United Daily News (UDN), one of the primary Taiwanese news groups, recently reported on statistics showing that nearly 3 million Chinese restaurants closed in 2024, setting a new record. Consumers face shrinking incomes and the public’s spending outlook is “pragmatic,” leading to lower demand. Some analysts indicated that the first half of 2025 may see an even higher rate of closures.
The types of restaurants that closed in 2024 belonged to a wide range of categories, including formal dining, tea houses, coffee shops, bakeries, buffets, as well as restaurants specializing in hot pot, desserts, or barbecue. At the industry level, statistics show that the supply of restaurants on the market greatly exceeded demand. Currently, there are 7 restaurants for every 7 people living in China; according to UDN, China has more restaurants per capita than anywhere else in the world.
Market experts pointed out that weak domestic demand, rising costs, and excessive competition are the main reasons leading to such a high number of restaurant closures. Despite the record number of restaurant bankruptcies, however, many are still eager to enter the restaurant business.
Source: UDN, January 22, 2025
https://udn.com/news/story/7333/8506127