High-end diners tighten purse strings

China's high-end restaurants saw average spending per person drop by about 20 percent in 2024 with the driving force of dining consumption shifting from large cities to small and medium-sized ones, food delivery platform Meituan (3960) said.

The business of restaurants with an average price per person at or below 500 yuan (HK$530.55) remained viable, but upscale restaurants with an average unit price of 800 to 1,000 yuan were "under great pressure," mainly due to consumers' becoming cost-conscious, it said.

Several high-end restaurants in the mainland shuttered last year. Notable closures in Beijing include acclaimed Nordic dining destination Refer, the Michelin-starred Italian restaurant Opera Bombana and Tiago.

Also, the famed Taiwanese xiao long bao chain Din Tai Fung closed 32 stores across the mainland.

The growth of high-end restaurants in first-tier and new first-tier cities slowed, but they continued to grow in second-tier and below cities, at a rate of about 30 percent year-on-year, which means the consumption power shifted to smaller cities, the tech firm said.

Staff reporter