The ongoing debate surrounding the “Zero Yuan Noodle Shop” in Nanjing, which has sparked discussions about public welfare and commercial order, continues to intensify. A merchant who has been operating in the Yinxiang area of Jiangning District for nine years reported a significant drop in daily sales since the noodle shop opened. Previously, the merchant earned over 1,000 yuan (RMB) per day, but sales have plummeted to around 500 to 600 yuan, nearly halving their revenue. The couple operating the shop now alternate shifts day and night, working from 7 a.m. to 3 or 4 a.m., yet their earnings have stagnated at about 700 yuan, leaving them with barely enough to cover their rent and unable to keep up with their mortgage repayments.
According to a report from Knews on November 12, the merchant emphasized that while charitable initiatives are commendable, they should consider the plight of nearby businesses. He expressed concern that helping a segment of the population should not lead to significant losses for other businesses, which also support families and face their own financial pressures.
This is not the first time local businesses have claimed that their operations are suffering due to the presence of the Zero Yuan Noodle Shop. In another Knews report published on November 12, a nearby fried rice and noodle shop owner, who has been in business for 15 years, mentioned that they sell affordable meals priced at 6.9 yuan each, with a profit of roughly 1.5 yuan per portion. The owner noted that since the opening of the Zero Yuan Noodle Shop, local businesses have seen daily earnings decrease by hundreds of yuan, prompting plans to sell the shop.
Earlier reports from multiple media outlets indicated that the owner of an Anhui noodle shop located approximately 100 meters from the Zero Yuan Noodle Shop claimed their daily earnings had dropped by around 200 to 300 yuan, with more than ten fewer customers each day since the noodle shop opened on October 8. Facing an expiring lease next March, the owner is considering relocating. Meanwhile, a more distant vendor specializing in unique noodle dishes mentioned that their business has seen only limited impact.
In the Daishan area of Yuhua District in Nanjing, the situation surrounding the Zero Yuan Noodle Shop is somewhat mixed. A local noodle shop, situated close to the Zero Yuan Noodle Shop, reported that their daily revenue, previously exceeding 10,000 yuan, fell by about 2,000 yuan a few days after the noodle shop began operating. In contrast, other nearby businesses claimed to have experienced no significant changes in customer traffic, attributing this to differences in menu offerings and pricing strategies.
When confronted with complaints from local merchants, Mr. Zhang, the founder of the Zero Yuan Noodle Shop, responded during an interview with Red Star News on November 12. He explained that prior to opening, a thorough site survey was conducted, leading him to believe that the free vegetarian noodles offered at his establishment would attract a different clientele compared to those served by nearby restaurants. He expressed a willingness to fully compensate any local businesses that could demonstrate financial losses directly attributable to his noodle shop.
Mr. Zhang elaborated on his plans for expansion, revealing his intention to establish ten Zero Yuan Noodle Shops in Nanjing, having already opened two in Jiangning and Yuhua Tai. He estimated that the current daily operational costs and supply volume necessitate an annual investment of about 10 million yuan. The shop’s original plan was to serve 5,000 bowls of vegetarian noodles daily, a target they have recently achieved.
Reports indicate that the Jiangning District Market Supervision Administration has conducted preliminary inspections of the Zero Yuan Noodle Shop. So far, no violations of market regulations have been identified. Regarding claims from nearby businesses concerning operational impacts, staff members noted that business operations fall under market behavior, and no illegal activities were observed at the noodle shop.
The Zero Yuan Noodle Shop first gained attention for its free meals and long lines of patrons. Local media reported that Mr. Zhang, the owner, opened two free noodle shops in Nanjing, providing vegetarian noodles with no restrictions on age or economic conditions, aiming to help those in need. Diners have included elderly individuals, sanitation workers, and delivery riders.
However, with the rise of the Zero Yuan Noodle Shop, nearby merchants have voiced their concerns regarding a decrease in customer foot traffic. This situation has raised critical questions about whether charitable gestures should impose restrictions on their beneficiaries or adhere to other conditions.
In a commentary published by the Changjiang Daily on November 6, titled “Zero Yuan Noodle Shop: Public Welfare Should Not Disturb the Market,” the article argued that while it is commendable for businesses with sufficient funds to provide free meals to low-income groups and workers in need, offering free meals indiscriminately to all consumers could inadvertently divert customers from neighboring eateries, rendering small businesses vulnerable to competitive pressures.
The article highlighted that charitable acts should not come at the cost of disrupting a fair business environment, and it is essential to balance the needs of beneficiaries with the legitimate interests of nearby businesses.
Ma Liang, a professor at Peking University’s School of Government Management, stated that while public welfare initiatives should focus on support and encouragement, offering free meals without limitations could negatively impact local commercial ecosystems by reducing regular customer bases for nearby businesses. He suggested more targeted approaches, such as food stations, to provide surplus food to those in need more effectively.
Lü Yonggang, director of the Economic Research Institute of the Jiangsu Academy of Social Sciences, remarked that large-scale individual charitable food distributions face challenges in sustainability. He proposed that by clearly defining target beneficiaries, managing costs, and collaborating with social organizations, it is possible to achieve a balance between charity and sustainability.