Jiang Jun: Group purchase is not a long-term need for business model

Source: Internet
Author: User
Keywords Catering

Jiang Jun said that group purchase is not the long-term needs of the business model. The small size of the catering business itself, the average profit margin is low, if the purchase of such a benefit of the model is likely to be unbearable. The result is either to bear the loss or to shrink the weight and quality of the dishes, the consumer, also pits their own reputation; large-scale enterprises, although the average profit rate is higher, but rising rents, food prices and employment costs are eating away at corporate profits, long-term to do group buying I am afraid to think twice.

"IT Business news Network comprehensive report"

(Reporter sugar) catering industry to buy the industry's Dongfeng also developed in full swing, by virtue of the staggering value of cheap, restaurant group buying nearly two years in urban white-collar workers quickly leap into red. However, the booming group buying has attracted many people's concern, that group buying for the catering industry is just thirst, in a short period of illusory happiness, is a long and real pain. Catering enterprises in the enjoyment of group buying to bring high popularity at the same time, but also to take a lot of word-of-mouth risk, and consumers of "low price equals low quality" of the general understanding of food brands will also be a disaster, which makes many well-known restaurant enterprises have to choose carefully.

Low price showmanship is the killer of the restaurant group, but will the price be losing money? According to the Beijing Business Daily Report, a well-known group buying site staff said that most group buying businesses will not lose money, because the buyers are basically fixed costs higher, and small changes in the cost of the enterprise. Take catering as an example, regardless of customer patronage, venues, personnel and other fixed costs to pay, and the increase in the cost of a customer is actually very small. Moreover, the catering group purchase is generally in the form of a designated package, procurement, distribution relatively simple, raw materials are often able to make full use of, although it seems that the discount, profitability is guaranteed. In her view, because this kind of new consumption pattern breaks through the dining room time limit, can bring the huge passenger flow in the short term, plays the very good promotion function, specially suits those who has the promotion need, but cannot afford the high advertisement expense small and medium-sized service enterprise.

Restaurant Group is accused of thirst: hinder the brand innovation injury

By carrying out group buying activities, catering enterprises can let more consumers into the store. However, it is a great test of the ability and wisdom of the catering business to be able to get every customer a satisfactory experience. Now, in the online "bask" experience has become a lot of consumer habits, an unpleasant consumption experience by the network amplification, the damage to the brand can not be underestimated.

In fact, if the catering business can only afford dozens of or hundreds of meals during normal meal time, and a certain group purchase coupons set out thousands of, and customers in the same time, will be far beyond the carrying capacity of the enterprise, seat difficult, food quality, service capacity decline and so on, the problem must breed, Such group buying will be a disaster for both businesses and consumers.

In the consumption of food and beverage is also a lot of disputes, mainly concentrated in the actual consumption in the process of service to keep up, "goods not version", such as poor quality or quantity of vegetables and so on. Service attitude, "latent rules" fees and charges have always been a food and beverage consumption complaints more and more concentrated problems.

Jiang Jun, president of the Beijing Culinary Association, thinks the biggest drawback lies in the standard meal mode of group buying. At present, some catering group purchase duration is particularly long, the standard meal may become the focus of the kitchen after this time. Cooks are too busy making food labels, and there is less incentive to develop new dishes and improve technology. Long-term no innovative dishes, the taste of dishes for a long time did not improve, it is bound to the vitality of the enterprise and competitiveness caused harm, so that business into a rigid.

Jiang Jun said that group purchase is not the long-term needs of the business model. The small size of the catering business itself, the average profit margin is low, if the purchase of such a benefit of the model is likely to be unbearable. The result is either to bear the loss or to shrink the weight and quality of the dishes, the consumer, also pits their own reputation; large-scale enterprises, although the average profit rate is higher, but rising rents, food prices and employment costs are eating away at corporate profits, long-term to do group buying I am afraid to think twice.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.