Losing $1 Million Overnight, Restaurant Owner Breaks Down In Tears, 460k Closed In Q1 Alone
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- เผยแพร่เมื่อ 28 เม.ย. 2024
- According to the National Bureau of Statistics of China, in the first quarter of this year, a staggering 460,000 catering enterprises in China were deregistered or had their operations suspended. Among these, 170,000 closures were in January, 110,000 in February, and 180,000 in March, marking a 232.6 percent increase compared to last year. In 2023, about 1.4 million catering-related companies nationwide were deregistered or suspended, reaching a new high since 2020.
#chinaobserver
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He has no concept of business, to blindly go into the restaurant sector with millions closing down around him is irresponsible.
it's his lifelong dream i guess, can't be too hard on him.
@@creditianistani6474 Though if there's multiples around him closing, its just down to very poor decision making in its entirety, if there's non though then thats fair enough. They do live in a kind of information bubble.
@@jsmithmultimediatech yeah but passion sometimes overtake logic. it's a stupid decision from outside perspective but sometimes it happens to the best of us
When I was there they don't call the restaurant Chinese restaurants, they just call them restaurants. I also looked for an "AmericaTown" or "FrenchCircle"...nothing. AND the reason is in the USA folks have opportunity to do what they want, not in China.
@@creditianistani6474 It can yeah you're quite right
First guy : He couldn't see the country crashing around him 40 days ago?? Let's open a restaurant during an economic crash. . . good thinking.
Yes there are dumb Asians! Not all Asians are smart! 😂
Exactly what i was thinking..
Damn yt deleting my comments.... Yes there are dumb Asians out there.... Not the stereotype....
For real, he could have chilled with that 5 million for years..
Very good point. Not a very smart decision.
let's be honest - the restaurant business is the most difficult and risky in the world
when you have 300 million people Unemployed, and the ones that work make 2000 yoan. they will not eat at restaurants.
I understand how the Chinese think, I can't afford to eat out, either.
much of them working 12-16 hour days with long commutes do not have the time to prepare their own food. people in china do not have access to the sort of grocery markets we have in the US either.
This isn't a "downturn", this is a depression and it isn't just in China, the same is happening in Canada, the US and Europe.
depression in Canada, the US and Europe? Do we live on the same planet? If your going to shill for the CCP, at least try to sound believable!
It's worse in China because (a) they refuse to bail out the people whose lives have been ruined by losing their life savings in real estate, and (b) they passed an espionage law right on the heels of their zero-covid law that caused every foreign capitalist with two brain cells to rub together to flee their country en masse.
Korea too
We all have one thing in common. Corruption
Lol you're right but the mentality I'll people who argue red vs blue will never admit this truth
Blame the CCP cor the mess that china is in.
CCP is just another puppet of the banksters, they are getting gewd
#sloprosperity
where did u learn sth about CCP
@@user-nq6tn4ll9l engrish? Herro rearn shi shi pee?
@@xumdeo😂
People are feeling the economic downturn and would rather spend less and less.
This makes sense.. in the US there's 750k restaurants. In China in 2020 there were 7.1 million. There's no way to support that many
Chinese people eat out way more often than Americans though. It's actually cheaper to eat out than make your own, and a lot of people just don't have the ability to cook with their 996 work hours of they don't have parents or grandparents living with them.
there is also 1 billion people
@@Gadgettime right.. I considered that.
@@ro0ster648 as someone who has been homecooking for a decade now... I would like to dispute the 'eating out' is cheaper illusion. Perhaps the initial investment into proper cookware is high, but the savings in meals is tremendous over time.
Coming from a developing nation where food prices is still low and eating out also still quite low, I still have some 50% savings per meal compared to eating out. Neither is the quality any lower, and most of the time, it is so much better than eating out.
Most of the restaurants and food industry are obsessed with enormous portions, or just empty calories like the boba teas. It's just not something people need. It's all luxury.
There's no need for all that excess consumption. With all that money spent eating out, people are just wasting their potential to build up their retirement funds. As a comparison, my food expenditure is about 30% of my contemporaries who eat out every meal. Imagine all that savings!
Things in China are more expensive than my country so I imagine their restaurants are not so affordable either.
@@Gadgettime there's 300+ millions in the US 🙄, learn to do some math
And they say the economy is growing 5.3%?
All lies who wants to buy crappy Tofu dreg products from China. I personally don’t buy anything made in China
The Mayor of NY says crime is down 2%... but before it went up 80%...
