Group 1 - The trend of restaurants abandoning private rooms is increasing, with many establishments finding them to be a burden rather than a profitable asset [3][6] - A restaurant in Shandong with 10 private rooms only serves 2-3 tables daily, while a chain in Hefei with over 40 private rooms sees an average of only ten tables served per day [3] - A private dining restaurant in Anhui experienced a drop in daily revenue from 7,000-10,000 yuan to between 800 and 2,000 yuan, marking a decline of up to 90% since May [3][4] Group 2 - Private rooms were once a lucrative business model for restaurants, providing high revenue through room fees and premium menu items, but this model is now declining [6][8] - Changing consumer preferences, particularly among younger generations, favor casual dining experiences over the formal atmosphere of private rooms [8][9] - The rise of competitive dining options offering high-value packages and unique experiences has made traditional private rooms less appealing [9][11] Group 3 - Stricter regulations on business and public receptions have reduced the demand for private dining, as companies are now more focused on cost control and compliance [11][15] - Restaurants are reevaluating their strategies, with many choosing to invest in unique menu offerings and improving service quality in public dining areas instead of maintaining private rooms [13][15] - The shift away from private rooms reflects a broader transition in the dining industry from "face economy" to "substance economy," indicating a significant market trend [15]

Restaurant Industry Overview - The total revenue of the national catering industry in April increased by 5.2% year-on-year to 416.7 billion yuan, slightly higher than the retail sales growth of 5.1% [1] - However, revenue from catering enterprises above designated size grew by only 3.7% to 123 billion yuan, indicating greater external pressure on larger businesses [1] - The number of restaurant closures has significantly increased, with 4.09 million closures in 2024, resulting in a closure rate of 61.2%, surpassing 2023 levels [1] - Most restaurant categories, except for Western cuisine (up 6%), bakery and desserts (up 5%), and Korean cuisine (up 1%), experienced a decline in store efficiency [1] Pricing and Profitability - Major restaurant brands, including Xiaocaiyuan, Jiumaojiu, and Haidilao, reported a noticeable decline in average customer spending [1] - In Q1 2025, brands like KFC and Pizza Hut also saw further decreases in customer spending [1] - The trend of lowering customer prices is seen as a necessary step for survival in the restaurant business [2] - Profit margins are declining, with Jiumaojiu's revenue at 6.074 billion yuan (up 1.47%) but net profit down 87.69% to 55.81 million yuan, and Xiaobuhua's revenue at 4.755 billion yuan (down 19.65%) with a net loss of 401 million yuan, a 100.88% increase in losses [3] Industry Transformation - The restaurant market is at a critical transformation stage, with companies focusing on cost reduction across the entire supply chain, including store renovations and labor costs [1][4]

Core Viewpoint - The prolonged IPO attempts of Green Tea Restaurant reflect not only the survival anxiety of a single enterprise but also the collective transformation pain of the entire Chinese dining industry after the decline of traffic dividends [1][3][10]. Company Overview - Green Tea Restaurant has made four unsuccessful attempts to go public since March 2021, indicating a unique persistence in the Hong Kong dining sector [3]. - The restaurant was once a popular brand among young consumers, achieving a peak daily table turnover rate of 6-8 times per store, but has since seen a significant decline in customer traffic and profitability [1][3]. Financial Performance - The table turnover rate dropped from 3.48 times in March 2018 to 2.81 times in 2022, with a slight recovery to 3.30 times in 2023, before falling again to 3.00 times in 2024 [4][5]. - The average customer spending decreased from 62.9 RMB in 2022 to 56.2 RMB in 2024, indicating challenges in maintaining profitability amid rising costs [5][6]. Market Position and Competition - Compared to competitors like Haidilao and Jiumaojiu, Green Tea's brand positioning appears vague, lacking a distinct competitive edge [3]. - The restaurant's reliance on a single business model has made it difficult to sustain high growth expectations, prompting the need for diversification into areas like retail and delivery [6][10]. IPO and Shareholder Dynamics - Approximately 30% of the shares offered in the IPO were from existing shareholders, indicating a lack of confidence in the company's future prospects [7][9]. - The same-store sales declined by 10.3% in 2024, suggesting that growth is primarily driven by new store openings rather than improving existing store efficiency [9]. Industry Context - The dining industry has faced significant challenges, including the pandemic, consumer downgrade, and the rise of prepared food, leading to a reevaluation of investment strategies [3][10]. - The shift in investor focus from scale to metrics like single-store profitability and supply chain management reflects a broader trend in the capital market [9][10].