TAIPEI (Taiwan News) — Bafang Dumpling, a well-known potsticker and dumpling restaurant chain in Taiwan, is reportedly quitting the Chinese market due to lackluster sales.

The franchise is planning an exit from China by the end of this year as weak sales hurt profitability. The rising costs of raw materials and rent as well as the lack of economies of scale have put Bafang at a competitive disadvantage, according to China Times.

The COVID-induced nonstop lockdowns and power cuts across China have also taken a toll on the dumpling business, which at its peak had over 100 stores in the world’s second-largest economy, the report suggested.

Bafang said it started to reduce its presence in China two years ago but declined to say whether it is completely dropping out of the market. Taiwan remains the main source of its revenues, accounting for 81%, while mainland China and Hong Kong make up 0.7% and 16.9%, respectively, per CNA.

The dumpling giant has pivoted away from China to the U.S. market. In March, it opened its first store outside Asia in Southern California and looks to expand to eight branches in the country by 2024, according to CNA.