Summary of Key Points
Recently, Zhao Yiming and Haolai Lai, two well-known chains of snack vending stores with their distinctive red signs, have been repeatedly accused by customers of seriously underweighing their products. In extreme cases, customers paid 111 yuan for snacks but only received 64.8 yuan upon re-weighing at home. Regulatory authorities in several regions have intervened to investigate the issues. Both brands have issued apologies and introduced a policy of compensating customers ten times the amount of the weight discrepancy. They have also implemented measures such as daily weight checks and real-time, unalterable weight data transmission. However, this report goes beyond the moral aspect of condemning unscrupulous merchants and highlights a systemic problem stemming from the snack vending industry's rapid expansion over the past few years and the flawed profit distribution under the franchise model. The rapid expansion of thousands of stores has outpaced the ability to manage them effectively, resulting in the burden falling on ordinary consumers.
Detailed Analysis
1. The issue is not about merchants secretly altering scales
Many people assume that the snack stores have modified their electronic scales to inflate the weight. However, regulatory authorities have inspected hundreds of stores and found no evidence of such tampering; most of the scales are compliant with regulations. The problem lies in operational flaws. For example, staff may accidentally scan products multiple times, adding a “virtual packaging weight” to the total, or even include the weight of empty bags in the price. These practices are difficult to detect, and it is impractical for customers to individually re-weigh each item when buying multiple types of snacks. This is not a isolated issue; it affects hundreds of stores, indicating a loss of control in the entire chain.
2. Franchisees are forced to resort to such tactics due to competitive pressures
The franchise model in the snack vending industry means that brands profit from purchasing goods at low prices and selling them to franchisees at a higher mark-up, while franchisees bear all the operational costs, including rent and inventory losses. Brands often promise a minimum distance between stores of the same brand (e.g., 500 meters) to compete, but in reality, they open new stores as close as 200 meters apart, stealing business from existing franchisees. With price wars and snacks being 20%-30% cheaper than in traditional supermarkets, franchisees have thin margins. They are left with little choice but to try to cut costs, leading some to engage in dishonest practices.
3. The traditional method of using “fair scales” no longer works
Thirty years ago, markets used fair scales that were not under the control of any merchant. Customers could weigh their purchases and address any discrepancies directly with the market administrators. However, this approach is ineffective in modern snack vending stores. When customers buy multiple types of snacks, it is impossible to determine which item is missing without thoroughly re-weighing each one. The current digital systems connect directly to the brand’s headquarters, and the traditional oversight mechanism is no longer sufficient to ensure accuracy.
4. Brands’ quick apologies and compensation plans are not out of conscience but out of fear of losing business
Why did brands ignore weight issues for so long? In the past, the focus was on expanding quickly to dominate the market. Now that the industry has matured, brands realize that 99% of their revenue comes from supplying snacks to franchisees. If customers lose trust, franchisees will leave, and the brands will lose their income. The new measures (daily scale checks, real-time data transmission) are essentially a attempt to regain control over the weighing process, which was previously delegated to franchisees.
5. A reminder to all franchise brands: the era of rapid expansion is over
The snack vending market is now worth over 200 billion yuan annually and is expected to grow to over 600 billion yuan in the next five years. The focus has shifted from quantity to customer trust. Franchise brands that once relied on rapid expansion are now struggling to maintain customer confidence. Those that do not take serious action to address these issues will be eliminated by customers.