A survey undertaken by the Mirror evening newspaper found that the market for Tujia shaobing – the so-called “Chinese Pizza” – is saturated, leading to the closure of 500 outlets in Beijing.
Franchises like the one pictured here arose in Hubei one year ago, and spread across the country. The Mirror article traces their development in Beijing:
November, 2005: Tujia shaobing outlets gradually appear on the Beijing market; for the first month or so there is no news.
After New Years, 2006: A sudden explosion, with frequent lines in front of shops.
February-March 2006: Diaozha bing opens stores in Beijing at a frantic pace, reaching a concentration of four or five within one kilometer.
Late April, 2006: Many diaozha bing shops change format or close down.
Franchising expanded too quickly, say analysts, and since relatively simple snack presented a low barrier to entry, imitators sprang up all over the place, further glutting the market. Perhaps Beijing residents no longer find the “Chinese Pizza” new and exciting, or perhaps, in the words of one consumer surveyed, “When summer comes, the meat sprinkled on top of the diaozha bing is too oily, and you can’t eat too much.”
According to one early franchisee, the franchise entrance fee was 16,000 yuan, and the parent company promised net profits of 60,000 yuan a month, a figure reached within three months. However, by the end of April, other franchisees were losing money; sales had dropped from 200 shaobing a day to next to nothing.
Some store owners have switched their focus – now that “Tujia” is no longer in vogue, they are rolling out their own products in an attempt to attract more repeat customers as opposed to people merely trying a taste of the latest fad.
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- Shanghaiist: Tujia pizza proves Chinese invented pizza
- Image from CE