Quick Summary of the Core Content
This article clearly outlines the collective struggles of the once-thriving marinated food chain industry: Four leading listed companies—Juewei, Zhou Heiya, Huang Shanghuang, and Ziyan Food—which started with popular marinated dishes like duck necks—have seen a decline in performance in recent years. There has been a continuous wave of store closures, and the industry's growth rate has plummeted from a peak of 9% to just 3%, marking the end of the era when opening new stores easily generated profits. On one hand, consumers complain that marinated foods are too expensive and have reduced their consumption. On the other hand, despite selling at high prices, marinated food companies are struggling due to high costs associated with cold chain logistics and idle factories, and they dare not lower prices for fear of incurring even greater losses and offending their regular customers. As a result, these companies are now trying unconventional strategies, such as selling marinated meat rice combos, entering supermarkets like Sam's Club and Panda Express to offer custom large-packaged products, and opening new snack stores that sell duck necks for 9 yuan. These moves appear to be attempts at diversifying into new businesses, but in essence, they are indirect attempts at reducing prices in order to attract back lost customers.
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Simplified Explanation of the Key Points
1. The “Golden 20 Years” of the Marinated Food Industry Are Over
Twenty years ago, marinated food businesses were small street-side shops with inconsistent flavors, serving only a limited area. The industry later developed a model of centralized production in large factories followed by cold chain delivery to stores, transforming this small-scale business into a nationwide industry. Juewei expanded rapidly through franchising, opening thousands of stores annually; Zhou Heiya focused on premium, fresh-keeping packaging; Huang Shanghuang and Ziyan targeted household-use marinated dishes. At their peak, Juewei had 16,000 stores, and the industry grew at nearly 10% annually. However, those good times are over. In 2024, the industry's growth rate dropped to 3.7%, and in 2025, it further declined to 3%. All four leading companies are struggling: Juewei reported its first annual loss since going public, and Huang Shanghuang has seen five consecutive years of declining revenue. The remaining companies are either selling more but making less profit or relying on acquisitions to boost their financials. The main business of selling marinated food is no longer profitable, and many stores have closed. Juewei’s store count has been reduced from 16,000 to 10,000, and the slogan of opening thousands of stores per year is no longer heard. Good locations for marinated food stores are now fully occupied, and consumers are not consuming more of these products than before; there is no new growth to share.
2. The Paradox of High Prices and Losses
It’s counterintuitive, but marinated food companies are losing money despite selling at high prices. There are two main cost issues: First, the supply chain for marinated food is inherently more expensive than for other snacks. For example, brands like Mixue Ice City use ingredients that can be transported at room temperature, reducing logistics costs. In contrast, marinated food requires cold chain transportation, significantly increasing costs. Second, during the rapid expansion phase, companies built numerous large factories nationwide. Now that store numbers have decreased, these factories are underutilized, and their depreciation and labor costs remain high, even though production has slowed down. This results in higher costs per unit of product.
3. Multiple Factors Contributing to the Decline in Demand
The decline in demand for marinated food is not simply due to high prices. Three factors play a role:
- Marinated food is not a necessity; consumers can skip it in favor of other items. Consumer spending has become more rational, and they are cutting back on non-essential expenses.
- Products have not seen innovation for years, with limited variety and repetitive flavors.
- There are many alternatives: convenience stores, fried chicken, and fast food offer a wider range of options, and consumers are more health-conscious, avoiding high-fat and high-salt foods.
4. Companies’ Unconventional Price Reduction Strategies
To avoid direct price cuts, companies are using various tactics:
- Converting to Fast Food: They are creating hot meals with marinated ingredients for a higher perceived value.
- Changing Packaging and Channels: They are selling larger, packaged products in supermarkets, offering discounts without affecting existing store prices.
- Opening New Low-Price Stores: They are opening new snack stores with lower-priced products, creating a new market presence without disrupting existing prices.
5. The New Challenges for Marinated Food Companies
While these new strategies may seem promising, they actually make things more difficult for these companies. They are now competing in unfamiliar markets (fast food, supermarkets, and snack stores) with companies that have more experience and lower costs. Their efforts to revive the industry are essentially attempts to motivate consumers to buy their products again within the existing market.