Chongqing - Once a staple of China’s nighttime dining culture, crayfish has seen a decline in its popularity. According to the New Catering Big Data’s 2024-2025 China Restaurant Closure Rates Report, crayfish restaurants now lead the list of highest closure rates in the catering industry, with a staggering 37.2% closure rate—an increase of 5%, setting a new record.
A chef prepares crayfish at a crayfish restaurant in Jiangsu. (Photo/Zhou Qiang)
On the evening of August 16, a reporter from the Chongqing Daily observed a once-bustling crayfish restaurant in Chongqing where the seating rate had dropped to less than 60%. The restaurant owner, Wang Lei, shared that during last year’s summer peak, the restaurant easily sold 2,000 kilograms of crayfish per day, but this year, the number has dropped to just 1,000 kilograms, with revenue falling to 70% of the previous year’s levels.
A key reason for the decline in crayfish sales is the growing variety of late-night dining options. Zhao Ming, a consumer, explained that while crayfish used to be a weekly choice, today there are more food options, causing his crayfish consumption frequency to drop.
The rise of “downgrading consumption” also impacts the number of people eating crayfish. Ms. Sun, another consumer, prefers to cook crayfish at home, purchasing them at prices as low as 15 yuan per kilogram and preparing them with her own seasonings, making it a more affordable option than dining out.
Wholesalers are also feeling the chill in the crayfish market. The number of crayfish trucks at the Shuangfu International Aquatic Market in Chongqing has dropped by 30% compared to previous years. Li Wei, a wholesaler, lamented that this May, large crayfish were sold for 17 yuan per kilogram, but by August, the price had risen to 40 yuan. Yet, restaurants are struggling to sell them, making business difficult for us as well.
The secretary-general of the Chongqing Catering Industry Association, Xiao Chunlan, highlighted the root cause of the problem: a severe supply-demand imbalance. The farming area for crayfish is projected to reach 20,000 square kilometers by 2024, with emerging regions such as Northeast China and Xinjiang seeing annual growth rates of 30%. However, consumer demand continues to shrink, exacerbating the supply glut in the market.
Furthermore, Xiao noted that the industry ecosystem is fragile. The “internet celebrity” effect, fueled by social media, once propelled some businesses to rapid growth, attracting substantial investment and leading to an explosion of crayfish restaurants. However, this rapid expansion led to intense competition, with little differentiation between brands. Without standardized systems and continuous innovation, many of these businesses have become “one-time consumption” ventures.
As consumer novelty fades, dining choices have become more rational, with value for money and dining efficiency now at the forefront of consumers’ decisions. Alternatives such as spicy snails and seafood bowls are capturing market share with better cost-performance ratios, while internet platforms such as Freshippo are introducing high-quality prepackaged crayfish products, further undermining demand for dine-in experiences.
According to Xiao, the decline in the popularity of crayfish and similar “internet celebrity” foods marks a shift in the market from rapid, unregulated growth to more rational development. Rational competition will take over as the industry moves past the “flowery” stage.
Overcoming seasonal limitations, establishing standardized systems, and fostering continuous innovation will be the critical challenges for food brands transitioning from “internet celebrities” to enduring, long-term successes. Brands can achieve sustainable growth only by building core competitiveness around quality, innovation, and cultural value.