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Chinese hot pot bankrupt in 2 weeks with all you can eat deal

Chinese hot pot bankrupt in 2 weeks with all you can eat deal

A Chinese hot pot restaurant has been forced to close its doors after an all-you-can-eat deal left it more than $100,000 in debt.

Jiamener restaurant in the city of Chengdu shut its doors for good last week after customers took advantage of a $25 all-you-can-eat deal, the Chengdu Economic Daily reported.

Customers paid the fee and received a membership card that entitled them to unlimited food for the month.

Some customers reportedly shared their card around with family and friends, drastically increasing the volume of meals being consumed on a single purchase.

The neighbourhood restaurant never made it through the first month of the promotion, after it began receiving in excess of 500 customers a day after the deal commenced, with long queues forming before the doors opened and lasting till late into the evening past closing times.

Owner blames lack of business skill

Owners told the publication they anticipated losing some money, but thought they could accumulate more repeat customers in the process.

They also said they hoped to lower overall costs with other suppliers once they increased the volumes on their own food purchases.

Co-owner Su Jie said the main problem was a lack of business acumen on the part of owners, who had only opened the restaurant in December.

"The uncivilised behaviour of the diners was secondary — the main problem was our poor management," he told the Chengdu Economic Daily.

Original Article

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