The profits of breakfast shops are so high, why can t many people do it?

Mondo Social Updated on 2024-01-19

Breakfast is the most important meal of the day and a huge market. According to statistics, the size of China's breakfast market reached 18 trillion yuan, which is expected to reach 26 trillion yuan. The profits of breakfast shops are also considerable, and some successful breakfast shop owners can even make tens of thousands of dollars a month. However, the survival of breakfast shops is not easy, and many people encounter various difficulties and challenges in the process of starting a business, and eventually cannot persevere.

Case 1: Mr. Liu opened a Chinese breakfast shop, focusing on traditional breakfasts such as buns, steamed buns, and soy milk. His breakfast shop is located near a residential complex and is frequented by many residents and office workers every morning. His buns and steamed buns are made by himself, with rich fillings and diverse flavors, and they are not expensive, generally only 5 yuan for two buns and a cup of soy milk.

His cost is also not high, the cost of each bun is about 04 yuan, the cost of each cup of soy milk is about 0$5. He can sell about 500 breakfasts a day, earn about 2,500 yuan, and make a net profit of about 1 per month after deducting costs, rent, utilities, wages and other expenses50,000 yuan. Mr. Liu felt that his business was not bad, but he also had a lot of troubles. First of all, he has to get up at 3 a.m. every day, prepare the ingredients, make steamed buns, and then drive them to the store, and stay busy until noon.

He worked hard and his health was getting worse and worse. Secondly, the rent of his store is rising every year, and his store is not large, it can only accommodate a few tables, and most of the customers are packed away, so his service quality is not high, and sometimes there will be queues, which affects the experience of guests.

Thirdly, there are also many competitors around his storefront, some are chain brands, some are self-employed, and they also have a wide range of products, including noodles, porridge, pancakes, fritters, etc., and some also provide takeaway services, so that his customer source will also be diverted to a certain extent. Finally, his product innovation ability is not strong, although his steamed buns are delicious, but there are no characteristics, it is difficult to form a brand effect, it is difficult to improve the quality, and his profit margin is also very limited.

Ms. Li opened a Western-style breakfast restaurant, focusing on sandwiches, hamburgers, salads, coffee and other Western-style breakfasts. Her breakfast shop is located in an office building area and is frequented by white-collar workers and young people every morning. Her sandwiches and burgers are freshly made, the ingredients are fresh, the flavors are diverse, and the ** is not low, generally a sandwich or hamburger with a cup of coffee costs 15 yuan. Her cost is not low, about 5 yuan per sandwich or burger, and about 3 yuan per cup of coffee.

She can sell about 300 breakfasts a day, earning about 4,500 yuan, deducting costs, rent, utilities, wages and other expenses, and a monthly net profit of about 20,000 yuan. Ms. Li feels that her business is okay, but she also has many challenges. First of all, the rent of her store is very high, she has to pay nearly 20,000 yuan per month, and her store is not large, it can only accommodate a dozen seats, and most of the customers are take-out, so her cost is also very high, and each take-out box costs 05 yuan, each coffee cup costs 0$3.

Secondly, her delivery problem is also very tricky, her store is a certain distance from the office building, if the takeaway service is provided, the delivery of breakfast is very strict on the time requirements, she needs to hire professional delivery personnel, but also has to bear certain risks, such as wrong delivery, late delivery, bad delivery, etc. Thirdly, her ability to innovate with her products is also limited, her sandwiches and burgers, although delicious, have no bright spots, it is difficult to attract more customers, and her products are not quite in line with Chinese dietary Xi, and some customers will feel that they are not full enough, or not healthy enough.

Finally, there are many competitors around her storefront, some are chain brands, some are self-employed, and they also have a wide variety of products, including bread, yogurt, juice, etc., and some also provide takeaway services, so that her customers will also be diverted.

From these two cases, we can see that the main reasons for the high profits of breakfast restaurants are as follows:

The demand for breakfast is large, breakfast is the most important meal of the day, many people will choose to eat out, especially office workers and students, they need a fast, convenient and nutritious breakfast, which provides a huge market space for breakfast shops.

The cost of the breakfast shop is relatively low, and the products of the breakfast shop are generally simple ingredient processing, which does not require too much equipment and technology, nor does it require too many personnel, so the cost of the breakfast shop is relatively low and can achieve a high gross profit margin.

The breakfast shop is relatively high, although the cost of the breakfast shop's products is low, but the price is not low, generally more than 5 yuan, and even some high-end breakfast shops can be sold for more than 15 yuan, this is because the breakfast shop products have a certain scarcity and urgency, consumers often do not have much choice, and there is not much room for bargaining.

While the profits of the breakfast shop are high, it is also facing many difficulties and challenges, and the survival and development of the breakfast shop needs to constantly adapt to the changes in the market and improve its competitiveness. We believe that the breakfast shop can be improved and innovated in the following aspects:

To improve the quality and brand of products, the products of the breakfast shop are its core competitiveness, and the breakfast shop needs to ensure the freshness, hygiene, deliciousness and nutrition of the products, and also pay attention to the characteristics and differentiation of the products, form their own brand image, and improve customer loyalty and reputation.

Expand the types of products and services, the products of the breakfast shop can not be limited to a single type, the breakfast shop needs to increase the variety and taste of the product according to the needs and preferences of customers, such as providing a combination of Chinese and Western breakfast, or providing customized breakfast to meet the individual needs of customers. At the same time, breakfast restaurants should also improve the level and efficiency of services, such as providing takeaway, reservation, membership and other services to facilitate customer consumption.

To reduce costs and improve efficiency, the cost of breakfast shops is an important factor in their operation, and breakfast shops need to reduce costs and improve profits through reasonable procurement, management, and savings. At the same time, breakfast restaurants should also improve efficiency and increase customer flow and sales through optimized layout, decoration, equipment and other methods.

The use of technology and innovation, the development of breakfast restaurants can not be separated from technology and innovation, breakfast restaurants need to use the Internet, big data, artificial intelligence and other technologies to improve their operational capabilities and market competitiveness, such as the use of network platforms for publicity, promotion, transactions, etc., or the use of intelligent equipment for production, distribution, service, etc., or the use of data analysis for market research, product design, customer management, etc.

Breakfast shop profits are high, but there are also many difficulties and opportunities, breakfast shop entrepreneurs need to have clear goals and strategies, continuous improvement and innovation, in order to gain a foothold and development in the fierce market competition.

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