Why lose money?
1, rent. There are many reasons for restaurant closure, but rent is one of the important reasons. At first, the rent was not very expensive, but when your business finally picked up, the rent began to rise. Sometimes it's not because the location is expensive, but because the landlord sees that your business is good, it starts to increase, so the final result is either moving out or closing down.
2. Lack of experience. Many people don't know what to do when they open a shop for the first time. In addition, they are inexperienced, have wrong management methods and can't take effective rescue measures when they encounter problems, so sometimes their business is bleak or closed.
3. The labor cost is high. Nowadays, the labor cost of the catering industry is getting higher and higher, and the monthly salary of employees is not small, not to mention that if the business is better, the chef will let you give you a commission. This is also one of the reasons why it is difficult to start a business in the catering industry. At present, many chefs invest in shares or run restaurants in partnership with bosses, and both sides share part of the shares, which greatly reduces the brain drain and changes of restaurants in such important positions as kitchens.
Why are there more and more new stores?
4. Low threshold and high profit. Because the catering industry can be said to be the easiest of all industries, many people will want to enter it. In fact, it's well done and the catering is quite profitable, so many people will want to come in one after another.
As the saying goes, "Food is the most important thing for the people". It is common that people live for a bowl of rice. Therefore, no matter how the catering industry loses money, many people will still join, and as long as the catering market is so big, as long as it is done well, it is not afraid that it will not make money.
Catering is basically losing money, but more and more new stores are opening!
China people follow the trend, which is unmatched by other countries in the world. You see a mutton restaurant doing well in a street, and soon there will be a second mutton restaurant, a third mutton restaurant, and finally the whole street will become a mutton restaurant street.
In this case, the landlord of the whole street raised the rent of the whole street as soon as he discussed it.
Because the speed of opening new stores is several times faster than that of training chefs, there is obviously not enough chefs now. Everyone is looking for a chef, or a more advanced chef. Obviously, the salary of chefs is getting higher and higher, so there is still a lack of a team of chefs to run their own kitchens. If you want to keep a good cook, you obviously have to get a raise.
One month's salary for working in rural areas is equal to or more than one year's crop income, which obviously drags down the country's economic development. So rural people don't farm land, and they rent it to group companies and the like. However, the group company will lose money in the early stage of operation, and the price of ingredients will rise passively.
This is the obvious "three highs".
Because the whole street is a mutton restaurant, everyone buys ingredients for mutton, and the output of mutton obviously can't keep up, which also increases the price of mutton.
The competition has obviously escalated. Everyone has the same skills, so does the food. Finally, we must fight for the price and lower the selling price, which is at the expense of reducing the net profit.
"Three highs and one low"!
High rent, high wages, high food prices and low prices!
Where is the profit?
Without profit, where is the living space?
There is only one way, bankruptcy.
People who have never been in the catering industry ask the price of cooked mutton after going to the restaurant. 80 yuan is a kilo! I think it is too expensive. The price of raw mutton in the market is only one catty in 29 yuan. When I was doing it in your shop, you earned me 50 yuan. I came to some friends and spent a few kilograms of mutton. You can't earn me a few hundred dollars.
He doesn't count as your raw mutton. Although a kilo of 29 yuan, a kilo of mutton is a six-ripe finished product when cooked. One or two mutton is 5 yuan money. Excluding rent, workers' wages, fuel, spices, health expenses, environmental protection, utilities, 50 yuan a catty of cooked mutton is only a few dollars.
Diners only calculate your cost from their own ideas, so they think you are a profiteering industry. Now all walks of life do not make money, only restaurants make huge profits. He joined the restaurant business without knowing anything.
Later, these people who blindly joined the catering industry lost money faster than stock trading. After a month of renovation and half a month of opening, they closed. If you want to transfer it, you can't transfer it, because more and more restaurants are hurt by it, and no one wants to cook any more. If you haven't done it, you are eager to try and sharpen your knife.
Then, wave after wave of death.
This is the status quo!
Many old catering drivers' suggestions for catering Xiaobai are: go to the restaurant to cook for several months, at least for half a year.
The catering industry, looking at the low threshold, is actually very laborious. Many people think that they have an exclusive recipe for a dish, and friends around them think it is delicious, so they will be able to catch fire. As a result, after the opening ceremony, only my friends really joined, and my heart was really "hot".
