Business / Industry Watch

Austerity push takes a bite out of holiday sales at restaurants

By Wang Zhuoqiong (China Daily) Updated: 2014-02-11 07:17

After closing some stores, Beijing XE Flavor Group Co, the first catering company in China to be publicly listed, suffered a loss of more than 500 million yuan last year, according to the company's estimate. In 2012, the high-end restaurant chain had a net profit of 109 million yuan.

The net profit of China Quanjude Group Co Ltd, a famed roast duck restaurant chain, fell 28.4 percent in 2013, the first decline in five years, with the reduction of high-end customers and bird flu concerns affecting sales.

According to the National Bureau of Statistics, restaurants' revenue expanded 9 percent in 2013, ending an era of double-digit growth that lasted for 23 years.

Luxury restaurants in first-tier cities have fared the worst, said Tang Qingshun, deputy-director of the China Cuisine Association.

Tang said the catering industry in Beijing had its coldest winter ever this year, with the first decline in 20 years.



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