Why do many restaurants have a good business at first, but they soon closed down! What is the reason behind it?

I believe many people have found that many restaurants were overcrowded when they first opened, and even one was hard to find. However, with the passage of time, the business gradually became deserted and drifted away. Why? There are many reasons, such as competition, price, environment, taste, activities and so on.

The new business is full

The reason why the newly opened shops are full is mainly caused by three factors: first, curiosity, most people will try the taste of the shops that have already opened around them, especially the newly opened restaurants, if there is no accident; Second, activities. Basically, newly opened restaurants have promotional activities, and most people are greedy for small bargains, so business is always the best during the opening activities. The third is the environment. For restaurants with basically the same taste, most people will choose places with good dining environment.

Subsequent abandonment

After opening for a period of time, the business is gradually deserted, or three major factors: First, taste, which is a crucial link in restaurants. As long as it has a unique flavor, the environment will last forever even if it is remote. Specifically, you can look at the old brands of various cities. Part of the reason for the sluggish business is the bad taste; The second is activity, which is actually a price. The taste is not enough, and the price comes together. As long as the price is low enough, some consumer groups can still be obtained, but the price bottom line is limited and it is impossible to drop blindly. Third, competition, the Chinese people have a crude, as long as a store is on fire, similar stores will soon spring up like mushrooms after rain, eventually leading to stronger competition and more and more difficult business!

Real case

On 20 13, my sister and brother-in-law joined together and opened a chain tea shop. When it first opened, there were no other tea shops around. Three days before the opening, the daily turnover reached more than 5000 yuan because of the activity of buy one get one free. After the event, although the sales decreased, the daily turnover remained at 2000 yuan, and the business was booming.

However, due to the booming business, followers came in soon. From 20 14 to 20 17, seven tea shops (villages and towns, non-cities) were opened one after another, and the business went downhill, especially the newly opened shops, which were more beautifully decorated. At the beginning of 20 17, the nearest tea shop closed in August of 20 17 (the second one opened), but my sister's shop business did not improve much. It lasted until April of 20 18, and the money earned was not even enough for rent and utilities, not to mention the salary of husband and wife (employees hired five outsiders from the beginning to the end, leaving the husband and wife to do it themselves).

abstract

For the catering industry, especially for chain restaurants, there is no technical content. This kind of store is either in an excellent location or has the funds to reload once every three years and to fight price wars. Otherwise, as more and more similar stores open, business will only become more and more deserted.