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Rising rent endangers Beijing's traditional snacks

2011-10-26 16:16    Ecns.cn     Web Editor: Wang Fan

(Ecns.cn) – Using a business mode of "small profits, quick turnover," Beijing's traditional local snacks used to be affordable. However, with the cost of rent soaring, the industry is now suffering under great pressure.

A master chef said that to be in the business of Beijing's traditional snacks, one needs a diligent work attitude, yet even then it will only bring in meager profits. Without a certain scale, businesses may even suffer a financial loss in the end.

Using Douzhir, a fermented drink made from ground beans, as an example, the chef revealed that most Douzhir shops are now on the brink of bankruptcy.

Dating back to as early as the Liao Dynasty (907-1125), Douzhir was a royal dish for the imperial family. Though it has a peculiar odor which is hard for many to swallow, it is still one of the most famous Beijing snacks. Local Beijingers definitely favor this sweet and sour snack with a long-standing good reputation.

The price of Douzhir is currently only 1.5 yuan ($0.23) a bowl. The monthly rent for a storefront in Beijing is about 1,000 yuan ($154.6) per square meter. If a Douzhir shop covers an area of 60 square meters, the annual rent will mount up to 720,000 yuan ($111,312). By calculating every single day, the daily rent comes to 1,972.6 yuan ($30.5). This means the shop must sell at least 1,315 bowls per day of Douzhir to earn back the cost of daily rent.

But this does not even cover the costs of human resources, water, and electricity. If the rent continues to rise in the future, many shops selling traditional Beijing snacks may end up having to shut down or go into bankruptcy.

Meanwhile, under such conditions, an apprentice who wants to learn the skills of making traditional Beijing snacks may also be scared away due to the limited income that cannot even make ends meet.

Hou Jia, director of the Old Beijing Traditional Snack Association, revealed that there were over 600 kinds of snacks in Beijing about half a century ago, but the rising costs are giving many business owners difficulties, which has resulted in the extinction of many kinds of these snacks.

Hou suggested that shopkeepers develop their businesses with a better operating mode to survive the difficulties. The government will also help them out to protect Beijing's traditional culture.