Shanghai Beijing Dining Consumption Falling

Beijing and Shanghai are seeing more restaurant openings and closures, with diners launching low-cost group deals, according to 21st Century Business Herald. From January to April, Beijing's eat-out revenue was CNY42.2 billion, down 2.3% y/y, while Shanghai’s hotel and dining consumption reached CNY49 billion, down 2.5% y/y. In contrast, second-tier city dining revenue grew above 15% y/y. David An, founder of an equipment firm, said he was mainly reclaiming assets from mid-to-high-end restaurants located outside Beijing's third ring road, with an average spending of over CNY500 per customer. In Q1 2024, KFC's per customer transactions nationwide were CNY42, with Pizza Hut at CNY90, both in decline, the Herald noted.