Xin Lang Cai Jing·2025-08-23 05:14Core Viewpoint - The article discusses the impact of aggressive food delivery subsidies in Suqian, leading to a distorted restaurant ecosystem where traditional dining is declining while delivery services are booming, creating a bubble that ultimately burdens all participants in the market [1][24][25]. Group 1: Market Dynamics - Suqian has become a battleground for food delivery services, with major players like JD.com and Alibaba engaging in intense subsidy wars, resulting in unsustainable pricing and a shift in consumer behavior towards lower-priced meals [1][9][24]. - The influx of subsidies initially benefited many restaurants, leading to a surge in delivery orders and profits, but this was short-lived as the market became saturated and competition intensified [7][8][20]. Group 2: Impact on Traditional Dining - Traditional dining establishments are suffering as foot traffic declines, with many restaurants closing or struggling to maintain profitability due to the overwhelming preference for cheaper delivery options [2][4][10]. - The article highlights the plight of restaurant owners like Chen Li, who, despite initial success, faced declining sales and ultimately had to close her restaurant due to unsustainable business conditions [2][15][25]. Group 3: Economic Consequences - The aggressive subsidy strategies have led to a significant increase in operational costs for restaurants, as they are now required to absorb part of the subsidy costs while facing reduced profit margins [20][23]. - The overall economic environment for the food service industry in Suqian is deteriorating, with many businesses unable to adapt to the new market realities, leading to a wave of closures and a challenging landscape for remaining operators [24][26].