Recently, Haidilao's brand "Kashiyama Yunguichuan Charcoal and Fermented Bistro" (hereinafter referred to as "Kashiyama") announced its closure. I only survived for 9 months from trial operation to closed door customer service.
Blue Whale News reporters visited multiple Bistro companies and found that this business model currently faces high cost pressures, long payback cycles, and high operational difficulties.
Is Bistro still a good business? How long can this track be lively?
Following the trend and entering the game hastily ended
According to pictures circulating online, the Beijing Guojishan store is currently closed and undergoing renovation and demolition work. It is reported that Kunjishan started its trial operation at the end of August 2023, and only survived for 9 months from the trial operation to closed door customer service.
It is worth mentioning that Kunjishan can be said to be the first independent tavern of Hai Di Lao.
Haidilao mentioned in its 2023 financial report that it holds 75% of the shares in Kunjishan. Previously, Hai Di Lao had launched the "Hi Lao" small tavern in the form of a "store in store", and Kunji Mountain was seen as the first independent small tavern opened by Hai Di Lao.
It is reported that Kunjishan specializes in Yunnan Guizhou Sichuan flavor, and its business model can be summarized as "daily coffee and night wine". The average order price is around 300 yuan, and the menu includes cold dishes, hot dishes, main dishes, desserts, various cocktails, coffee, tea, beverages, etc.
Previously, Kunjishan had gained some fame in Beijing and was also seen on various social media platforms as a sign of food bloggers visiting and checking in. Posts evaluating it included words such as "recent good mood," "treasure restaurant," "surprise," and "chill." Some even claimed that "Kunjishan is the hottest Bistro in Beijing recently.".
As of the time of publication, Haidilao has not yet made a public response to the closure of its store in Kunjishan. A "Lao You" who claimed to be a staff member of Kunjishan replied on the Xiaohongshu platform about the reason for closing the store, stating that Kunjishan's closure was due to "transformation".
Chen Xiaolong, a food and beverage industry operator, told Blue Whale News that the closure of Haidilao's Kunjishan store is essentially a profound reflection and adjustment of market changes and corporate strategy. This event not only reflects the trial and correction of the catering industry giants in the process of diversified expansion, but also tests the strategic flexibility and market sensitivity of the enterprise.
Is the Bistro track starting to cool down?
"Bistro" originates from French and refers to affordable small pubs on the streets of France, specializing in home cooked dishes and cost-effective drinks.
As an imported product that was only introduced to China a few years ago, Bistro has developed rapidly. When searching on Dianping using the keyword Bistro, there are a total of 300 related merchants in Shanghai, 142 in Beijing, and 83 in Guangzhou.
In fact, the hot Bistro track is cooling down, and a batch of Bistro stores have already closed one after another. Hu Hu, a Bistro owner at Beijing Huamao, told Blue Whale News that there have been many new Bistros opened in Beijing in the past two years. The whole year of 2022 is a dividend period for Bistro, and many Bistro began to go bankrupt in the second half of 2023. This trend continued in the first half of this year.
According to incomplete statistics from Red Food Network, apart from Mount Ji, Bistro ete Xia Jiu in Hangzhou and Grape Lane Grape Lane Bistro& in Beijing; Cafe、 Vive in Wuhan A group of local internet celebrities, Bistro brands, have been waiting for news of store closures or business setbacks.
What is the reason for these internet celebrities Bistro closing their stores one after another? During the visit, Blue Whale News reporters found that Bistro has issues such as high cost pressure and long payback cycles.
Hu Hu revealed to Blue Whale News reporters that a Bistro with a similar location and area generally requires millions of yuan in initial investment. "A monthly rent of 40000 to 50000 yuan, with some places requiring a one-time payment of 300000 yuan for half a year; 150000 to 200000 yuan for kitchen equipment; 200000 yuan for tables, chairs, cups, and decoration; according to the minimum waitress salary of 4000 yuan/month in Beijing, at least 3 people are needed for 150 square meters, which is 12000 yuan/month; the minimum salary for kitchen chefs is 5000 yuan/month, with at least four people, which is 20000 yuan/month; and with other expenses such as dishes and drinks, operating a Bistro for half a year requires at least 1 million yuan."
Long Yan, the founder of Longtang, said that our store covers an area of about 100 square meters, and the initial investment cost is around 500000 to 600000 yuan, which does not include the later investment.
For entrepreneurs who hope to achieve quick returns, Bistro may not be a good business.
"The manager of the" MARTINI Kitchen "Huamao store, Yi Yi, admitted," I think the return on investment period for making hotpot at the same price may be faster. We opened our store after the epidemic and had high expectations at the beginning. However, business is not doing well now and the turnover rate is not high. Our goal for this year is to survive first. "
According to Hu Hu, the turnover rate of ordinary Chinese and Western cuisine is higher than that of Bistro. They may achieve a daily turnover of 20000 to 40000 yuan, while we only have 10000 to 20000 yuan per day. Although their unit price and profit margin are not high, they win by quantity.
