Why is the rate of restaurant closures higher in first and second tier cities than in smaller citie

Updated on Restaurant 2024-07-27
5 answers
  1. Anonymous users2024-01-24

    The restaurant closure rate in first- and second-tier cities is close to 90%, and the average lifespan is less than 3 months! For many people, starting a business is actually doing a small business, such as opening a small store. Open catering has a relatively low threshold, high yield, simple and fast.

    However, in recent years people have found it increasingly difficult to provide food. According to incomplete statistics, in 2017, the total number of restaurants opened in first- and second-tier cities across the country was about 3.36 million, and the number of closed restaurants reached 2.9 million by the end of 2017, with a failure rate, and the average life span of restaurants per year from 2015 to 2017 was days, less than 3 months.

    In fact, there are three main reasons why restaurants are difficult: the first is the increase in costs. From 2015 to 2017, housing prices skyrocketed across the country.

    In Hefei, for example, the average house price at that time was only 7.81 million square meters, double that of 2017. Popular areas such as government offices and lakeside areas have increased several times. Can house prices and shop rents not be met?

    As a result, the cost of providing food increases significantly, and the risk of rising costs increases. As long as the price rises significantly, the popularity drops dramatically, but does this work if there is no price increase? Over time, you naturally can't.

    Finally, there is a problem with the restaurant itself. Selling emotions, stubbornness, weak foundations, a desire to expand, a lack of innovation, and a lack of operational capacity can quickly create a restaurant in every market. The restaurant industry has the lowest threshold and is the easiest place to start, but it is also the most difficult place to start a business and has the highest failure rate.

    If you focus on comprehensive knowledge development, market forecasting, and your own cultivation, you will live longer.

    To sum up, opening a restaurant is relatively risky, so we hope that everyone should be cautious and not blindly invest in the market.

  2. Anonymous users2024-01-23

    Because this is the competition rate is too high inside. If you're not careful, you can lose money.

  3. Anonymous users2024-01-22

    Sleep like this because their competitive pressure is relatively high, so their bankruptcy rate is relatively high.

  4. Anonymous users2024-01-21

    Because the current first- and second-tier cities have relatively high costs, if they can't make a profit, they will go out of business.

  5. Anonymous users2024-01-20

    This is because the catering industry in first- and second-tier cities is under great competitive pressure.

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