/ Reviews / The Epicurean Explorer
Perfecting Mediocrity
by Buzz Archer
on Friday, January 20, 2012 12:00 AM
It is an open secret that the Shanghai dining scene thrives on mediocrity. For every Tavola that opens up, it seems like 5 ho-hum Italian restaurants tend to lurk behind. Whenever a dining trend arises (Pho, Tapas, etc.), the city becomes awash in “me-too” restaurants jumping on the bandwagon, serving cut-rate food in the hopes that diners will remain oblivious to eating low-quality facsimiles of the cuisine being imitated. Most of these restaurants tend to fizzle out and shut down within a few months, becoming a footnote in the ever-changing F&B scene. However, there are several factors that lead mediocre restaurants in Shanghai to survive despite themselves.
One factor is critical mass. Mediocrity begets mediocrity. With the right branding, cobblestone streets, or faux-shikumen housing, a bundle of middling dining venues suddenly becomes a ‘destination’. The best examples are Hongmei Entertainment Street (family-oriented mediocrity), Thumb Plaza (Pudong mediocrity), and Xintiandi (blindingly expensive mediocrity). Although there are diamonds in the rough at each of the aforementioned locations, by and large you will hit run-of-the mill venues.
Another reason is proximity to pricey housing compounds. I personally believe that a housing compound has not reached ‘it’ status until the three following services are available within walking distance: an overpriced wine shop, a rip-off DragonFly massage wannabe, and an unexceptional fusion ‘bistro’ that brags about its pumpkin soup and tiramisu. Top of City is a prime perpetrator in this instance.
The third factor is much shadier. Restaurants are one of the few service businesses that China’s National Development and Reform Commission have left untouched. According to the Economic Observer, most restaurants only pay tax on half of their income, and only three of China’s restaurant chains are public, even though the restaurant industry revenues exceeded 1.7 trillion+ yuan in 2010. The root of this issue is a lack of fapiao, which is necessary for a business audit. There is still a heavy reliance on cash for capital inflow and outflow, especially if the restaurateur is dealing directly with farmers rather than producers. Restaurant owners can sink a lot of money into their business without ever having to report it; hence restaurants obviously operating at a loss may have something else to hide.
