Core Viewpoint - The article discusses the phenomenon of "increasing revenue without increasing profit" among budget restaurants, highlighting the challenges they face despite rising sales figures [3][7]. Revenue Growth - Budget restaurants have seen significant sales growth due to consumer trends favoring low-cost dining options, with notable examples like Nanchengxiang achieving nearly 1.5 billion yuan in revenue in 2023 and Sally's revenue growing at a rate of 27.01% in the 2022 fiscal year [5][6]. - Emerging brands are also performing well, with Yujian Xiaomian achieving a compound annual growth rate of 66.2% from 2022 to 2024 and exceeding 2 billion yuan in revenue in 2023 [6]. Profit Decline - Despite revenue growth, many budget restaurants are experiencing profit declines, with Nanchengxiang's profit dropping by 35% in 2024 and Sally's operating profit falling below expectations in major cities [8][9]. - The primary reason for this trend is that the increase in costs and expenses has outpaced revenue growth, indicating a failure to effectively control costs [9][10]. Cost and Expense Challenges - Rising costs are attributed to increases in raw materials, labor, and rent, with significant hikes in recruitment salaries for restaurant staff [11][12]. - The competitive landscape is becoming increasingly crowded, making it harder for budget restaurants to maintain profitability while expanding [13]. Competitive Landscape - The budget dining sector is seeing aggressive expansion from leading brands, with over 160,000 new fast-food outlets opened in 2024 alone [13]. - Mid-tier budget restaurants are expanding more cautiously, with Sally opening 67 new locations while closing 11 [13][14]. Need for Change - The article suggests that budget restaurants must adapt to the changing market conditions to maintain their competitive edge, focusing on cost-cutting measures rather than expansion [15][16]. - Strategies for improving profitability include enhancing operational efficiency and reducing unnecessary expenses, as demonstrated by Nanchengxiang's recent cost-cutting initiatives [19][20]. Future Outlook - The budget dining market remains promising, with projections indicating that the market size will exceed 1 trillion yuan by 2025, driven by consumer demand for affordable dining options [21][22]. - The ability to balance cost control while maintaining food quality will be crucial for budget restaurants to withstand competition from non-budget brands [21][22].