TAIPEI (Taiwan News) — Bafang Dumpling, a Taiwanese restaurant chain, said on Tuesday (Nov. 22) it is shutting down all its stores in China by the end of the year with massive layoffs.

The famed potsticker and dumpling restaurant expects to post a loss of somewhere between NT$18 million (US$577,826) and NT$20 million from the exit of the Chinese market, with all employees sacked, said Chang Jui-lien (張瑞蓮), general manager of the company over an earnings call.

According to the company’s financial statements, it registered accumulated revenue of NT$5.03 billion for the first three quarters this year, up 15% year on year.

The stellar sales can be attributed to the new store it opened in Southern California in March, the first in the U.S, wrote ETToday. Bafang plans to add nine more outlets in the region next year, estimated to rake in NT$1.17 billion in sales.

Meanwhile, Bafang maintains a significant presence in Hong Kong with three brands, including Bafang Dumpling, Bafang Noodles, and Bai Fung Bento. It plans to add stores of Liang She Han Buy Good, another brand it owns that sells bento meals, in Hong Kong in the first half of 2023, according to UDN.