First of all, many small restaurant owners now spend more money on rent. As soon as it is slightly suitable for a store to open a bistro, the rent is extremely expensive, often accounting for more than half or more of the operating costs. In addition, to open a small restaurant to attract customers, special decoration is also essential, the cost of decoration should be apportioned in the operating costs, which is also a large amount of expenditure. Because of the high rent and renovation costs, many small hotel operators "early morning dark" for a year. At the end of the year, they all work for the landlord, and some even not enough.

Secondly, the labor cost of small restaurants is very high. Currently, the average small restaurant employs a waiter, the owner's wife handles the cashier, and the owner washes dishes in the back, but the cost of hiring people is rising. In Tier 1 and Tier 2 cities, 3,000 average waiters can never be recruited. Thus, the cost of labor to open a restaurant rises sharply, and eventually rent and labor are deducted. Operators really don't have much left, so they might as well go out to work.

Thirdly, the prices of raw materials keep rising, but operators dare not raise food prices for fear of losing a large number of customers. In particular, some small restaurants with pork as their main ingredient can only temporarily stop selling ribs and elbows due to soaring pork prices, falling profits and fear of losing customers. If you meet a customer who wants to eat this kind of dish, you can only say "sold out" In the past few years, the prices of raw materials in small hotels have risen to varying degrees, while the prices of their peers have rarely risen, and they do not dare to adjust their prices drastically, which will either lead to the loss of customers or lead to the compression of profit margins, which will hamper their business.

Fourth, many people are now starting their own businesses, targeting small restaurants, supermarkets and fruit stores. They often feel that the risks are small and it's easy to succeed. But everyone goes to small restaurants, which has led to serious homogenization and competition in these sectors. There are now nearly a dozen small restaurants and several small supermarkets on a single street. Everyone works in the same industry. Not only is the competition getting fiercer, the profit margins will also be squeezed. If that is not possible, customers will inevitably be shifted and closed.

Fifth, there are now fewer and fewer high-end consumers because of China's terrible economic climate. Many large restaurant companies have bowed down and started tapping into the low- and mid-range markets. Some have even started business packages. This is because the dining environment, service conditions, food quality and innovation of large-scale catering companies are incomparable to those small restaurants. Moreover, large restaurants and famous chain restaurants, the food price is not high and the taste is better than that of small restaurants, so who would like to eat in a small restaurant? As a result, the small restaurant ended up with a slow business and had to close down.