Date
16 October 2017

Xiangeqing cuts restaurant business as losses bite, paper says

Upmarket-restaurant operator Beijing Xiangeqing Group Co. Ltd will make more cuts to its catering business as losses mount amid a central government crackdown on conspicuous consumption by party officials, the China Securities Journal reported Friday, citing the company. The company shut five restaurant branches between August and November last year, taking the total closures in 2013 to more than 10, it said. Xiangeqing will also downsize its Beijing Xidan outlet by one-quarter to save on rent. The company expects to post a loss of up to 580 million yuan (US$95.08 million) in 2013, going into the red from a 109 million yuan net profit in 2012, it said. To boost earnings, Xiangeqing will step up investment in environmental protection and appoint a head of an investment fund as its vice president, the paper said.

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