N🟁N

China's restaurants race to the bottom in deflation-hit economy

The article from MSN discusses the challenges faced by China's restaurant industry amidst a deflationary economy. Restaurants are engaging in a price war, slashing prices to attract customers as consumer spending decreases due to economic pressures. This race to the bottom is driven by a combination of factors including a slowdown in economic growth, high youth unemployment, and a property market slump, all of which have dampened consumer confidence. The situation is exacerbated by an oversupply of eateries, leading to fierce competition where even small price reductions can make a significant difference. This environment not only affects small vendors but also impacts larger chains, with some offering discounts as steep as 50% to lure diners. The article highlights how this deflationary spiral could potentially lead to a broader economic issue if not addressed, as businesses struggle with profitability and the overall economic recovery remains sluggish.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/companies/china-s-restaurants-race-to-the-bottom-in-deflation-hit-economy/ar-AA1BlrOO ]