With a store closure rate as high as 80%, let's take stock of the four major "pig - butchering scams" in the catering industry in 2025.

No single model can provide a once-and-for-all solution, and no single category can gain a firm foothold by simply "following the trend."

Out of 10 new stores, 7 won't last for 3 months, with the closure rate approaching 80%. In 2025, there were many so - called internet - celebrity startup projects in the food and beverage market. They seemed extremely popular, with the promise that anyone who got involved would make money and that they could expand rapidly. However, within just a few months, they went bankrupt in batches, leaving behind a mess and numerous entrepreneurs in the red.

Combining industry data and market research, Hongcan.com has sorted out the top four "pig - butchering scams" in the food and beverage industry this year. Without exception, they are all "short - lived businesses" hiding behind the guise of "trending opportunities."

Dry - steamed dishes: Massive store openings followed by mass closures, and second - hand equipment can't even be sold at rock - bottom prices

At the beginning of this year, a large number of dry - steamed dish restaurants suddenly emerged across the country, touting "Shunde dry - steamed" or "Ningbo dry - steamed" cuisine. The average customer spend ranged from 15 yuan to 40 - 50 yuan. Relying on slogans like "No water added," "Restoring the original freshness of ingredients," and "Rejecting pre - made dishes," they quickly gained popularity and triggered an expansion wave.

However, within just half a year, this category witnessed a large - scale wave of store closures.

On social platforms, many netizens shared pictures showing that many dry - steamed dish restaurants opened at the beginning of the year now have "For Rent" signs posted at their entrances. Entrepreneurs who left the business at a loss even found their way to recoup losses by selling equipment blocked. In the eyes of second - hand food and beverage equipment recyclers, the recycling value of dry - steamed dish equipment is low, and most of it can only be treated as scrap.

△Image source: Screenshot from Xiaohongshu

Why did the popularity of dry - steamed dishes fade so quickly?

Firstly, the store decoration was simple and uniformly copied. The signboard was a plain iron sheet with a hand - written store name, and the interior had a run - down, urban style, aiming for "utmost frugality." This "Syrian" style was eye - catching at first, but as more similar stores opened, it became completely indistinguishable.

The dishes also suffered from severe homogenization. The SKUs of each store were highly similar, mainly consisting of common options like spare ribs, free - range chicken, and squid. The limited product variety, combined with a relatively monotonous and light taste, made consumers easily get bored. The lack of product strength directly led to a low market repurchase rate.

In addition, the most prominent feature of dry - steamed dishes is freshness, which places strict requirements on the freshness of ingredients. However, some merchants used frozen products instead of fresh ingredients to control costs, imitating only the "form" of dry - steamed dishes but losing their "soul," which also led to a collapse in consumer trust and fewer customers.

Beef rib strip buffet: Entering the market on a temporary bonus, leaving a mess after the bonus fades

"For 60 - 70 yuan per person, enjoy unlimited beef rib strips" — At the end of last year, a batch of self - service beef rib strip restaurants became popular riding on the wave of falling beef prices. They were all the rage for a while, promoted as high - value - for - money options. However, in less than a year, this category cooled down rapidly, and stores began to close in batches.

In fact, this business fell into the trap of opportunism from the start.

The boom of beef rib strip buffets was based on the window of falling beef prices. According to data from the Ministry of Agriculture and Rural Affairs, as the import volume of beef soared, beef prices declined for months last year. By the end of December 2024, the wholesale price of beef cattle had dropped by 24% in just half a year, reaching a five - year low.

Seizing this cost advantage, a group of shrewd merchants took advantage of the downward cycle of beef prices. They created brands, emphasized "low - cost, high - return," and attracted a large number of entrepreneurs to enter the market.

In the short term, the low ingredient cost did bring considerable profits to the stores, but it also planted a time bomb. Once beef prices rebounded, the entire business model would become unsustainable. Moreover, the beef supply chain itself is extremely unstable.

As global beef prices began to rise, the crisis arrived as expected. According to World Bank data, by September this year, global beef prices had risen for four consecutive months, reaching $6.9 per kilogram, a record high since 1960. The domestic beef market also followed suit. According to Zhuochuang Information data, by September, the average monthly trading price of fresh beef in China was 61.88 yuan per kilogram, a year - on - year increase of 27.33%.

This price adjustment pushed many beef rib strip buffet restaurants that followed the trend to the brink. The pricing of 60 yuan could not even cover the cost now. Coupled with the serious waste by customers in the self - service model, the cost was even harder to control.

Facing cost pressure, stores only have two options. One is to raise prices, but beef rib strip buffets rely on high value - for - money to attract customers. The other is to reduce the quality of ingredients, which will surely affect the repurchase rate. No matter which option is chosen, it is almost a "dead end."

On social platforms, there are numerous cases of beef rib strip restaurants losing money from the start. One store lost 150,000 yuan within two months of opening.

Entering the market based on a temporary bonus and relying entirely on the volatile market cycle for profit is destined to be a short - lived business.

Large - pot marinated dishes: A "perfect" scam targeting "greenhorns"

"Sell marinated dishes by setting up a stall and earn over 100,000 yuan a month" — At the beginning of 2025, such entrepreneurial short videos flooded social platforms, jointly weaving a dream of overnight wealth for ordinary people.