Who are THEY,well they are FULL of Shit Lies!
all fake. tofu
Never believe what any stupid politician says.
You can have the best store in the world but if your potential customers are poor then they are very reluctant to spend what little money they have.
Can't consume with money that is stolen by banks.
Oh, the irony 👀🙄😵💫
In my opinion any business that makes less than 10% profit has high probability to shutdown due to worldwide economic depression, higher inflation, excess competition, and people spending way less money than times past.
My question is; why do people persist in trying to open these businesses? Isn't the word out?
CCP is still pumping out massive LIES about how well the Chinese economy is going. Chinese people have been brainwashed over the last 70 years...
They don't have any options. The china unemployment are very high it seems to the point most employer only hired those under 35 years old. So for them, it is either starting their own business or die from lying flat. But it do seem that they value having a good look appearance of a restaurant rather than minimising their operating expenses. And because they are first timer without having any experience running a business before, most will still end up going under. it is very rare for anyone who manage to start their first time business and it can stay profitable for years. Most only manage to get their business running good after at least a few tries.
Well, they are not taught to be innovators, just followers. So I imagine critical thinking and research are not practiced enough. At any rate, our channel will only show the failures of the current situation, the successes will not be made known here. Bias is everywhere, just choose your flavor.
Ironically chinese restaurants in Europe and US are doing better because fast food joints have become too expensive in comparison.
😱 the gutter oil industry is down the drain for good this time.
Aren't most of these restaurants complete nonsense, anyways? Perhaps, Chinese consumers realized that.
Let's not put ALL the blame on the CCP. You just need to think why are you going to open a tea shop on the same block as 20+ other shops. These people think that just because a dozen shops are "doing well" doesn't mean that adding another dozen will be profitable. They have no concept of economics.
chinese people, having lived under actual communism until mao's death, had no idea of economics so it's easy to see why'd they think like this
Lol 20 be hundreds or thousands of same one in a block in china all the little moveable shops that move to different areas if no business in one
this happen because the copy paste culture of China. when someone shop works well in a location they just open a competition nearby
China is in depression it will come back soon
Even Europe r in bad shape
Americans lost the $1 Hot n Spicy from McDonald's
The entire world is suffering
People still eat McDonald's with way better options everywhere now? LOL
@@magnumxlpi Kids still love McD's. Their 7 year old tastes haven't expanded.
@marcoalvrz5110 you gave them McDonald's in the first place LOL they love it cause you went there.. for yourself. There's way better options they'd like too but you choose McDonald's... when there's better options everywhere as I said before, in terms of taste, value, and health
China has 25cents gutter oil fried fake chicken 😂😂😂
@@magnumxlpi i don't have kids soooo... I guess they don't love anything. And I haven't had McD's in years.
Without the US trade surplus there are no extra funds for spending....karma.
Without foreigner buying US dept there are no funds for spending… karma back
@@omonkkonen6676 Good point but the US is not currently in that predicament.
There is still a strong demand for US treasuries from US reires & pension funds and like you stated foreigners. US treasury bond is currently the safest security that the world currently has.
China on the other hand is currently going through a very deep recession where their unemployment rate for older and young individuals is very high you don't see that in the US.
Foreign capital is evaporating away from China while foreign capital is increasing the US. Neither country is perfect but China is going through a unique negative period.
@@Sportclub18 ”London
CNN
-
The United States risks a bond market crisis of the kind that engulfed the United Kingdom 18 months ago, sending yields soaring and sparking a run on the pound, according to Congress’s independent fiscal watchdog.
The stark warning from the Congressional Budget Office comes as US government debt continues to break records, fuelling concerns about the burden that places on the economy and taking a toll on America’s credit rating.
In an interview with the Financial Times, CBO director Phillip Swagel said US government debt - which the Treasury Department puts at nearly $35 trillion - is on an “unprecedented” trajectory.”
@@Sportclub18usa population is around 300 million China population is over 1.4 billion . Lots of different with China and USA.
China dont have USA drug and illegal immigrants plus homeless problems which USA is facing
China is in depression but it will get out from it but see USA drug homeless illegal immigrants it never ending stories 😂😂
活該, serve him right , doesn’t he know many restaurants have shut down, doesn’t he read any news about how many restaurants have closed ? Not only in catering business, many retail business also closed down. He should just keep his 5 million dollars and lay flat, that way, at least he still has money in his pocket.
👍🏾
no body working means no business because nobody has money to spend... Economy 101
Shocked how he got a loan without advice or scepticism on, behalf of the bank, in an economic recession.
because he had something to give in exchange
Start small!
