Why lose money?
1, rent. There are many reasons for the closure of the restaurant, but the rent is one of the important reasons, a lot of the beginning, the rent is not very expensive, but when your business is not easy to have an upturn, the rent began to rise, sometimes not because of the location is much more expensive, but the landlord to see that your business is good before they began to rise, so the final result is not to move, is not able to withstand and close down.
2, inexperience. Many people in the first time to open a store do not know what to do, coupled with the lack of experience, operating in the wrong way, as well as in the case of problems did not take effective measures to save, so sometimes it will lead to business is poor or closed.
3, high labor costs. Now the catering industry labor costs are getting higher and higher, every month the wages of employees is a big head, not to mention if the business is a little better chef will let you give commission. This is also one of the reasons why it is difficult to start a business in the restaurant industry, there are many chefs to capital stock, or partnership with the owner of the restaurant model, both sides accounted for a portion of the shares of the way, so as to greatly reduce the restaurant in the back of the kitchen in such an important post of brain drain and change.
Why are more and more new stores opening?
4, low threshold, high profit. Because the food and beverage industry can be said to be the most easy to enter the industry, so there will be many people want to enter it, in fact, do a good job, catering is still quite lucrative, all will have so many people want to come in.
5, as the saying goes, "food is heaven", to put it plainly, people live is not for a bowl of rice? So no matter how much money the catering industry, there will still be a lot of people to join them, and catering such a large market, as long as you do well, you are not afraid of no money.
Dining basically in the loss of money, but the new store is more and more open!
Chinese people follow the trend of this is all the countries in the world can not be compared, if a street to see a lamb restaurant business, then it will not be long, the street will continue to appear second lamb restaurant, and then the third lamb restaurant, and finally the whole street has become a street of lamb restaurant.
In this case, the landlords of the whole street discussed and raised the rent of the whole street.
And because the speed of opening new stores, dozens of times faster than the speed of training chefs, apparently now there are not enough chefs, everyone is looking for chefs, or looking for a more advanced chef, obviously chef's wages are getting higher and higher, so that there is still a lack of teams of chefs to operate their own kitchens, and want to keep a good chef obviously still have to add add wages.
Rural workers go out to work in January wages equal to or more than a year's income from crops, all over the country is obviously a drag on the country's economic development, so the rural people do not plant the land, the land leased to a group of companies of the same kind. And the group of companies must be running a loss in the early stage, the price of ingredients will be raised passively.
This is the obvious "three highs".
As the whole street of lamb restaurant, everyone in the ingredients procurement are aimed at lamb, lamb production obviously can not keep up, but also the price of lamb to buy up.
Competition is obviously escalating, everyone technology and dishes are the same, the last only spell price, spell price will have to reduce the selling price, which is to reduce the price of pure profit.
"Three highs" and "one low"!
High rent, high wages, high price of ingredients, and low selling price!
Where is the profit?
When there is no profit, where is the room for survival?
The only way to go is to go out of business.
People who have not done the catering industry, to the restaurant after eating cooked lamb asked the price of 80 yuan a catty! Think it's too expensive, the market price of raw lamb is only 29 yuan a catty, your store cooked earned me 50 yuan, I came to a few friends have to several pounds of lamb consumption, you shall not earn me a few hundred dollars?
He does not count your raw lamb although a catty 29 yuan, but a catty of lamb cooked is 6 two cooked finished products, one or two lamb is 5 yuan, a catty of cooked lamb 50 yuan cost, in addition to rent, workers' wages, fuel, seasonings, sanitation, environmental protection and utilities, basically, but also a loss of a few dollars.
Diners just stand in their own home thinking to calculate your costs, so diners think you are profiteering industry, now all walks of life are not profitable only restaurants profiteering, he did not know anything about the case, but also joined the industry to open a restaurant inside.
Later, these blindly joined the restaurant industry, the loss of more than the stock faster than the renovation of a month, open half a month on the closure. Want to transfer can not transfer out, because more and more restaurants after this injury, no one wants to do catering anymore. And the ones that haven't done it are jumping at the chance and rubbing their hands.
And then, forward and backward, they died.
That's the status quo!
A lot of catering old driver to catering white advice is: first go to the restaurant end a few months of plate, at least do half a year to say.
The catering industry, looking at the threshold is very low, in fact, labor labor. Many people think that they have a certain dish of the exclusive recipe, around the friends think it is delicious, it will be able to fire. As a result, after the opening of the real only friends to support the scene, the inner really "fire".
