China's catering industry cuisine diversification, diverse flavors, low consumer loyalty, low barriers to entry into the industry, fierce market competition, rapid iteration of popular flavors. Traditional Chinese food is highly dependent on the level of the chef, stores are difficult to replicate and promote the formation of scale advantages. In terms of business operation and management, standardization is difficult, leading to weak economies of scale. Chinese food is a labor-intensive industry with low value-added, difficult personnel management, and high talent turnover. The net profit of compliant companies is thin, and subject to the three highs (rent, manpower, and raw materials) and other expenses, and fluctuates greatly.

In the past, it was the competition between traditional caterers, but now the boundaries between food, retail, catering and other enterprises have all been broken. As a result, the future of the restaurant landscape will see a new landscape! Under the mirror of the epidemic, a true reflection of the innovative power of enterprises, forcing the evolution of catering enterprises and even the entire catering industry. The move towards food, retail and e-commerce is the trend! The epidemic has also made caterers realize the importance of private domain traffic. The founders of many catering brands have begun to make efforts in the circle of friends, community, live broadcasting and other areas to convert fans into consumer users, while precisely reaching out to form a private domain traffic pool.

At the beginning of the 21st century, China's restaurant industry experienced a period of rapid growth. High-end catering companies such as South Beauty and Little Sheep were also established during this period. However, after 2012, affected by policy restrictions, economic slowdown and other factors, China's catering industry lost sight of the fact that many catering enterprises are difficult to sustain, setting off a wave of bankruptcy and mergers and acquisitions. High-end catering enterprises with high per capita consumption bear the brunt. In fact, in the context of the slowdown of high-end catering development in recent years, catering enterprises are facing tremendous survival pressure. Xiang'erjing, Xiaonangguo, Jingya, Jinbao, Jiangnan and other high-end positioning of the catering brand began to go downhill.

The new coronavirus pneumonia epidemic has a serious impact on the catering industry, the industry elimination and mergers and acquisitions will be accelerated accordingly. Many catering industries have been hit hard by the epidemic. Can't dine-in, can't get together, and because foreign trade companies canceled orders, large factories outsourcing orders out of stock. In addition, they have not worked for months and have no income and limited spending. Some were afraid that they would be infected if they went out to eat. Popularity is difficult, can only do some small orders, just eat a meal, do not want to get rich.