China's high-end cuisine lowers standards to survive anti-corruption
Kao Hsing and Staff Reporter 2013-03-01 15:32
A table full of dishes in a restaurant in Fuzhou. (Photo/Xinhua)
After the Chinese government vowed to crack down on corruption, most high-end restaurants have turned to the motto of "people first," replacing "tip of the tongue" feasts with affordable set meals, with some joining group-buying networks by offering discounts to attract customers, reports our sister newspaper Want Daily.
Since the mainland authorities forbade the use of public funds on dining and entertainment, high-class restaurants and hotels have been hobbled. The famous listed restaurant Beijing Xiangeqing has quickly undergone large-scale layoffs. As a benchmark for chain restaurants, its situation highlights the current troubling trend for those catering to the government.
Facing a failing business model, Xiangeqing said it now caters to more economic diners, with group meals becoming its top business. It is possibly the first major restaurant to be forced to adapt after the anti-corruption drive.
Xiangeqing is looking to lay off more than one-third of its work force, said an anonymous employee quoted by NetEase.
Xiangeqing denied the claim, saying only a part of its staff will take rotational holidays.
Xiangeqing is China's first listed restaurant business, focusing on offering high-end Guangdong, Hunan and Hubei cuisine, with the average one-table meal costing about 1,000 yuan (US$160). The top dishes could boost the figure up to more than 100,000 yuan (US$16,000) a table. Its ability to remain in business despite the high prices is now evidently from the support of the public dollar.
Yao Xuezheng, honorary vice president of Guangdong province's restaurant association, said that since the central authority tightened its expectations towards officials, government agencies and state-run enterprises have lowered standards or even abolished using public funds on dining. It is estimated that around the Chinese Lunar New Year holiday, the country's combined restaurant revenue fell about 8% year-on-year, Yao said.
Shenzhen's mid- to high-end restaurants have seen their sales fall about 20%, according to estimates by local media. Some high-end restaurants have resorted to cheaper meals or joining group-buying networks by offering 20% discounts to attracts customers.
Several high-end restaurants in Shenzhen are promoting affordable set meals, cutting the average consumption per person to below 100 yuan (US$16) from around 400-600 yuan (US$64-$96), Yangcheng Evening News reported.
During the Lunar New Year holiday, many group-buying promotions were offered by high-class restaurants, which offered discounts between 20% to 38%, the report said
