Is a Malatang Shop Profitable or a Risky Bet?

Franchise restaurants under Yang Guofu can achieve a gross margin of 65%. That means for a 50-yuan bowl of malatang, the shop owner pockets 32.5 yuan in gross profit, with costs of only 17.5 yuan.

Staying afloat comfortably: a 10-yuan bowl of malatang costs just 4 yuan. Of course, nowadays most bowls run 30 to 40-something yuan.

The odds of losing money are roughly 20%. If you open a restaurant, that failure rate is often even higher. But flip the perspective: open a food-service shop, and your success rate—the chance of actually making money—hovers around 70%.

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