Before preparing to enter the catering industry, have you thought about these questions: where is the location? Simple meals and simple meals in office buildings? Or a business banquet? Aim at the community for 3 kilometers and make home-cooked fast food? Positioning directly determines the decoration style and price! Have you observed the flow of people in the circle? Is the takeaway synchronized? What is the unit price? What is the monthly bottom line income for a single day? Labor cost calculation, supply chain quality control, taxation, health, safety, management and so on.
Then, we must make up for the normal state of catering people: get up early in the morning and be busy all day, after midnight. You don't just call your friends around, usually you just have the shopkeeper of cutting. If you just set up a stall to sell snacks, that's fine. If you rent a shop, you will definitely die in March.
Rent alone accounts for more than half of the expenses. As long as the house is not your own, the income in the first half of the month is basically working for the landlord.
Moreover, some special dishes are too dependent on the chef, and the chef is unstable when he tastes bad. Bad word of mouth, bad business. Want to keep good chefs and reduce turnover, is it a stock or a partnership? How to divide the shares?
Others follow suit too much or too late. The wind has changed.
Looking at the hype of the joining advertisement, I plunged into it. Since you think the threshold is low, it is easy for others to imitate, and the competition between peers cannot be fierce. China people are particularly jealous of other people's good business, and they are also very good at copying, so we can often see two similar shops on the same road, which are less than 500 meters apart. You sell egg cakes, I sell cold noodles, and add more sausages. You sell wonton and I sell jiaozi. The horn is louder and tastes better than yours. I will copy you, chase you and block you.
Another example is low-priced pot-stewed and milk tea. He has made a name for himself, and the brand is very loud. Now squeeze in, and it will become cannon fodder.
At present, the real economy has been shattered by major e-commerce platforms, and clothing, shoes and hats and various retail outlets have gradually withdrawn. Hotels and guesthouses are not easy to touch because of their huge investment, only catering is left. As the saying goes, "Food is the most important thing for the people". Don't people live for a bite to eat? So no matter how much the catering industry loses, there will still be many people joining. Therefore, the share of restaurants on the street is increasing. In the shopping mall, there is a long queue at the entrance of the restaurant, and the salespeople in the clothing store are peeling their nails. Because of the characteristics of the catering industry, it is fast to enter and exit, so you can see that the old ones are constantly being demolished and the new ones are under construction. The door here is closed and the new ones are already being renovated.
But in a word, it is easy to open a shop, but difficult to keep it!
The more new stores are opened, the more they are opened, the more they are closed, and the more they lose.
In the past, the catering industry had a data, 508 days, the average life expectancy of the catering industry. Running a small restaurant always pays attention to the development of the industry. The average life span of 508 days should be shortened, and big data will provide support at the end of the year.
The reason for the loss lies in the three highs and one low in the catering industry. First, the personnel cost is high, the promulgation of the labor law eliminated cheap labor, the improvement of basic living standards made the work less urgent, the recruitment of waiters in restaurants became the norm, and a large number of restaurants opened, which led to tight sales of chefs and rising wages. Second, all industries are optimistic about catering. Restaurant after restaurant, new people come forth in large numbers. Houses that can be used as restaurants are in great demand, and rents are rising. Third, as people pursue health, raw materials also pursue genuine materials, and high labor costs also make raw material costs higher and higher.
Low profit. People who have never done catering only think that the profit is high. In fact, the profit is very low. If you don't pay attention, you will lose. Without the power to save the day, you will lose everything. People who don't know enough always want to try. Who hasn't eaten yet? Am I right? Welcome to clap bricks!
Since ancient times, there has been such a saying: experts watch the doorway, amateurs watch the excitement! As a senior person in the catering industry, the topic says that everyone is losing money, which is totally unacceptable. As a tradition, catering has an ancient industry with so many rigid demands. If it doesn't exist, it will lose money. According to the overall market analysis, the current profit and loss situation of the catering industry is as follows:
1 Very profitable companies and shops account for 5%;
The profit ratio of catering companies and stores is15%;
3 catering companies and stores that are flat and still insisting account for 30%;
4 catering enterprises and stores that have entered a loss state or are entering a loss state account for 40%;
Five loss-making catering enterprises and stores about to close down account for10%;
Therefore, in reality, don't make catering so terrible and unbearable. Always remember that there is no unprofitable industry, only unprofitable enterprises.
20 19 has entered the second month. Looking back, what stage our own enterprises are in and how to go next will be the most critical issues that catering enterprises must face and solve this year.
