Beijing, Guangzhou and Shenzhen close down 10% of restaurants every month. Cafes in first-tier and second-tier cities are closing down

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Last year, a total of 3.77 million restaurants were opened across the country, but the number of failures was about the same.

Meituan Dianping, the largest food and beverage information platform, recently released a data report on China's catering industry in 2016.

The report shows that in the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen, 160000 restaurants were closed in the second half of last year alone. The average closure rate of restaurants is 10% per month. Excluding the new restaurant, its compound closure rate is 120%.

In Beijing, as of December 31, 2016, the number of restaurants was 148000, 25000 fewer than the previous year, with an average of 68 restaurants closed every day.

Rising rents, raw materials and labor costs mean it is not an easy business to run a restaurant well.

The most new restaurants in the past year are snacks, bread desserts and hot pot. These three accounted for 71% of the total number of restaurants in 2016.

In contrast, coffee shops have closed down in first-and second-tier cities across the country.

Meituan counted the number of cafes in 16 cities across the country, including Beijing, Shanghai, Guangzhou and Shenzhen, in the past year, and found that the average closure rate of cafes in major cities across the country reached 18% in a year.

Among them, the decline rates of coffee shops in Shanghai and Beijing, which account for the largest number of coffee shops in the country, are 6% and 20% respectively.

In addition, after the introduction of eight restrictions on public spending at the end of 2012, high-priced dinners are becoming more and more depressed. It accounted for less than 30% of the restaurant industry's revenue in 2016.

Even the hotpot restaurant, which has the third largest number of stores, has a high closure rate. Of the 16 cities counted by Meituan, the number of hot pot restaurants in 14 cities, including Beijing, Chengdu and Chongqing, has declined in the past year.

No matter what type of restaurant it is, it closes quickly.

However, according to the current data provided by Meituan, the number of restaurants in the country has not decreased from 2015 to 2016. This means that although these restaurants die quickly, they also open new stores quickly.

After the death of millions of stores, the number of restaurants across the country increased in 2016.

People often say that it is a century-old store. Now even Apple is over 40 years old, and Tencent has been established for almost 20 years.

But these are not mainstream. It's still very difficult to start a new business.

Earlier, the Labor Department counted the lifespan of start-ups between 1994 and 2010. Almost every year, the proportion of the corresponding companies is very similar.

Ten percent of companies die in their first year of business. The rate of death will not slow down until the eighth year after the company is founded, while companies that survive eight years will persist for a longer period of time. In the end, the number of companies that survive for more than 15 years is less than 30% of the original number.

It is true that starting a business is difficult.