Wealth Blog | Falling for austerity hook, line and sinker
Exuberant spending clampdown appears to have worked, except in mainland's top restaurants
New leader Xi Jinping's December clampdown on exuberant entertaining by the mainland's seven million government officials seems to have worked.
Shanghai's gourmet restaurants and posh hotels have seen business slump 20 per cent since officials were limited to four courses plus soup, with no more claret and expensive spirits.
So reported Shanghai Daily, with the austerity drive so far costing city eateries 60 million yuan (HK$74 million). The end of the gravy train means hotels and restaurants must recoup lost revenue with creative cost-cutting.
"They have to explore more avenues for making profit but the tactics vary, case by case," says one top Shanghai hotel.
Beijing has been hit harder, with revenues down by half since early January. Hotels such as the Hilton Beijing Wangfujing, 15 minutes' walk from the government district and Tiananmen Square, have really felt the pinch, according to executive chef Randolph Ng.
This mine of piscatorial information reveals that fish is pivotal to lavish banquets, when officials reflect their status by scoffing expensive species, such as grouper.