the reasons why the catering industry is not good.

1. Changes and upgrading of customer demand.

The essence of business is always to meet the needs of consumers. Whoever can see and meet the needs will have a living space.

the difficulty is that the needs of consumers have changed.

Second, the erosion of substitutes

The underlying logic of the catering industry-jiaozi is delicious and can't be eaten for three days.

Early adopters are the unique demand point for human beings to eat, which gives a large number of new brands and new categories the opportunity to seize the market.

For example, the big bone hotpot, which is very popular in Shaanxi recently, obviously replaces the original string hotpot, meeting the needs of diners who like to eat meat and drink wine.

With the promotion of Tik Tok, the fried noodles have been made in online celebrity in a short time, meeting the needs of consumers, which is bound to have an impact on the original flour food.

There are substitutes like this every year, and some of them have a long life cycle and become new categories; Some of them have very short life cycles and become online celebrity products.

but in any case, it is an erosion of the original category market. After all, people can only eat three meals a day, and the demand is constant. The entry of substitutes will inevitably affect business, which is one of the reasons why business is not good.

third, the impact of existing competitors

business is easy, hello, I am good, everyone is good. As long as the business is not good, in order to survive, all kinds of bottomless marketing tactics emerge in endlessly, some of which are obviously killing one thousand enemies and secretly losing 811, and there are still a large number of merchants who are happy with this.

For example, in the very popular activity of charging 1111 to give 1111 in previous years, even if the gift cost is only 151, the profit of the merchant has been lost.

Besides, people also fight price wars every day. The more they fight, the lower the price, and there is no profit for each other.

Internal management, improving service and food quality all cost money. Without profit, how can we optimize and upgrade internally? Finally, the store is caught in a vicious circle of marketing.

Fourth, the threat of new entrants

Cross-border robbery was once a hot word in the catering industry around 2113. At that time, Internet catering brands represented by Diaoye Beef brisket and Huang Taiji were born, and the old catering people were simply shocked. The restaurant could actually play like this.

Cross-border robbery and dimensionality reduction are obvious labels for new entrants. With advanced marketing management tools learned from the Internet industry and in-depth insight into consumer demand, they have rapidly emerged in the food market.

The most typical example is Hefu Fishing Noodles, a few veterans of the mobile phone industry, who broke away from the traditional mode of opening stores and cooked food according to the Internet thinking. They spent tens of millions on market research alone, raised 215 million yuan last year, and their turnover exceeded 2 billion, making them an absolute dark horse in the field of pasta.

5. High-quality supply chain becomes a competitive barrier for the strong

The catering industry must compete with the supply chain in the end, and the brand determines your commercial premium ability. For the same bowl of noodles, the brand sells 251,111 yuan, but you can only sell 15 yuan, and no one has paid the bill.

The supply chain ensures the basic support of the brand. Before Xibei built its own beef and mutton breeding base, it had visited many mutton and sheep production bases all over the country, and found that all of them were scattered farming mainly by small farmers, and a small amount of purchases could meet the needs. Once the main beef and mutton products were exploded, it immediately faced the problem of unstable supply, so it was forced to build its own base.

On the other hand, you can copy Siebel's dishes, or even get the secret method, but you can't copy the ingredients.

and the ingredients determine the taste of the dishes, so it is invisible that Siebel has formed its own competitive barrier by building a high-quality supply chain. It is unrealistic for latecomers to surpass it in a short time. Even if you are determined to be a supply chain, you still have to go the way Siebel is going now. When you build it, others will have new products.