How Chain Restaurants Struggle to Survive Between Low Prices and High Costs

How Competitive Is the Food Industry? Can It Still Be Profitable?Let me show you just how intense the competition in the food industry has become. For a simple lunch, I chose a Northeastern Chinese restaurant, as I love dishes from that region, especially Guobaorou (sweet and sour pork). This particular chain restaurant is located on the 4th floor of the Wanda Plaza in Changshu. I ordered a plate of Guobaorou, a serving of Northeastern-style cold noodles (Dala Pi), stir-fried mixed vegetables, and five spring pancakes. The total bill came to just 63 RMB, which was enough food for three people. That’s just over 20 RMB per person. Now, considering that renting a spot on the 4th floor of Wanda Plaza isn’t cheap, and factoring in wages for at least 4–6 staff members, including chefs, prep cooks, cashiers, and waitstaff, it’s hard to see how this pricing can sustain the business. Despite being so affordable, the restaurant remains quiet and struggles to attract enough customers. I’ve been coming here regularly, and I noticed that the owner has already changed once, likely because the original one sold the business. The food industry is getting tougher and tougher—do you feel the same? Walking through the 4th floor of Wanda Plaza, I saw countless offers like "60 RMB off for every 100 RMB spent" or "59 RMB for a two-person set menu". What’s the situation like where you are?