BUSINESS Iconic Peking roast duck chain starved of revenue during epidemic

BUSINESS

Iconic Peking roast duck chain starved of revenue during epidemic

Global Times

07:25, October 28, 2020

Chinese restaurant chain Quanjude (Photo: VCG)

Chinese 156-year-old restaurant chain Quanjude, known for its trademark Peking roast duck, lost 202 million yuan ($30.12 million) in the first three quarters, almost equal to the net profits it earned over the past three years.

From January to September, the restaurant chain has earned the revenue of 516 million yuan, down 56.71 percent year-on-year, its latest earning results show.

Though third quarter losses declined, the revenue was down 53.08 percent year-on-year.

The company said the coronavirus took a huge bite out of its revenue, as it served far fewer customers and even a sharp decline in the sale of products such as its ready-to-eat roast duck.

Quanjude's catering business declined 64.17 percent in the first half of the year, compared to 2019.

Over the past three years, Quanjude's share price dropped from a high of 23.5 yuan to 10.17 yuan, according to media reports.

To boost revenues, the restaurant joined online delivery platforms and began selling its products through livestreaming on social media this year.

During the first three quarters of the year, national statistics show catering revenue was 2.52 trillion yuan, down 23.9 percent year-on-year, according to official data.

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