Investing 4 million but only lasting for 4 months, what's behind the boss's angry smashing of the store...
Invested 4 million and lost everything in 4 months, franchisee smashes the store in anger!
On May 23rd, at Wuyue Plaza in Nanxun, Huzhou, a video of the franchisee and manager of Ameigo Meiguo·Yungui-Chuan Bistro smashing the store in anger quickly sparked heated discussions after it was released. Currently, the incident is still intensifying.
The manager of Meiguo at Nanxun Wuyue Plaza complained on Douyin that the store has only been open for a little over 4 months, and there have been various contradictions surrounding issues such as decoration, fire safety, and taxation. "The Meiguo brand and the mall colluded to force me to close the store."
According to him, the store opened on December 31, 2025, with an area of 377 square meters and nearly 30 employees. The decoration cost alone was 850,000 yuan (handed over to the Meiguo company for a "full - package" deal, only including hard - fitting, excluding air conditioners, decorations, etc.), and the total investment exceeded 4 million yuan. The revenue in the first month was 738,000 yuan, with an actual receipt of 650,000 yuan. In the second month, the revenue was 549,000 yuan, 386,000 yuan in the third month, and 220,000 yuan in the fourth month.
In April, the store was frequently reported for fire safety issues. The manager was told that it was a "targeted complaint." In the video, he speculated that the mall or the brand knew about the store's fire safety loopholes, so they could "precisely report" it.
Why was it targeted? The manager analyzed that it was related to invoices. Since the opening of the store, it has been unable to issue invoices. He contacted the Meiguo headquarters and the mall, but got no results. "From January to April, we even had a fight in the end. The company said that the invoices were given to the Huzhou general agent, but the agent required me to pay a 3% fee to get the invoices. After calculation, the invoice amount was nearly 5 million yuan. If calculated at 3%, I would have to pay him 150,000 yuan."
In anger, the manager reported the tax issues of Meiguo, and as a result, he was "reported for fire safety issues in return."
Even more absurdly, while the two sides were in a stalemate, the person - in - charge of the mall "stepped in" and suggested that the store terminate the contract with the mall, but "leave all the things in the store to the mall." The manager learned from other merchants in the mall that the mall stated that the store owner was no longer running the business, and the store had been taken over by the brand and would reopen after a while.
"The store was sold to the brand? I didn't even know about it."
Behind the angry store - smashing are four "traps" faced by catering people
In fact, the manager of Ameigo Meiguo at Nanxun Wuyue Plaza is not a "start - up novice." On the contrary, according to public information, he has relatively rich experience in catering entrepreneurship. Moreover, he is also operating other projects at the same time. For top - tier brands like Ameigo Meiguo, the store - building cost is almost over 3 million yuan, which is really not something that ordinary novices can handle.
For a store of this scale and potential to end after just a few months of opening, it must have suffered huge losses. That's why this incident has sparked a lot of public opinion.
Even "professional franchisees" have nowhere to complain. It's easy to imagine that it's even more difficult for ordinary entrepreneurs to make money. Behind the store - smashing, it reveals the almost uncontrollable upheaval between shopping malls and brand agents, and also reflects several "traps" faced by current catering people.
First, the "profit trap" of joining a popular brand
In the video, the manager of Ameigo Meiguo mentioned a dispute about decoration. He revealed that the decoration company he found quoted about 500,000 yuan, while the brand's quote was 850,000 yuan, and hinted to him that "using our decoration will save you trouble later." At the same time, the regional agent is also one of the shareholders of the decoration company.
The interest relationship is self - evident. In fact, many popular catering brand franchises claim to offer "all - inclusive pricing," "0 franchise fee," and "be the boss with just your luggage." It seems worry - free and the store will be popular as soon as it opens. But behind the scenes, there are many profit traps hidden in various expenditures. The dream of being a hands - off boss often cannot be realized.
In addition to decoration, the most typical one is forcing franchisees to purchase specified equipment and materials at prices much higher than the market price, forming a profit model of "the sheep pays for the wool." The contract may also hide additional fees such as "deposits" and "management fees." "Franchisees have become the terminal profit source for the brand headquarters."
Second, the "traffic trap" of beautiful - looking bistro
In 2024, Yungui - Chuan bistro emerged suddenly, integrating the multiple traffic advantages of local cuisine, mountain - style, and beautiful - looking food. It can also meet the dual visual and taste experiences of young people when dining. Brands such as Ameigo Meiguo and Yeego Wild Fruit have risen along with the trend and expanded their business in first - tier cities. Public information shows that since its establishment in 2023, Ameigo Meiguo has more than 180 stores across the country.
However, the traffic comes quickly and goes even faster. No restaurant can rely on traffic for long - term operation.
The start - up investment cost is too high, which is beyond the reach of ordinary entrepreneurs. From the incident of Meiguo's store - smashing, we can see that the pre - opening investment of this store was as high as 4 million yuan. Moreover, stores of such brands prefer to be located in shopping malls. For example, the proportion of Ameigo Meiguo's mall stores is 94.59%, and that of Yeego Wild Fruit's mall stores is nearly 92%. Facing high investment costs, the operating pressure on franchisees is self - evident.
