【Epoch Times News, April 21, 2024】 In the first quarter of this year, the number of catering companies in mainland China that were deregistered reached 460,000, an increase of 232.6% compared to the same period last year. At the same time, in order to save expenses, more and more consumers are opting for “broke meals”.
According to the latest data from the National Bureau of Statistics of the Chinese Communist Party, in the first quarter of this year, the number of catering-related companies in mainland China that were deregistered reached 459,000. Among them, 167,000 companies were deregistered in January; 112,000 in February, a decrease of 32.8% from the previous month; and 180,000 in March, an increase of 60.0% compared to the previous month.
In the same period of 2023, the number of deregistered catering companies was less than 140,000, far fewer than the 180,000 companies deregistered in March of this year alone. Compared to 2023, the deregistration in the first quarter of 2024 increased by 232.6%.
China’s major microblog “Insider of the Catering Industry” wrote on April 20th: “After experiencing the entrepreneurial boom of the past year, the catering market in the first quarter of this year has clearly entered a period of rapid turnover. Catering entrepreneurs and novices who could not find a breakthrough have been left behind by the harsh reality.”
Moreover, in the first quarter of this year, many well-known, long-established, and leading catering companies have also closed their doors.
Two major head brands in the new Chinese-style baking industry, Hu Head Bureau and Momo Dessert Bureau, after nearly two years of struggling, filed for bankruptcy liquidation and company deregistration at the beginning of this year. In addition, head brands like Xiabuxiabu and Naixue have closed a large number of subsidiary stores.
Xiaobuxiaobu Group’s Chenshao made headlines for the first time with the performance of “monthly sales exceeding 2.5 million yuan, and annual single-store sales expected to exceed 30 million yuan”. But under the rapid changes in the barbecue market and the changing consumption attitudes of young people, Chenshao apparently couldn’t compete with the large affordable barbecue options and ended up closing many stores.
A catering industry operator expressed, “Nobody, really nobody, where have all the customers gone? Last year was worse than the year before, this year is worse than last year, and by the end of March, we hit a new historical low. The relentless decline has left us with no revenue…”
Due to the low entry barriers, the catering industry has attracted more and more people to enter the industry. Most of the people who start businesses are either “unemployed” or “unable to find a job”, or they have some funds on hand but don’t know what to invest in, and comfort themselves with the mentality that “food is the most important thing”. However, due to the overall economic downturn, people’s incomes have decreased, bringing more and more setbacks and disappointments to those in the catering industry.
A barbecue owner in Jilin revealed, “It gets harder year by year. Everyone is doing promotions, 99 yuan for a meal for two is everywhere, and there are many discounts for 9.9 yuan. It seems like there are a lot of people queuing up, but it’s all a false prosperity. Whether we make money or not, only the bosses know in their hearts. First, drive out competitors, then drive themselves out.”
The owner said, “In the past, even if we lost money, we could still make some noise. Now, even losing money doesn’t attract customers. Most businesses end up exhausting the little money they have left or even going into debt.”
With reduced income, young people in mainland China are beginning to be more frugal in their spending. The “broke meals” are becoming increasingly popular among young people in mainland China.
A circulated recipe for a “broke meal” online shows: spend 3 yuan for a breakfast buffet, choose a 19.9 yuan OK combo at KFC for lunch, have a 9.9 yuan coffee in the afternoon, buy a 10 yuan noodle combo at a 7-Eleven for dinner, and after 8:30 pm, go to Hema Fresh to pick up discounted items…
Moreover, on mainland lifestyle platforms and consumer decision-making APP Xiaohongshu, there are countless strategies for ordering “broke meals”. Data shows that in the second half of last year (from June 1, 2023, to December 1, 2023), the daily average of likes for “broke meal” notes on Xiaohongshu was 2,366 times. From early 2024 to mid-March, the daily average likes had reached 5,799 times, and in the past half month, the daily average likes surged to 8,265 times, quadrupling compared to last year.
Wu Wende, Chief Analyst of the Video Department of Caitong Securities Research Institute, stated that some impacts due to the changing consumption purchasing power have led to a present environment of pulse-like consumption. “Consumption is concentrated during holidays, while daily consumption is relatively rational and conservative.” At the same time, the situation of two-tier differentiation is more pronounced, and traffic is becoming scarcer and more valuable.
Netizen “w-teng” commented, “The real estate downturn affects all industries, consumption is constantly declining, the downward spiral shrinkage has not bottomed out, confidence and expectations need stronger policy support and stimulation!”
“Shancun Yeniangmen’er” believes, “Starting a business is like giving up all your assets and personal credit. This is a well-proven fact.”
Tencent user #1738399 mocked, “It’s not so bad, isn’t it the Asian financial crisis now? We don’t have much to lament about, we’ve been suffering for so many years, we’re used to it.”
责任编辑：孙芸#