In mainland China, a takeaway shop generated monthly revenue exceeding 160,000 yuan, but after deducting costs such as ingredients, rent, labor, platform commissions, marketing, and delivery expenses, the net profit was only 3,750 yuan. This meager profit is insufficient to cover the monthly loan repayment of 4,000 yuan, highlighting the dire survival situation faced by the food and beverage industry in China.
On October 9th, a video titled “Revenue of 160,000 yuan, with Profit of Only 3,750 yuan” went viral online, posted by a Weibo user named “Mad Youth Li Taibai” who has 3.327 million followers.
In the video, a shop owner shared that in the previous month, they made a total of 2,484 sales on a food delivery platform, resulting in a total revenue of over 162,000 yuan. After calculating the costs, including ingredients, rent, utilities, staff salaries, various offline expenses, and deductions like platform fees and marketing expenses, they were left with only 85,000 yuan.
Moreover, platform commissions accounted for 17% at 27,500 yuan, and various other expenses like stall fees amounted to 25,000 yuan, with platform-related costs reaching 52,500 yuan, representing 32.4% of revenue, making it the largest expense.
After deducting delivery fees, rider fees, and marketing expenses, the shop owner revealed that the net profit dwindled down to a mere 3,750 yuan. With a monthly loan repayment of 4,000 yuan, they were left with a shortfall of 250 yuan each month, painting a bleak financial picture.
The video sparked widespread discussions online, with many netizens expressing shock at the slim profit margins mentioned. Influential blogger “Zhang Bo” remarked that the numbers presented in the takeaway shop’s financial account were eye-opening, with a profit rate of only 2.3%. Despite the seemingly high revenue figure, when broken down, the profit margin was paper-thin, failing even to cover the 4,000 yuan monthly loan payment, leaving the owner to bear additional costs.
The debate shifted to identifying where the profits were being eroded, with many pointing fingers at the substantial platform-related expenses as the primary drain on the shop’s earnings.
Another Weibo user, “Foodie11,” commented on the deceptive aspect of the 160,000 yuan revenue, revealing that the actual profit was merely over 3,000 yuan. They highlighted the disparity where platforms garnered the lion’s share while shop owners bore all risks, worked tirelessly every day, and earned meager profits through sweat and toil.
Netizens generally agreed that this scenario reflected the broader trend in the industry, where rigid costs like rent and labor were compounded by high platform traffic fees, leading physical businesses into a paradoxical situation of “increased revenue with decreased profitability,” a phenomenon coined as “prosperity without profits” in 2026.
Since April last year, a fierce “subsidy war” erupted among major food delivery platforms, offering substantial discounts to attract customers, resulting in record-breaking order volumes. However, as reported by CCTV at the time, many restaurant owners lamented that instead of increased profits, the subsidy war made their circumstances more challenging.
An operator of a restaurant in Yichang, Ye Yao, calculated figures for the month of June last year, revealing a scenario where online transactions yielded a real loss of over 13,000 yuan, manifesting as a situation of losing money despite the higher revenue figures, falling into a cycle of loss-making promotion.
In a report by “Food and Beverage Industry” in February this year, a new harsh term, “busy without profits,” emerged and resonated within the industry, capturing the struggle faced by businesses.
Stories from various regions painted a grim reality: a pair of lovers’ takeaway shop in Sichuan reported zero profits despite annual revenue of 2.24 million yuan in 2025, while a restaurant in Beijing suffered losses of 265,000 yuan after accounting for various expenses despite grossing 1.62 million yuan. In Nanjing, a seafood restaurant faced a net loss of 12,000 yuan despite generating revenue of 360,000 yuan.
Netizens resonated with the struggles depicted in these accounts, lamenting that opening their doors every day felt like working to cover yesterday’s losses. Similar tales of financial challenges were shared from establishments in Zhenjiang, Zhengzhou, and Wuhan, further highlighting the profitability crisis faced by the food and beverage industry.