Why is the restaurant closure rate higher in first-and second-tier cities than in small cities?

The closing rate of restaurants in first-and second-tier cities is close to 90%, and the average life expectancy is less than 3 months! For many people, starting a business is actually a small business, such as opening a small shop. Open catering has low threshold, high income, simplicity and quickness. However, in recent years, people have found it increasingly difficult to provide food. According to incomplete statistics, the total number of restaurants opened in first-and second-tier cities nationwide in 20 17 was about 3.36 million, and the number of restaurants closed by the end of 20 17 reached 2.9 million, with a failure rate of 86.6%. From 20 15 to 20 17, the average life span of restaurants is 87.6 days, less than 3 months.

In fact, the difficulty of restaurants is mainly related to three factors: the first is the increase in costs. From 20 15 to 20 17, the national housing prices skyrocketed. Take Hefei as an example. At that time, the average house price was only 78 1 000 square meters, which was twice that of 20 17. Popular areas such as government agencies and lakesides have grown several times. Can't the house price and store rent reach? Therefore, the cost of providing food increases significantly, and the risk of rising costs increases. As long as the price rises significantly, the popularity will drop sharply, but if the price does not rise, will this work? Over time, you naturally can't.

Secondly, the competitive pressure is greater. People regard food as a paradise. Although it is difficult to do, some people will do it. Nowadays, take-out has become a lifeline for many dying restaurants. If it is unknown and the market is not good, this is not a problem. As long as the price drops, more people will order online. So the total number of restaurants is still very large. Without popularity and word of mouth, online ordering competition will be more cruel and unsustainable.

Finally, the restaurant itself has problems. Selling emotions, stubbornness, weak foundation, desire to expand, lack of innovation, lack of operational ability, can quickly create restaurants in every market. The catering industry has the lowest threshold and the easiest start, but it is also the most difficult place to start a business and the highest failure rate. If you focus on comprehensive knowledge training, market forecasting and your own training, then your life will be longer.

To sum up, opening a restaurant is risky. I hope everyone will act cautiously and not blindly invest in the market.