Cheap bread, porridge keep budget-conscious Chinese going

Frugal living on the rise amid growing concerns over job security, economy

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BEIJING - Shops peddling twoyuan (40 Singapore cents) bread, three-yuan all-you-can-eat porridge and 10-yuan haircuts are popping up all over China to cater to the thrifty, as the Chinese fret about job security.

Bakeries simply named Two Yuan Bread Shop, in particular, have inspired a craze on social media, with posts showing snaking queues in front of them, even as new shop owners share their "entrepreneurial journey" after ditching their jobs.

One popular two-yuan bread shop brand alone opened more than 400 outlets after it started inviting franchisees in September 2023, Chinese state-owned online publication Sixth Tone reported in February.

The rise of this "frugal economy" comes amid poor consumer confidence and concerns about deflationary pressures, even though China's economy grew by 5.2 per cent in 2023 and saw faster growth than expected in the first quarter of 2024.

With record high youth unemployment, tumbling property prices and falling wages, customers and business owners told The Straits Times that job security is top on most people's minds.

This has affected domestic demand in China, which continues to be soft as consumers hesitate to open their wallets.

On a recent weekday afternoon, Mr Zhang Xin, 38, who works in the technology sector, was making his third visit to a two-yuan bakery in Beijing's Shijingshan district since the bakery opened a month ago.

"The bread is cheap and tasty so I will keep buying. It's suitable at a time when we're all looking for more cost-effective options," he said.

He bought eight pieces of bread for his family's breakfast, totalling less than 20 yuan.

Mr Liu Hongliang, 33, the bakery's owner, said many of his customers share Mr Zhang's way of thinking.

"It's not the tastiest bread, but it's good enough for this price," he said.