The impact of the pandemic on Chinese consumption has been laid bare in the results of a leading restaurant chain serving seafood across the country.
Jiumaojiu International Holdings reported a 6.1 percent drop in revenue year-on-year for the first six months of the year to CNY 1.89 billion (USD 263.4 million, EUR 271.3 million). Profit for the period decreased by 69.5 percent to CNY 62.5 million (USD 8.7 million, EUR 9 million).
The company, which operates an array of restaurant concepts, including a popular hotpot chain that prominently features freshwater seafood, recorded an estimated loss of CNY 590.9 million (USD 82.3 million, EUR 84.8 million) in revenue resulting from the temporary suspension of restaurant operations or dine-in services in the first half of 2022 due to COVID-19 restrictions.
“Due to the regional outbreaks of COVID-19 and lockdowns in several provinces … especially Guangdong, Shanghai, Beijing, and Jiangsu, over 60 percent of our restaurants, including restaurants located in tier-one and tier-two cities, experienced temporary suspension or restriction of dine-in services for varying duration for an average of approximately 32 days in the first half of 2022,” the company said.
Despite its struggles, the group still managed to increase the number of restaurants it operates in China to 475 self-operated and franchised restaurants, compared to 419 in the H1 2021. In H1 2022, it opened 37 new self-run restaurants but closed eight.
Revenues from the company’s Jiu Mao Jiu restaurants and Tai Er restaurant chain decreased by 17.9 percent and 7.4 percent, respectively, as an impact of the pandemic, according to the company.
“Moreover, the seat turnover rate of Tai Er restaurants also decreased in the first half of 2022, primarily due to the decrease in customer traffic as a result of the pandemic,” it said.
Revenue from the firm’s delivery business increased by 17.8 percent to CNY 356.2 million (USD 49.7 million, EUR 51.1 million) for the first half of 2022.
Photo courtesy of Jiumaojiu International Holdings
