One, the constant price increases, losing customers

Wang Lin, who works in Shenzhen, used to go to eat at Gluttony, and when she was in college, the price of about 40 yuan per capita allowed Wang Lin and her roommates to often go to eat on weekends.

After graduating and joining the workforce, Wang Lin also often go to eat with her colleagues, but Wang Lin found that in the past few years the price of food has risen dramatically, and the previous per capita consumption of 40 yuan, but now it has become more than 80 yuan.

The price of food continues to rise, Wang Lin went to the store consumption is also declining, before a week to go 3 times, now 3 months rare to go once.

The rising price of food is undoubtedly hurt the feelings of many old customers, Wang Lin said: "Before this store is the main cost advantage, now this store and cost has long had no relationship, the price is so expensive, I spend 20 dollars more to eat under the sea is not good?"

Two, crazy expansion

With the booming catering market, the catering industry investment is very hot, many entrepreneurs into the catering industry gold, each catering chain stores have begun to enter a crazy pace of expansion.

According to the data in the financial report of Gluttony, the number of Gluttony stores reached 1,022 in 2019, a year-on-year increase of 15%. Behind the crazy run, the 2020 epidemic came suddenly, catching many restaurants off guard.

Behind the crazy expansion, store location and management level is uneven, plus met the epidemic "black swan", 2020 sip feed hot pot profit totaled 1.837 million yuan, a year-on-year drop of 99.4%, three consecutive years of decline.

Three, fierce competition

Hotpot is a good business, according to the Catering Association data show that in 2020 China's hotpot market size exceeded 800 billion yuan, a year-on-year growth of 13%, the booming hotpot market, attracting many entrepreneurs to enter.

The former Haidilao, followed by Xianhezhuang, Banu, Xiaolongkan and other net red hot pot brands continue to emerge, sip sip sip sip is facing a huge market competition.

On the other hand, the small hot pot market also suffered a lot of entrepreneurs squeeze, in Shenzhen, Shanghai, Beijing and other places per capita 50 yuan buffet small hot pot by consumers.

Dishes to eat, drinks to drink, very cost-effective buffet small hot pot stole a lot of business belonging to the sip feed hot pot. After the epidemic everyone for consumer spending more rational, many customers would rather choose 50 yuan buffet small hot pot, not willing to go to eat per capita 80 yuan sip feed small hot pot.

Shenzhen Wang Lin, has become a loyal customer of the buffet hot pot, often with friends to dine together, relative to the sip feed, eat buffet hot pot to taste more rich dishes, more drinks and fruits, let go of the stomach despite eating, no consumer pressure.