China's Restaurant Industry Faces Crisis Amid Deflation

Reported about 19 hours ago

China's restaurant industry is experiencing a crisis driven by a deflation-hit economy, leading to increased closures and intense price competition. Many new establishments, struggling under high rents and lower consumer spending, are unable to survive, with the estimated average lifespan of a restaurant in major cities dropping to just over a year. Analysts indicate that cut-throat pricing and reduced profit margins are becoming the norm, ultimately threatening food quality as operators cut costs to stay in business.

Source: YAHOO

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