(Yicai) Aug. 27 -- Fourteen of Din Tai Fung’s 32 restaurants in the Chinese mainland are to close by Oct. 31 after their operator’s 20-year business license expired.

Beijing Hengtaifeng Catering will close the 14 Din Tai Fung eateries it runs in Beijing, Qingdao, Tianjin, Xiamen, and Xi’an, the company said yesterday, adding that the firm’s board failed to reach a consensus on renewing the business permit.

Shanghai Guangcheng Catering, Din Tai Fung’s other mainland operator, said its 18 restaurants in Guangzhou, Hangzhou, Jiaxing, Nanjing, Ningbo, Shanghai, Shenzhen, Suzhou, and Wuxi will remain open.

China’s catering sector has been gripped by intense price competition since last year, leading to a shakeout, as consumers tighten their belts. As of June 30, 1.35 million new catering firms had been registered this year and 1.06 million cancelled or revoked, according to corporate information platform Tianyancha.

Taiwan-based Din Tai Fung was founded by Yang Bing-yi in 1972 and is famous for its xiao long bao, or broth-filled dumplings steamed in bamboo baskets from China’s Jiangnan region. It was once recognized by the New York Times as one of the top 10 restaurants in the world and has been awarded Michelin stars five times.

It is not just Din Tai Fung that is facing closures. Some relatively high-end restaurants are also shutting down, while some Michelin-starred eateries have introduced budget menus as a means of survival. So far, Din Tai Fung seems to have implemented no new strategies to cope with the current challenges, which may have hastened the closures.

Din Tai Fung has more than 170 restaurants in 13 countries and regions, according to its website. The brand operates globally through licensing agreements.

Editor: Futura Costaglione