Bars have been hit hard in mainland China and a new report estimates that about 6,000 bars in the country went out of business during the pandemic year.
Chinese research and consulting firm, Zhiyan, said the country’s number of bars have dropped from 2019’s 692,000 to 635,000 in 2020.
Revenue from the bar industry also declined to RMB 47.82 billion (US$7.4 billion), down from RMB 58.8 billion recorded in 2019, directly impacted by the forced suspension and social distancing measures in the first half of the year due to Covid-19.
In terms of revenue breakdown, the report says roughly 60% comes from alcohol sales, while the rest comes from bar food and other services.
Different from other countries, China imposed strict lockdowns in the months of covid-19 outbreak, which limits local residents’ mobility and business operation hours.
Most bars and restaurants were ordered to close in the depth of pandemic, with little or no subsidy from local governments.
There are signs to be hopeful though.
The country’s economy started to rebound in the second half of 2020 as it successfully contained coronavirus spread.
In the month of December last year, the country’s dining sector registered a 0.4% increase in revenue, according to data released by China Hotels Association.