Core Viewpoint - The rising prices of hot pot-style dishes, particularly "Yang Guofu Spicy Hot Pot," have sparked consumer outrage, highlighting a disconnect between consumer expectations and actual pricing practices in the industry [5][8][34]. Group 1: Pricing and Consumer Perception - The pricing model of hot pot dishes has shifted to a weight-based system, leading to higher prices for consumers, with some items priced as high as 33.8 yuan per pound [5][8]. - Consumers express frustration over the lack of clear pricing, feeling misled when they receive their bills [5][8]. - The perception of hot pot as a budget-friendly option is changing, as many consumers now view it as a premium dining experience [7][28]. Group 2: Operational Costs and Challenges - The operational costs for hot pot restaurants are significant, with labor, rent, and utilities contributing to high prices. In first-tier cities, rent can range from 25,000 to 30,000 yuan per month [12][13]. - Labor costs are substantial, requiring at least 2.5 employees per restaurant, with monthly wages in urban areas exceeding 20,000 yuan [10][12]. - The complexity of food preparation and the need for a wide variety of ingredients increase operational challenges, leading to higher prices for consumers [10][12]. Group 3: Profit Margins and Business Viability - The average gross margin for hot pot dishes is between 50% and 60%, but net profits can be as low as 18% after accounting for operational costs [13][15]. - Many franchise owners struggle to break even, with some reporting losses and extended timelines to recoup initial investments [15][17]. - The variability in pricing across different regions is largely due to differences in operational costs, with lower prices in less urbanized areas [15][19]. Group 4: Brand and Supply Chain Dynamics - Major brands like Yang Guofu have established supply chains that allow them to maintain quality and control costs, but this often comes at the expense of franchisee profitability [29][30]. - Franchisees face restrictions on sourcing ingredients, often having to purchase at higher prices from the brand, limiting their ability to manage costs effectively [19][30]. - The focus on brand consistency and quality control can lead to increased operational burdens for franchisees, who may feel they are working primarily for the brand rather than for their own profit [30][32].