Front gate of the restaurant. Photo: Cao Siqi/GT

A Diaoyu Islands-themed restaurant in downtown Beijing claimed that its signage has been secretly removed by the property owner because the company fears that its name "might harm relations between Japanese tenants and others."

The owner of the restaurant "Diaoyu Islands Malatang Noodle Shop" surnamed Lu on Sunday told the Global Times that its roadside signage was removed by the property management company on Thursday night.

"I called the police Friday morning and an employee at the company told police they removed the signage," said Lu.

A video taken by Lu shows a middle-aged man claimed that "this sign has been removed by our company, we don't care who you turn to."

The restaurant, located in the embassy area in Chaoyang district, features a photograph of the Diaoyu Islands. The menu includes Diaoyu hand grenades (banana fritters) and Diaoyu heavy artillery (sweet potato-made balls).

There is a huge open kitchen and serving counter at the center of the room, which is a scale model of China's first aircraft carrier, Liaoning.

"We opened it out of patriotism. But we are not anti-Japanese and would serve them as well," said Lu's wife, adding that they had planned to give discounts to Japanese customers who would say openly that the islands belong to China.

After the restaurant was opened in September 2014, the property management company threatened to cut off its utilities as they consider the name too sensitive, which may harm relations between Japanese tenants and others, said Lu.

The restaurant gained prominence on January 12 after UK newspaper The Times published a story on it.

It also received an official notice from the management company the same day, saying that "the restaurant installed a signage without approval, which should be removed before January 15. Otherwise, the company will cut off its electricity and water and also remove the board."

Lu said his daily revenue was around 6,000 yuan ($962), but dropped by about 20 percent after the signage was removed.

The company could not be reached for comment Sunday as of press time.

A nearby Japanese restaurant owner told the Global Times that he has no issue with the restaurant and "although some Japanese customers might discuss it a little, it is not a big deal."

When asked whether they will compromise with the company and change the name, Lu said that "we will never change it, consistent with China's stance on the Diaoyu Islands."