Business is difficult, 5-star hotel sells 350,000 VND boxed meals to survive

(Dan Tri) - In the context of many accommodation establishments facing difficulties in business, many establishments in China are forced to change direction to adapt to the general situation, such as selling affordable street food.

Dining at luxury hotels often includes high-end banquets and formal entertainment, with elaborate décor and elaborate dishes. This is often considered worthy of the high price tag.

For many consumers in China, however, the trend is slowly changing.

In July, the five-star Zhongwu Hotel in Changzhou, Jiangsu Province – ranked second among the top 10 luxury hotels in the city by Trip.com – surprised many when it launched a “sidewalk cart” style food service. The cheap meals are prepared by the hotel’s own kitchen staff.

“First of all, you have to solve the problem of survival. If you can't even take care of yourself, what else can you talk about?” said Mr. Tran Dung Hoa, manager of the Zhongwu Hotel.

A 5-star hotel chef cooks and sells cheap meals on the sidewalk at the highest price of about 350,000 VND/meal (Photo: News).

The decision reflects a lackluster business environment in China's luxury hotel industry as consumers become more cautious about spending due to concerns about a slowing economy .

Priced between 20 and 100 yuan (VND75,000 - VND350,000), these meals are a far cry from the thousands of yuan that a traditional banquet can cost. The menu includes popular night market dishes such as stews, spicy lobster, dim sum and many other specialties.

This is part of the hotel's efforts to overcome growing challenges in the industry.

According to Hotel House, a hotel data provider in China, the average room rate in China in 2024 is 118 yuan (430,000 VND), down 9.7% compared to the same period last year. The room occupancy rate also fell to 58.8%, a decrease of 2.5%.

Food and beverage, another pillar of hotel revenue, is also in decline. Data from the Beijing Hotay Grand Ceremony shows that in 2024, high-end full-service hotels will earn an average of 10.2 million yuan ($1.6 million) from food and beverage, down from 12.37 million in 2023 and down 38.3% from 2019.

Despite government efforts to stimulate domestic consumption, uncertainty about the future and falling wages have led consumers to prioritize savings over luxury.

In megacities like Shanghai and Beijing, the fine dining industry has been in a steep decline over the past few years, with many upscale restaurants closing as consumers tighten their spending.

For these reasons, Zhongwu Hotel’s sidewalk sales initiative quickly became a “fever” this month. After just 7 days, the hotel set up 20 WeChat groups with up to 500 members each to update the menu and business hours.

Close-up of sidewalk meals sold at a 5-star hotel. Photo: News).

A behind-the-scenes video shows the executive chef – who has won a Black Pearl award (China's equivalent of the Michelin Guide) – cooking fried rice that is then sold for just 28 yuan (VND100,000).

Fans quickly pre-ordered the dish, and it typically sold out within five minutes. Every afternoon, the hotel gave out 100 on-site purchase coupons.

“If you really want to eat, you should line up before 3pm,” said one person in the WeChat group. Lunch boxes start selling from 4:30pm every day.

A screenshot shared in a WeChat group shows that as many as 33 hotels in Changzhou have also launched sidewalk sales, including luxury brands such as Wenpu Hotel, Hilton and Fudu Qingfeng.

All of them have attracted a lot of social media interaction thanks to their cheap food service. However, the number of traditional banquet bookings at Zhongwu Hotel has decreased by 65.7% compared to the same period last year.

This is how 5-star restaurants maintain operations amid difficult times (Photo: News).

“It is essential to maintain normal operating costs and pay employees. If you cannot do that, the business will be in trouble and have to lay off workers,” he said.

Mr. Dun Zhengnan, director of the culinary department of Tiandilicheng Hotel in Zhengzhou city, said that street stalls are both cost-effective and create a media effect.

“The sight of chefs from 5-star hotels cooking on the street easily attracts the curiosity of passersby and spreads on social networks. This is like a low-cost but effective form of real-life marketing, attracting potential customers," he said.

Source: https://dantri.com.vn/du-lich/kinh-doanh-kho-khach-san-5-sao-ban-suat-com-hop-350000-dong-de-sinh-ton-20250714151515748.htm