Sluggish consumer spending, rising operational costs and changing dining habits have forced some operators to shut their doors.<\/p>\n
Imperial Palace Restaurant, which opened in Mt Wellington in 2009, was placed into liquidation on June 4.<\/p>\n
Dragonboat Restaurant was placed into liquidation in July. Photo \/ RNZ, Yiting Lin<\/p>\n
One month later, Dragonboat Restaurant in central Auckland was also placed in liquidation after operating for 31 years.<\/p>\n
By the end of August, renowned yum cha operator Sun World Seafood Restaurant in Newmarket had met the same fate.<\/p>\n
According to the liquidators\u2019 report, the restaurant suffered a severe cashflow deficit<\/a> during the Covid-19 pandemic and had been unable to recover financially.<\/p>\n Despite efforts to stabilise operations, the business continued to be affected by the broader economic downturn and sustained increases in key operating costs.<\/p>\n Ocean Yu, director of popular Cantonese outlet Star Cafe Seafood Restaurant, said he had made the painful decision to close his restaurant on the North Shore on September 30 after six years of business.<\/p>\n Yu said the end of the lease and a sharp decline in customers from 2023 were key reasons behind the closure.<\/p>\n He said customers had begun dining out less frequently and become more selective about where they spent their money.<\/p>\n \u201cNow people only go out for special occasions, like birthdays or wedding anniversaries,\u201d Yu said. \u201cMost of the time, household spending has tightened significantly.\u201d<\/p>\n Yu said an increasingly competitive market had also contributed to the closure of many Chinese eateries specialising in yum cha.<\/p>\n \u201cThere\u2019s been a wave of Chinese restaurants opening on Auckland\u2019s North Shore,\u201d he said. \u201cThere used to be just four or five yum cha places here \u2013 now there are nearly 10. However, the customer base is limited.\u201d<\/p>\n He said shifting migrant demographics posed another challenge.<\/p>\n Most of his customers were typically older than 35 years old, mainly families and senior diners, he said.<\/p>\n However, that core audience had slowly shrunk as younger migrants arrived, he said.<\/p>\n \u201cYum cha restaurants will still be around,\u201d he said. \u201cBut the shift in customer age could lead to fewer of them,\u201d he said.<\/p>\n \u201cOlder diners used to go for yum cha every week, but the younger generation doesn\u2019t see it that way.<\/p>\n \u201cI\u2019ve noticed the trend. That\u2019s why I have decided not to invest any more money in it.\u201d<\/p>\n Yu said while he planned to open a new Chinese restaurant, he ruled out starting another yum cha establishment.<\/p>\n Slashing prices<\/p>\n Zhuolun He, owner of Golden Rooster Chinese Restaurant in Auckland\u2019s Rosedale, is originally from China\u2019s Guangdong province and has a deep connection to his hometown cuisine, one of the main reasons he continues to serve Cantonese dim sum to his customers.<\/p>\n \u201cYum cha is more than just a meal \u2013 it\u2019s a tradition and part of daily life,\u201d he said.<\/p>\n \u201cMany seniors, community groups and families like to come in the morning for dim sum and tea, forming a regular crowd.<\/p>\n \u201cWhen the economy is good, I see these regulars almost every day. We would chat and catch up. \u2026 That\u2019s how social bonds are built.\u201d<\/p>\n Although his customers still enjoyed the food, he noticed a significant drop in foot traffic this year.<\/p>\n \u201cTwo years ago, most of my customers were middle-income professionals – they\u2019re all gone now,\u201d he said.<\/p>\nOcean Yu found it hard to close Star Cafe Seafood Restaurant. Photo \/ RNZ, Yiting Lin<\/p>\n
Star Cafe Seafood Restaurant closed its doors in September. Photo \/ RNZ, Yiting Lin<\/p>\n