Why are restaurant owners trapped in the "octagonal cage" of prices?
There is a magic spell in catering, on the one hand, customers feel that meals are getting more and more expensive, on the other hand, catering owners feel less and less profitable, which is the dilemma faced by the current catering. The spending power of customers is declining, while the cost of catering is high, the cost cannot come down, and the profit cannot go up. Restaurant owners are trapped in a price octagon, what is the truth behind it? Brother Cannon will disassemble it for everyone today.
First, the consumer group of catering is expanding, while the level of consumption is declining. To understand this phenomenon, we have to look back at the history of catering in the past decade. Twenty years ago, the main consumers of catering were business people, bosses and the government to receive the consumption of the general public. Family consumption has not really started, but some families with good conditions will choose to go to the hotel to consume during the holidays.
Especially after 2010, the consumer body of catering began to tilt towards the public. Especially with the advent of the post-90s and post-00s consumption era, eating out is commonplace. The catering market has changed from business banquets and government banquets to family banquets and working meals. Because of the different consumption grades and concepts, the requirements for catering are also different.
At banquets 20 years ago, it was normal for the consumption of alcohol to exceed the turnover of meals several times. For example, a banquet for a meal costs 5,000 yuan, of which about 3,000 yuan is alcohol. In a restaurant I opened at the time, it was common to drink tens of thousands of drinks in a meal. Now the average restaurant brings its own drinks, and the profit margin of most medium restaurants in this item is gone.
With the current per capita unit price of dozens of customers, as long as the decoration of a slightly better restaurant, if the customer rate in first- and second-tier cities does not reach more than two rounds, there is no loss of money without turning over. Second, the perception of consumer groups determines whether the product is expensive or cheap. Customers feel expensive does not mean that the profit of the restaurant is high, and whether the dishes are expensive or not is determined by the customer's cognition.
For example, if a person eats a fast food, the acceptance price in his heart is 20 yuan, and selling 30 yuan fast food must be considered expensive. No matter how good the product is, some low-spending customers think that the value of these meals is not worth the price. Another example is stir-fried meat with green vegetables, scrambled eggs with tomatoes, noodles, and rice, in its cognition is the price of meat, vegetables, and eggs in the vegetable market, but if your price is slightly higher, it is unacceptable. So a few dollars in the wet market, it will think you why you sell a dozen.
Similarly, the average number of fried chicken and burgers at KFC McDonald's has risen to more than 40, which is higher than the profit of Chinese food, and not many people are scolding him. This is because the customer thinks that it is worth the price, so the customer feels expensive or not, not necessarily because your product is really expensive, but because there is a problem with customer positioning. Most of the income from going to KFC McDonald's to consume is relatively high, or the post-90s and post-00s have no concept of price. Customers who go to small restaurants such as roadside stalls and mom-and-pop shops will feel expensive no matter how they price it.
Third, the boss does not make money is not that the price is sold low, some costs of catering are really unsolvable, and the price really cannot be lowered. In particular, many large and medium-sized catering and chain brands, rent, labor management, and operating costs remain high. Although the price of meals is getting more and more expensive, the restaurant does not make much money. The general net profit margin of many big brand catering companies is about 8%, but it is some individual small stores that do not open stores indiscriminately. It can reach 15% or even more than 20%, which makes some chain brands and catering companies fall into a price deadlock.
Price increase, you have no customers, price reduction is a loss of money.
Pay attention to the old cannon of catering, for the catering people, open the gun!
