Student Question
Hello, Master. I’m thinking about investing in building a thriving restaurant storefront, then recruiting paying students — that’s the business model. What’s your take on it? Is it still worth pursuing?
Some friends around me who are doing well have already brought on dozens of franchisees. My own early-stage losses have been quite significant, and I’m losing confidence. Should I hold onto what I’ve already built, or look for an investor to partner with?
Master Chi’s Response
This kind of business has always been viable. Some people open shops — bubble tea, clothing stores, restaurants — and that’s the standard path.
But take Chongqing’s hot pot scene, for example. There are countless hot pot shops there, especially from major brands. The revenue of a flagship store often can’t actually cover the rent for such a prime location. So why choose to be there? To drive franchise sales.
Here’s a concrete example: say the annual rent is one million yuan. The store itself might not earn much beyond that. It doesn’t matter — as long as the place looks packed and buzzing, the real money comes from franchise fees.
That said, franchise recruitment follows the 80/20 principle, no matter what business you’re promoting — even something like KFC. The majority of franchisees won’t make much money. This has nothing to do with your project. It has everything to do with the individual.
Making money is a skill. If you have that skill, you can profit from almost any kind of project. But if you don’t have it, even the hottest concept won’t turn a real profit for you — or you’ll earn very little.
And then there are the people who pay franchise fees, open up shop, and quit shortly after. That’s self-sabotage.
The truth is, this can absolutely work in the entrepreneurial space. But you need to ask yourself honestly: do you genuinely want to see this through? If yes, go for it boldly. If not, put your energy into something else that’s worth your time.