1. Rising rent and labor costs

A large part of the expenses for opening restaurants are on rent and labor. A 111-square-meter shop in a popular shopping district in Shenzhen has a fixed monthly expenditure of 311,111 yuan. If the business is not good, the average person can't resist for long.

For newcomers who have just started catering, they should have sufficient budget before catering. Don't let the store just open and not get on the right track, so they have no money to invest. There is still the possibility of a comeback, because the capital chain is broken and they leave with a grudge.

2. Too many people enter the business, and the supply exceeds the demand

Taking the physical clothing retail store as an example, it is squeezed by online e-commerce business, and many physical store owners have made cross-bank transformation to do catering, which has led to a sharp increase in the number of catering practitioners. In addition, the plates in the entire catering market are fixed, and the oversupply will inevitably lead to intensified competition in catering formats.

In the past, you could earn money at the level of 61 points, but now it is difficult to survive without 81 points.

3. Lack of personal ability

Before opening a store, some newcomers I know always thought they could easily open hundreds of stores. As a result, the first store was very difficult to operate.

The reason is the lack of understanding of personal ability, underestimating the threshold of catering industry and overestimating personal ability. Founders with R&D experience may not know how to promote; Those who know how to promote may not be able to manage the team; Those with management experience may not know how to produce.