Core Insights - The high-end dining industry is experiencing a significant downturn, with a dramatic drop in reservations and customer satisfaction [1][5][8] - The number of restaurants with a per capita spending of over 1,000 yuan is expected to halve by 2025 compared to 2022, indicating a severe contraction in the market [8][19] - Consumer behavior is shifting towards value for money, with a notable decline in demand for high-end dining experiences [8][19] Industry Overview - High-end restaurants that once required three months of advance booking are now struggling with occupancy rates below 50% on weekdays [1][5] - The average spending at high-end restaurants has decreased significantly, with promotions like "buy one get one free" becoming common [1][5] - The overall number of high-end restaurants in major cities like Shanghai and Beijing has decreased by over 40% since 2022 [5][8] Financial Performance - Major players in the industry, such as Haidilao, are facing declining average spending, with figures dropping from 99.1 yuan in 2023 to 97.5 yuan in 2024 [10][12] - Haidilao's new high-end "Zhenxuan" store has a per capita spending of 683 yuan, significantly higher than its traditional outlets, but faces skepticism from consumers [12][15] - The financial reports of other companies like Banu Hotpot and Xiaobuxiang indicate a downward trend in revenue and profitability, with Banu's average spending dropping from 147 yuan in 2022 to 142 yuan in 2024 [10][12] Market Dynamics - The high-end dining sector is under pressure due to rising costs, with rent, labor, and ingredients accounting for 70%-75% of total expenses [5][6] - The average lifespan of high-end restaurants has decreased sharply, with new establishments now averaging only 11 months of operation [19] - Competition is intensifying as established brands explore high-end offerings, while innovative dining experiences are attracting consumers away from traditional high-end restaurants [17][19] Consumer Behavior - There is a marked shift in consumer preferences, with business dinners and celebrations moving from extravagant meals to simpler, more affordable options [8][19] - The perception of high-end dining is changing, with many consumers questioning the value of expensive meals that do not meet expectations [15][19] - The trend towards practical consumption is evident, as consumers increasingly prioritize quality and affordability over luxury dining experiences [19]