Why do most restaurants seem to be very hot on the surface, but in fact they can't make money?

Many people think that the catering market is very hot now, and opening a restaurant should make a lot of money, so whether they have experience in opening a store or not, they have decided to take the road of catering. However, the catering boss worked hard for a year, but finally found that he didn't make money, and might even lose a lot of money. The reason is only that a few have made money, and I believe many shops that don't make money will meet one or two of them.

One reason: the store rent is too high, and the catering boss works for the landlord. Now, if a restaurant wants to open its business, it can't do without a good store. For restaurants with superior geographical location, business usually does not deteriorate, while shops with poor geographical location are trying to open. It is difficult to get into the fire. Some restaurants have a good daily business. The daily turnover seems high, but the boss still has no money to earn. The main reason is the high rent. Therefore, this store seems to be doing good things every day, but in fact it is losing money. At least the boss has no money to earn.

The second reason: the gross profit of food is too low and the unit price of customers is not high. The quality of products has a great influence on the restaurant business. The gross profit of shop products directly determines how much the boss can earn. In recent years, with the development of economy, food and beverage outlets operate a variety of products, such as hot pot, mala Tang, clay pot rice, stir-fry and drinks. These products are relatively common, although there are many products in the shop. But the gross profit of each product varies greatly. The gross profit of some products can reach more than 70%, and the gross profit of some products is only about 20%. There are also commercial shops that are usually hot and the rent is not high, but the boss can't make money. The main reason may be that the gross profit of the store menu is too low. Even considering the meager profit, the profit is still too low because of the rapid turnover to increase income.

Reason 3: The store business is not good, and the daily turnover is low. Some restaurant owners have worked hard to make money for a year, and their business may be bad. There are many reasons for poor store management, such as poor store location, bad product taste, chaotic store management and poor store marketing ability. However, in either case, poor store business will lead to daily business. With low amount and no turnover, the boss not only can't make money, but also often loses money.

Reason 4: There are too many employees in the store, and the expenditure is greater than the return. The staff in the store is one of the main expenses of the restaurant. Because there are many things in the restaurant, it is difficult to run the restaurant alone. Many restaurant owners will hire some shop assistants to help their stores. However, some restaurant owners have no experience in store management. For restaurants, how many people need to be recruited, they have no brains. Looking at the store, there are many things every day, and it is common to recruit more clerks.