Why is it that the more products a restaurant has, the less profit it makes?
The relationship between profit and the number of products in the restaurant industry is not a simple positive or negative correlation. In the incremental market, business growth is mainly based on scale, more stores, more publicity, to attract more customers into the store, the turnover continues to grow, it will bring higher and higher profits. But to the stock market, catering stores and catering brand surplus, the consumer market has basically been divided up. At this time, the key to profit lies in fine-tuning. First of all, we must do a good job of product and experience, do a good job of differentiation, to be able to attract customers to repurchase, increase the repurchase rate, and at the same time to do a high customer unit price. Secondly, we should optimize the product structure and staff structure, and do a good job of cost control. That is, do a good job of cutting costs, in the case of slowing revenue growth, optimizing the cost structure is a better way to increase revenue.