Taiwanese dumpling chain Din Tai Fung will shutter more than a dozen of its stores in mainland China, a market experiencing a fierce price war among restaurants trying to attract increasingly frugal consumers. The closures come as part of a broader trend of weakening consumer spending across the region.
Beijing Hengtai Feng Catering Co., which operates Din Tai Fung in China, has announced that 14 out of its more than 30 outlets will be closed by October 31, 2024. The affected locations include stores in Beijing, Tianjin, Qingdao, Xi’an, and Xiamen. The decision follows the expiration of the company’s 20-year business licence and a failure to reach an agreement on its renewal.
Established in 2004, Beijing Din Tai Fung has grown from a single restaurant into a well-regarded culinary brand with a strong presence in several cities. Despite its success, the company is facing challenges due to the intense competition and shifting consumer spending patterns.
The company expressed regret over the inconvenience caused to its loyal customers and assured that it will handle employee severance and placement issues appropriately. Din Tai Fung also promised to protect the rights of stored value card holders and collaborate with partners to manage the transition smoothly.
In its statement, Din Tai Fung extended thanks to customers, employees, and partners for their support and understanding. The company remains optimistic about future opportunities in the mainland market and aims to explore new ventures in the catering industry.
