Amid the continuous decline of the Chinese economy, the level of residents’ consumption is shrinking, and the once-popular snack “Duck Neck King” is being criticized by many young people for being too expensive. Recently, “Juewei Foods” was exposed for falsifying financial data over five years. Against the backdrop of consumer downgrading and industry competition, the former “Duck Neck King” is facing an unprecedented crisis, with nearly 5,000 stores closing within just a year and a half.
“Juewei Foods” is a leading leisure food enterprise in China, specializing in braised products, with duck neck being its most famous product under the brand “Duck Neck King.”
On September 19, the Hunan Securities Regulatory Bureau issued a “Pre-announcement of Administrative Penalty” to “Juewei Foods” for failing to truthfully disclose the income from franchise store renovations from 2017 to 2021, resulting in underestimation of annual report revenue data, which has damaged the company’s reputation. Coupled with the overall slump in the braised food industry, the future of the “Duck Neck King” looks bleak.
A resident of Shandong, Liu Ping (alias), told Da Ji Yuan, “Braised duck neck is not a necessity food item, it is not something one must eat. With the current poor economic environment, young people can no longer afford duck neck, so it’s normal for stores to close. ” She added, “Nowadays, economies in various industries are not doing well, and items like duck neck, duck tongue, duck intestines are all snacks for entertainment, falling under the category of snacks. When it’s difficult even to have a meal, why would one think of having snacks?”
“China’s education, medical, and housing costs have not decreased, while income has decreased and prices have risen, leading to inevitable consumption downgrading. Besides, duck neck is not cheap, with half a pound costing close to 30 yuan.” Liu Ping continued, “When income is high, there is a certain economic capacity to consume. But if income decreases, it’s natural to reduce spending on non-essential items like snacks.”
A resident of Guangdong, Li Quan (alias), told Da Ji Yuan, “Duck neck is clearly a food item from street vendors but has been turned into a luxury item with high prices. The abandonment of ‘Duck Neck King’ by young people is mainly due to the deteriorating economic environment, tight employment conditions, and lower incomes. Consumption was more relaxed in the past few years, but now everyone is conscious of the crisis and tightening their spending.”
Li Quan explained, “As the entire economic environment is deteriorating, foreign capital is retreating, and people’s incomes are generally lower, the sense of consumption will naturally not be high.” He highlighted, “People flock to takeout, ride-hailing services, and there are more people employed than needed. People are doing anything they can to cover monthly expenses such as rent and food. Currently, this economy makes people unable to see the future, unable to see hope, which is the most desperate situation.”
In the past two years, the number of Juewei Duck Neck stores has drastically reduced. According to data from “Zhaomen Caifeng,” as of September 8, there were about 10,838 Juewei Duck Neck stores, whereas by the end of 2023, there were nearly 16,000 stores.