People say that “selling hamburgers has become more lucrative than selling computers.”

Fast-food joints, “snack” shops, middle-of-the-road and high-end restaurants, pet stores, and other service-oriented local businesses have proliferated in recent years. This has wrought seismic changes on the employment landscape, where the service sector has replaced the tech industry as the most appealing to workers.

A recent survey by Cheers magazine ranked the preferred employers of 2012’s new graduates. For the first time in seven years, it found that a food-and-beverage business had claimed the top spot over Taiwan’s tech and manufacturing power­houses. Wow­prime topped the survey, followed by Uni-President Enterprises, Fox­conn, Chung­hwa Telecom, Eslite Books, Google, HTC, Taiwan Semiconductor, China Steel, and EVA Air.

Observing this phenomenon, some scholars have noted that the service sector’s rapid expansion has created great demand for talented personnel. But these same scholars urge young workers to think carefully before going into the sector. They note that all too many take positions in hopes of earning big bonuses, unaware that their jobs will require being on their feet for 10 hours per day and working at times when most other people are relaxing. Given the demanding nature of the work, genuine enthusiasm for and interest in the job are absolutely essential.

For all that the work can be tough, the 20%-plus gross margins enjoyed by the likes of New Palace International (a 60-year-old company that was the first food-and-beverage business to list on Taiwan’s stock market), Gourmet Master, and Wow­prime are very alluring. After all, the typical electronics manufacturer earns only 8–10% and is also very sensitive to economic cycles. Why are food and beverage margins so high?

Wow­prime chairman Steve Day tells Taiwan Panorama that other companies would probably lose 20% if they tried to provide Wow­prime’s level of food, service, and atmosphere at comparable prices. Day’s company is able to enjoy margins of roughly 10% because its size gives it pricing power with suppliers and its rents are relatively low. For example, Tai­chung’s ­Chongde commercial district was moribund prior to Wow­prime becoming active in the area. When Wow­prime opened locations for seven of the chains it controls, it reinvigorated the area and boosted property prices. The local landlords benefited, and therefore agreed to lease to Wow­­prime at below-market rates. (Their discounts average about 6%).

Wow­prime’s strategy has been to build market share by opening new chains. “We used to introduce two new brands a year,” says Day. “Now it’s just one every two years.” He says that if they could sell the world fried chicken the way Kentucky Fried Chicken does, they wouldn’t need so many brands.

“A lot of restaurants make tasty ham­burgers, but McDonalds’ position hasn’t been challenged in decades because the service sector also has a cultural side,” says Day. “Once consumers embrace companies, they’re very reluctant to let them go.” He argues that top manufacturers are much more easily displaced by rivals with newer technology, more capital, a better location, or more production capacity.

The service sector is an art, a science, and an everyday experience. Already at the heart of Taiwan’s economy, it is likely to enjoy even more opportunities in the future as more people eat out, eat healthier, raise pets and take better care of those pets.

A number of years ago a childless couple I know adopted seven cats, shelling out for food, vaccinations, and occasional treats of shrimp fried rice. When one of their cats became ill, I learned that pets too can suffer diabetes and become depressed. The proliferation of pet-oriented magazines and websites, not to mention the programs and ads discussing pet health and behavior testify to the market’s enormous potential.

In addition to our cover feature, this month’s issue also looks at Taiwan’s burgeoning vegetarian scene. If you’re uncomfortable with an omnivorous diet, perhaps an innovative, healthy vegetarian diet low in salt and fat might make a better choice.