There are fallen enterprises in any industry, and more fearless people will stand up and move forward with inspiration. Especially in recent years, other traditional industries have been impacted by national policies and the Internet, as well as the global impact of the whole market economy. More and more industries either disappear, shrink, merge or be annexed, which is increasingly unfavorable to many traditional industries. More business owners and investors believe that catering is a big cake that will never fade, so now the whole catering market is booming, so they all choose the catering industry together to compete for the market and share a piece of cake.
What I have observed is that the catering business is really bad, especially the bigger the store, the worse it is. It seems that everyone forgets to socialize. What kind of wedding banquet is generally better in big hotels now? Cooking has always been about characteristics, taste, location and environment, but these things don't seem to work, and these traditional magic weapons don't work either. So what is the competition of catering? It seems that catering is about to enter the point of price competition. I saw that some netizens cooked very good dishes in the video, and some people thought that the buffet lunch of 10 was too expensive. Somehow, when I said that people didn't mean that your food was expensive, they meant that you didn't need such good materials. You just need to reduce the cost to 8 yuan.
If the catering industry is so competitive, it is really difficult to do it. It is conceivable that automated robots will rapidly develop into the catering industry under the price war, so it is possible that canteens in particular will be replaced by automated machines first. It's too difficult to do. Why are so many people entering? Most people grew up in a traditional society and are not familiar with the Internet. Although the current outlets are the Internet, they don't understand that they still feel at ease and practical without a real storefront. Second, the threshold of restaurants is too low. Everyone can cook at home. With your own cooking at home, you can open a stall of thousands of dollars. I found that several such stalls have appeared on the street where I work recently, aiming at working lunch.
Third, catering can be paid quickly, and cash can be paid after the pavement is opened for a whole few days, which is completely different from some businesses that keep pressing money for half a year. Fourth, the competition in traditional industries has basically become white-hot, and no good business can be found. Fifth, food is the most important thing for citizens, and catering is indispensable, so the market is huge. According to the statistics reported by the media, in 20 17, the per capita consumption of eating out in China was 3,000 yuan. If the minimum gross profit of the catering industry is 50%, and a restaurant with 300 people can achieve an annual gross profit of more than 450,000, then the catering capacity is still good, so it makes sense for many people to be optimistic about catering.
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In short, because they have no better choice.
Question: I heard that catering enterprises are losing money. Why are there more and more new stores?
Keywords: losing money, there are more and more new stores.
Loss: Operating expenses exceed operating income, and cash inflow is negative.
There are more and more new stores: the total number of physical stores has increased, and the stock has remained unchanged (the opening and closing of stores are changing).
From the beginning, the average life cycle of restaurants in Chinese mainland is very short, and less than 65,438+00% of them have been in business for more than three years. The market demand capacity is not enough to support the excessive market supply increment, and the homogenization competition without business philosophy shortens the life cycle of restaurants.
I clarify the point of view of the problem from the perspective of management.
The first point: the present situation of the catering industry.
(1) Most stores have operating losses.
① The profit ratio is only 10%.
② The proportion of maintaining the status quo is 20%.
③ The loss ratio is 70%
⑵ The homogenization competition in the catering industry is fierce.
① Format imitation
② Virtual cloning
③ Brand shanzhai
(3) catering network operators move to entities (offline)
① The operating cost of catering traffic platform and entity is almost the same.
The expansion of online catering brands needs investment, but the injection of funds must be endorsed by physical stores (credit).
The second point: the characteristics of the new catering business force.
(1) fund holder (financier)
Reason: Limited investment channels.
(1) The traditional "iron rooster" (steel/highway/infrastructure) has limited investment.
② The financial market (stocks/bonds/futures) continues to shrink.
(2) Network data collector
Reason: The aggregation of online traffic needs offline realization and interaction.
The physical store can provide a real scene experience.
② Physical stores can provide derivative services.
The third point: the characteristics of loss-making restaurant operators.
(1) A newcomer with no practical experience in catering (Xiaobai)
① Franchisee
② imitator
(2) Traditional operators without business philosophy.
(1) the old shopkeeper
(2) the second generation of the old shop.
To sum up, every industry follows the' 28 Law' (gains and losses), and the catering industry is no exception. However, the increase of food and beverage outlets is not all a manifestation of individual profit-seeking behavior, but more influenced by external environment (investment/economy/employment).
You can trust me privately about the catering business, and I am willing to answer your questions!
That's because people don't want to go to work and they are not free to go to work. If they open a shop, they can kill two birds with one stone, making money and having freedom. In fact, they all earn money by opening stores, but they earn other people's rent money and lose their own artificial money. As long as 70% choose to give up the rent and 20% don't, 10% really makes money.