Catering business in hot water for raising price of deliveries
A catering business in downtown Jing'an District will be shut and fined for cashing in on the COVID-19 pandemic by price gouging, the district's market watchdog said on Sunday.
Shanghai Jindawan Catering Co Ltd which operates a restaurant called Jiachang Caiguan, meaning family-dish restaurant, at 135 Anyuan Road, provides dining and meal delivery services.
The eatery was found to have raised its delivery fee to up to 100 yuan (US$15.72) from 8 yuan per order on average between March 31 and April 1, according to the Jing'an District Administration for Market Regulation.
In total, 115 orders were completed during the period with illegal profit totaling 7,466 yuan, inspectors revealed.
The catering business will be closed by market regulators after lockdown ends with a fine of 37,331 yuan, five times of its illegal profit, for violation of China's pricing regulations, according to officials.
It has been ordered to return the extra charge as well.
Officials inspect orders at the restaurant in Jing'an District.
Officials inspect the restaurant.
