Top restaurants find new rules hard for them to stomach(2)

Bian Jiang, assistant director of the China Cuisine Association, agreed that rising rents and staff costs have contributed to the pressure on high-end restaurants.

He estimated that, depending on the location, rent at some restaurants may rise 30 to 40 percent this year and the cost of supplies is likely to go up at roughly the same rate.

"Labor costs will probably rise 20 to 30 percent," Bian added.

Making changes

While some exclusive restaurants are opting to close, others are looking for ways to save their bacon.

Xiang E Qing, for example, which is a listed company serving a combination of Cantonese, Hunan and Hubei cuisine, has attempted to transform its image from high-end to family friendly.

"We've been successful so far," said Yue Xiaoyu, a manager at its Yuetan branch in Beijing. "We cancelled the minimum spending limit in the private rooms and now offer favorable prices."

Like many restaurants, she explained, Xiang E Qing also now uses group-buying websites, which offer goods and services at significantly discounted prices based on a minimum number of purchases.

The company posted a turnover of 109 million yuan last year, up from 76 million yuan in 2009. Yet it reported a loss of 68.4 million yuan in the first quarter of 2013.

"I've seen business on the rise again already," Yue said. "The transition from high-end diners to catering to everyone is one way for exclusive restaurants to get themselves out of a bad situation."

China Economic Net, a news website, reported that Quanjude, a brand well known for its roast duck, is for the first time planning a nationwide discount, while a branch in Beijing's Shuangjing area is to start offering a cut-price buffet.

Meanwhile, Jingya Hotel, another high-end venue, is to begin selling steamed stuffed buns and hot pot.

There are also other ways companies adapt, Bian added.

"One is to make full use of the ability to offer meal delivery services to upscale neighborhoods," he suggested. "Another is to make and sell their own brand packaged food products."