 29.2%, significantly lower than the US (44.3%) and Japan (43.6%). As residents’ incomes grow and living speeds up, demand for dining out continues to increase. In the Western cuisine segment, the market size reached 655.9 billion yuan in 2024, and is expected to surpass 959.6 billion yuan by 2029, with a compound annual growth rate of 7.9%. Among them, pizza leads Western cuisine with a growth rate of 12.9%, and the market size in 2024 is 48.2 billion yuan.

In the highly competitive Western cuisine market, Bigg Pizza stands out with its casual dining positioning. As of January 2026, the company operates 387 stores across mainland China, including 310 self-operated restaurants and 77 franchise stores. Its menu combines Chinese and Western features, with 70% of dishes being Western-style such as pizza and salads, 20% being Chinese staples like rice and noodles, and the remaining 10% featuring regional specialties. Its core advantage is the buffet model, allowing customers to enjoy about 140 dishes, with per capita spending ranging from 39.99 to 79.99 yuan.

Financial data shows that from 2023 to the first three quarters of 2025, Bigg Pizza’s operating revenue increased from 943 million yuan to 1.389 billion yuan, with net profits of 47.52 million yuan, 41.74 million yuan, and 51.65 million yuan respectively. Despite continuous revenue growth, the average spending per transaction has declined: the average ticket size at self-operated stores dropped from 70.9 yuan to 62.8 yuan, franchise stores from 68.2 yuan to 63.7 yuan, and delivery orders from 60.7 yuan to 34.7 yuan. The company explains that this is mainly due to promotional activities for new stores and the increasing proportion of delivery orders.

Industry-wise, China’s pizza market exhibits a “one super, many strong” pattern. Pizza Hut leads with an absolute advantage, followed by Domino’s, with Bigg Pizza holding a 4.3% market share in third place. In the casual Western cuisine segment, the company ranks first with a 1.1% market share, but the top five players only account for 3.3% combined, indicating a highly fragmented market. The prospectus reveals that the company plans to add 610 to 790 stores over the next three years, but rapid expansion brings challenges in quality control and supply chain management.

Notably, the company’s net current liabilities have been rising steadily, reaching 114 million yuan, 162 million yuan, and 276 million yuan in the first three quarters of 2023 to 2025. This may constrain its cash flow and hinder business expansion. The proceeds from this IPO will mainly be used for store expansion, IT upgrades, brand building, and supply chain optimization.

Bigg Pizza’s growth story began in Beijing in 2002. Founder Zhao Zhiqiang, aged 52, has over 20 years of experience in the catering industry. Starting from a Jiamusi burger shop, he founded a high-cost-performance self-service pizza brand, leading the team through multiple transformations. His wife, Ma Jifang, serves as CFO, and the core management team has an average of over 15 years of industry experience. The equity structure shows that Zhao Zhiqiang, his wife, and family members are the controlling shareholders, holding approximately 86% of voting rights.