Jiamener restaurant was forced to close their doors after a $25 all-you-can-eat deal sent them spiraling into debt. Before we continue, we have to clarify that Jiamener wasn’t charging $25 per visit, they were charging $25 per month. Crazy, right? Customers paid the fee and received a membership card that entitled them to unlimited food for the month of June. The owner reports that customers were sharing the card and caused an upwards of 500 guests showing up every day at his restaurant. Users on social media called out the owner for his lack of business acumen, which he admitted is poor. Jiamener opened in December 2017 but barely made it six months before having to shut down.
When you really think about it, it’s not that shocking. Have you ever gone to an all-you-can-eat buffet and wondered how they keep their doors open? You have to think the profit margin has to be slim, considering they’re allowing customers to eat more than what they’re paying for. For $10 at a casual dining chain, you get your entree but at an all-you-can-eat buffet, you can have a salad, several entrees, and a dessert. It doesn’t seem profitable, does it? So how do buffets turn a profit?