Many people would like to establish their own business, particularly chefs who would like to run their restaurant. However, not all businesses succeed, and some fail because of unforeseen circumstances. There’s a unique situation, however, where the popularity of the restaurant’s menu was the main reason for it to go bankrupt.
What caused this to occur? It was an “all you can eat restaurant,” one of those restaurants where you pay a predetermined amount, and then you can take as much food as you’d like. It’s not that significant of a problem as most people won’t consume more than the amount you pay. This is a bit snobby in some ways. However, there was a problem in which customers were sharing their cards, which allowed them to buy food items.
The cards were distributed among entire families and even friends, which meant that for a mere $25, the whole family could eat what they wanted. The company received 500 customers daily when they launched the unlimited food deal, but even then, the amount generated was matched by the expense of providing the food. The blunder resulted in such a huge loss that, in one month, they had over $100,000 in debt.
The business’s collapse caused such an effect that Chinese social media was raging over the issue. A user posted, “Customers can eat till they go bankrupt,” and another said, “Never underestimate the power of a Chinese appetite.”
This is an excellent illustration of how you can take a business to the ground without knowing what you’re doing. Many companies like this in other countries typically pay in advance at the front desk, meaning that everyone pays their way, and this one allowed the use of a credit card system that the customers easily abused. With the card, it was feasible to compare the identity of the card by comparing it to the identity of the person who was using it. However, they did not even try this.
There is one thing for certain: the business owner has learned their lesson. It’s possible to conclude that the whole incident has brought light to the way that a lack of innovative thinking can destroy an enterprise.
