虎嗅

Fat Donglai closes its stores: The landlord wants to raise the rent, which isn't really wrong either.

原文:胖东来关店:房东想涨租,其实也没什么错

Summary of the Key Points

The Pangdonglai Xuchang Life Plaza store, which has been in operation for 24 years and generates an annual profit of nearly 100 million yuan, had to close due to a disagreement over rent increases after the lease expired. This led to widespread criticism of the landlord and praise for Pangdonglai's determination. However, the author believes the situation is not that simple: The landlord’s request for a higher rent is a natural business instinct (it’s common to negotiate prices when a contract expires), and Pangdonglai had management flaws in the past (failing to sign contracts uniformly in 2015, which created potential issues). People feel satisfied because ordinary people often don’t have the option to refuse unreasonable demands. Essentially, it’s a market battle between the two parties—either the landlord betting on the property’s value or Pangdonglai betting on the strength of their brand. The ultimate outcome will be determined by the market. What’s truly admirable about Yu Donglai is his willingness to admit his mistake and then refuse the increased rent, with the confidence to face the consequences.

1. Is it wrong for the landlord to ask for a higher rent? — Don’t turn a normal business deal into a moral judgment

Many people criticize the landlord for being “too harsh,” but think about it this way: If you had a rental property and the rent next door increased, wouldn’t you want to raise your rent too? That’s a natural business reaction. The question is not whether they can increase the rent, but how they do it. If they demand a higher price before the contract expires, that’s unfair; however, if both parties negotiate and cannot reach an agreement, then it’s part of doing business.

The landlord’s rationale for raising the rent this time makes some sense: Pangdonglai has been in business there for 24 years, attracting customers and benefiting nearby shops and parking lots, thus increasing the property’s value. It’s reasonable for the landlord to want a share of that growth. The question is whether the increase is fair; if the parties cannot agree, then they should part ways, without resorting to moral accusations of “greediness” or “bullying.”

2. Pangdonglai acknowledges their own management mistakes

Yu Donglai admitted that the problem stemmed from a mistake made in 2015 when the leasing staff failed to sign contracts uniformly, leading to unfair rent increases for some tenants, including himself. This is important because it shows that this wasn’t just the landlord’s unilateral action; Pangdonglai’s lack of professionalism created the issue years earlier. What’s even more commendable is that Yu Donglai didn’t blame others but took responsibility for his own mistakes.

3. Why do people feel so satisfied with Pangdonglai’s decision? — They saw them refuse something ordinary people dare not

The widespread praise isn’t because Pangdonglai truly shares the same situation as ordinary people, but because they stood up for what many of them couldn’t: refusing unreasonable demands.

Think about it: Would you dare to resign from a job that doesn’t offer a raise, or refuse a customer’s excessive request? Often, people don’t want to refuse because they can’t afford the consequences (such as finding another place to live or paying for relocation costs). But Pangdonglai had the confidence to give up a store that generated nearly 100 million yuan in annual profit because they were prepared to face the consequences (for example, by ensuring their loyal customers would follow them to a new location).

4. Both parties are “betting”: The market will determine the outcome

This is essentially a market test: The landlord bets that their property remains valuable without Pangdonglai; Pangdonglai bets that their brand is more valuable and will attract customers wherever they go.

The risks for both parties are clear: If Pangdonglai leaves, the original customer flow might disappear, affecting the property’s value; if Pangdonglai moves to a new location, they’ll need to cover relocation costs and may lose existing customers. The market will show who is right. There’s no need for arguments from netizens; the market will decide whether the landlord’s strategy worked or if Pangdonglai’s brand is truly strong.

5. Yu Donglai’s confidence: Admitting mistakes and being willing to face the consequences

What I admire most about Yu Donglai is his ability to admit his faults and then stand by his principles (refusing an unfair rent increase). Many people think being “determined” means just being stubborn, but true determination involves admitting mistakes and taking responsibility. What ordinary people respect is not just his refusal, but his willingness to face the consequences—such as giving up a profitable store or bearing relocation costs. This confidence comes from years of building trust with customers and a clear understanding of the value of their brand.

In conclusion

This isn’t a story of “good vs. bad”; it’s about normal business decisions. It’s natural for landlords to want more profit and tenants to want lower rents. A mature market allows for different choices: landlords can ask for higher rents, and tenants can refuse them. As long as both parties follow the rules, there’s no need for conflict.

Yu Donglai’s approach teaches both businesses and individuals that admitting mistakes and refusing unreasonable demands is not shameful. The key is having the confidence to face the consequences of those choices. This requires solid foundations (like a strong brand) and a clear understanding of one’s own business goals.

(The entire analysis is written in plain language, without technical jargon, to help you understand the underlying logic.)