Summary of the Key Points
This article challenges the popular notion that "emotional consumption" is the reason behind the failure of internet-famous stores, arguing that emotions are merely a tool to attract customers, not the underlying cause of their demise. The real killers of these stores are fundamental operational issues: relying solely on emotions to attract initial customers without providing products for repeat purchases, misinterpreting initial success as a permanent state, experiencing supply chain and management collapses after gaining popularity, and using a franchise model that erodes the brand's foundation. The article offers survival tips, such as focusing on creating products that encourage repeat business, allocating budgets for both emotions and products wisely, conducting stress tests for sudden popularity, and treating marketing expenses as a form of "traffic rent."
Detailed Explanation
1. Emotions as a Tool: Attracting Customers, but Not Keeping Them
Many criticize emotional consumption as unreliable, but in fact, all physical stores use emotional appeals—think of the familiar tastes remembered by old noodle shop owners, the ceremonial service at Michelin-rated restaurants, or the warm atmosphere of local shops. The role of emotions is clear: to help new stores solve the problem of attracting customers for the first time (after all, those who haven't visited can only rely on visual appeal, photos, and word-of-mouth). However, emotions cannot ensure customers return; the novelty of an experience fades over time, while the value of a product remains (a delicious dish tastes the same even after a hundred servings). Stores that focus only on emotions and neglect product quality are betting on a diminishing advantage, reaching their peak at opening and then inevitably declining.
2. The Deadly Financial Mistakes
The failure of internet-famous stores doesn't start until the first day of operation. Their cost structures are often excessive: spending millions on decoration for a 200-square-meter space just to look good, paying significantly higher rent in prime locations, and investing monthly in influencers and video marketing. These fixed costs raise the bar for breaking even so high that they must maintain the same level of activity as in the initial months. But initial success is an abnormal state; once the novelty wears off and traffic returns to normal, the combined costs of rent, decoration, and marketing lead to sudden losses. Moreover, owners often mistake marketing expenses for a one-time investment, failing to realize that they are essentially "traffic rent"—without it, the store loses its appeal.
3. Sudden Popularity as a Curse
Many stores fail due to the sudden surge in demand. When orders increase dramatically, the infrastructure (such as a small kitchen staff and outdated equipment) cannot keep up, leading to slow service, simplified procedures, and decreased food quality. Customers with high expectations are disappointed, and negative reviews spread quickly, turning a popular store into a notorious one. This sudden popularity is a test for the supply chain and management; unprepared stores are overwhelmed by the surge.
4. The Franchise Model: More a Money-making Scheme than a Business
Some internet-famous brands fail even faster because they are not really in the food business but in the franchise business. They invest heavily to create a few successful stores as examples, then charge franchise fees, security deposits, and equipment costs. The brand owner's profit comes from these fees, not from individual store sales, so they don't care if each store is profitable as long as the illusion of popularity persists. Many brands start with just two stores before expanding, and their models are untested. Franchisees end up with a model that doesn't work in their own locations, leading to their failure. This collapse is unrelated to customer behavior but results from a flawed business model.
5. Surviving the Storm
Stores that survive transform from internet-famous to long-lasting businesses by doing the following:
- Budgeting for Regular Traffic: Avoid treating initial success as the norm and prepare for lower customer numbers by keeping costs within a manageable range.
- Stabilizing During Popularity: Focus on strengthening the supply chain, standardizing procedures, and training staff, turning traffic momentum into sustainable capabilities.
- Focusing on Repeat Business: Plan before decoration by considering why customers should return, which influences location, pricing, and product offerings.
- Treating Marketing as Rent: Consider marketing expenses as part of the overall cost structure and ask: "How much business would remain without marketing?" More remaining business indicates real repeat purchases, while less suggests that the store is relying on temporary traffic.
Emotions are essential for attracting customers, but it's the quality of the products and experience that determines a store's success. Consumers are willing to try new stores, but whether they stay depends on the store's ability to keep them satisfied.