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It's
been a tough month for Shanghai's F&B industry, with several iconic
brands and groups -- some that have shaped the city's dining scene for
decades -- announcing their closures. From pioneering food delivery
services to long-standing restaurants and bars, here's what's changing
in the city's culinary landscape.
Sherpa's
Perhaps not a huge surprise, food-delivery service Sherpa's has quietly informed its restaurant partners of its closure, just a month after shutting down their Beijing app.
A pioneer in food delivery in China, Sherpa's launched in 2002 -- well before Ele.me and Meituan became household names. The origin story is almost urban legend: Sherpa's founder Mark Secchia (search for 'Mark Secchia' on SmSh for our interview with him) was running another business and had his driver pick up lunch from nearby restaurants. That simple idea grew into a business, which was eventually sold to the Yam! group, and then to another group.
But the market for an English-language food delivery app in Shanghai has clearly shrunk, making it impossible to compete with the two dominant players.
Camel Group
Camel Group was once a powerhouse in Shanghai's western F&B scene. It started in 2010 with the opening of Camel Bar on Fenyang Lu and grew to operate around 10 venues, including a second Camel Bar in Pudong, The Blarney Stone, KIN Urban Thai, the popular Italian spot D.O.C, the short-lived Smokehouse, and healthy food delivery service Saucepan (which they purchased shortly before it folded).
This week, the last of their venues -- El Santo at Found 158, The Bull & Claw on Fenyang Lu, and D.O.C -- have shut their doors.
Simply Thai
For those who've been in Shanghai for 20 years or more, you'll remember a time when the city had maybe 30 western restaurants, all of which could fit on two pages of the That's Shanghai print directory. Back then, you went to Mesa Manifesto for "fancy Western" and Simply Thai for "fancy Asian."
Simply Thai started with a single, stunning location on Dongping Lu and eventually expanded into a chain of 10 or so restaurants. This week, they announced the closure of all their locations.
The F&B business in malls is notoriously tough. The rise of heavily funded food-discount apps in China has added to the challenges. Backed by large investments, these apps compete fiercely for customers by pushing restaurants to offer increasingly steep discounts. While the apps attract diners, they leave restaurants struggling to make a profit, making it even harder for them to survive in such a tough environment.
Ultraviolet
This news is a bit older but still noteworthy: Paul Pairet, co-owner of Shanghai's most iconic restaurant, the three-Michelin-star, 10-seat Ultraviolet, has announced plans to close it sometime in 2025.
In recent years, the cost of a dinner at Ultraviolet rose to an eye-watering 6,000 - 8,000 rmb per person. Unsurprisingly, fewer than 10 people a day were willing to spend that kind of money.
And Also ...
Shanghai's other three-Michelin-star chef, Stefan Stiller, has shuttered his Xintiandi venture, Stiller Xintiandi.
Meanwhile, beloved family-friendly Hongqiao bar Geneva (sister to Abbey Road) has announced it will close at the end of this month.
La Maison, known for its beautiful, spacious, and serene courtyard adjoining a classic three-story colonial house on Jinxian Lu, has also closed.
Barbarian is also struggling with expanding their cozy, rustic-looking Wuding Bar into shopping malls. Their Sinar Mas Plaza one closed this week.
Lovely Jing'an wine bar Crush has closed too. Always a pity to see owner-run restaurants close.
Boduoxinji, a two decade old Cantonese and Chaozhou spot in a small lane way off Baoqing lu, has closed too.
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Want to avoid seeing your restaurant on the next closure list? Reach out to us about advertising opportunities -- because a little exposure might just keep those doors open!
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