Since the beginning of this year, several so-called &#34;ceiling&#34; level Western restaurants have closed down one after another, even Michelin-starred restaurants could not withstand the pressure.
For a while, discussions about the decline of high-end Western dining were rampant, &#34;With fewer middle-class consumers and a downgrade in consumption, Fine Dining naturally faces challenges,&#34; &#34;The charm of high-end Western dining has faded, the so-called additional service value is far from justifying the high premium&#34; ... In these voices, the business of high-end Western dining can be said to have plummeted, losing its former glory.
Is high-end Western dining really failing?
<ol>
<li>Top-tier establishments closing down one after another, the high-end Western dining market is a bit cold</li>
</ol>
After spending 2880 yuan on a steak dinner for two, Carol finally made up her mind not to eat high-end Western food for a while.
&#34;Except for the ambiance, many aspects of the restaurant are unsatisfactory. Especially the service is inadequate, dishes are not served or cleared in a timely manner, and the waitstaff don't even know how long the steak has been aged, yet their attitude is arrogant.&#34;
Carol is a loyal Western food enthusiast. Due to her work, she visits various cities nationwide to taste delicacies almost every month. Recently, she posted on social media that many high-end Western restaurants are just superficial, and after being mistreated multiple times, she has truly lost interest in Western dining.
In the comments section of her post, her voice received many responses. Some netizens mentioned that the quality of Western restaurants' dishes is becoming more and more perfunctory; others brought up the issue of prices, believing that it is not worth spending a high price for a meal.
Some professionals in the Western dining industry have also felt the shift in customers' attitudes towards Western dining.
Wang Bin is the executive chef of the Michelin-starred restaurant The Georg and the first Chinese head chef in the global Michelin-starred Western dining scene. Over the years, he has witnessed and personally experienced the ups and downs of the fine dining industry.
&#34;For most of 2023, The Georg was 'relocating,' so we didn't have a direct sense of the changes in the external environment. In October 2023, when the restaurant reopened, it became popular for a while, with many people coming to dine and take photos, but by January 2024, we could feel a decrease in the frequency of customers visiting the restaurant,&#34; Wang Bin told Red Meal Network.
In his view, the market for high-end Western dining was generally good before 2019. At that time, people were willing to spend relatively high prices to enjoy more exquisite cuisine and more meticulous service. However, this year, many customers no longer accept such high prices.
Xiao Gang, the person in charge of a high-end Western restaurant, also expressed similar feelings to Red Meal Network. He admitted that compared to the past, the repeat purchase rate of many regular customers at the store has significantly decreased. Reflected in the operating data, the total revenue of the restaurant in the first half of the year has dropped by nearly 30% compared to the same period last year. &#34;Except for some special holidays like Valentine's Day, the restaurant is basically not fully booked in advance,&#34; the person in charge said.
<img src="https://imageproxy.pbkrs.com/https://img.huxiucdn.com/article/content/202407/10/204617336197.png/query-aW1hZ2VWaWV3Mi8yL3cvMTAwMC9mb3JtYXQvcG5nL2ludGVybGFjZS8xL3EvODU?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.huxiucdn.com/article/content/202407/10/204617336197.png/query-aW1hZ2VWaWV3Mi8yL3cvMTAwMC9mb3JtYXQvcG5nL2ludGVybGFjZS8xL3EvODU"/>
△The Georg; Image Source: Provided by the interviewee
Renowned Western cuisine master Hou Decheng has been in the industry for over 40 years and is known as the &#34;Godfather of Western Cuisine&#34; in the Beijing catering industry. He told Red Catering Network that since the second half of last year, high-end Western restaurants have encountered many difficulties. &#34;There are fewer reservations, and some Western restaurants have been forced to close or leave. Now investors and restaurant owners are more cautious about entering the high-end Western cuisine market.&#34;
In the first half of this year, there have been many cases of high-end Western restaurants closing across the country.
For example, the restaurant Opera BOMBANA, known for its &#34;top Italian cuisine in Beijing&#34; with an average consumption of over 1200 yuan per person, which was once the &#34;private dining room&#34; for many celebrities, announced its closure in mid-April. The &#34;landlord&#34; of this restaurant, the Chaoyang Joy City Shopping Center, also announced that Opera BOMBANA had failed to pay rent and other related fees.
Almost at the same time, the Beijing Michelin-starred restaurant TIAGO HOME KITCHEN also suddenly closed. Located in the Indigo Mall, the restaurant was considered to have seriously breached the contract and was sued by the mall for closing without authorization.
