Taiwan’s renowned chain restaurant brand “Din Tai Fung” announced on Monday that its subsidiary in Beijing, Beijing Hengtai Fung Catering Co., Ltd. (referred to as “Beijing Din Tai Fung”), will be closing 14 branches in North China (including one in Xiamen) and gradually withdrawing by the end of October. It is reported that some directors are pessimistic about the prospects of the mainland Chinese restaurant market.
On August 26, Beijing Din Tai Fung announced that due to the expiration of the company’s business license after twenty years and the board of directors failing to reach a consensus on renewal, the company decided to close the 14 branches by October 31.
The branches that will be closed include: Beijing Yuyang Store, SKP Store, Xidan Store, Fangcaodi Store, APM Store, Guomao Store, Cuiwei Department Store, Century Golden Resources Store; Tianjin Henglong Store, Mixc City Store; Qingdao Carnival · Hisense Plaza VILLAGE Store, Hisense Plaza Store; Xi’an SKP Store; Xiamen Panji Store.
The announcement stated that the company will properly handle economic compensation and placement for employees, and legally protect the legitimate rights and interests of stored value card members.
According to reports from the Central News Agency, on the 26th, Yang Bingkun, general manager of Beijing Hengtai Fung Catering Co., Ltd., told Taiwanese media that Din Tai Fung has been in Beijing for 20 years, and the business license expired on August 3. According to relevant regulations, all five directors of the company must agree for the renewal of the business license to be processed. However, one director insisted on disagreeing, and the board of directors could not reach a consensus, leading to dissolution. All five directors are Taiwanese.
Yang Bingkun pointed out that although the main reason for the closure of the North China branches was due to disagreements within the board of directors, the overall situation of the Chinese catering industry has indeed been unfavorable after the pandemic, with many operators running at a loss. The directors who disagreed on renewing the business license are simply not optimistic about the overall environment of the catering industry.
As displayed on the Din Tai Fung official website, there are 31 branches in mainland China. Aside from the 14 branches set to close by the end of October, the remaining branches are as follows: 8 in Shanghai, 2 in Guangzhou, and 1 each in Hangzhou, Ningbo, Wuxi, Suzhou, Shenzhen, Nanjing, and Jiaxing.