Renowned dining brand Din Tai Fung has shut down another outlet in mainland China. On October 3 (Monday), Din Tai Fung announced that its Shanghai Hongqiao branch officially ceased operations due to the expiration of its lease agreement, advising customers to visit its Xujiahui Center location instead.
On the same day, calls to the Shanghai Hongqiao branch went unanswered, and Dianping (China's major review platform) listed the store as "temporarily closed."
According to reports from Jiemian News, due to operational pressures and other factors over the past two years, Din Tai Fung has gradually closed multiple outlets. In August 2024, the brand announced it would close 14 locations in cities including Beijing, Tianjin, Qingdao, and Xi'an, following the expiration of the original North China operator's business license and the failure to reach an agreement on renewal, prompting headquarters to terminate brand authorization early.
Last May, Din Tai Fung's official WeChat account announced that due to brand operational adjustments, its Ningbo IFC location would cease operations starting May 28, exiting the Ningbo market.
In October last year, Din Tai Fung announced that its official WeChat mall would cease operations on November 30, 2025.
On April 27 this year, Din Tai Fung Hangzhou MixC location also announced it would cease operations due to the expiration of its mall lease.
Notably, while closing outlets, Din Tai Fung is simultaneously expanding into new locations.
In March this year, the Din Tai Fung Kerry Center Beijing outlet opened, symbolizing the brand's formal return to Beijing. This outlet is directly operated by the Taiwan headquarters, with operational support provided by Shanghai Guangcheng Catering Management Company.
Staff at the Beijing Kerry Center location stated that classic dishes such as xiaolongbao and scallion egg fried rice remain on the menu. The variety and pricing of dishes have been adjusted compared to before, and the previous 10% service charge has been completely eliminated.
Additionally, in July this year, the Din Tai Fung Xujiahui Center Shanghai outlet opened. According to plans, its Hangzhou Kerry Center location is also scheduled to open in October.
However, it won't be easy for Din Tai Fung to sustain growth in an increasingly competitive dining landscape.
Currently, Din Tai Fung's average per-person spending is around RMB 130, classifying it as a mid-to-high-end dining brand. Consumers' dining attitudes are becoming more rational, with "value for money" gradually becoming the dominant consumption trend.
Nielsen IQ China's "2023 China Consumer Insights and 2024 Outlook" report shows that 43% of Chinese respondents said they would strictly control overall spending, while 37% indicated they would change their consumption habits to seek optimal or lower-priced products. Under these trends, mid-to-high-end dining brands undoubtedly face pressure to align with mass consumer demands.
Moreover, as alternative options for mid-to-high-end dining continue to increase, and rents in premium commercial areas rise alongside growing labor costs, single-store profitability faces ongoing pressure.
On July 28 this year, information posted on Din Tai Fung's official account showed that the number of its outlets in China stood at 15. Excluding the recently closed Shanghai Hongqiao location, only 14 outlets remain in mainland China.
FACT BOX
- Source: PR Times
- Category: News