Three Chinese braised food giants, Zhouhei Duck, HuoShangHuo, and Juewei Food, all experienced a decline in revenue and net profit in 2024. Additionally, in the same year, the three giants closed more than 3,600 stores altogether.
According to the 2024 annual reports released by these three listed companies, Zhouhei Duck International Holdings Co., Ltd. had a revenue of 2.45 billion yuan, a year-on-year decrease of 10.7%, and a net profit of 98.2 million yuan, a 15% decrease from the previous year. HuoShangHuo Group Food Co., Ltd. reported a revenue of 1.739 billion yuan, down 9.44% year-on-year, with a net profit of 40.33 million yuan, a 42.86% decrease. Juewei Food Co., Ltd. had a revenue of 6.257 billion yuan, a 13.84% decrease, and a net profit of 227 million yuan, down 34.04% year-on-year.
While both revenue and net profit were declining, the number of stores operated by the three major companies was also decreasing. According to a report by Fenghuang Finance and Economics on April 19, Juewei Food did not disclose the specific number of stores in its annual report. However, based on the previous financial report, as of the end of June 2024, Juewei Food had a total of 14,969 stores on the mainland, a decrease of 981 stores compared to the end of 2023. As per data from Narrow Gate Dining, Juewei Duck Neck currently has 12,129 stores. If accurate, this means that from the end of June 2024 to mid-April 2025, there was a reduction of nearly 2,840 stores. According to a research report by Huachuang Securities, the net number of store closures for Juewei Food in 2024 could be around 2,000. Zhouhei Duck’s financial report showed that as of December 31, 2024, they had a total of 3,031 stores, a net decrease of 785 stores compared to the previous year. HuoShangHuo had 3,660 stores, a net decrease of 837 stores from the end of 2023.
In 2024 alone, the braised food giants closed more than 3,600 stores.
Furthermore, as we entered 2025, both revenue and net profit continued to decline. In the first quarter of this year, Juewei Food’s revenue fell by 11.47% year-on-year to 1.501 billion yuan, and net profit dropped by 27.29% to 120 million yuan.
The main reason behind the decline in revenue and net profit, as analyzed by Fenghuang Finance and Economics, is primarily the significant rise in retail prices.
In Beijing, the Juewei Duck Neck mini-program shows prices like 30 yuan for 270g of duck neck, 25 yuan for 240g of duck wings, 30 yuan for 150g of duck intestine, and 50 yuan for 120g of duck tongue. According to Zhouhei Duck’s mini-program, prices are 36 yuan for 300g of duck neck, 29 yuan for 230g of duck wings, 25 yuan for 80g of duck intestine, and 59 yuan for 140g of duck tongue.
At first glance, these prices may seem acceptable. However, when converted to a per pound basis (500g), it becomes clear that the prices are high. For example, duck neck and wings are around 60 yuan per 500g, while duck intestine is about 130 yuan per 500g, and duck tongue is approximately 200 yuan per 500g. This pricing far exceeds typical food ingredient costs.
According to research data from China International Capital Corporation, the selling price of Zhouhei Duck’s duck neck was around 45 yuan per 500g in 2012, and by 2023, the price had increased to around 60 yuan per 500g. Juewei Food had implemented price hikes twice in a year. In early 2022, they announced a 5% price increase on some products; then in July of the same year, they raised prices by 7% to 10% on products like duck feet and squid.
Although the price hikes are mainly due to rising raw material costs, under the branding of braised food as “snacks,” the increased prices have become challenging for working individuals to afford. Some netizens humorously referred to chain braised food stores as “gold stores.”
Fenghuang Finance and Economics further analyzed that high prices are just the surface issue, and the fundamental problem lies in the outdated business models of the three giants.
Around 2010, braised food products quickly became popular among urban consumers for their instant consumption, bold flavors, and affordable prices. Back then, traditional braised food was mostly sold by street vendors or operated in regional workshops. However, with the establishment of chain stores by brands like Zhouhei Duck, Juewei Food, and HuoShangHuo, the industry shifted from decentralized to centralized. Between 2012 and 2017, HuoShangHuo, Zhouhei Duck, and Juewei Food successively went public, forming the “b…
The widespread adoption of online consumption habits has weakened the offline stores’ traffic advantage. Simultaneously, the efforts of the three giants to expand into new channels like e-commerce and food delivery have not effectively compensated for the declining offline sales. This led to individual store revenue decline, market saturation, and intensified competition, resulting in a reduction in total braised food stores.
Regarding product innovation, braised food products have long been dominated by duck necks and wings, lacking diversity and health-oriented options to meet the demands of young consumers for varied, healthy, and convenient products.
Despite efforts from the three giants to attract young consumers through cross-industry collaborations, these attempts lack core competitiveness and have not made significant waves in the market yet.
After the article was published, it resonated with many netizens who lamented the high prices of braised food products today. A netizen named “momo” stated, “Thinking about ten years ago, you could buy duck delicacies for around 20-30 yuan, pair them with duck intestines, duck necks, some cold dishes, and occasionally a few duck feet or gizzards, enjoy with a box of beer and have some left over. Now, with 50 yuan, you can barely afford anything, not enough to eat.”
Some netizens also pointed out that the taste of the current products has significantly declined compared to the past. A Tencent user, 5515558, mentioned, “Previously, Zhouhei Duck was fragrant, numbing, and spicy; now, apart from being salty, it’s completely different from before, maybe catering to different tastes nationwide, but losing its uniqueness. I used to eat it weekly; now, I rarely eat it a few times a year. Every time I buy it, I regret it; after a few bites, I throw it away.”
Others believe that these braised food products contain too many additives and are unhealthy. Tencent user, 8szwob0, expressed, “Braised food products are not pure food, but loaded with too much technology, posing significant health risks, and more and more people understand this, hence no one is buying them!”
Tencent user, 5uc1lwn, also questioned, “Can things with so much technology and additives last long?”