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Trends and Buzz
Boom and bust for "Chinese Pizza"Posted by Joel Martinsen, May 26, 2006 5:37 PM
![]() Franchises like the one pictured here arose in Hubei one year ago, and spread across the country. The Mirror article traces their development in Beijing:
Franchising expanded too quickly, say analysts, and since relatively simple snack presented a low barrier to entry, imitators sprang up all over the place, further glutting the market. Perhaps Beijing residents no longer find the "Chinese Pizza" new and exciting, or perhaps, in the words of one consumer surveyed, "When summer comes, the meat sprinkled on top of the diaozha bing is too oily, and you can't eat too much." According to one early franchisee, the franchise entrance fee was 16,000 yuan, and the parent company promised net profits of 60,000 yuan a month, a figure reached within three months. However, by the end of April, other franchisees were losing money; sales had dropped from 200 shaobing a day to next to nothing. Some store owners have switched their focus - now that "Tujia" is no longer in vogue, they are rolling out their own products in an attempt to attract more repeat customers as opposed to people merely trying a taste of the latest fad. Links and Sources
Comments on Boom and bust for "Chinese Pizza"I think most stores have closed in Shanghai as well. Part of the problem is, when they are fresh out of the oven, they weren't bad. But when one shaobing is sitting there unsold for 15 minutes, getting soggy from its own grease, no one will want to buy it. I am sure reports that some places were using rancid meat did not help. I know I stopped enjoying "中国人自己的" pizza |
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