Group 1 - The rise of snack stores is a significant consumer trend in China, comparable to the popularity of milk tea shops [1][2] - Snack stores primarily cater to consumers outside of first-tier cities, tapping into a vast market [2][3] - The appeal of snack stores lies in their variety and affordability, allowing consumers to purchase multiple flavors at a low cost [3][5] Group 2 - Snack stores fulfill two consumer desires: the craving for variety and the need for affordable indulgence [5][6] - The low investment and operational requirements make snack stores attractive for franchisees, contributing to their rapid expansion [10][11] - The uniform demand for snacks across different regions facilitates quicker establishment of snack stores compared to restaurants [12][13] Group 3 - Despite their growth, snack stores face challenges, particularly low profit margins, with "Mingming Hen Mang" reporting a gross margin of 7.5% and a net profit margin of 2% [14][15] - The average gross margin for franchisees in the snack industry is around 20%, while the parent company retains a lower margin [16] Group 4 - The entry of new players, such as "Chayan Yuesheng," a well-known milk tea brand, into the snack market indicates the sector's attractiveness [21][22] - Chayan Yuesheng's strategy involves developing its own snack products, differentiating itself from typical snack stores that rely on existing brands [24][26] - The brand's expertise in flavor development from its milk tea business enhances its ability to create appealing snack products [27][28] Group 5 - Chayan Yuesheng's expansion into snacks is a response to local market saturation and aims to attract repeat customers [30][31] - The integration of snack offerings at milk tea locations allows for cross-selling opportunities, enhancing customer experience [34][36] - The ability to sell self-branded snacks through e-commerce platforms broadens market reach beyond local areas [37][38] Group 6 - Chayan Yuesheng's approach of combining high-margin milk tea with low-margin snacks can improve overall profitability [41]