1, fierce market competition: With the intensification of competition in the catering industry, the swallow in Lizhuang is facing fierce competition from its peers in the market. In order to maintain its competitive advantage, Lizhuang Bird's Nest needs to invest a lot of money and energy in brand promotion and marketing activities, which makes the operating costs of enterprises rise continuously.
2. Poor management: There are problems in the management of Lizhuang Haiyan, which leads to poor internal operation and low efficiency. In addition, due to the lack of effective risk control mechanism within the enterprise, the enterprise can not respond to market risks in time, thus getting into trouble.
3. Changes in the economic environment: With the changes in the domestic economic environment, the purchasing power of consumers has gradually declined, which directly affects the business income of Li Zhuang Yanyan. Due to the break of the enterprise's capital chain, it is impossible to pay the supplier's payment and employee's salary on time, which eventually leads to the bankruptcy of Lizhuang Yanzi Diary.