Internet celebrity "Noodle Canteen" closed stores: homogeneous competition leads to industry reshuffle

Internet celebrity "Noodle Canteen" closed stores: homogeneous competition leads to industry reshuffle

In recent years, Internet celebrity catering brands represented by "noodle canteen" have become popular quickly with their high appearance and social attributes, but recently they have set off a wave of store closures. According to incomplete statistics, in the past 10 days, more than 50 "noodle canteens" across the country have announced their closures, and some stores have even opened for less than half a year. This phenomenon has triggered in-depth thinking on the homogeneous competition of the Internet celebrity economy and the sustainability of the industry.

1. Data on store closure trend: a microcosm of the industry from outbreak to fever reduction

Data shows that the "noodle canteen" expanded rapidly in the first half of 2023, but the closing rate increased sharply in the second half of the year, and the survival rate of some regional markets has fallen below 70%. Industry analysts pointed out that this reflects the typical characteristics of the "short life cycle" of Internet celebrity catering.

2. Homogeneous competition: the fatal injury of the Internet celebrity economy

The business model of "noodle canteen" is highly dependent on the following elements:

• Scenario Marketing:Ins style decoration and check-in wall design;
• Product portfolio:Imported instant noodles + customized ingredients;
• Pricing strategy:The single portion is priced at 30-50 yuan, and the premium depends on the experience.

However, this pattern is extremely easy to imitate. As of October 2023, at least 20 similar brands have appeared on the market, and the products, decorations and services are highly similar. Consumer surveys show:

3. Industry reshuffle: From traffic carnival to value return

Behind the store closure trend is the market's elimination of "fake demand". On the one hand, as a fast food product, instant instant noodles lacks sustainability in their "high-end" scenarios; on the other hand, Internet celebrity brands rely too much on marketing and ignore product iteration and supply chain management. For example:

• A franchisee revealed that the average monthly raw material cost per store accounts for as high as 45%, far higher than the standard of 30% for traditional catering;
• The popularity cycle of social media has shortened, and the number of views on Douyin’s “#Noodle Canteen” has dropped by 73% from its peak.

4. Future trend: Subdivided tracks may become breakthroughs

Surviving brands are trying to transform, with their main directions including:

Experts suggest that internet celebrity catering needs to shift from a "check-in economy" to a "re-purchase economy" and rebuild competitive barriers through differentiated positioning and supply chain optimization. The decline of the "noodle canteen" may be the beginning of rationalization in the new consumer field.

(Note: The data in this article are compiled from Dianping, Zhaimen Cafe, Douyin Hot List and Industry Interviews, and the statistical period is October 1-10, 2023)