China's 'restaurant undertaker' gets busy, as eateries close and consumer spending declines

Record ID: 1985441

  • Title: China's 'restaurant undertaker' gets busy, as eateries close and consumer spending declines
  • Date: 21st March 2025
  • Summary: BEIJING, CHINA (MARCH 3, 2025) (REUTERS) WORKERS DISMANTLING RANGE HOOD IN RESTAURANT KITCHEN EXTERIOR OF CLOSED RESTAURANT, WORKER DRAGGING DISMANTLED SINK OUT OF SHUT DOWN RESTAURANT USED KITCHEN EQUIPMENT SALESMAN, AN DAWEI, STANDING BESIDE DISMANTLED KITCHEN EQUIPMENT (SOUNDBITE) (Mandarin) 38-YEAR-OLD USED KITCHEN EQUIPMENT SALESMAN, AN DAWEI, SAYING: “This shop behin
  • Embargoed:
  • Keywords: China beverage closed consumption eatery economy food kitchen recycling restaurant used
  • Location: BEIJING, CHINA
  • City: BEIJING, CHINA
  • Country: China
  • Topics: Asia / Pacific,Economic Events
  • Reuters ID: LVA001848913032025RP1
  • Aspect Ratio: 16:9
  • Story Text: In an alleyway along an outlying tech hub in Beijing, the sound of metal crashing breaks the eerie silence filling the once crowded food eateries adorning the street.
    “This shop behind me, this is actually the second time we’ve dismantled it", said 38-year-old used kitchen equipment salesman An Dawei, pointing to a former Japanese restaurant behind him.
    An's team, known in the capital city's food and beverage industry as the "restaurant undertaker", has seen steady business over the years.
    When restaurants close in Beijing, An's team of workers are contacted to dismantle and remove sinks, fridges, and ovens amongst other kitchenware, which are then stored or put up for resale at their warehouse in the outskirts of the capital city.
    Last year, An and his team dismantled 200 restaurants each month, or 270% more than the prior year, as the number of dissolved catering companies touched a historic high of almost 3 million nationwide, data from companies registry Qichacha shows.
    Behind every dismantled appliance, is a tale of a failed Beijing restaurant, mostly belonging to people who often bet their life savings on a V-shaped economic recovery after the COVID-19 pandemic, only to see consumers skimp on eating out as China's economy slowed, according to An.
    Cut-throat price competition and ever-changing menus to attract jaded customers have left even long-time establishments struggling for survival, An said.
    Expanding domestic demand is the top priority this year for the Chinese government, which is looking to offset the impact of U.S. tariffs and a protracted property crisis.
    But consumer inflation fell in February at the quickest pace since January 2024, setting off concerns about a deflationary spiral.
    At a key legislative session this month Chinese officials vowed greater efforts to crack down on "involution", or excessive competition, but the restaurant industry is one of the areas in which the problem is most visible.
    "For an average person, opening a restaurant is almost a guaranteed failure. The ones truly making money are the top players who have been consistently profitable", said An.
    (Production: Xiaoyu Yin)
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