The catering market, relying on unique demand characteristics, is a new opportunity for emerging startups, and many traditional SaaS businesses use the catering market as an entry point.At the same time, due to the Internet era, all kinds of data are constantly updated and iterative, leading to the urgent transformation of many traditional SaaS businesses to obtain higher business value.In 2016, Jingdong's Borderless Retail and the new retail concept proposed by Jack Ma brought about a new consumer experience-centered and data-driven form of pan-retail. new marketplace centered on consumer experience and data-driven forms of pan-retail. As a result, the traditional SaaS into the red sea has become a competition between service providers, but due to various issues, the traditional SaaS cap is over. What bottlenecks is the traditional SaaS industry experiencing today? The traditional SaaS business model is not enough to bring more benefits to merchants, so much so that many SaaS companies grow up to the end.1. High customer acquisition costs, low penetration rate, the early stage of the business, the company's sales costs are much higher than the company's revenue, and in the Chinese SaaS market, more than 85% of the sales from direct sales, that is to say, service providers not only engage in research and development, but also to build their own teams. It is understood that many catering software vendors have sales staff who find it difficult to develop two customers per month. Currently, traditional SaaS service providers basically rely on large-scale sales teams to promote their products. For example, Hakkasan has deployed operations teams in 27 cities across China. In addition to Beijing, Shanghai, Guangzhou and Shenzhen, there are some key cities with layouts. However, when penetrating into second and third tier cities, the operations team still struggles to successfully implement the program due to the high cost of customer acquisition, difficulty in bulk coverage, and low penetration rate.2. Complicated business requirements and limited profit margins Currently, the restaurant market is still in an optimistic state, but restaurant SaaS is faced with practical issues such as complicated business requirements and limited profit margins, making the restaurant SaaS business seem impotent. On the one hand, SaaS development is not a one-time business, but a long-term cyclical maintenance iterating according to the different needs of the business, resulting in high costs, and monthly and yearly rental payments leading to longer payment cycles. On the other hand, the restaurant industry itself is more complex, the entire restaurant chain can not form a scale effect. For example, software product maintenance, product scalability and upgrades will lead to higher development costs, which will result in limited profits for the SaaS business because of the complexity and higher costs of the software.3. Impact of New Retail SaaS Providers The emergence of new retail models has greatly impacted traditional SaaS service providers. At the same time, the new retail SaaS has also taken away some of the old users, resulting in a gradual change in consumer buying behavior. This is just the beginning of the "new retail" changing the face of the world. In addition, the needs of users will be more diversified, and the way will be smarter. The new generation of "hyperlinks" will give buyers more choice and control. For example, flash shopping serves tens of thousands of convenience stores, accumulating omni-channel traffic access and management of mobile terminals, as well as online store and merchandise management, helping retail chains realize a new form of retailing with online business, member integration and operational data. In this way, we can obtain users' consumption data offline, which is a challenge and a great threat to the traditional SaaS business. Problems faced by the traditional SaaS industry transforming into new retail The traditional SaaS ceiling has come to an end, and new retail has become the meat and potatoes of the new market competitors, starting with WeChat and cutting into various fields. This has become a dilemma faced by traditional SaaS merchants, so traditional SaaS merchants face multiple difficulties in the transition to new retail. First of all, the entry is late, the industry has mature rivals, at this stage, the new retail industry has entered a period of rapid development, and new retail service providers continue to emerge. For example, as China's most professional and data-cohesive mobile developer service platform, SaaS merchants such as AUO, Weimeng, Yauzan, and Weishops first started from the WeChat era to help catering merchants open up the upstream and downstream chains of the industry chain and expand their business. It can be seen that the layout of some enterprises in the new retail industry has matured. However, traditional SaaS merchants did not realize such opportunities in the early days because the ToB industry itself is more complex than the ToC industry. Traditional SaaS service providers are merchants in the former and end consumers in the latter. Moreover, the operation of the traditional management system is more cumbersome, both in terms of hardware costs and labor costs, which has brought a certain degree of operational pressure to the restaurant business, so it is too late for traditional SaaS merchants to enter the market. Secondly, the lack of Internet experience, at present, with the rise of takeaways and group purchases, the demand of merchants for online and offline integration is becoming more and more obvious. The emergence of new retail has led many companies to enter the new retail industry. So far, a number of stores have been opened to realize the o2o business model. The new retail SaaS business mainly started from the Internet, rather than the early stages of the traditional SaaS WeChat, which has been y integrated into the WeChat system and produced SaaS applications suitable for Internet thinking. As a third-party service platform, traditional SaaS only stays in the back-end ERP. although it has tasted some sweetness in the catering industry, the new retail is a larger SaaS layout that is not only limited to food and beverage. As a result, traditional SaaS merchants still lack the experience to bring more value to merchants through channels, scenarios, and shopping time. Finally, lacking the experience accumulated in other supply chain scenarios, the SaaS business is now having less and less impact on the restaurant industry, and new retail has become the mainstream of the market. Traditional SaaS business has seen the opportunity. Many traditional SaaS businesses want to change the new retail business and involve more scenarios to bring profit growth, but they still face many difficulties. At present, supply chain scenarios have become the core of industry competition, and various big data, intelligence, and Internet financial services have become standard in the industry. The traditional SaaS platform mainly focuses on the needs of vertical areas such as catering, does not involve other supply chain scenarios, lacks experience accumulation, and does not have a full understanding of the general overview of new retail, and the traditional SaaS business wants to really lay out more supply chain scenarios, but also requires long-term accumulation and precipitation. Seeking to sink the market, the traditional restaurant SaaS transformation of new retail is an opportunity According to the "China's public **** cloud market tracking report for the second half of 2017" released by international data company IDC, the SaaS market size is 1.2 billion yuan, ranking second in the world, but the growth rate is 40.1%. This shows that the SaaS market still has a large market and space. Currently, the opportunities in first and second-tier cities have been occupied by SaaS vendors such as Weimeng, Yuzan and Weishop. However, for the new demand for new retail in small cities and the increasing level of urbanization, various industries in Tier 3 and 4 cities have entered a period of rapid development in the past two years, which is a new change in the transformation of traditional SaaS business to new retail SaaS. At this stage, stores in third- and fourth-tier cities urgently need to transform and upgrade to keep up with the times. At the same time, traditional SaaS service providers are no longer just charging for system software services, but are utilizing big data, artificial intelligence and other technological means to upgrade the production, circulation and sales process of commodities line services, offline experience and modern logistics. Connecting users, enterprises and establish a new ecosystem.