Chinanews.com, Beijing, December 21 (Zuo Yuqing) Recently, a bankruptcy notice for a series of companies such as "New Elements Catering Management (Shanghai) Co., Ltd." was circulated on the Internet, declaring that it was once labeled as a light food. The “net celebrity” restaurant chain is about to come to an end.

　　When the light food industry ushered in explosive growth, Element Fresh, which has been in business for nearly 20 years, fell before the blue ocean of the 100 billion market. Why?

Is the epidemic the culprit?

　　In response to the rumor of bankruptcy, a store clerk in a Beijing store of New Elements confirmed the news to Chinanews.com and stated that the stored-value card can still be used normally before the end of December. If you wish to return the card, you can call the food delivery center to handle it.

As for whether the store will continue to open normally next year, she said that she has not yet received a notice from her superiors: "Now we can't say that, if the (stored-value card) can be refunded, it is better to refund it."

　　In the bankruptcy notice, New Elements blamed the new crown epidemic for its operating disadvantages, and stated: “Due to the epidemic, the company’s operations have encountered unprecedented difficulties and the store operations have been severely affected. At present, there have been serious operating losses and a capital chain rupture. "

Element Fresh's notice on bankruptcy liquidation.

　　However, is New Element's bankruptcy only because of the epidemic?

　　"The impact of the epidemic is just'the last straw to crush the camel'." Jiang Zezhong, a professor at the Capital University of Economics and Business and a researcher at the Private Enterprise Research Center of the Chinese Academy of Social Sciences, believes that the most fundamental reason for the bankruptcy of New Elements is the unclear business positioning.

"Unclear product positioning, low cost performance, and narrow consumer groups are the fundamental reasons for its bankruptcy."

　　Jiang Zezhong said that the current consumer groups who prefer light food are mainly young people, especially young women, and the consumption scale of new elements is expected to be relatively narrow.

　　And even for the light food market, the product positioning of the new element is not clear.

According to the official website, in addition to salads, sandwiches, juices and smoothies, New Elements also offers a variety of Asian cuisine and creative dinner dishes.

"Despite the name of light food, its menu is not completely "light food". There are still many high-oil and high-hot dishes."

New element official website picture.

　　However, in Jiang Zezhong's view, the key to the unfavorable operation of New Elements is that it is not cost-effective.

"The price of its dishes is relatively high." Chinanews noted that in Dianping, the average consumer price of New Elements is more than 130 yuan, and the price of its main salad is generally 70-80 yuan, or even more than 100 yuan. Under the influence of the epidemic, it is difficult for people to choose high-priced light food restaurants like New Elements.

Is the light food market not fragrant anymore?

　　As consumers continue to pay more attention to healthy eating, the meal replacement and light meal market has ushered in a blue ocean of hundreds of billions.

Euromonitor International data shows that China's light meal replacement market is expected to reach 120 billion yuan in 2022.

　　However, compared with the hotness of the light food market, offline light food restaurants are "cold."

　　As early as November, Bloomberg reported that New Elements was seeking a sale, and the company’s shareholder was “evaluating the interest of potential buyers,” and the transaction could reach hundreds of millions of dollars.

New Element Xizang South Road Store (Yongyin Building), the picture is from the official website of New Element.

　　Also seeking to sell is the light food chain Wagas (Wagas), which is considering selling the company headquartered in Shanghai, the value of which may be between 500 million and 600 million US dollars.

Public information shows that Wagas has more than 120 stores in China.

　　Are consumers reluctant to "graze"?

　　Some insiders pointed out that consumers who prefer light meals actually pay more attention to privacy than restaurants opened in prosperous business districts.

"Many people eat light food as a weight-loss meal, so they don't want to fantasize." Obviously, light food delivery is more popular than light food restaurants.

　　"The embarrassment of chain light food brands is that even for the target group, the sustainability of their consumption is not considerable, and it is difficult to maintain long-term operations." Jiang Zezhong pointed out that in the catering industry, consumers still prefer food. At this point, light food restaurants have inherent deficiencies.

"Good taste is the fundamental preference of consumers." (End)