Can Budget Bites Save China’s Luxury Dining Scene?

One of China’s most prestigious fine-dining restaurants, Xinrongji, has launched a surprisingly affordable lunch set priced at RMB 288 (about US$40) — a dramatic move in a sector long associated with extravagant business banquets and high-spending elites.

Dubbed the “poor man’s set menu” on social media, the new offering is available on weekday lunchtimes at the group’s Jianguomenwai flagship in Beijing. It includes 10 dishes and three teas, spanning cold starters, dim sum, mains, desserts and drinks. The price includes service charges and requires a minimum of two diners.

It marks the lowest per-head offering in Xinrongji’s 30-year history — and a sign that even China’s most exclusive restaurants are feeling the pressure as the country’s economy slows and consumer habits shift.

Founded in 1995 in Taizhou, Zhejiang province, Xinrongji has built a reputation for refined takes on Jiangsu and Zhejiang cuisine, with Michelin-starred locations across Beijing, Shanghai, Shenzhen, Hong Kong, and Tokyo. Its Beijing Xinyuan South Road branch was the first Chinese restaurant to be awarded three Michelin stars in 2020. 

Known for its elite clientele, Xinrongji typically commands prices of RMB 500 to over RMB 1,000 (US$70–140) per person, according to China’s top restaurant review platform Dianping. The group also runs a stable of upscale sub-brands and was appointed Chinese on-trade distributor for Anseillan when the third wine under Domaines Barons de Rothschild Lafite was released in 2021. The allocation however later was switched to CWS, a leading wine importer included in our China’s Top 100 Wine Importers Report.

But like many in China’s luxury dining sector, Xinrongji is facing a new reality. Economic uncertainty, tightened business entertainment budgets, and changing consumer behavior have led to falling demand for high-ticket meals.

Data from Meituan, which owns Dianping, shows that while restaurants charging under RMB 500 (US$69) per person continue to grow, those in higher price tiers are contracting. In 2024, the number of restaurants charging RMB 500 to RMB 1,000 per head fell 12%, while those above RMB 2,000 saw a 29% drop.

In Shanghai, once a hub for high-end dining, the number of restaurants with an average spend above RMB 500 has halved over the past five years, dropping from over 2,700 to just over 1,300, according to Hongcan, a local F&B research group.

Even mid-tier premium brands have not been spared. Taiwanese dumpling chain Din Tai Fung closed its Ningbo IFC branch on May 28, leaving only 14 locations in mainland China — down from 32 at its peak. Meanwhile, Guangzhou Restaurant Group, a major Cantonese dining chain, reported a 3.3% revenue increase in the first quarter of 2025, but net profit fell nearly 28%.

An executive at a leading wine brand that supplies Xinrongji and focuses on the on-trade channel said, “It’s become fairly common for high-end restaurants to offer budget-friendly set menus. This is largely driven by the broader trend of consumption downgrading.” The company is listed among China’s Top 100 Wine Importers.

“Business entertaining has long been the backbone of high-end dining,” she added. “But with the economy under strain and some companies shutting down, banquet budgets have shrunk — and that’s had a clear impact on wine sales, both in volume and price.”

To adapt, luxury dining brands are experimenting with lower-priced offerings and simplified menus to appeal to a broader customer base. For wine producers and importers that have relied heavily on the fine-dining channel, the shift signals an urgent need to diversify and rethink market strategy for a more value-conscious era.