A foodcart or a food-truck.
Lol, During the pandemic hundreds of millions of people learned to cook at home. People began to realize that wasting thousands of dollars on restaurants was stupid, especially when they had no savings when they were losing their jobs during the pandemic. I can cook, bake and makemy own boba tea. Basically i dont waste my money on stupid crap, because im saving for the next pandemic 😂
The quality of your videos, the diligence of keeping up with the latest news and the realism of your narrative makes me an avid watcher of your channel. My partner doesn't get why I keep watching you cause he finds the material too "dark" but I put great importance in having a realistic view of things and I feel that the situation in China will have a huge effect on the rest of the world. Thank you so much for always producing this incredibly eye-opening content. Wishing you more subs and likes!
Atleast you watching from a reliable source unlike CNN or BBC with propoganda.The global economy is far from being stable because what happened in 2020 is still effecting all sectors of the economy, some severely some not so severely. Nobody knows the future but i don't see much recovery this decade, especially when China,the biggest producer and exporter, is clearly struggling.
Don't eat at these Tofu-Dreg restaurants
🤣🤣🤣
You pariah even cannot afford to eat at any restaurant.
🤣🤣🤣
@@JunHooKim-bn4yc ikr
Opening too many similar shops also add to the problem. Like in my town there was a franchise that opened for the first time, it was sold out daily. Then 2 months later another similar shops opened, and then consumers count dropped significantly.
Restaurants r for social media😂
I can't understand, with their intelligence one would dare to invest. He must be cookoo
After looking all these news.... Eating home cooked food looks best option
Maybe the fake food and gutter oil has something to do with it?
If you do bad deeds, you don't go to hell after you die, you are reborn as a Chinese.
😂
Lmao that’s my worse fear. They eat any carcass too
😂😂😂better than born as American homeless drug addicts😂😂😂😂😂😂sleeping on street with needles Inside the arm😂😂😂😂😂😂😂
Carefully selected ingredients??? Like gutter oil and high-tech food?
“ there is nobody truly nobody” sums up my motion rn
I guess plenty of people who make bad choices and then cry about it!
Smoking around the food. That’s gross.
Lessons learned...consumers down equals business down. What goes down, goes up and visa-versa. Endeavor to persevere!😎🤙
With 5 mil he could have just retire
Thanks
u know, if you think opening up a restaurant in an area where every other restaurant is closing or has closed without any savings to sustain yourself for a very long time (several years to make it work) isnt a good idea
anybody can tell you that
Restaurant business is dead end business at this moment around the world . Many will fail and won't be able to make it
5 million yuan well over 600k USD 😮
He is a moron.
There’s a lot of people in China but also a lot of competition. It even stated customers dropped off after 2 monthes which is pretty aligned with the amount of time before customers determine if your spot is good or not.
It is unfortunate, as many people stated restaurant biz is one of the hardest to succeed in, so you gotta be be ready from the get go NOT study marketing after it is going bad.
Wish him luck moving forward
FYI here is the US anyone involved in opening up a food type related business you are told you are going to operate at a loss for 1 year, and make sure you have enough capital to stay afloat at that time. This was advise from years ago, I am sure things have changed and you need more in reserves now. You cant spend all this money to build a place up, and cant stay afloat for 3 months you way overextended.
ah maybe the gutter oil from he sewer that u reuse whenever u can
Damn, almost as bad as downtown Los Angeles
Beautiful news to be waking up to!
The news is so bad that I just hope that China Observer is reporting exactly how it is.
Chipotle in California is charging 282.32 yuan for a beef bowl!
but the difference is its real not fake like in china the beef is rat and rice would be plastic
This is sooo sad
Good, that all these businesses are closing. They need to learn their lessons.
In the USA there are many closing also… we are in a final time..Hope you survive all this situation. You have the knowledge, oh to started a business. There be a better times.
Great reporting, thanks.
Restaurants are the businesses that suffer the most from the consequences of the downturn in the economy, and where it is most affected is in economically strong countries, because that is where people usually eat freshly.
Corporations are increasing prices of goods while this is happening. Remember that.
He should have opened up a liquor store.....tobacco and alcohol business are economy proof
The problem is that the rent rates for businesses are too high, so everything they sell is overpriced. People can't afford to buy such expensive things.
investors better start pulling out now
timing is everything
you open a store big-time no scaling in
you're a rookie after all
Anybody with a pension in America/UK better make alternative arrangements
Greedy greedy society.greedy.
