(ECNS) -- China's restaurant industry has called for further governmental efforts to reduce taxes and improve growth after the sector's profit margin dropped to 4.8 percent.
Rising costs for labor, rent and produce led to the decline in margin , which finished 6.1 percent points lower than in 2014, said Jiang Junxian, president of the China Cuisine Association.
He added that the restaurant industry's growth was filled with turns and twists from 2011 to 2015 despite an overall increase of revenue from 2 trillion yuan ($300 billion) to 3 trillion yuan.
A survey conducted by the association found costs for rent in 2015 increased by 50 percent from a year earlier among the top 100 catering companies, while other rising costs far outstripped increases in revenue.
A high turnover rate among employees in the sector and taxes have pushed the industry to the tipping point as meager profits became normal for restaurants.
Among the top 100 catering companies, 36 recorded a profit increase of 10 percent, while seven had the same rate as 2014, with 38 seeing a decline.
Jiang called on the government to support structural reform in the catering sector, hold international food festivals and coordinate regional cooperation.