The content of the videos was almost identical: "Sell two or three hundred catties of marinated dishes in two hours and earn 100,000 yuan a month!" "What's it like for a post - 95s guy to earn 100,000 yuan a month by selling large - pot marinated dishes at a stall" and other similar promotional slogans. Appearing to be ordinary bosses on camera, along with scenes of long queues in front of the stall and a large pot of marinated dishes selling out in a few hours, made many novice entrepreneurs extremely excited.

However, the reality is cruel. The seemingly inspiring wealth - creation myths are actually perfect scams designed by these "suddenly - rich people" specifically for entrepreneurs.

According to a survey by People's Daily, the routine of "earning 100,000 yuan a month by selling large - pot marinated dishes at a stall" is well - orchestrated. A group of so - called large - pot marinated dish "masters" first created an image of a rags - to - riches story on short - video platforms, then hired people to queue to create an illusion of "short supply," and finally attracted entrepreneurs to pay for franchising, buy recipes or courses at high prices, completing the scam.

△Image source: Screenshot from Douyin

Many deceived "greenhorn" entrepreneurs said that the so - called secret recipes could be easily found online, that no one showed interest when they actually set up a stall for half a day, and that there were not as many consumers offline as expected...

According to a report by Legal Daily, a couple in Hebei was attracted by the stall - selling videos, paid 2,980 yuan in tuition fees to go to Anhui to learn the craft. After learning, they purchased equipment and raw materials to set up a stall, but the business remained sluggish for more than 20 consecutive days, with daily sales of only 50 - 60 yuan, and it seemed impossible to recoup the cost.

7 - yuan freshly - cooked beef rice noodles: Quick rise and quick fall, a "wealth - creation story" of low cost and quick return

The last one is the "7 - yuan freshly - cooked beef rice noodles" that have been expanding rapidly in the past two years. Behind the slogan "Freshly sliced and cooked on the spot, freshness in sight" lies the cruel reality of "quick rise and quick fall."

In the past two years, a large number of entrepreneurs have flocked to the 7 - yuan freshly - cooked beef rice noodles market. "Low customer spend, low cost, high turnover, and quick return on investment" are the key incentives.

Firstly, there is a low customer spend and high turnover. The 7 - yuan freshly - cooked beef rice noodles feature "7 - yuan freshly sliced tenderloin." A bowl of beef rice noodles costs 15 yuan, and with snacks and side dishes, the average customer spend can be controlled at around 20 yuan. Relying on the low price, it attracts a large number of consumers and creates long queues, thus creating an illusion of high turnover. Previously, many freshly - cooked rice noodle shops claimed that "a 50 - square - meter store can have more than 20 turnovers per day" and "the daily turnover can reach 20,000 yuan."

Secondly, there is low cost and a short pay - back period. Most stores adopt a minimalist or urban style, require a small store area, and have a relatively low initial investment. For a community store of 50 - 80 square meters, the total investment is between 150,000 and 250,000 yuan. Some brands even claim that a 50 - square - meter store can be opened with a minimum investment of 60,000 yuan.

Based on the relatively low cost, the 7 - yuan freshly - cooked beef rice noodles project often emphasizes a short pay - back period. This illusion of "seemingly easy to do and profitable" attracts a large number of novice entrepreneurs to blindly follow the trend, laying the groundwork for the subsequent "quick rise and quick fall."

△Image source: Photo taken by Hongcan.com

As the number of stores increased rapidly, many problems began to surface. The low entry barrier led to a crowd of entrepreneurs. In a 500 - meter radius of a certain business district in Guangzhou, there were 5 freshly - cooked beef rice noodle shops. The main products, menu structure, and decoration style were almost identical, with extremely severe homogenization. Consumers suffered from aesthetic fatigue and lost their sense of novelty.

Without differentiation, many stores started price wars. Various low - price packages were offered back and forth. Coupled with the cost pressure of rising beef prices, the gross profit margin of many stores finally dropped to 20%. The money earned in a month was not even enough to pay the rent, and they simply couldn't survive.

In fact, for low - customer - spend projects like 7 - yuan freshly - cooked beef rice noodles, the location often determines success or failure. For a store to maintain high turnover, it must ensure high customer flow, so the location is particularly important.

However, for novice entrepreneurs, prime locations are exactly what they lack the most. A large number of inexperienced entrepreneurs blindly flock to the market, rushing in without fully evaluating the market capacity and competitive environment. They lack a reasonable location strategy and have difficulty obtaining high - quality locations. Finally, they end up in a densely - packed layout like "hand - to - hand combat" and become cannon fodder.

Conclusion

Looking at these four "pig - butchering scam" categories, it's not difficult to find their commonalities: Low entry barrier, easy to copy, and high homogenization. They magnify the "ease" of the food and beverage industry but hide its real "difficulty" — The ability to generate continuous profit, differentiated competitiveness, and the ability to predict the market cycle.

The food and beverage industry is never a short - distance race where "the fastest wins." Instead, it is a marathon that tests endurance, insight, and operational ability. No single model can provide a once - and - for - all solution, and no single category can gain a firm foothold by simply "following the trend."

Blindly investing in a project without any research or preparation is not investment but gambling.

Here, we also remind all food and beverage entrepreneurs: Before embarking on any project, please ask yourself three questions first —

Do you really understand this category?

Do you have differentiated competitiveness?

Are you prepared to make in - depth efforts rather than make quick money?

If you can't answer these questions, you need to stop in time. After all, people open food and beverage stores to make money, not to become the "pig" in someone else's story.

This article is from the WeChat official account "Hongcan.com". Author: Wu Tong, Editor: Di Zi. Republished by 36Kr with permission.