In the past six months, China’s Xinglun Duo Seafood Buffet Restaurant has closed half of its stores. Some commentators believe that this is mainly due to intense price competition, which forced Xinglun Duo to lower the quality of its dishes, resulting in a loss of customers.
According to a report from “Restaurant Owner’s Insider,” a subsidiary of Beijing Watt New Media Technology Co., Ltd., many Xinglun Duo stores in cities such as Nanjing and Hangzhou have recently closed. Some stores even shut down without any prior notice. Since the end of last year, there have been reports from multiple locations of Xinglun Duo stores being evicted due to overdue rent and property fees. Additionally, voices of employees demanding unpaid wages have started to appear on social media platforms.
Currently, the brand has around 60 stores, with more than 20 closing in the first quarter of this year alone.
At its peak, Xinglun Duo had over 120 stores in China, covering nearly 40 cities. It was known as the “benchmark for affordable seafood buffets” with its positioning of “low per capita spending, rich variety.” The stores featured three core categories: seafood sashimi, barbecue, and hot pot, catering to different consumer preferences and often resulting in long queues at the venues.
However, the prosperity did not last long. Many customers noticed that the average spending at Xinglun Duo had dropped from 120 yuan to 70 yuan. Along with the price decrease, the quality of the dishes also suffered. Previously, premium seafood such as lobsters and small crabs could be consumed unlimitedly, but now, products like salmon have disappeared from most stores, and delicacies like small crabs are nowhere to be found. High-value items have been largely replaced with lower-cost ingredients. Moreover, there has been a decline in service quality at the stores, with delays in refilling dishes and some items requiring customers to actively ask the staff for them.
Regarding the issues faced by Xinglun Duo, “Restaurant Owner’s Insider” believes that intense competition is the primary reason. Many new players have entered the buffet industry with lower prices, forcing Xinglun Duo to reduce its prices. Subsequently, the price war led to a decline in the quality of the dishes as Xinglun Duo had to lower the quality of ingredients to break even. When the quality is compromised, the first to be lost are the repeat customers. Additionally, operating costs have increased, cash flow has been disrupted, leading to stores in many areas defaulting on rent and property fees, and even being evicted by malls.
“Restaurant Owner’s Insider” indicates that Xinglun Duo reflects a common issue in the buffet industry: all businesses that rely on “quantity” must now confront the issue of “quality.”