An anonymous source close to the core Tiago team revealed that the biggest issue for the store was cautious consumer behavior. The high renovation and rental costs of the directly-operated stores pushed up prices which led to a steep decline in customer flow, resulting in gradual losses. They had not recouped their initial investment and later incurred additional losses, totaling about 30 million yuan.
Adding to the regret, both of these decade-old Michelin-recommended restaurants made great efforts to continue operating. They lowered their “fine dining” standards, offered promotional packages, set up bakery stalls, and opened franchises in attempts to save themselves.
Starting last year, Opera opened a delivery channel, frequently participated in Restaurant Week activities, and introduced various discount packages. The customized lunch set for Restaurant Week was priced as low as 398 yuan, including four signature dishes.
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Shanghai and Beijing’s Michelin Eateries Shut Down Overnight
