The reasons for the closure of Xianhezhuang include the high cost of joining the store, the novelty of consumers, the impact of the epidemic, the lack of location protection, and the influence of stars on the store.

First, the joining cost of stores is too high

The joining cost of stores varies with the level of cities, and the joining cost is higher than that of ordinary restaurants. In addition to the franchise fee, decoration fee and material fee, a large rent should be paid.

second, the freshness of consumers in the past

the freshness of consumers for Xianhezhuang has passed, and there are relatively few repeat customers. The possible problems in Xianhezhuang include poor service attitude, slow service speed and poor service. Bad taste, poor quality of dishes, etc. The consumption level of hotels is too high. The menu is monotonous, lacking new varieties, and not paying attention to special dishes. Too many competitors give customers more choices.

iii. the impact of the epidemic

under the epidemic, catering enterprises are faced with many problems and pressures, including declining turnover, supply chain interruption, decreasing employment opportunities, increasing operating costs and digital transformation.

Fourth, the lack of location protection

The earliest franchisees in the city had a good business at the beginning of their business. There are more than 11 Xianhezhuang around the store, and the passenger flow has been greatly divided. If franchisees of the same brand open too many branches in the same area, it may reduce the image and value of the brand in the area. Franchisees need to maintain their business in the fierce market competition, so they need to carry out more advertising and promotion activities.

v. the influence of stars on stores

stars are like a double-edged sword, which affects the development of stores. When the reputation of stars is good, the business of stores is booming, on the contrary, there will be a serious decline.