Many individual profit dilemmas in Bistro have led practitioners to have a pessimistic outlook on the business prospects of the industry. Mr. Lin, a Bistro owner in Chaoyang District, Beijing, told Blue Whale News, "If you want to open a small tavern, please think twice. If it's a side job or hobby and you don't want to make money, then go ahead and do it."
"Hurry up. Don't get caught up in this industry, it's almost stagnant," Hu Hu said to entrepreneurs who want to join Bistro
"Friends who want to join Bistro must have a passion for catering. We never thought that opening a restaurant would be so tiring at the beginning, and it's difficult to persevere without passion," said Long Yan.
The Bottlenecks and Difficulties of Bistro
Although some Bistro, represented by Kunjishan, have also become internet celebrities for a period of time, as a business model that requires simultaneous consideration of food, wine, and service, the challenge of running a Bistro is not small.
According to a visit by Blue Whale News reporters, Bistro in China usually adopts a "meal+wine" business model, providing high-quality meals and drinks, and can engage in continuous socializing in the same space, without the need to choose a place for nightlife entertainment after dinner, which also makes accompanying consumers have more desire to consume in this scenario.
But after Bistro, who was originally low-key and friendly, crossed the ocean and came to China, it became a "high-end" label. On Dianping, anything with "Bistro" is not cheap. On Dianping, when searching for "Bistro" in the same city of Beijing, the vast majority of people have a per capita consumption price between 170-200 yuan; Compared to some small taverns, the average price is about 85 yuan per person at Helenshi and about 130 yuan per person at Erma Tavern.
In fact, Bistro gives people an impression of "high consumption" in China, which is closely related to its relatively high proportion of alcohol consumption.
Blue Whale News reporters found during their visits that the prices of most Bistro store's main dishes range from 70 yuan to 130 yuan. The selling price of bottled wine is mostly around 50-100 yuan/150ml, while bottled wine is mostly niche, with prices mainly around 300-500 yuan.
Several bosses told Blue Whale News that the sales of alcoholic beverages in the store are good, and the proportion of customers drinking alcohol can reach about 60% or more.
But many consumers feel "not worth the price" after exploring Bistro, and negative reviews are not concentrated on alcohol. The main criticism of users on social media platforms towards Bistro is that they spend an average of two to three hundred yuan per person, but the food they eat is not as delicious as advertised.
Secondly, "atmosphere" is almost the most important aspect for all consumers dining at Bistro restaurants, and it is also a keyword in Bistro restaurant marketing on social media. This also means that Bistro's boss needs to put effort into creating a "slightly tipsy" atmosphere to bring a good experience, with details such as decoration, lighting, music, fragrance, ingredients, and store staff all being bonus points. This will also lead to Bistro's costs being generally higher compared to its own revenue.
"Chill" may be the keyword for Bistro. In the eyes of Huhuo, what he wants to create is a slow paced place where he can briefly escape from tiring work and take a break from his busy schedule.
For single store Bistro operators like Huhu, the two big mountains weighing on their shoulders are rent and labor costs.
Compared to some Bistros that only offer late night snacks, the Bistro of Kettle and Pot also offers Chinese cuisine. According to Huhu, it is for the purpose of maintaining operations. This store is located in the Huamao commercial district, with a main customer base of nearby residents and white-collar workers. There will also be a lot of customer flow during Chinese meal times, which can increase income and share costs.
In addition, from the perspective of industry characteristics, compared to the catering industry such as hotpot, its strong social attributes also prolong the time consumers spend in stores, making it difficult to increase the turnover rate. Blue Whale News reporters found during their visits that Bistro has a high turnover rate of 1.5-2 times and a low turnover rate of around 0.5 times.
Huhu told Blue Whale News that customers spend 30-45 minutes without drinking alcohol, and it is difficult to estimate the duration of drinking. The average dining time of the other Bistro "MARTINI Italian Kitchen" is about two hours.
At the same time, in order to maintain freshness, some Bistro will also regularly update a version of the menu. Bistro, which operates the kettle business, updates some menus every quarter based on the current seasonal dishes; "MARTINI Italian Kitchen" is also similar to this, with new dishes launched every season. According to Yiyi, "The menu has been updated three times since opening the store a year ago."
Only a few former entrants can leave behind, while new entrants attempt to create new explosive points. This also proves that Bistro is indeed a good track, but entrepreneurship is not destined to be an easy and smooth path.
Chen Xiaolong believes that in order for the Bistro model to maintain its market popularity, it must constantly evolve. "Deeper personalized services, the integration of healthy eating trends, and digital transformation will all help Bistro restaurants improve operational efficiency and customer stickiness."
For entrepreneurs who are preparing to enter or have already entered the Bistro market, Chen Xiaolong suggests that the primary task is to clarify their market positioning, find differentiated brand characteristics, and avoid getting lost in homogeneous competition. Secondly, continuous innovation is necessary, whether it is dish design, service models, or customer interaction methods, to continuously inject fresh elements to meet the needs of consumers seeking novelty and change. At the same time, we attach great importance to cost control and financial planning to ensure a good financial condition in fierce competition. In addition, embracing digitalization and utilizing technology to improve customer experience and operational efficiency is an undeniable growth engine.