Michelin-starred Taiwanese restaurant closes stores in China amid economic slowdown

Taipei [Taiwan], August 29 (ANI): Din Tai Fung, a renowned Michelin-starred Taiwanese restaurant popular for its dumplings, is shuttering over a dozen locations in China. This move comes as the country's economy, the world's second-largest, experiences a slowdown, according to a report by Voice of America.
Beijing Hengtai Feng Catering Company, the company's subsidiary on Monday announced that it plans to close all its 14 restaurants in northern China, including one in Xiamen.
The brand's parent company in Taipei said that its 18 remaining restaurants across Eastern China, run by another Shanghai-based partner, will remain in normal operation, according to VOA.
In a statement, Din Tai Fung expressed apologies for the inconvenience and disappointment this closure may cause to their customers. "We deeply apologize for the inconvenience and disappointment this decision may cause to our many loyal Din Tai Fung customers," the subsidiary said on the Chinese social media app WeChat. It further said that the employees' severance and placement would be handled properly.
Notably, some 800 employees will be affected by the decision.
Amid the shutdown, a Taiwan-based economist asserted that the consumption power in China is weak. Darson Chiu, a Taiwan-based economist and director general of the Confederation of Asia-Pacific Chambers of Commerce and Industry said, "The current situation in China is that while there is still traffic, the consumption power is weak, including in the restaurant service industry. A high-end brand like Din Tai Fung may not be able to meet the consumers' needs as they downgrade their consumption in China's current economic environment," according to VOA.
The company has its stores globally, with ones in the United States, Japan, South Korea, Singapore, China, Hong Kong, Indonesia, Malaysia, Australia, Europe, and Thailand. The Hong Kong branch has been awarded a Michelin Star five times.
In June and July, Din Tai Fung had opened new branches in California and New York. (ANI)