China Law Blog - One Small China Restaurant Writ Large. Really Large. - Comments

Bing

Dan — Thu, 03 Jun 2010 17:18:06 -0800

The situation of the second one only happens to some restaurants which doesn't have famous dishes( perhaps they have something special, but definitely not famous). In the popular restaurants, if they one or more famous dishes, you cannot imagine the salary of the chef especially the one dealing with the core recipe. The restaurant owners are not stupid, because they know they will lose everything if the chef leaves. That is the real situation in many of the famous restaurants which are small but popular regional or national wide.

Handan

Dan — Thu, 03 Jun 2010 17:18:06 -0800

Assuming your nicely simplified (yes, it's meant as a compliment) process outline is a good reflection of reality, the interesting question to me is:

What does it take to change?

If the blame is put on the restaurant down the street, no lesson is learnt. So the particular individual owner is not gonna change that much. So you are talking about a change more general, in the larger society.

and that seems to require better causel attribution skills to enable learning. What in turn makes that happen?

Dan

Dan — Thu, 03 Jun 2010 17:18:06 -0800

Handan,

That is the question. I don't know the answer, but I think it is a combination of a new guard coming on and experience.

Inst

Dan — Thu, 03 Jun 2010 17:18:06 -0800

I agree with the overall phenomenon but I've heard a different explanation. Instead of personnel conflicts and death spirals killing the restaurant, these things are actually planned for and the restaurateurs expect the food quality to go downhill very rapidly. It's close to Paul Midler's quality fade/profit zero; the restaurant starts out strong, attracts word of mouth, then the owners complete their bait-and-switch and start skimping on ingredients/staff to profit off the restaurant.

This actually occurs stateside in Chinese enclaves as well, and I would expect this to occur somewhat in Hong Kong.

Rodrigo Nunes

Dan — Thu, 03 Jun 2010 17:18:06 -0800

I think the answer for both question is yes, as China is doing a huge effort to get the latest technology and improve product quality. I also think that what I call the "China model of production" (combining low waged working force with mass production of medium to low value added goods) will make "hardware" prices get lower and lower, this meaning there is no more game for companies (or countries) that used to depend on high value added electronics to survive. There is no more businnes for commoditie producers in the developed world, and it includes electronic conventionals or anything that can be easily reengeneered. The US and Europe should overpass the old jargon of keeping the (low skilled) jobs at home, and understand that if both want to continue as superpowers, it will be necessary to focus on services and intangibles exports.

Handan

Dan — Thu, 03 Jun 2010 17:18:06 -0800

I've always thought experience is overrated. Learning ability can be quite independent from experience. Experience too often leads to no learning or wrong learning. What's more, learning results don't always turn in to practices, if there are no incentives.

China used to own many multi-generational trustworthy brands. Historical comparison as well as inter-national comparison would be highly interesting.

LoveChinaLongTime

Dan — Thu, 03 Jun 2010 17:18:06 -0800

But...but...don't the Chinese always look at the big picture? Take the long term view? Why I've read in all those "China is Awesome" books that the Chinese are dedicated, committed business people that are not in it for short term gains or fast & easy profits!

Peter Hua

Dan — Thu, 03 Jun 2010 17:18:06 -0800

I agree with INST, the same thing occurs in Chinese restaurants in Chinatown stateside. The quality inevitably goes down and the restaurant either goes out of business or moves to a new area and starts the whole process again.

Riccardo Benussi

Dan — Thu, 03 Jun 2010 17:18:06 -0800

In my humble opinion of a hungry Beijing streets walker, I think the example is mama-huhu, the scenario is right but it's much more complex than that. What your two friends have broken down so systematically can be done for anything and anywhere on the globe. This can happen in Singapore, in Tuscany, in the Bay Area or in Buenos Aires: if the chef wants to be paid more, he'll get it or he'll walk.

An example that involves more "china-traits" could be hotels: shimmering galactic 3 or 4 star hotels that look like the latest 5+1 stars elsewhere and then semester by semester it goes down down down because they don't know how to keep the standards because they need an incentive that is very far away from prestige and it's: big money.

For any other issue related to services, I find Chinese (it's so hard to generalize a peoples this broad, you will accept my apologies) still a very service- and customer- oriented mentality when it comes to restaurants, hotels, customer support, transportation etc. Everyone knows their place and it's not like in many countries of the West where you feel embarrassed to get the waiter's attention or feel you have to be extra careful and polite to a maid on the hotel floor.