Wanyou Ramen, a pioneer in the domestic Japanese fast-food market, once enjoyed immense popularity. However, facing intense competition in the food industry, Wanyou Ramen is now struggling in a downward spiral. The company behind Wanyou Ramen is Wanyou (China), a Hong Kong-listed company. From 2019 to 2023, Wanyou (China) experienced alternating periods of strong and weak performance. While the company managed to turn a profit last year, it has once again fallen into the red in the first half of 2024.
Consumers are increasingly turning away from this iconic brand. In a survey conducted by Sina Finance, nearly 65% of respondents believed that Wanyou Ramen was overpriced with low value for money, while another 20% thought the taste was average and the variety of choices was limited.
In addition to the decline in store traffic leading to reduced revenue, Wanyou (China) also suffered losses from failed investments. In the first half of 2024, the company incurred losses of approximately 50 million yuan from investments in property and financial assets, compared to a profit of approximately 63.5 million yuan in the same period last year.
Struggling with the Thousand Store Plan
In recent years, Wanyou (China) has experienced unstable performance, with alternating periods of strong and weak performance from 2019 to 2023. While the company managed to turn a profit last year, it has once again fallen into the red in the first half of 2024.
According to financial reports, Wanyou (China) achieved revenue of approximately 8.27 billion yuan in the first half of 2024, a decrease of about 6.6% year-on-year. The company’s net loss was approximately 7.157 million yuan, compared to a net profit of 133 million yuan in the same period last year.
For the losses in the first half of the year, Wanyou (China) attributed them to the impact of the downgrading of consumption, leading to a decrease in store traffic and negative growth in same-store sales. Some stores even incurred losses, resulting in increased impairment of使用权 assets and fixed assets.
In addition, Sina Finance noted that Wanyou (China) experienced significant fluctuations in its investment performance. The company incurred substantial losses in property and financial asset investments, dragging down its overall profitability. Financial reports show that Wanyou (China) incurred losses of approximately 50 million yuan from property and financial asset investments measured at fair value in the first half of 2024, compared to a profit of approximately 63.5 million yuan in the same period last year.
The High Price Tag as a Hard Hurdle
Behind the unstable performance and store closures, Wanyou Ramen is facing the challenge of declining consumer reputation. In a survey conducted by Sina Finance, nearly 65% of respondents believed that Wanyou Ramen was overpriced with low value for money, while another 20% thought the taste was average and the variety of choices was limited.
Some netizens commented, It looks like fast food, but the price is not cheap. Two adults with two children spent nearly 300 yuan, and were not very full. It is reported that the average per capita consumption of Wanyou Ramen is about 40-50 yuan.
Additionally, nearly 20% of respondents believed that Wanyou Ramen had average taste and limited choices. Some netizens said, It’s mainly not delicious, and if it’s delicious, people will still go even if it’s expensive. Too much monosodium glutamate, and you get thirsty after eating.
In recent years, consumers have continuously raised doubts about the product quality and food safety of Wanyou Ramen, especially after the Bone Soup Scandal in 2011. After the scandal, Wanyou Ramen’s brand reputation was severely damaged.
According to Wanyou Ramen’s宣传, its signature pork bone soup base is made from pure pork bones, but it was exposed by the media at that time that the soup base was actually made from concentrated liquid. In the aforementioned survey, some netizens mentioned, The last time I heard about Wanyou Ramen was the news that flavoring powder replaced ‘bone soup’. This year, there have been multiple consumer complaints about Wanyou Ramen on the consumer service platform Black Cat Complaint Download Black Cat Complaint Client, and some consumers claimed to have found cockroaches or insects in the noodles.
In the opinion of Chinese food industry analyst Zhu Danpeng, Wanyou Ramen’s brand is aging and lacks innovation, leading to insufficient self-generation ability. Zhu Danpeng said
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