Core Insights - The traditional belief that "scattered tables attract customers, while private rooms generate profits" in the restaurant industry is failing, leading to operational difficulties for many establishments [3][4][13]. Group 1: Declining Business Performance - Many restaurants are experiencing a significant drop in business, with daily revenues plummeting by as much as 90% in some cases [4][6][12]. - A restaurant in Anhui that previously maintained daily revenues between 7,000 to 10,000 yuan has seen its earnings fall to between 800 and 2,000 yuan [6]. - In Chengdu, a restaurant reported a 20% year-on-year decline in overall revenue, with many local establishments experiencing a drop of over 30% [7]. Group 2: Changing Market Dynamics - The demand for private rooms has decreased, influenced by factors such as rising vacancy rates in office buildings and a slowdown in corporate expansion, which has reduced the need for business banquets [17][21]. - Vacancy rates for Grade A office buildings in Guangzhou and Shenzhen have been on the rise since Q3 2021, with Shenzhen's rate expected to reach 27.8% by 2024 [18]. - Consumer behavior is shifting, with many opting for lower-priced menu items, leading to a decrease in high-end seafood orders that were once standard in private room dining [22]. Group 3: Adaptation Strategies - In response to declining business, some restaurants are reducing staff and salaries to cut costs [10][11]. - Many establishments are abandoning the reliance on traditional business receptions and are diversifying their offerings to include events like birthday parties and afternoon teas, which are becoming significant revenue sources [29][30]. - A restaurant in Beijing successfully hosted numerous wedding and birthday events, maintaining stable income despite a decrease in average spending per customer [32][33]. Group 4: Future Outlook - The shift from business-oriented dining to family-oriented consumption is becoming a driving force in the restaurant industry, enhancing customer flow and table turnover rates [35][36]. - Despite a decline in per capita spending in private rooms, the overall revenue and profit from these rooms still exceed that of scattered tables [37].