China’s economy slowdown has shown its negative impact on the expansion of food service industry. Food safety scandals continued to be exposed, in return, the scared consumers reduced their dining-out frequency. In addition, the government policy of reducing public funds on lavish expenditures deeply impacted high-end hotels and restaurants. The industry had adopted various strategies to overcome the difficulties. While first-tier cities remain the strongest centers of consumption and spending in the Hotel, Restaurant and Institutional Sector, the industry will continue to grow substantially in Emerging City Markets.