In recent years, the old brands in the Chinese catering industry are going through an unprecedented wave of closures. Particularly in recent times, well-reputed establishments like the Beijing-based “Zhong 8 Lou,” the long-standing Shun He Hotel, the Michelin-starred Fu Lin Hotel, and the Republic Red Mansion, which have been in operation for over 20 years, are one by one succumbing to the pressures of closure.
From high-end restaurants to local eateries, news of closures has been frequent.
After 23 years of operation, the well-regarded Yunnan cuisine restaurant “Zhong 8 Lou Fengshang Yunnan Cuisine” in Beijing posted a notice at its Yidi Port location at the end of August, stating that the lease had expired and officially closed on September 15th.
Established in 2002 at the trendy Sanlitun district in Beijing, the pioneer of the “Fengshang Yunnan Cuisine” subcategory quickly attracted white-collar workers and young fashion-forward clientele upon its opening, becoming one of the earliest hotspots in the minds of many. The news of its closure immediately sparked attention and nostalgia among many diners.
On social media platforms, many netizens expressed regret upon hearing that the last branch of “Zhong 8 Lou” had closed, saying, “What a pity. The best Yunnan cuisine restaurant in Beijing, the bronze pot rice was unique.” However, some consumers also mentioned, “I used to go there frequently when I was young; it was very popular back then, and the food was amazing. But in the past six months, I have been somewhat disappointed as there was no innovation or upgrade in the dishes.”
Looking at the industry as a whole, the hotel sector has been under general pressure in recent years. Similarly, Shandong’s well-known catering establishment, Shun He Group, with a 23-year history, saw its “Jinan Shun He Hotel” branch on Quancheng Road removing its sign on September 22nd.
According to the newspaper “New Yellow River,” recent observations at the mentioned branch showed that the hotel had erected barriers, and two trucks at the entrance were filled with various boards and sand materials. The first-floor renovation had been completed, but some workers were still present.
Nearby shop owners revealed that the decision to close this branch had been made nearly a month ago. Staff from other branches of Shun He Hotel also confirmed that the Quancheng Square branch had been closed for some time.
Shun He Group encompasses various well-known dining brands such as “Shun He Brazilian BBQ,” “Shun He German Restaurant,” “Shun He Seafood,” and “Shun He Dingxiu,” with hotel catering revenue accounting for over 75% of their total income.
Comparing the turnover of Shun He International Hotel in 2024 to the same period in 2023, it decreased by approximately 15%, while the average dining expenditure also saw a decline of around 10%.
During this summer, setting up stalls on the streets became a trend for star-rated hotels. In July, Shun He Group’s chairman, Ren Xingben, went viral for selling fast food on the street. In the video, Ren Xingben and his staff were seen serving customers with a large spoon, offering dishes for an average price of 12.7 yuan.
Shanghai’s well-established Shunfeng Grand Hotel, in operation for 26 years, began closing its doors this year, with public reviews indicating that a total of 8 branches have either ceased operations or temporarily closed down.
Not only renowned restaurants but also the crisis of closure looms over long-standing catering enterprises embellished with Michelin accolades.
On September 15th, the legendary Michelin three-starred Fu Lin Hotel in Hong Kong announced the closure of its mainland’s only branch—the Beijing Michelin one-star restaurant Fu Lin Hotel, citing “corporate strategic layout adjustments,” with operations officially ceasing from October 15th. Founded in 1974 in Hong Kong, Fu Lin Hotel had won multiple Michelin three-star ratings. The Beijing branch opened in 2022, featuring the same specialty of bird’s nest dishes with an average cost of 466 yuan per person.
Another famed Michelin restaurant, Nanjing’s “Republic Red Mansion,” was reported to have suspended operations at all branches, including subsidiary cafes and other establishments, with notices of “temporary closure” posted on public review platforms. Some users disclosed that the doors of the Fu Zi Temple and Lao Mendong branches of Red Mansion were shut tight, with some displaying notices for overdue electricity and gas bills.
Not long ago, the well-known Guangzhou hotpot restaurant, “Yige Macau Hot Pot,” announced via its official WeChat account that its Gaode Zhidi Land branch would officially cease operations from April 30, 2025, with the Liwan Lingnan branch also announcing closure by the end of March. Established in 2007, Yige Macau Hot Pot, renowned for its Hong Kong-style hotpot, used to be a beacon among old Guangzhou residents, but currently, only one branch remains operational under its brand.
More and more catering establishments with over 10 to 20 years of operation have been announcing their exit this year.
Reported by “Restaurant Owner Insider,” whether they are old hotels, traditional restaurants, or mid to high-end dining establishments, the common denominator among these enterprises is their formal dining model. As they face the challenges of business operations, the sense of anxiety only heightens. Their journey from enduring the three-year saga of the COVID-19 pandemic to progressively reaching the conclusion of closure and exit reflects these challenges.
The reason for the closure and exit of Nanjing’s Red Mansion was mentioned by its founder Wu Bin on social media, citing massive losses from failed heavy investments, debt operations, internal management loopholes, and being ensnared in high-interest loans.
Industry experts indicate that the operational costs are too high, and with only a few tables occupied daily, these costs become unsustainable. In the declining dining market environment, many good restaurants closing down have become a necessity.
The collapse of Red Mansion is just a microcosm, but by no means the last one. In fact, the wave of closures in mid to high-end dining establishments has been ongoing since 2024, if not earlier.
With the economy in decline and policies like alcohol prohibition in effect, their core clientele tightening their budgets, the demand for business banquets and upscale gatherings has dwindled, leading to a reduction in the high-spending consumers that support mid to high-end dining revenues.