Consumers in China today receive coffee at a price of 14 cents and meals for 50 cents due to a warm price war between food delivery platforms, while restaurants and tea chains start counting the decline in the rise in their halls. The latest financial results for the listed restaurants and cafes, analyzed by ‘Bloomberg News’, showed that intensive promotional campaigns on the Internet losses gelic gelic during the first half of the year, especially in the three months ending in June, when the price war broke out. Restaurants depend on the eating service in the halls, such as the ‘Hidilao International Holding’ series and ‘Tai Er’ restaurants specializing in pickled snakes, a decrease in its sales between one -sided and 20% during the first half. The table occupancy figures have also dropped, which is a large scale on the efficiency of the operation and the scope of the rise, or established at best, with consumers on the way to delivery requests supported by platforms such as “Ali baby”, “Meituan” and “JD.com”. The urgent pressure on restaurants, although low price offers the delivery platforms can help attract users and improve their share in the $ 80 billion food delivery market in China, puts their restaurants in front of a difficult comparison that combines and weakens sales at the same time. Online promotional campaigns can drown the sales stores with hundreds of requests within a short period, making employees depleting in exchange for minimal returns, and making few clients in the halls vulnerable to neglect. Also read: Artificial intelligence income avoids the profits of “Ali Baby”. The damage to the delivery price of delivery prices is specifically before Chen Qiang, the owner of a four -branch restaurant specialized in pasta in Shanghai, where delivery requests were flooded after offering gift vouchers worth 24 Yuan ($ 3.36) on purchases exceeding 25 Yuan. By July, the pressure had risen to the point to push him to suspend the delivery service during the peak lunch from 11:40 to 12:20 a.m. after complaining permanent customers of Slow Service. “We are staying busy all the time, but our profits are eventually lower, because cheap requests do not compensate online for our loss of the restaurant’s pioneers,” Qiang said. Yum China Holdings said in his latest profit call in August that the high height of delivery costs caused by expanding the number of requests is a ‘obstacle’ before the profit margins. Despite the operating company for the series “Kentucky” and “Pizza Hut” from the delivery war, its shares have dropped despite the announcement of the outcome of profits that exceeded expectations during the quarter in June, amid investor that fierce competition could print its profitability in the future. The Gulf of Low Price Campaigns continues without indicators, as platforms continue to provide new support, despite the calls from regulators to prevent “unfair competition and prevent harmful support.” Many people fear that this strategy will eventually be reflected in negative consequences that exceed its benefits, either at the level of the entire sector or on individual operators. Delivery loads have increased, although the running growth of Lucking Holdings and Guming Holdings exceeded 10% more than 10% during the first half with the support of online requests, delivery costs imposed a clear pressure on profits. The “Lukin” expenses of the delivery increased by 175% during the second quarter to form 14% of net turnover, compared to only 7% in the previous quarter. Also read: China promises to limit the chaos of price competition and build a united local market. As far as “Gometing” is concerned, a fresh beverage range that includes more than 11 thousand branches, most of which is concentrated in the smaller Chinese cities, has made it clear that its drugs are exacerbating operational pressure in recent months. The reason for this is because they have to spend higher amounts than usual to support consumers according to the terms of delivery platforms, as well as paying commissions to employment partners and delivery fees, according to the financial manager of the company, George Meng, in an interview with “Bloomberg” earlier this month. Mix explained that the boundary of the compound is very limited for fresh tea chains. Prior to the last fierce promotional campaigns, it took three to four requests for delivery to bring about a profitability equivalent to one cup of tea in the cafe, but it now needs eight complete requests. He added: “We are in the same boat, and if they cannot resist, we will not be able to continue in the long run.” However, increasing pressure on tea chains was not a safe option, as some companies led to a greater decline in their performance. Chage Holdings, who tried to consolidate himself as ‘Starbucks tea’, recorded an increase that was no more than 2% in its edited operating profit during the first half, despite the growth of its stores by 40%, after electeding not to participate in promotional campaigns to preserve the distinctive image. The effects of the decline were clearer in the second quarter, as growth in the sale delayed up to 10% compared to 35% in the previous three months, while the modified operating profit of medium profits lasted to a 11% drop. Sales are based on one Greater China store with 23%. A report issued by “Citigroup” warned against the continuation of this pressure in the third quarter, while the company’s profits are reduced for the whole year. The dominance of technology giants no longer has nothing but participating in the prize platforms, in a fight led by technology giants in China. The company “Ali Baba”, which was once dominated by 85% of the E -Commerce market, strives today to restore its share of “Methan” and “JDC” in a race that includes the delivery of meals, groceries and electronics. According to the data of “Goldman Sachs Group”, the interest of “Ali Baba” of the food deliverance market in China reached 43% from July, compared to 47% in favor of “Methan”, while Jack supported the spending plan of up to 50 billion yuan in the form of subsidies to improve this competition. Also read: The Chinese “Metanan” expands the food delivery service in Dubai. This has urged some restaurants to accelerate the frequency of its digital expansion. ‘Heidilo’ introduced a new set of individual meals such as mixed rice and house drinks, and it also plans to establish a large kitchen exclusively for delivery services, while making sure its basic activity is associated with the service of families in the halls without change.
Empty tables and profits profits due to the food delivery war in China
