Food & Wine

Xiamen bakeries struggling to survive with 'sidelines'

Updated: 20 Mar 2012
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Many Xiamen bakery shops now develop  'sidelines'  to make up their loss
Many Xiamen bakery shops now develop  'sidelines'  to make up their loss
Have you ever noticed how many bakeries there are when you walk down the street? Yes, there are many of them. The flooded market and plunging profit margins is now forcing many Xiamen bakeries to develop “sidelines”, according to Monday’s Xiamen Daily.

With surging shop rent in recent years and heavy competition in the industry, many bakery owners mourn that it’s impossible for them to sustain the shop merely by selling breads. A bakery owner told a reporter that they now only “make a few pennies from a bread sale” compared to previous years.

"The costs on shop rent, raw material and labor are rising rapidly in recent years, and many bakery shops are losing money,” said the owner, “If 10% of the bread price went to shop rent in the past, now it is 30%-50%”.

Many bakery shops in Xiamen now turn to developing sidelines to increase their income. Many have taken the advantage of the sales platform they built to sell beverages, snacks and other goods you can see in a grocery store.

Some stated that bakery shops should focus on their main bread business rather than setting foot in other unrelated businesses, while many others have shown their understanding and support for the move. 
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