I understand there's a lot of passion, wanna be their own boss and there's a dream to make big, but also any business is a risk because we can't control the consumers
Ofc a multi generation bubble economy eventually corrects...
This the over capacity that Janet Yellen, Gino Raimondo and Antony Blinken warned China about. But China thinks it is above the normal rules of economics and that there can only be economic growth, never contraction.
So here is the contraction. Too many businesses selling mostly groceries and other cheap consumables that other businesses in the same location sell. A price war in a downturn is inevitable and then closures when the customer base vanishes and the money dries up.
Go to the cheaper restaurant. The old old restaurant, only few Yuan a bowl of noodle, the night market, 3 Yuan a huge meat bun. No need those fancy place.
Don't they know, when people don't have monies, the first thing they do is cut eating out, especially your high price food.
Humans need to live within their means
Start selling government sanctioned noodles and gutter oil fried fake chicken. You will have profit in no time 😂😂😂
5m yuan !!!!! The shop wouldn’t cost that much
These new businesses obviously thought they had an advantage that all the other closed storefronts didn’t. Perhaps it was talent, genius, lots of cash or incredible intelligence and the willingness to work extra hard. Clearly it was a grandiose mistake. They should have realized they were going to end up broke too!! 🙄😏🙃
Lol failed because owners just get others to do the work look how clean he is not someone working.
Consequences of Government Lock Downs
100% it was never a good idea to shut down society like that. It was all part of the plan.
Poor people. I lost a twenty three year old business i started in a shed at the bottom of my garden. Machines eeighing tons. Eventually, I found a fool to buy it. But it was done. Then I found work for a gigger company
comes down to getting food trucks going for income as well who knows it’s sad that so many companies and people have been affected makes me wonder about places like Wish and Temu how they’re able to stay on top specially with floods and tornadoes and everything one day they’ll get hit and they won’t have it any better than these poor people it’s hard to see a man crying because his income is nonexistent at this point everyone showing up to do their best to sell food and there’s no one to buy
I couldn’t imagine putting all your money into it business to have to close
😢
This the over capacity that Janet Yellen, Gino Raimondo and Antony Blinken warned China about. But China thinks it is above the normal rules of economics and that there can only be economic growth, never contraction.
So here is the contraction. Too many businesses selling mostly groceries and other cheap consumables that other businesses in the same location sell. A price war in a downturn is inevitable and then closures when
Sad to see n hear seems inflation everywhere same always hope for a better tomorrow😔
Nothing new. Whatever business is hot at the time, there will be 5-6 stores open in the same area before people get tired of it.
I'd hire some of these smart people if they could open stuff on my behalf...
New restriction: Every person has to dine at restaurants three times a week.
problem solve , you're welcome.
The low prices are surprisingly low, but how do those restaurants make a profit. It sounds like Red Lobster and their recent endless shrimp (all you can eat) promotion which put the entire company into the red.
Australia is the same ... the World's never been able to come back after Covid 19 ...
40 days not like he been in years and most likely owner as 99% never do any work anyways
F&B is a real job
so having cash to open a restaurant doesn t make you a professional
so without proper skills and knowledge , easy to fail
Restaurants dont create any economic wealth for a country. A country can get by selling food at stalls like in Rome 2000 years ago
Any business is very risky
Whatever the Government said, it's always the opposite that is true 😂
3/15 never forget
Bussiness not surviving,blame it on the government.😂
This mentality of opening a restaurant must be something they get from Spain, as in Spain the dream is to open a “Bar” and sell coca colas for 3x the price… profit? But still not understand that this cheap mentality will bring competition so it will tighten belts and figure out new strategies to not bankrupt like… lowering the prices, and here we are
In other news, a record amount of dogs saved in China.
BarBCued with Hoisin sauce or slow cooked into a Hot Rice Porridge steaming Hot Great for Winter Cold Days!
Blame us govt
❤❤❤❤❤❤❤❤❤❤❤ 360,000 restaurants dead . how awful
it is these restaurants fault...the saturated the market and hope for a good business...ou should found another business...them owing money is their own doing...
The same thing happened across the world because of Coivd 19!
Is it less money or less people? Does the world wide increase in the death rate include China?
Less job and of course less money.
So sad this happened to him. Maybe he should have checked off hand with the feng sui master, his astrology, also local demands for foods and tourists in that location etc....swamhiji
You will own nothing and be happy
Is this real video or you just taking video during pandemics?
Wonder why the bank ok the loan ?
maybe hes got good collateral
Play stupid games, win stupid prizes😂😂😂