The Swan Pagoda, a popular Italian restaurant on Huaihai Road, was torn down in the 1990s and is now the site of a fancy high-rise office tower. The 73-year-old Donghai Cafe on Nanjing Road, favored by senior citizens, was also cleared away a year ago to make way for new and modern developments.

At the same time China's rapid urbanization has created opportunities for new, upscale Western restaurants to move into the market over the past few decades. With thousands of options for quality Western food around the city today, old restaurants like Red House simply cannot compete on the same playing field.

Quan said hiring a head chef from overseas, as many top Western restaurants in town have done, is risky because the restaurant operates on a small profit margin these days.

Yet Quan is beginning to realize that some risks must be taken if business is to boom again. To serve this end, he has made deals with international travel agencies to help bring in overseas tourists.

The manager is also rolling up his sleeves and letting his creative side takeover. He is trying out new creations in the kitchen that he hopes will strike a balance between old traditions and new flavors to appease existing customers and broaden patron appeal.

"It is a passion that I will not give up," said Quan, who trained in France during the early 1990s. "I would be deeply concerned if few expats were to patronize our restaurant."

Red House Restaurant Huaihai

845 Huaihai Road M.

Tel: 6445-6291

Red House Restaurant Shaanxi

235 Shaanxi Road S.

Deda Restaurant

473 Nanjing Road W.

Tel: 6321-3810

(China Daily June 4, 2009)