In addition, in the past two months, high-end restaurants or brands that were once very popular, such as ChúMODERN CUISINE and KOR Shanghai, have been reported to have suspended operations or closed down.
II. Why has high-end Western cuisine fallen out of favor?
Why has high-end Western cuisine suddenly fallen out of favor this year?
Every restaurant has its own difficulties, and the reasons for each restaurant's closure are different. But overall, it cannot be separated from the following three main factors.
On the one hand, people's consumption habits have changed. The trend of consumption downgrading is spreading, and the mainstream customer base of high-end Western cuisine has become more cautious.
&#34;With the economic downturn, people are becoming more rational in their consumption. As the main consumer group of Western cuisine, the crisis awareness of the middle and high-end customer group has become stronger, and expenses have become more cautious,&#34; said Yue Biao, executive chef of the Michelin-starred restaurant S Kitchen in Chengdu and Affinité in Shenzhen, to Red Catering Network.
Wang Bin also stated that changes in the external environment are the main reason why many high-end Western restaurants are struggling to survive. Consumers are more rational than before, more sensitive to value, and some high-priced and low-quality brands have therefore been voted against.
&#34;In the past, some internet-famous restaurants captivated people with exaggerated food presentation and scene design. But now, customers pay more attention to the value on the plate and the overall dining experience,&#34; Wang Bin said.
On the other hand, with a sharp decline in restaurant traffic, the originally high opening and operating costs have not decreased, putting greater pressure on operators.
&#34;Compared to mass catering, high-end Western restaurants are often located in higher-rent core business districts. Unlike some chain restaurants that can introduce central kitchens, prefabricated cold chains, and smart equipment, the production of high-end Western cuisine is often completed by famous chefs and their teams, with higher human resource costs,&#34; Hou Decheng admitted.
Xiao Gang also told Red Catering Network that the higher the level of the restaurant, the higher the requirements for employees, which will inevitably lead to higher wages. For example, the waiters at his restaurant not only need to be proficient in English but also need to undergo training and assessment on food and wine, with a monthly salary ranging from 15-18k, while the sommelier's monthly salary can reach 20k, and some chefs' salaries are even higher
Overall, the monthly average labor cost of the restaurant is as high as 400,000 RMB.
In fact, the total investment in high-end restaurants is beyond the reach of ordinary restaurants. The total investment in some high-end Western restaurants often reaches millions. &#34;Not only rent and labor costs, high-end restaurants also put a lot of effort into interior design. Some restaurants spend millions on Steinway pianos placed at the entrance,&#34; Xiao Gang said.
Furthermore, the fierce competition in the high-end catering market is also one of the reasons for the intensification of reshuffling in the high-end Western restaurant sector.
Taking Shanghai as an example, Red Catering Network learned that since the second half of 2022, investors have been opening stores in clusters in the area. Some even spent a lot of money to open several high-end dining establishments with an average spending per person of over 1,000 RMB.
Currently, in some key commercial areas in Shanghai, high-end Western restaurants are everywhere. According to incomplete statistics from Red Catering Network, Dianping shows that in just the Bund area alone, there are 5 black pearl Western restaurants including Ultraviolet by Paul Pairet, 8½ Otto e Mezzo BOMBANA, Jean Georges, Ruth's Chris Steak House, Mr&amp;Mrs Bund by Paul Pairet, with over 30 Western restaurants with an average consumption of over 300 RMB per person.
However, among the vast array of high-end Western restaurants, many operators and managers lack experience.
Yue Biao observed that for a long time, many post-90s young people and career changers have been influenced by some food programs, documentaries, or movies, or have a strong interest in food and art, or have returned from studying abroad. They enthusiastically join this industry.
&#34;Indeed, the entry of some new practitioners brings fresh blood and vitality to the industry. Some of their production methods and business concepts are worth learning and emulating. However, some managers may have only briefly participated in learning or work, without undergoing long-term polishing and settling. In terms of store operation and management, they lack sufficient experience,&#34; Yue Biao lamented.
This has led to repeated criticisms of some high-end Western restaurants.
Tina, who works at a Sino-foreign joint venture investment bank, used to be a frequent customer of high-end Western restaurants. But this year, she has also reduced the frequency of dining at Western restaurants. She told Red Catering Network that the more high-end Western food she eats, the more she realizes that many restaurants' dishes tend to be similar.
