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Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

author:Uncle Li looks at the catering

The real reason for the wave of catering closures in 2023 is not traditional competition, but a revolution in the catering industry, and those restaurants that have closed down are not killed by competitors, but eliminated by the development trend of the industry.

After reading this article, you will understand where is the future of small and medium-sized catering?

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Restaurant bosses have paid attention to the fact that the 2023 catering bankruptcy tide has officially kicked off, and on the basis of the closure of the catering industry in the first half of the year, a group of catering people have come forward to unveil the catering black September and the worst October in history.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Mr. Li, who came to Shanghai from Sichuan to open a store, said:

"After 11 years of opening a store in Shanghai, the turnover plummeted by 60% in September, the worst in October, and fell by more than 10% on the basis of September."

"The chef hired for 6,000 yuan didn't dare to use it, fried the dishes by himself, invited an aunt to help serve the dishes, clean up, and his wife helped with the side dishes, the rent was 15,000 yuan a month, and he didn't make money in September, and he earned a few hundred yuan a day for a week in October, and he couldn't hold on like this."

"There has never been a case like in September and October this year, when the epidemic opened the door better than now."

This month, I visited countless small and medium-sized restaurant owners in Shanghai, and also inspected some catering markets, and the general feeling is that the catering industry is experiencing a cold winter, whether it is individual small stores, or powerful catering enterprises and chain brands will be affected, but a large number of small and medium-sized individual catering stores will be eliminated.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Over the past few decades, the catering industry has undergone tremendous changes and developments, from the original restaurants and tables that were not renovated, burned with wood and coal, and dirty, to today's palatial high-end restaurants and food cities, which can be said to be changing with each passing day.

For decades, individual restaurants and mom-and-pop shops, with their weed-like vitality, have occupied almost half of the catering industry.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Some forward-thinking bosses are constantly upgrading in the process of development, such as: Chen Chuanwu of Zhengxin Chicken Chop, who opened the first Zhengxin Chicken Chop in Wenzhou in 2000; In the same year, the Hua brothers borrowed 80,000 yuan and opened "Wallace" at Fuzhou Normal University; Zhang Chaohong in Zhengzhou upgraded the shaved ice stall that made a fortune of 3,000 yuan to "Honey Snow Ice City"; Harbin's roadside stall Yang Ji Malatang was officially registered as "Yang Guofu Malatang" in 2007.

With the entry of capital, no one thought that today, 20 years later, Zhengxin chicken steak in more than 500 cities across the country, more than 20,000 stores, Wallace opened more than 16,000 stores all the way across the country, a cup of milk tea of less than 10 yuan in Mixue Bingcheng, tens of thousands of stores, selling 6.5 billion a year, Yang Guofu Malatang opened the store to the world, in Canada, Japan, South Korea, Singapore, Australia have Yang Guofu Malatang.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

However, as the development of the catering industry becomes more and more mature, various catering giants frequently sink into the market to seize share, and small and medium-sized individual mom-and-pop shops fall into anxiety and hesitation.

A new upgrade in the catering industry has arrived, and small and medium-sized restaurants have been squeezed by brand chains, and most of them have to quit in disgrace.

Small and medium-sized restaurants will not be eliminated by doing the following 3 points?

Today's small and medium-sized restaurants, than the year's Wallace, Yang Guofu, Michelle Bingcheng challenge is greater, the current catering market has been crushed by the brand, especially fast food small restaurants, Shanghai Pudong 1.4 kilometers circle newly opened 8 "Mr. Rice" fast food, 10 "hometown chicken" fast food, their store revenue can top more than 5 individual mom-and-pop stores, that is, 10 brand stores, corresponding to 50 individual small stores closed.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

In the economic downturn, the slow growth of catering consumption situation, small and medium-sized restaurants in the face of the "store tide" and strong chain brand sinking expansion, catering people are extremely involuted, homogenization of the competition is becoming more and more fierce, this is the catering "bureau", if there is no breakthrough in this "bureau", can not find the direction to leap out, relying on traditional product taste, price, service competition has no chance.

How to "break the game" of small and medium-sized restaurants, in the fiercely competitive catering market, do not engage in price wars with new catering stores, and at the same time avoid the advantages of chain brand stores and create their own living space.

There are three major problems for the survival and development of small and medium-sized restaurants to make money quickly:

First: brand is king

Catering has moved from "product is king" in the past, through "channel is king", to "brand is king".

After decades of savage growth, the chain of catering brands has increased from 13% in 2019 to 20.7% in 2022, and has entered the era of 10,000 stores from the era of thousands of stores.

How do small and medium-sized restaurants build their own brands?

For small restaurants, the brand is not a tall set of things, the brand is the position of your store in the hearts of consumers, whether customers can immediately think of it when they need it, whether your store is dirty and messy in the minds of customers or what, the image of the boss, the environmental sanitation of the store, and what is the impression of the characteristics of the product in the minds of customers.

The establishment of a brand is determined by market positioning, product positioning, price positioning, crowd positioning, etc.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Small and medium-sized restaurant owners should increase memory points in the minds of customers through personality creation, product characteristics, and store image, and do a good job of word-of-mouth is the best brand, and being a super self-employed restaurant is a brand positioning of catering next year.

Second: Position is king

The catering market is facing four major trends, changes in consumer demand, small business districts, rising costs, and lack of talents.

The competition for good locations in large business districts is fierce, and they are basically occupied by chain brands, and the number of stores has reached the ceiling, even chain brands are tired, and it is becoming more and more difficult to make money.

In the future, in the face of population decline, the shrinkage of the catering market will intensify, and the dividend of rapid growth has passed.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

With the expansion of the city, small business districts are inevitable, small business districts are the golden location that chain brands have not yet fully touched, small and medium-sized restaurants through the concept of "location is king", through the following three small business districts to open stores, through the store model to build, in the small business district to strive to be the "first".

1. Commercially dense small business district - store model: high turnover, single product category, differentiation

2. Community-based small business district - store model: full category, just need high frequency, multi-functional

3. High-density layout of small business districts - store model: fast delivery, small scale, grab share

How to win in a small business district is to tap the attribute of "first", and its core value is to create "new value" for customers.

There is no absolute answer to the first store, you must combine your own brand, products, services, and models to create your own new model.

Third: single product breakthrough

Small and medium-sized restaurants have made breakthroughs through single products, seized the subdivision track, opened the second curve, and opened the road to growth.

Small restaurants can't compete with brand stores, location, hygiene, environment, brand are not opponents, only the price has a slight advantage, but the price of chain brand stores is also sinking, most consumers are acceptable, the following is my lunch yesterday in Shanghai New World "Mr. Rice" fast food.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Although the price is not low, however, in such a business district, rent and other expenses, small restaurants have no foothold, which is also the fundamental reason why a large number of small restaurants have closed down in recent years.

Whether a small restaurant can make money, in the homogeneous catering market, there is no chance to rely on product taste, price, and service, only through its own characteristic selling points, to create different store models, focusing on convenience, differentiation, refinement, and putting competitors out.

Did you find out? The reason for this year's restaurant closure wave is not competition, but the result of catering upgrades

Written at the end: the catering industry has entered a mature period, the future competition must be more and more fierce, small and medium-sized restaurants to understand the trend, understand the future, understand the law of market changes, by summarizing the commonality, find the gap, face the present, make the future layout.

I am Uncle Li looking at catering, and I have a different vision of the catering industry, welcome to pay attention to sharing.

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