Shanghai-based F&B blogger Shen Yiding said he noticed the number of foreign patrons dropped after 2020, when the COVID-19 pandemic hit.
With higher rental costs in Shanghai, the small bistro concept has also become more popular in the city, said Shen.
“The dining places and menus are now cut to size, and scaled to target a smaller group of people. It is partly due to rental cost because in Shanghai, rental makes up a bigger portion of operating cost,” he added.
In the past year, restaurants that went big or catered to the expat market have struggled to fill their tables. Many closed, with other lifestyle businesses that expanded too quickly suffering as well.
For instance, Will’s Fitness was once Shanghai’s largest fitness chain, boasting more than 70 gyms in the city alone at one point.
Now, a majority of them have closed – some shuttered by mall landlords over rental and utility arrears.
BENEFITS FROM ECONOMIC SHIFTS
The foreigner dearth may change as China tries to align its policies for growth, said Lim Han Shen, an associate professor of practice in finance at NYU Shanghai.
“There’s going to be a need for financing, talent, innovation,” he added.
“And from my perspective, having been here in China for the last 18 years, Shanghai is near the top of still attracting talent into China, if not from foreign countries, at least domestically within China.”
