Din Tai Fung, the acclaimed Michelin-starred Taiwanese restaurant famous for its dumplings, is closing over a dozen of its locations in China due to the country’s economic slowdown, the second-largest economy in the world, as reported by Voice of America.
Beijing Hengtai Feng Catering Company, a subsidiary of the restaurant chain, announced on Monday that it will shut down all 14 of its restaurants in northern China, including one in Xiamen. However, the brand’s parent company in Taipei stated that its 18 remaining restaurants in Eastern China, managed by a separate Shanghai-based partner, will continue operating as usual, according to VOA.
Din Tai Fung has apologised for any inconvenience and disappointment the shutdowns may cause to its customers.
“We deeply apologize for the inconvenience and disappointment this decision may cause to our many loyal Din Tai Fung customers,” the subsidiary said on the Chinese social media app WeChat.
It further said that the employees’ severance and placement would be handled properly.
Notably, some 800 employees will be affected by the decision.
Amid the shutdown, a Taiwan-based economist highlighted the weakness of consumption power in China. Darson Chiu, economist and director general of the Confederation of Asia-Pacific Chambers of Commerce and Industry, stated, “The current situation in China is that while there is still traffic, the consumption power is weak, including in the restaurant service industry. A high-end brand like Din Tai Fung may not be able to meet the consumers’ needs as they downgrade their consumption in China’s current economic environment,” according to VOA.
The company operates stores worldwide, including locations in the United States, Japan, South Korea, Singapore, China, Hong Kong, Indonesia, Malaysia, Australia, Europe, and Thailand. The Hong Kong branch has received a Michelin Star five times. In June and July, Din Tai Fung opened new outlets in California and New York.