Preparing to enter the catering industry, want to think clearly about these issues: where to choose the site? The first thing you need to do is to find the right place to eat, and you'll be able to do it in the right way. Or business banquet? Aimed at the neighborhood 3 kilometers, do home-cooked fast food? Positioning directly determines the decoration style and price! Have you squatted to observe the flow of people in the circle? Is the takeaway synchronized? How much is the price per customer? How much monthly average income is the bottom line of single-day water flow to equalize and offset? Labor cost calculation, supply chain quality control, tax, health, safety, management and so on.
Then, we must make up for the restaurant people's normal: get up early and busy all day, after the accounts after midnight. Never have time to call friends to sit down, usually only as a handshake. If only stalls selling snacks is okay, if you rent a store, such a mentality absolutely can not escape the death of March.
Rent alone accounts for a large part of the expenses, as long as the house is not their own, basically the first half of the month's income is working for the landlord.
Then again, some specialties rely too much on the chef, and the chef is unstable when he changes the flavor. Word of mouth is bad, business is naturally poor. Want to retain a good chef, reduce turnover losses, that is a share or partnership? Shares and how to share?
There are also some people, is to follow the wind too much or too late with the wind has changed.
Look at the joining ads splashy, head in. Since you think the threshold is low, it is easy for others to enter and imitate, peer competition is not fierce. Chinese people are particularly red-eyed good business, but also particularly good at copying, so you can often see the same road, less than 500 meters apart, there are two similar small store, you sell egg cake I sell cold noodles, but also add a sausage, you sell wontons I sell dumplings, the speaker tuned louder than you, the taste change than you good. I'm going to copy you, catch up with you, and block your way to death.
Another example is the low-cost marinara, milk tea, etc., people have made a name for themselves, and the brand is also very loud, you are now squeezed in, not into the benevolent cannon fodder it.
Now, the entity economy by the impact of major e-commerce platforms scattered, clothing, shoes and hats, as well as a variety of retail are gradually retired, hotels and restaurants because of the huge investment in the general public do not dare to easily touch, can choose only the rest of the food and beverage, as the saying goes, "food is the sky," people live is not to eat a mouthful of it? So no matter how much money the catering industry, there will still be a lot of people to join. So that the share of food and beverage stores on the street more and more, shopping malls, restaurants in front of the number of queues, clothing stores in the salesman peeling nails. And because of the characteristics of the food and beverage industry caused by the entry of fast exit is also fast, so you see a constant demolition of the old and build new, here only closed, where it has been in the new renovation.
But in a word, it's easy to open a store and hard to keep it!
The more new stores open, the more they open, the more they close, the more they lose money.
In the past, the restaurant industry has a data, 508 days, the average life expectancy of the restaurant industry. Operating a small restaurant, always pay attention to the development of the industry, 508 days average life expectancy to be shortened, the end of the year big data will provide support.
The reason for the loss of money is that the restaurant industry's three high and one low, first, high personnel costs, the enactment of the labor law eliminated the cheap labor, the basic standard of living to improve the work without urgency, the recruitment of waiters to become the norm in the restaurant, a large number of restaurant openings resulting in the chef's tight sales, wages have also risen. Two industries are optimistic about the restaurant, restaurant after restaurant, newcomers, can do restaurant houses are in demand, rent is also high. Three with the pursuit of health, raw materials, also the pursuit of real materials, high labor costs also make the cost of raw materials is also increasingly high.
Low profits, did not do the catering people only think high profits, in fact, profits are very low, a little attention, will lose money. There is no power of return, it will be blood money. Recognize the lack of people always want to try, who also do not eat, I said right? Welcome to shoot bricks!
Since ancient times, there are bureau proverb: insiders look at the doorway, outsiders see the fun! As a senior catering industry insiders to speak, the subject said are losing money, for this point is not recognized at all, catering as a traditional ancient industry, and so much rigid demand, there is no money, according to the overall market analysis, the catering industry profit and loss situation is as follows:
1 very profitable companies and stores accounted for 5%;
2 profitable catering companies and stores
3 flat and still holding on to the catering company and stores accounted for 30%;
4 has entered the loss or is entering the loss state of the catering company and stores accounted for 40%;
5 loss-making catering company and stores about to close down accounted for 10%;
So the reality is not to catering so terrible, so bad, always remember one word. So unbearable, always remember a sentence, that is, there is no industry that does not earn money, only do not earn money business
2019 has entered the second month, look back, our own business in the end is in which stage, the next road will go how to go, will be the catering business this year must face as well as to solve the most critical problems;
Any industry at every moment is There are down business, there will be more intrepid stand up and motivation to move forward, especially in recent years, other traditional industries by the national policy and the impact of the Internet, as well as the entire market economy of the global impact, more and more industries either disappear, or shrink, or mergers, or engulfed, the form of more and more unfavorable to a lot of traditional industries, more business owners as well as investors recognize the catering this piece of with the Not subside the cake, so the whole catering market is now the time of the boom, so they all chose the catering industry together, in the non-stop horse race, seize the market as well as a share of the soup.
