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Why is it that many food and beverage outlets start off well, but soon close down! What is the reason behind?

I believe that many people have found that many food and beverage stores in the first opening of the crowd, business is full, and even a hard to find, but with the passage of time, its business is gradually cold, gradually away, this is why? The reason is more than one aspect, competition, price, environment, taste, activities and so on are related.

Newly opened full

Newly opened the reason why it will be full, mainly due to three factors: First, curiosity, most people live in the neighborhood of their own stores, especially the opening of new food and beverage outlets, not surprisingly, will go to try the taste; second is the activity, basically the opening of a new food and beverage outlets, there are promotions, and most people are greedy for a small advantage of the habit of, so often business during the opening of the event, the business is very good. So that often opening activities during the business is the best; three is the environment, for the taste of the basic same restaurant, then most people will choose to eat in a good environment.

Subsequent cold

Opening a period of time, the business gradually appeared cold, is still the three main factors: one is the taste, for catering, taste is a vital ring, as long as there is a unique flavor, then even if the location in the remote, the environment and then the poor are enduring, you can look at the city's old, the business is cold, part of the factors is the taste does not work; the second is the activity! Activities, in fact, is also the price, not enough taste, price to come together, as long as the price is low enough, you can still get part of the consumer groups, but the price floor is a limit, can not be a drop; three is competition, the country has an ugly, as long as a store fire, soon similar stores will pile up as the rain sprung up, ultimately leading to competition is getting stronger and stronger, business is getting more and more difficult!

Real Case

In 2013, my sister and my brother-in-law joined a chain of milk tea stores, just opened, there is no other milk tea store around, the first three days of business because of the buy one get one free activities, daily turnover reached more than 5,000 yuan, after the event, although sales have declined, but the daily turnover can still be preserved in the value of 2,000 yuan on the turnover, the weekend holidays can reach three or four dry, the business is red. reach three or four dry, business is booming.

But because of the red-hot business, soon, follow the trend came in, from 2014 to 2017 within 3 kilometers of the surrounding area (townships and townships, non-cities) opened one after another seven other milk tea store, business has been going downhill, especially the subsequent new stores, decorative decoration more beautiful, early 2017, the store's sales revenue was by the time they were unable to make ends meet, and the closest to them, a milk tea shop in 2017, the store's sales revenue was not enough to make ends meet. The nearest milk tea store in August 2017 to close the drink business (the second open), but my sister their store business is not much better, has been held up to April 2018, the money earned is not enough rent and utilities, not to mention the couple's wages (employees from the beginning of the five outsiders hired in the late stage, the rest of the couple to do it on their own), at this time either is to be re-installed or shut down because the competition is too fierce, the re-installation of the future of the shop is not enough to make the money. Competition is too fierce, the future of reloading and uncertain, so finally in May 2018 chose to close.

Summary

For the catering industry, especially the chain of restaurants, there is no technical content, this kind of store location is excellent, or else we have to constantly have the funds can be three years of a redecoration, there are funds to fight the price war, or else the follow-up as more and more stores of the same kind opened, the business will only become more and more cold.