Ekeko, the upscale Peruvian restaurant we looked at only two weeks ago, has closed due to profitability issues.
According to a statement by head chef Carlos Sotomayor, the parent company Fulu Group decided to “cut [their] losses” on May 31 after barely two months of operations.
“The powers that be at Fulu Group have weighed the pros and cons of running a Peruvian restaurant of this level of complexity,” Sotomayor said. “Simply put, the Shanghai market is not yet ready for this style of dining. Additionally, the reason for now is that Fulu Group wanted to end their relationship with the staff on a good note.”
Ekeko, which was located on Donghu Road, took over the space of Mediterranean restaurant Elefante where Sotomayor was also the head chef. While Ekeko wasn’t meant to be in that spot for long – “the idea was to run it as a test concept and move at the end of the year” because of the high rent, he said – it was too much of a financial burden.
“Sometimes in business, you have to know when to cut your losses,” Sotomayor said. “In this case, a concept that hadn’t even had time to find its footing was halted before it could have been developed into something more mature.”