Summary in Plain Language
Yong Ge, a internet celebrity with 5 million followers who constantly warns impulsive entrepreneurs on live broadcasts about the pitfalls in the catering industry, decided to open his own restaurant in Chengdu called "San Can Jing Xin" (Craftsmanship in Three Meals). He promoted the idea of "getting full for 10 yuan or a good meal for 20 yuan, which is even cheaper than cooking at home." However, he set a uniform price of 2.88 yuan per 50 grams for both meat and vegetables. As a result, ordinary customers would spend twenty to thirty yuan just for a few dishes. This not only led to criticism from netizens about his changed image but also made jokes about the restaurant's name, suggesting it was like a "salary cut in three meals." This fiasco highlights the challenges faced by the weighing fast-food industry, which was once considered the "ceiling of affordable dining" but has since declined in popularity over the past two years.
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Detailed Analysis
1. Yong Ge's Criticism Is Well-Founded: Three Disappointments Hurt Consumers
His criticism is not just about the high prices; it's the combination of three major discrepancies:
- Discrepancy in Image: He used to advise others on avoiding pricing traps and controlling waste, but his own restaurant committed all the mistakes he had criticized. It's like a blogger who constantly exposes fakes suddenly selling fake products, which naturally provokes much stronger anger than a regular business failing.
- Discrepancy Between Promotion and Reality: At 2.88 yuan per 50 grams, a 10-yuan meal would only allow for about 170 grams of food, mostly just stir-fried cabbage. Adding a few pieces of braised pork, some fish, and some vegetables would quickly push the cost to over 20 yuan, which contradicts his slogan.
- Discrepancy in Positioning: His restaurant claims to be a "community食堂," but local affordable community eateries in Chengdu cost 12-18 yuan per meal, serving residents and office workers. By charging commercial fast-food prices, he is essentially misleading customers. His statement that his low prices would kill local businesses only added to the backlash.
- Misalignment of Target Audience: Weighing fast-food is aimed at office workers who expect a good meal for around 30 yuan, while his restaurant targets residents who usually pay 10-15 yuan for meals. Setting such high prices is seen as unfair.
2. Is 2.88 Yuan per 50 Grams Really an Exorbitant Price? Yong Ge Chose the Wrong Market
Many realized that leading weighing fast-food brands like Xiao Nv Dajia and Lao Xiang Ji sell for 3.75 yuan per 50 grams, so Yong Ge's price is actually lower than others. The reason he faced criticism is that his target audience and pricing strategy were mismatched. The main customers for weighing fast-food are office workers who expect a variety of dishes for a reasonable price. When he opened in a residential area, his prices were seen as exploitative.
3. The Weighing Fast-Food Industry's Challenges
When weighing fast-food first became popular in 2023, it was hailed as an affordable option, with thousands of stores opening nationwide. However, within two years, 60% of them failed within eight months, and customer repeat rates dropped from 65% to 28%. The main issues are:
- High Waste: To offer a variety of dishes, stores need to prepare many dishes, which results in significant waste. This waste is reflected in the final price, increasing costs.
- High Labor Costs: Preparing hot dishes requires multiple staff members, increasing labor costs significantly.
- High Rent: Rent in office buildings and industrial parks is much higher than in residential areas, further increasing expenses.
- Consumer Perception: Customers don't want to bear the costs of high labor and waste; they expect affordable food without explaining the reasons behind the prices.
4. The Reality of Being a Business Owner
As a popular blogger with financial expertise, Yong Ge's failure is not surprising. When advising others, he can make suggestions without bearing the costs. But when he tried to start his own business, he realized the practical challenges. Choosing too few dishes led to complaints, and choosing too many increased waste and prices. The lack of standard solutions in the industry means that every decision comes with real financial risks.
In summary, Yong Ge's experience serves as a reminder: don't believe the myth of easy profits in the catering industry. The intricacies of running a business require practical experience and financial investment.