As consumption returns to rationality, emotional value is just an added bonus and cannot replace product strength. Facing stores that look good but taste bad, emphasizing presentation but neglecting the taste and quality of dishes, people only go there once and are not willing to pay for "IQ tax." So it's not hard to understand why the business of these stores cools down.
Some netizens said bluntly after trying it "This is just a one - time beautiful meal, a typical short - lived business." Low repurchase rate cannot support long - term business.
Third, the "prime - location trap" of opening a catering business in a mall
"It's not easy to enter a mall store, and it's even more difficult to withdraw. Before you enter, you're the boss, but after signing the contract, you become the underdog." A catering industry insider said bluntly.
Many novices think that as long as they spend enough money and choose a good brand, they can make money by opening a store in a mall. In fact, there are many complications in a mall. There are various interest involvements. When a merchant enters the mall, they need to have multiple "games" with the mall and the brand.
"The thick contract is full of terms in favor of the mall. The requirements for decoration, fire safety, and personnel are also higher. If a merchant can't continue the business and wants to withdraw, almost all the deposits, guarantees, and performance bonds can't be refunded. Not just the mall in this incident, almost all malls are similar. It's not very likely to make a lot of money by opening a store in a mall." A catering entrepreneur revealed that he switched to the catering industry last year, invested in two stores, but lost all his money and even got into debt.
"There are all kinds of deposits, and they're not a small amount. They've calculated your turnover to the maximum. The contract is usually signed on a one - year basis, and the situation in the second year is unknown. How much the rent will increase will be decided later. Although there are standards, there will definitely be changes in practice." The founder of an ice - shaving shop admitted.
◎ Netizens posted pictures of Ameigo Meiguo after the store - smashing
Fourth, the "get - rich trap" in the sinking market
In the past two years, "going to the sinking market to make money" has become the goal of many brands and entrepreneurs. When catering brands enter the sinking market, it seems to be a "dimensionality - reduction strike" to avoid the red - ocean competition, but in fact, it's a tough battle that requires reconstructing the business logic.
From the data, from January to September 2025, in the national catering revenue, the growth rate of catering stores in third - tier and below cities was as high as 12%, far exceeding that of first - and second - tier cities. Although the growth rate is leading, the average per - capita customer price is generally 30% - 50% lower than that in first - tier cities, and the rent cost ratio may be even higher due to the scarcity of locations.
Huzhou is a third - tier city. The manager revealed in the video that the monthly rent for a 377 - square - meter store is more than 40,000 yuan.
In addition, most popular brands that focus on appearance and neglect taste maintain first - tier city pricing. The pricing system deviates from the consumption concept of the sinking market. They may attract customers for a short - term try - out, but it's easy to fall into the situation of "peaking at the opening and having no repurchase later." Coupled with the weak supply - chain system in the sinking areas, higher rigid costs, and increased operational management difficulties... The sinking market is no longer a gold - mining paradise, but a real entrepreneurial battlefield.
"The sinking of popular catering is not a flight, but a rational overflow. Since the profit in first - tier cities is thinning and the growth has reached its peak, sinking is an inevitable choice. But it's necessary to reduce prices, reduce configurations, and lower expectations. Only by using relatively small stores, home - style menus, and the franchise model can they possibly gain a foothold."
A dispute with no winners
"Similar cases are very common. It's just that this time the manager of Ameigo Meiguo exposed it on the Internet, so it was noticed." Netizens said.
As for the follow - up, "It will probably still be a tug - of - war. But anyway, the invested money is definitely gone. Whether it's the brand, the franchisee, or even the mall, there are no winners in this dispute."
"I was considering joining Ameigo Meiguo recently. After seeing this video today, I'd better wait." An entrepreneur admitted.
The fermentation of this incident is a wake - up call for entrepreneurs. It's very important to invest and choose carefully in the early stage. It's not too late to enter the market after personally investigating and evaluating the market and the brand. Control the business risks and losses to a lower level.
"In the industry, there are constantly reports of 'hot first - stores,' 'high GMV,' and 'popular - brand popularity' success stories. Coupled with the mutual comparison and one - sided information transmission in the circle, it makes small and medium - sized catering bosses lose their balance. They take the accidental success of a few people as the general standard, ignoring the resources, timing, and operational skills behind it, and then fall into the vicious cycle of 'eagerly looking for the next big thing.' " An industry insider commented.
As a catering brand, before pursuing the speed of opening stores, it's necessary to build a mature single - store profit model and return to product and operation. Instead of simply earning franchise fees, in addition to empowering the daily operation system and supply - chain support of stores, it's also necessary to properly handle the relationship between the brand headquarters and franchisees to avoid intensifying contradictions.
This article is from the WeChat official account "Catering Business Owners' Insider Reference", author: Insider Jun. Republished by 36Kr with permission.