Beijing eateries shutter as delivery apps force unsustainable price wars
In Beijing's Pacific Century Place, most of the 18 restaurants on Food Street have closed or rebranded as delivery platforms drive rents up and margins down.
Food Street, located beneath the Pacific Century Place office towers in central Beijing, has seen a dramatic decline over the past year, with only a handful of its original 18 restaurants still operating. One remaining proprietor, who serves spicy minced-pork noodles, cites soaring rent, thin profit margins, and a workforce that now prefers inexpensive delivery to dining in. The competitive landscape shifted sharply after JD.com launched its delivery service in February 2025, prompting a fierce price-cutting battle with Taobao Shangou and Meituan.
The three firms have collectively funded extensive subsidies that have boosted order numbers but left participating restaurants with near-zero margins. Consequently, eight restaurants have closed, two have rebranded, and the overall foot traffic in the dining area has dwindled.
Why it matters
The story shows how aggressive delivery-app subsidies are reshaping China's restaurant sector and threatening traditional dining venues.
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