The ongoing downturn of the Chinese economy has led to a decrease in consumer spending. Recently, in the first-tier city of Shenzhen, a price war has broken out among restaurants, with popular chain restaurants frequently offering discounts. As a result, customers are more inclined to patronize smaller eateries where “cheap is king”.
One such example is the restaurant “Tai Er Pickled Fish” in Shenzhen, where the average customer spending has dropped to a level not seen in seven years. The well-known hot pot chain “Hai Di Lao” has introduced a budget-friendly sub-brand with an average spending per person not exceeding one hundred yuan. Additionally, other establishments like Chen Ji Shun He and Ba He Li Beef Hot Pot have reverted their prices back to levels from a decade ago. Fast-food chain Xiang Cun Ji even claims to have returned to prices from 2008, with their Gong Bao Chicken Rice, originally priced at 16 yuan, now priced at only 11.99 yuan.
According to a report by Tencent News Prism, the latest average spending per person at Tai Er is 69 yuan. This figure not only remains stagnant compared to 2017 but also marks the first time since the company went public in 2019 that the price has dropped to the 60 yuan range. From 2019 to 2023, Tai Er’s pickled fish prices had consistently ranged between 70 and 80 yuan.
Established in 2015, Tai Er Pickled Fish focuses on traditional pickled fish dishes and has its main stores located in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. By the end of 2022, the chain had expanded to 400 stores.
At the Tai Er Pickled Fish chain store in Shenzhen’s MixC Mall, employees mentioned that most customers now opt for the 98 yuan set menu available on group-buying platforms. Previously, a similar two-person pickled fish meal was priced at 128 yuan, but earlier this year, the price was reduced to 98 yuan, bringing it back to the price point from nine years ago, coinciding with the brand’s founding.
Reports indicate that around 12:30 noon, a peak dining hour, the restaurant was only half-filled. In contrast, other restaurants on the lower floor of the mall, such as “Meeting Noodles,” “Gu Tian Rice Fragrance,” and “Fu Ke Spicy Hot Pot,” with average spending ranging from 20 to 30 yuan, were crowded with customers.
A field survey by Hong Kong’s Sing Tao Daily in multiple Shenzhen malls found that low-priced eateries charging tens of yuan were more popular than mid-range trendy restaurants, with some customers expressing that “cheap is the way to go!”
During the lunch peak hours in Shenzhen’s central business district, popular chain restaurants like Tai Er Pickled Fish and Xi Bei Handmade Noodles had over half of their seats occupied, while other ordinary dining brands struggled, with some barbecue restaurants nearly empty.
On the lower floor of the malls, cheaper fast-food outlets like “Dai Gor Lok,” “Man Lee Kee,” and “Mai Tian Ya Rice Bowl” were nearly full, while milk tea snack shops like “Niu Jiu Zhang” and “Bao Zhu Gong” in the Huang Ting Square mall were bustling with customers.
Shenzhen resident Ye Zi mentioned that she hadn’t dined at the mid-level branded restaurants in malls for two years, stating that “the lower two floors meet all my needs,” and that dining at the fourth-floor restaurants felt unaffordable.
An eatery named “Song Hot Pot” displayed a notice outside offering hot pot bases starting from 8 yuan, meat dishes from 9.9 yuan, vegetarian options from 6.6 yuan, and unlimited braised rice at 6 yuan. The staff mentioned that the prices of food items at the restaurant had generally decreased this year.
In addition, nearly every chain store posted price reduction notices at their entrances, with slogans like “Original price 158 yuan, now 89 yuan” and “50% off for members” constantly appearing.
The situation in Shenzhen mirrors that in Shanghai. Recently, discussions about the decrease in the number of restaurants with an average spending of over 500 yuan per person in Shanghai have also sparked attention.
In response to this trend, investment content creator and financial blogger “DragonKnight” remarked in a blog post, “When ‘lowering prices’ becomes an industry consensus to achieve the effect of ‘exchanging price for quantity’, in reality, it’s difficult to produce winners in a vicious cycle… In the current trend where low prices prevail, perhaps who the winner is doesn’t matter as much as ‘surviving’ has become the main theme under this backdrop.”
An expert from Sina’s Political Affairs New Media Academy and renowned Weibo influencer “Jia Shan Lao Gu” stated, “No longer insisting on pursuing high-end consumption paths, but actively adapting to mass consumer trends is the way to go. After all, surviving is the bottom line.”
A netizen named “Cai Zheng Zheng” remarked, “Consumption has truly downgraded, and the chill has indeed reached every ordinary person.”