China's restaurant closures surge due to economic struggles

China's restaurant industry is facing tough challenges as the economy struggles. Businessman An Dawei, who sells used kitchen equipment, says that most new restaurants fail. Many owners risk their savings hoping for a quick recovery after the COVID-19 pandemic. Instead, consumers are spending less, forcing restaurants to lower prices. Food providers now offer very cheap meals, like coffees priced at 9.9 yuan (about $1.40) and family meals for 99 yuan (about $14). The Chinese government aims to boost domestic demand to counteract issues like U.S. tariffs and a troubled property market. However, consumer inflation has reportedly dropped quickly, raising worries about a possible deflation. Data shows that nearly 3 million restaurants closed last year across China, with many in big cities like Beijing closing at alarming rates. An's team has been dismantling 200 restaurants each month, a sharp increase from previous years. High rents and reduced customer spending make it hard for establishments to survive. In one mall, a bakery manager said they failed after just 14 months due to expensive rent and low customer traffic. Customers choose cheaper options, often prioritizing price over quality. Analysts note that the average lifespan of a restaurant in China is only about 500 days, especially in urban areas where profits have dropped significantly. The food industry is feeling the squeeze as competition increases and many restaurants struggle for survival. Some industry experts warn that if this price war continues, it could impact the quality of food served. As restaurants try to stay afloat, they may resort to cutting corners to survive.