An al fresco boost to business

Daxue Road in Yangpu district is one of the most popular food streets in Shanghai. The 700-plus-meter-long street is packed with more than 80 stores, mainly restaurants and cafes, with the majority having outdoor seating areas of various styles.

For instance, a fashionable sportswear store has meticulously created a camping-style outdoor display area at its entrance, paved with gravel and furnished with stylish camping chairs, which has become an instant photo-op spot for young people.

Thanks to these al fresco areas, the road is often bustling with vitality, especially during weekends.

Zhang Xiaoli, head of ibarrel, a restaurant on Daxue Road, says, "Without outdoor seating, our income may decrease by half."

During the 2024 winter season, the outdoor seating areas were equipped with plastic wind shields, with the support of the local government and business operators, to withstand the dropping temperatures. According to the district, sales volumes at the shops along the road increased 24 percent year-on-year, with the number in the coldest month of February surging 38 percent.

Outdoor seating has become a popular business model for merchants in Shanghai, a city known for its bustling neighborhoods, international community and city-walk routes.

At Hengshan Fang in Xuhui district, more than two-thirds of the stores have outdoor seating areas.

"Not just restricted to Western restaurants, Chinese-style restaurants also set up outdoor seating areas during afternoon tea time due to growing demand," Wu Hanchun, deputy general manager of Shanghai Hengfu Investment Development Co, told the Shanghai Observer while noting many of the customers who prefer outdoor seating areas are foreigners, thanks to the expansion of China's visa-free policy.

Tong Tianci, head of the restaurant of Hengfu, agrees, saying that the outdoor seating area is not only an extension of the business area, but also a "traffic entrance" for small shops. "Many customers are attracted to the atmosphere, especially foreign tourists. They seem to have a special preference for outdoor seating. No matter what the weather is like, they are willing to sit outside to enjoy Shanghai's street views."

In Changning district, the majority of merchants inside the restored Columbia Circle, a compound once home to US expatriates that is now a multifunctional complex, have offices, stores, restaurants, and cafes.

The manager of Columbia Circle, who prefers to remain anonymous, says that consumers, especially young people, have an extremely high preference for outdoor seating. "Those between 20 and 35, including foreign visitors, select outdoor seating as their top choice. On sunny days, weekends, and during festivals, the outdoor area occupancy rate exceeds 90 percent. People feel compelled to sit outside, even if they have to queue," he says.

"Consumers might choose to dine at a particular restaurant due to their appreciation for its outdoor seating environment, or they may be drawn to outdoor areas while strolling through the park," he says.

Latest data showed Shanghai has standardized 997 designated stalls and set up over 500 special stall areas, covering more than 4,000 stores, most of which sell light meals and coffee.

The booming "outdoor economy" is a rational emerging phenomenon in Shanghai, according to experts.

"Outdoor economies meet the diverse demands for experiential, social and authentic urban life under the backdrop of consumption," says Xie Ruoqing, a researcher at the Shanghai Academy of Social Sciences.

"Local residents' consumption has evolved from merely acquiring goods to pursuing lifestyle experiences, with people's emotional needs for connecting with nature and engaging in interpersonal interactions in the open air being one of them."