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Chinese restaurants in Australia are closing one after another, indicating a worrying economic situation.

Recently, several long-established Chinese restaurants in Melbourne's Chinatown have announced successive closures, sparking nostalgia and lament within the Chinese community.


Amidst the economic downturn, many owners express their frustration, stating, "Small businesses can't see any light now."

Preferring to take up employment rather than continue operating, they lament, "Every day is a loss, and we don't want to live like this anymore."


Beijing Roast Duck, located to the left of Melbourne's Chinatown archway, had been operating for over 20 years before recently announcing its closure.


Similarly, Ming Chang Cantonese Restaurant, just 50 meters away, also announced closure recently.

Many people vividly remember these two old establishments:


some recall tasting Chinese food for the first time in Australia 18 years ago at these restaurants, while others fondly reminisce about Ming Chang's roasted duck noodles and duck fried rice, lamenting that these flavors can never be experienced again.


Mr. Jin, from Melbourne's Chinese community, noted in a blog post that Beijing Roast Duck's sign complemented the Chinatown archway.

Whenever someone took a picture of the archway, the restaurant's sign would always appear in the frame.


However, now this sign has turned black, and the shop has become deserted.


Mr. Jin manages businesses in Chinatown and other Chinese areas. Over the past decade, he has been closely aware of business changes here, including restaurants.

He feels deeply nostalgic about the closure of several old Chinese restaurants:


"The changes in the catering industry are so great. Those old shops that have been in business for more than 15 years, the owners are very shrewd, but the inevitable changes of the times!"


Another old Cantonese restaurant, "Feng Yi Zhou Shi," located just a street away from Beijing Roast Duck and Ming Chang Cantonese Restaurant, also announced its closure on the 7th of next month.


This restaurant is famous for its authentic Shunde cuisine, which for many customers, evokes the taste of home with every bite.

The news of its impending closure has also led to widespread regret and lament among diners, with many Cantonese people shedding tears because they feel "the taste of over a decade is disappearing," and there are "fewer and fewer good Chinese restaurants."


Darren Li, a Shunde Guangdong native who has also run restaurants and is a professional food critic, believes that the catering industry is risky, with low returns and difficult profits.


Chinatown has expensive land prices and fierce competition.


However, with the dual decline in foot traffic and purchasing power, adjustments can only be made by the market itself.


"The market rule is that one chicken dies, and another one cries.

We should cherish everything in front of us!"


In addition to the already announced closures, many restaurants in Melbourne's Chinatown have long since changed hands.


Mr. Jin pointed out, "In the past few years, business in Chinatown has been tossed around.


Forty percent of storefront businesses have changed, while nearly 60% of non-street-facing shops have switched to new business models."


He continued, saying, "It's not just the catering industry;


almost all industries have been affected because they share the same customer base: tourists, local residents, and office workers."

He revealed that his own business has also been affected. As a service industry, turnover in our Chinatown shops is only 60% of what it was before the epidemic, because the customer base has significantly decreased.


Australia's economic situation remains poor, with high interest rates and rising prices forcing most residents to budget carefully.


Therefore, disposable income for local residents and office workers has significantly decreased.


Mr. Jin believes that with the arrival of remote work, we will never go back to the past.


The vacancy rate of CBD office buildings has also had a negative impact on consumption in Chinatown and surrounding areas.


Therefore, unless interest rates drop and prices and oil prices return to reasonable levels, Chinatown's business prospects are unlikely to improve over the next two years.


Not only Chinatown but also many Chinese restaurants across Australia face severe challenges.


Many owners choose to sell their businesses at low prices or switch to working as construction workers.


Leo, a former coffee shop owner, although hardworking in his job, believes it guarantees income. "I lose money every day when I open the store, and I don't want to bear that pressure anymore."


Another coffee shop owner, Mr. Zhang, also sold his six-year-old business, admitting, "It's a day of loss, so I sold it." He revealed that the transfer price was not even one-fifth of his investment.


CreditorWatch, Australia's credit reporting company, said the food service industry was one of the most vulnerable, with a bankruptcy rate of up to 7.54%.


They fear the "bankruptcy tsunami" has already begun to sweep across Australia. By May of this year, the corporate bankruptcy rate had increased by 38% compared to the same period last year, reaching the highest level since 2015.


Patrick Coghlan, CEO of the agency, said, "Unfortunately, the catering industry is unlikely to improve in the short term unless we see a significant increase in consumer spending."


The catering industry in Melbourne's Chinatown and surrounding areas faces unprecedented challenges.


The economic winter has made it difficult for many traditional Chinese restaurants to survive, a trend that seems to be reflected across Australia.

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