&#34;Goose liver, white truffles, black abalone, king crab, wagyu beef, basically these things combined randomly become the so-called Fine Dining, without feeling the chef's intentions at all, but like mass-produced goods on a factory assembly line, devoid of emotional value.&#34;
Moreover, the competitors of high-end Western restaurants are not just their &#34;peers&#34;.
&#34;The competition in the catering industry is fierce, new forms of catering emerge like mushrooms after the rain, diverting the customer base of high-end Western restaurants. For example, high-end Chinese dining has been continuously exploring and innovating in the past decade, gaining more market and customer recognition,&#34; Beijing Bulgari Restaurant's Executive Chef Liang Chao told Red Catering Network.
As he mentioned, more and more exquisite and high-end Chinese restaurants have entered people's sight and made it to the Michelin list. Among them, the outstanding New Rongji is known as the &#34;Michelin Harvester&#34;, while restaurants like Chaoshangchao, Taianmen, and Jingzhaoyin have also received Michelin three stars
III. Halo Fades, Can High-End Western Restaurants Save Themselves by &#34;Descending to Earth&#34;?
In the eyes of many practitioners, the reshuffle of high-end Western restaurants is inevitable. In addition to external influences, there have been some changes in the high-end Western restaurant track - the era of relying solely on foreign celebrity chefs, awards, and luxurious decorations to create high-end Western restaurants is over.
As the halo fades, high-end Western restaurants are collectively &#34;descending to earth&#34;.
Li Cheng, the founder of Gentle L French Restaurant in Shenzhen, said that overseas celebrity chefs had a strong endorsement effect in the early stages, helping to quickly open up the Chinese market, but also had many risks and drawbacks.
<img src="https://imageproxy.pbkrs.com/https://img.huxiucdn.com/article/content/202407/10/204624808017.jpg/query-aW1hZ2VWaWV3Mi8yL3cvMTAwMC9mb3JtYXQvanBnL2ludGVybGFjZS8xL3EvODU?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://img.huxiucdn.com/article/content/202407/10/204624808017.jpg/query-aW1hZ2VWaWV3Mi8yL3cvMTAwMC9mb3JtYXQvanBnL2ludGVybGFjZS8xL3EvODU"/>
△Gentle L; Image Source: Provided by the interviewee
&#34;The higher the popularity, the more cherished the feathers and halo, and often insisting on the foreign practices can lead to a mismatch. The Chinese consumer market is changing rapidly. If Western restaurant brands are still led by foreigners, whether they can quickly adjust and integrate rapidly is a huge challenge,&#34; Li Cheng said.
In fact, many restaurants have become more &#34;localized&#34; in their products.
In addition to more localized products, some high-end Western restaurants have also extended their operating hours and adjusted their price ranges. In Liang Chao's view, high-end Western restaurants can achieve diversified operations and increase sources of income by holding events, launching afternoon tea, and so on.
This year, The Georg started serving lunch. Different from the dinner sets priced at 1680 yuan and 1980 yuan, the lunch menu offers a la carte options, providing relatively homely dishes.
In April this year, 8½Otto e Mezzo BOMBANA restaurant also started operating on Sundays, while in previous years, the restaurant's operating hours were from Monday to Saturday, with Sundays off.
Furthermore, Le Comptoir de Pierre Gagnaire, a Michelin one-star restaurant with an average consumption of over 1600 yuan, introduced a single-person three-course business lunch for less than 500 yuan; Jean Georges, also a Michelin one-star restaurant, launched a single-person set menu for less than 400 yuan.
With the arrival of the &#34;fourth consumption era,&#34; people's consumption has become more cautious, but it does not mean that people are not consuming. When industry reshuffling is inevitable, high-end Western restaurants that have been &#34;de-charmed&#34; need to return to the essence of catering operations, improve products, services, and operations to enhance the core competitiveness of the restaurant. As Hou Decheng said, when the industry is in a downturn, operators need to focus on refining products and services

MGDDY

The high-end Western cuisine market is experiencing a decline, with many restaurants closing down, including Michelin-starred restaurants facing pressure. Consumers' attitudes towards high-end Western cuisine have changed, believing that the quality of service has declined and the value for money is not high. A Michelin one-star restaurant chef mentioned that this year, the frequency of guests visiting the restaurant has decreased. This indicates that the high-end Western cuisine market is facing challenges

Michelin can't hold on either, why has high-end Western cuisine fallen out of favor?