My observation is that the business of catering is very bad, especially the bigger the store, the worse the business, as if everyone has already forgotten the set of treats, the big hotels are now generally aimed at the kind of wedding banquet is still a little better. Doing catering traditionally is about the characteristics, flavor, location and environment, but these things do not seem to work, these traditional magic weapons are not working, that catering still take what competition? It seems that catering fast into the point of price competition, I see a netizen in the video sun very good dishes ten yuan buffet lunch someone is still too expensive, inexplicable, I said that we are not saying that your dishes are expensive, but the pricing is expensive, meaning you do not have to use so good materials you can reduce the cost of 8 yuan.
If the food and beverage are competitive to this point then it is really hard to do, you can imagine the price war under the automated robots are going to rapidly develop into the food and beverage industry, so especially do the cafeteria is likely to be the first to be replaced by automated machines. So hard to do why there are so many people into it? Most people are accompanied by the traditional society grew up, for the Internet is not familiar with, although the current wind mouth in the Internet, but they do not understand, or feel that there is not a real store feel assured and down-to-earth. The second catering stores threshold is too low, everyone at home will cook, take their own home cooking craft has a few thousand dollars can open a small stall, I found that in recent times I work on the street there are several such stalls, for lunch at work.
Third catering to money fast, store a whole few days of time can be business on the cash into the account, which is not the same as the business at any time half a year there is also pressure money. The fourth one is now the traditional industry competition basically reached the degree of white-hot, can not find a good business. Fifth, catering is just away from the need, the market is also very large, according to the media reported statistics, in 2017 China's per capita consumption of dining out amounted to 3,000 yuan, the catering industry, the minimum gross profit of 50%, 300 people can make a restaurant to achieve gross profit of more than 450,000 yuan a year, so the catering capacity is still good, so a lot of people are optimistic about the catering is still justified.
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A sentence thing, because they have no better choice.
The question asked: I heard that the catering are losing money, why are there more and more new stores?
Question keywords: losing money, more and more new stores.
Money loss: operating expenses exceed operating income, cash inflow is negative.
More and more new stores: the total number of physical stores increased, the stock remains unchanged (opening and closing of this and that).
To start with: the average life cycle of mainland China's food and beverage stores is very short, with less than 10% in continuous operation for more than three years. The market demand capacity is not enough to support too much incremental market supply, the lack of business philosophy of the homogenization of the competition has shortened the life cycle of the restaurant stores.
I will clarify the problem from a business perspective.
The first point: the survival of the catering industry status
(1) store operating losses accounted for the majority
① profitability accounted for only 10%
② to maintain the status quo accounted for 20%
③ loss of 70%
(2) catering industry species homogenization competition
① industry imitation
② VI cloning
③ brand cottage
⑶ catering network operators turn to the entity (offline)
① catering traffic platform costs and entity operating costs
② network catering brand expansion needs to be invested, but the injection of funds must be endorsed by the entity (credit)
Second point: the characteristics of the nascent catering business force
p> (1) capital holders (gold master)
Reason: limited investment channels
① traditional ''iron chicken'' (steel / highway / infrastructure) investment constraints
② financial markets (stocks / bonds / futures) continue to shrink
② financial markets (stocks / bonds / futures) continue to shrink
⑵ network data collectors
Reason: the aggregation of online traffic, the need for offline realization and interaction
① physical stores can provide a real scene experience
② physical stores can provide derivative service projects
Third point: the characteristics of the operators of the food and beverage stores that lose money
⑴ no food and beverage practice experience value of the newcomers (white)
① franchisees
② imitators
⑵ traditional operators without business philosophy
① obsolete old store owners
② second generation successors of the old store
To sum up: every industry follows the ''two or eight The law of two or eight'' (there are losses and profits), the restaurant industry is no exception. However, the increase in the number of food stores is not always the performance of individual profit-seeking behavior, more by the external environment (investment / economy / employment).
Dining business problems can send a private message to me, willing to answer your questions!
That's because they are not willing to work, work is not free, open a store in one fell swoop, and earn money and freedom, in fact, open a store are earning money, but earning people's rent money, the loss of their own labor, as long as the rent is due to seventy percent of the choice to give up, twenty percent of them do not want to give up, ten percent of them really earn money
This is a good idea.