China’s top class restaurants see dip in revenue amid slowing economy, curbs on spending
Number of diners increasing, but they are spending less, according to industry report
China’s high-end restaurants recorded a 6 per cent fall in revenue last year due to the country’s economic slowdown and government curbs on extravagant or wasteful spending by officials, according to an industry report.
The number of diners at top class restaurants rose by about 10 per cent in 2014, but the amount they spent fell on average by 20 per cent, the report from the China Hotel Association said.
The Chinese catering business has entered a “period of profound transformation”, the report said, with less spending by officials but a steady increase in the number of other diners.
After three consecutive years of slowed growth, the sector recovered in terms of overall revenue at all types of restaurants.
Takings rose 9.7 per cent compared with the previous year, the report said.
This was mainly due to spending on events such as holiday breaks and wedding banquets.
The sector is “turning from big and high-end to small and delicate”, the report said.