Latest News:  

English>>Business

Restaurants serve up measures to fight slump

(China Daily)

10:35, May 04, 2013

Lower prices on offer as public spending curbs continue to bite

China's middle- and high-end restaurants are facing what industry insiders call a "chilly spring", with many taking measures to combat a drop in business.

Xiang E Qing, a national restaurant chain serving a combination of Cantonese, Hunan and Hubei cuisine, has been promoting a "happy family set menu". Dishes cost from 150 yuan to 300 yuan ($24-48) per head in the private rooms, a considerable drop from the original price.

The Shenzhen-listed eatery has also canceled its lowest-spending limit in private rooms, its service charge and corkage fee.

The restaurant group, which used to concentrate on the middle- and high-end markets, also plans to speed up development of its snack restaurant brand Wei Zhi Du, with dishes costing from 3 yuan to 12 yuan.

Xiang E Qing has also started a group catering business, signing contracts with more than 10 large firms to provide group meals.

Zhi Li Hui Guan, a restaurant featuring Hebei cuisine and mainly serving the North China market, now reserves its first floor for dishes where the average price is about 100 yuan per person. Its fifth floor still serves meals for businesspeople, at 500 yuan a head.

On April 26, Shun Feng, a Cantonese restaurant chain specializing in seafood in Beijing, started a Cantonese food festival, featuring 10 of its most popular dishes along with 20 classic Cantonese foods. It is offering a 12 percent discount during the festival.

South Beauty, Dong Lai Shun and Quan Ju De are organizing group purchasing. South Beauty's Shanghai branch is serving smaller portions, with 60-70 percent of the original quantity, but costing 60-70 percent of the original price.

Many people link the decline of the restaurant business with eight rules China's new leadership issued to improve officials' working style, and recent policies to curb use of public funds.

According to the National Bureau of Statistics, in the first two months of 2013, the industry saw overall income of 403 billion yuan, an increase of 8.4 percent, but the growth was 4.9 percentage points down on the same period last year. It is also the first time for 10 years that growth in January and February has been below 10 percent.


【1】 【2】

We Recommend:

Top 10 biggest Chinese companies 2013

Housewives' gold rush keeps price from falling

Models pose for Fuzhou Auto Fair

Antique auto show kicks off in New York

China's CAS to buy 60 Airbus planes

2013 Tianjin auto show kicks off

Email|Print|Comments(Editor:HuangBeibei、Yao Chun)

Leave your comment1 comments

  1. Name

combackkid at 2013-05-05108.0.31.*
When governmental funds were used to jack up business and price in restaurant it has the negative effect to destroy the competitive edge of the industry. In many countries in the west, this is not the case as competition is strictly on price, quality, service accordingly to the trend. The restaurant is a very competitive business.
  

Selections for you


  1. Frigate Yueyang commissioned for S China Sea fleet

  2. Long March 2-F rocket reaches launch center

  3. Orthodox Good Friday marked in Jerusalem's old city

  4. Migratory birds at Shahu Lake area in NW China

  5. Old photos to recall memories

  6. Self-defense martial art popular in Beijing

  7. 'Splendour of the French Table' exhibits in HK

  8. May 4 Youth Day Music Festival held in Hong Kong

  9. Investors shake off speculation of new listings

  10. Bamboo's alchemic ability

Most Popular

Opinions

  1. Young Chinese face hard road to happiness
  2. Commentary: Abe walks on dangerous path
  3. Celebrity diving show 'excessive': People's Daily
  4. China Voice: Salute builders of the "Chinese dream"
  5. Any future peace deal to be put to referendum
  6. Ancient Chinese tower tests classic literature buffs
  7. Why do U.S. officials visit China in succession?
  8. What does China’s development mean to world?

What’s happening in China

Brazilian self-defense martial art gains popularity in Beijing

  1. Three dead in knife attack in downtown Beijing
  2. Crowd funding fueling creative projects in China
  3. Chinese in LA donate money for quake victims
  4. Unified standards for bottled water in the pipeline
  5. 30 mln students enjoy nutritional lunch program