Why are restaurants with more products less profitable?

There is not a simple positive or negative relationship between the profit of catering industry and the quantity of products. In the incremental market, the growth of enterprises mainly depends on the scale, more stores are opened, more publicity is given, more customers are attracted to the stores, and the profits brought by the increasing turnover are getting higher and higher. However, in the stock market, there are too many restaurants and brands, and the consumer market has basically been divided. At this time, the key to profit lies in intensive cultivation. First of all, products and experiences should be differentiated, which can attract customers to buy again, improve the repurchase rate and increase the customer unit price. Secondly, we should optimize the product structure and personnel structure and do a good job in cost control. In other words, it is a better way to increase revenue by doing a good job of reducing expenditure and optimizing the cost structure when the revenue growth rate slows down.