"Enjoy Without Judgment"... Unmanned Stores Become a Hotspot for Chinese Millennials and Gen Z [China.zip]

Popular for 24/7 Operation and Affordable Prices

Growth Trend as Stores Face No Labor or Rental Costs

Gaining Traction for Easy Use and No Need for Contact with Others

Editor's NoteThis is a serialized feature that "decompresses" only the essential stories about the economy, society, and culture of vast and complex China, uncovering fun and insightful aspects for our readers.

Recently, unmanned service stores operating 24 hours a day, year-round, have become popular in China. Their reach is expanding into cafes (tea houses), convenience stores, board game and mahjong parlors, bead crafting studios, gyms, and karaoke rooms, becoming hotspots where Millennials and Gen Z enjoy their leisure time.

Sina Finance recently highlighted the craze for unmanned stores, describing it as "the result of positive changes that digital technology has brought to the life service industry." Traditional board game rooms, mahjong parlors, and billiard halls often struggled with high labor and rental costs. However, by introducing unmanned systems, they have gained attention as leisure spaces for young people.

No Need for Contact or Interaction... Popular Among Young Generations

Recently, unmanned service stores operating 24 hours a day, 365 days a year have become popular in China. Xiaohongshu.

Recently, unmanned service stores operating 24 hours a day, 365 days a year have become popular in China. Xiaohongshu.

Unmanned stores are attracting the interest of younger generations because there is no need to interact or converse with others. Users reserve the store and select the time through a dedicated application (app), and access is granted via QR code or facial recognition, with fees charged on an hourly basis. Inside, vending machines for drinks and snacks, as well as communal portable batteries, are available.

Xiaoyi, a university student, said, "I often use unmanned billiard halls because you can freely buy drinks and snacks from vending machines at a very low price—less than 20 yuan per hour," adding, "I also like that I don't have to worry about being teased for not playing billiards well."

China's Rapidly Expanding Market Size

Chinese Millennials and Gen Z celebrating a birthday party at an unmanned karaoke room. Xiaohongshu.

According to a report from the China Industry Research Institute, the market size of China's unmanned economy exceeded 1.5 trillion yuan last year, and this year it is expected to reach about 1.8 trillion yuan. Among them, unmanned stores surpassed 30 billion yuan in sales last year and continued to grow by more than 20% year-on-year in the first half of this year.

Especially, unmanned mahjong parlors and related stores exceeded 52,000 as of the first half of this year. Over the past three years, they have recorded an annual average growth rate of 25–35%. 'Pofriends', a leading operator of unmanned mahjong parlors, expanded to more than 14,000 locations in over 300 cities nationwide within four years of its founding in 2022. Last year alone, 100,000 new billiard businesses opened nationwide, with unmanned billiard hall brands Xiaotie and Tanshaoyu now each operating more than 7,000 locations thanks to rapid growth. In addition, various types of unmanned self-service tea houses and similar spaces are emerging. These places are increasingly used for quiet personal relaxation, studying, or holding small meetings that don't require a specific activity.

This trend has been supported by policy initiatives from the Chinese government. The 15th Five-Year Plan and the 'Six Major Network Infrastructures' initiative—part of China's medium- and long-term economic development strategy—have laid the institutional and technological foundation for the development of smart retailing. Advanced communication networks, AI recognition, and intelligent data analysis technologies are now integrated, making platform operation of unmanned stores possible, including equipment management, ordering, and remote monitoring. Warehouse restocking, deliveries, self-pickup, and courier services have also progressed toward unmanned and automated systems.

Concerns Over Security, Minors, Hygiene Management, and More

Unmanned mahjong room and billiard hall. Xiaohongshu.

As the market rapidly expands, various issues are also surfacing. Safety concerns—such as inadequate fire facilities and evacuation routes for emergencies—have come to the fore. The absence of on-site staff increases the likelihood of accidents or crime, prompting calls for urgent improvements to relevant laws and systems.

Problems regarding the protection of minors and security are especially serious. There is a lack of effective measures to restrict access by minors and no clear compliance guidelines for identity verification. In some stores, restrictions on minors' entry are not enforced at all. Disjointed regulatory boundaries among agencies—including fire authorities, public security bureaus, market supervision departments, and the Ministry of Culture and Tourism—create legal blind spots susceptible to abuse.

An employee at a board game room said, "In principle, minors are not allowed to enter at night, but since inspections are rare, most people at the site don't pay attention." The employee added, "It's hard to determine age based only on appearance, so owners often quietly let it slide." A bead studio worker also said that teenagers can spend all day doing bead crafts, explaining, "You just need to make a reservation and visit." The only way to enter is with an assigned QR code (or password), supposedly eliminating risks.

To prevent such side effects, some local governments have begun to take action. Zhejiang Province has introduced an early warning system using artificial intelligence (AI) that automatically triggers an alert if a minor tries to enter a facility early in the morning. Other regions are leading efforts by displaying signs restricting minors' entry and designating nighttime curfews for minors.

Local experts emphasized that consumers should choose facilities with CCTV, real-name reservation systems, and signs prohibiting minors' entry. They warn, "You should always check the location of emergency exits and fire extinguishers carefully if you visit during late-night hours." They further stressed that "for unmanned businesses to continue developing, filling regulatory gaps and making safety the top priority through policy efforts is essential."

This content was produced with the assistance of AI translation services.