Economic downturn forces North Korean restaurants to close in China

North Korea's restaurants operating in China have faced significant closures, particularly in Liaoning province. This year, seven out of ten North Korean restaurants in Dandong have ceased operations, predominantly small to medium-sized establishments housing fewer than 15 employees. These closures are attributed to financial troubles, as North Korean trading companies managing these eateries struggle to meet rent costs. Staff and managers have frequently returned to North Korea, leading to an ongoing transition where the management rights of these restaurants are transferred to Chinese businesspeople. However, many continue to exist as North Korean-style restaurants, though with solely Chinese staff. The shutdowns have resulted in a significant loss of clientele from the Chinese market due to inflated prices compared to local alternatives. Regular customers, as well as business people, are finding meals in North Korean restaurants overly expensive. For example, a standard meal for four can cost between 700 to 800 yuan, which is well above the average pricing at regular local eateries. While North Korean restaurants retain some appeal for entertaining clients in private rooms, the common Chinese consumer is increasingly steering clear of these establishments due to their high pricing. Even larger North Korean restaurants, such as Songdowon and Koryo Restaurant in Dandong, are feeling the financial strain despite their deeper institutional support. These venues employ numerous North Korean women who serve not only as waitstaff but also perform for the diners. Reports indicate that Koryo Restaurant is frequently used for business meetings by North Korean trade delegations. Nonetheless, many sources suggest that the only reason such establishments remain open is their reliance on institutional backing rather than profitability amid changing economic conditions. Importantly, the issues leading to the closures are primarily rooted in the economic downturn affecting China rather than political tensions. According to a source, the decline in clientele at North Korean restaurants is largely influenced by China's economic performance. There is hope among some stakeholders that a recovery in the Chinese economy could potentially lead to future revivals of these North Korean dining establishments, contingent upon an overall improvement in local consumer behavior regarding the dining experience.