The main reasons for Fei Yangyang's financial losses are twofold.
One is the high wages for employees, and the other is primarily due to market factors.
In its early days, the emergence of food delivery apps did indeed help solve some of the customer flow issues in the restaurant industry.
But over time, especially after these food delivery apps went through a phase of capital expansion, integration, and eventually monopolization.
The springtime for the restaurant industry essentially came to an end.
No matter how large a restaurant is, they all discovered a shocking truth: the big restaurant next door could offer a three-person set meal—two meat dishes and one vegetable dish—for only seventy or eighty yuan.
The entire industry is caught in a frenzy of competition.
Fei Yangyang was initially built on its high cost-effectiveness, but now, with rents increasing, wages not decreasing, and coupled with the widely known three-year epidemic.
