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Source: Guangzhou Daily Comprehensive

Recently, the topic #Tai Er Pickled Fish Customer Price Drops to 7 Years Ago# became a hot search on Weibo, sparking heated discussions among netizens.

Recently, many consumers have discovered thatMany hotpot brands and well-known chain restaurant brands are reducing prices.

Many hotpot brands collectively cut prices

On July 20, the Chaoshan hotpot chain brand Chen Ji Shun He announced a large-scale price cut. It is reported that the prices of all products in Chen Ji Shun He stores in Guangzhou have been reduced across the board. A plate of beef products has been reduced by 4 to 10 yuan, and the current selling price is basically 28 yuan, while vegetable products have been reduced by about 4 yuan.

On May 15, Xiabu Xiabu, a small hotpot restaurant, announced that its new menu would "return to the old days". The new menu released by Xiabu Xiabu shows that the prices of single and double set meals have been reduced across the board, with the average price of a single meal being 58 yuan and the average price of a double meal being 130 yuan. The average customer unit price does not exceed 60 yuan, and the average price of a set meal has dropped by more than 10%.

Several chain restaurant brands announced price cuts

In addition to hotpot, several chain restaurant brands also announced price cuts.

On June 18, Country Style Chicken released a product price reduction notice, announcing that the prices of four products in its stores, namely "Sichuan-style Pan-Fried Chicken Rice", "Kung Pao Chicken Rice", "Ginger Fried Duck Rice" and "Mushroom Chicken Rice" were reduced, and "the prices returned to 2008". Overall, the price reduction of Country Style Chicken this time was between 3.01 and 4.01 yuan. For example, Sichuan-style Pan-Fried Chicken Rice was adjusted from 16 yuan to 11.99 yuan per serving, a price reduction of 4.01 yuan.

As for the reason for the price reduction, Xiangcunji emphasized that it was based on the supply chain centralized procurement advantages over the years. At the same time, Xiangcunji said that the price reduction products are only available for dine-in customers.

On June 21, Hefu Lamian announced an adjustment to its product prices, with prices of some products falling by about 30% and the price range of mainstream products lowered to between 16 and 29 yuan.

In addition to directly announcing price cuts, some brands have also lowered their average customer spending by adjusting their formats and store models. For example, Xibei's "Xibei Calf Braised Rice and Noodles" is opening stores in Beijing one after another. Some consumers have reported that some "Xibei Calf Braised Rice and Noodles" stores were changed from Xibei's original "Jia Guolong Beef Pot". The average customer spending of "Jia Guolong Beef Pot" was around 70 yuan, while the average customer spending of the newly opened "Xibei Calf Braised Rice and Noodles" was around 40 yuan, which is cheaper.

The China Cuisine Association analyzed that in the first five months of this year, "the catering industry has seen an increase in revenue but not in profits," and the reason is the increasing price wars, homogeneous competition and cost pressures.

Price cuts mean shrinking profit margins, so businesses have to find ways to reduce costs and increase efficiency. This year, more and more Sichuan and Chongqing hotpot restaurants have introduced three-flavor hotpots, four-flavor hotpots, and small portions of dishes, in an effort to ensure profits by adjusting product structure.

Association calls for "stop price war"

Data released by the National Bureau of Statistics showed that in May 2024, the national catering revenue was 427.4 billion yuan, a year-on-year increase of 5%. The China Cuisine Association said that in May, the growth rate of national catering revenue and the growth rate of catering revenue above the limit increased by 0.6 and 2.5 percentage points month-on-month. The May Day holiday saw a peak in catering consumption, but the catering industry saw a phenomenon of revenue growth but no profit growth.

In this regard, the China Cuisine Association believes that "price wars", homogeneous competition and increasing cost pressure are the major factors causing the current phenomenon of "increased revenue but not increased profits" in the catering industry. Stopping the "price war" and turning to healthy competition, developing "digital + catering" to enhance value creation, increasing talent training to improve the overall level of the catering industry, and increasing policy support to stimulate catering consumption potential are the key elements to break the "increased revenue but not increased profits" phenomenon.

At present, catering consumption is increasingly returning to the masses. Catering companies should change their business ideas, grasp consumer positioning, actively understand policy trends, seize policy opportunities, take the initiative to seek change, and constantly innovate to contribute to the sustainable and high-quality development of the catering industry.

Netizen: The trend of price cuts is very wallet-friendly

Some netizens said that this trend of competing to lower prices is very friendly to their wallets.

Some netizens also said that although the price has become cheaper, the quantity and quality have decreased.

Many netizens believe that "2024 may usher in an era of cost-effectiveness" and consumers are pursuing competitive products rather than the brand itself.

Do you feel
Has a brand you frequently patronize reduced its price?