Strange to say, catering this closure rate as high as 70% of the industry, why every year there are still so many people flocked to come in? Could it be that everyone has money in their hands and just wants to get in and play? Or simply do not know that the failure rate of this industry is actually as high as 70%? Or that 70% of the collapse is someone else's home, they will become the 30% to stay? All in all, do not know, but in summary, the following two points should still be the main reason:

First, the cognitive problem, many people are not familiar with the catering industry, seriously underestimated the difficulty of this industry

Many people, save a small hand of tens of thousands of dollars, can make up enough for the cost of a small store, would like to start a business as a boss, thought the boss is more free. I don't know the days of the small boss is often not as refreshing as working, get up early in the morning, a day to cope with the rent, utilities, labor expenses. In the absence of good preparation, rashly open store, as if walking into a thorny climbing road, the taste, only experienced people can feel.

Some years ago, one of my closest relatives, from the foreign trade industry resigned, they ran to Jiangsu and Zhejiang areas, looking for a beef tavern to learn for a period of time, but also paid ten thousand dollars in tuition. After returning, soon rented a store, began to operate up, the results of the store opened, business is dismal, because the product flavor problems, cost control, etc., before and after only business more than 2 months on the closure of the door.

Afterwards, this relative talked to me about this, very remorseful, "the store opened, every day into the goods to shell out money, the store 4-5 employees have nothing to do but play with the phone, promote the cost of a day to hundreds of dollars, and the daily revenue is only a few hundred dollars, not enough to pay rent, employee wages. At that time it was really difficult to ride the tiger, the store closed? The opening of the investment of more than two hundred thousand all down the drain; continue to operate it? Every day is a loss, can not see the hope of profit."

The catering industry, it seems that the threshold is low, in fact, to operate well, the threshold is extremely high. Even a fly tavern, to run a good business, in addition to understanding the selection, but also understand product development, operations management, procurement cost control, kitchen management and so on. Any one of these elements can determine the life and death of a store. Marching and fighting, the most afraid of the enemy's misjudgment, and misjudgment, often because of ignorance.

The second is the industry to join the chaos, the flood of information, a variety of advocating low-cost, easy to create wealth

In the past, we have seen a lot of exaggerated wealth creation propaganda, what small business, no technology, easy to earn millions of dollars a year. In fact, many of the catering "brand", and even no physical stores (brand stores), a variety of publicity investment.

Long term, these brands are also most of the wind, three or five months on the disappearance, and then a wave of momentum. Some catering white because of the lack of judgment, went astray.

I have a friend, last year joined a barbecue brand, before opening, the brand gave a set of door VI and product menu, dishes of the cooking kit. After that, everything in the store, it's really all on you.

Restaurant franchise is not can not do? Not exactly. After all, the industry head of McDonald's, KFC, Jetty Duck Neck, Honey Snow Ice City, are franchise model. So why is the restaurant industry, the collapse rate is very high, most of the franchise?

Usually, in the franchise model, the reliable brand, its store model usually has "replicability", can greatly reduce the trial and error cost of a novice into the industry. However, the market is filled with a lot of fish beads mixed "pseudo" brand, their eyes green light, often in the case of a single store model are not polished through the case, with a variety of methods of packaging to shape the image of a hot store (the store is likely to be a huge loss), and then open to join the leek cut.

These "brands" did not go through the 0 to 1 in-depth exploration, lack of a good chain of brands of the original intention, the short-term fishing for a common people's hard-earned money, on the change, to re-create a new "brand". This model is essentially hunting, through the information gap, rounding up prey.