Read More《遇见小面上市即破发 ，中式面馆赛道突围难在哪？》
Positive Reviews: Despite IPO Breakthrough, Industry Breakthrough Shines Through. Meet You Noodles Sets an Example for the Chain Development of Chinese Noodle Restaurants
As the “first Chinese noodle restaurant stock,” the listing of Meet You Noodles itself is a milestone in the industry. Although its shares broke the issue price on the first day of listing, sparking heated discussions in the market, its path from a small street shop to a national chain brand provides important reference value for the scale – up and capitalization of Chinese cuisine, especially local snacks.
Firstly, Meet You Noodles’ standardization system solves the core pain point of “chain expansion” in the industry. Chinese cuisine has long been difficult to scale up due to its “small, scattered, and weak” nature. However, Meet You Noodles combines the traditional craftsmanship of Sichuan – Chongqing noodles with standardized management through mechanisms such as the “Noodle University” and the “Noodle Research Institute,” forming a full – chain standardization system from staff training to product R & D. This model supported its expansion from 170 stores in 2022 to 465 stores in November 2025, with a compound annual growth rate of over 111%, making it a leading brand in Sichuan – Chongqing flavor noodle restaurants. Its experience proves that local snacks can completely break through regional restrictions and achieve national chain operation through standardization transformation.
Secondly, Meet You Noodles’ financial performance validates the phased balance between “scale and profitability.” From 2022 to 2024, its revenue increased from 418 million yuan to 1.154 billion yuan, with a compound annual growth rate of 66.2%. It turned a profit in 2023 and made a profit of 41.83 million yuan in the first half of 2025. This data breaks the inherent perception that “Chinese fast – food will surely incur losses in scale expansion,” indicating that by combining direct operation and franchising (direct operation accounts for 89%) and focusing on core products (such as Chongqing noodles, whose sales have ranked first in the industry for three consecutive years), profitability can be achieved during expansion. Its performance of an average daily sales of 11,800 yuan per store and an average customer price of 32 yuan is also above the medium level in the Chinese fast – food industry, proving that its business model has basic profitability.
Thirdly, Meet You Noodles’ listing opens up a capitalization channel for the industry. Previously, although the Chinese noodle restaurant track was favored by capital (such as HeFu Noodles and Ma Jiyong), there was always a lack of listed targets, resulting in unclear capital exit paths. Meet You Noodles’ IPO not only attracted well – known institutions such as Hillhouse Capital and Haidilao as cornerstone investors but also proved to the market as the “first stock” that local snack categories have the potential to enter the capital market through chain and standardization transformation. This will encourage more niche catering brands to explore capitalization paths and promote the entire industry to upgrade towards professionalism and intensification.
Negative Reviews: Break – even on IPO Exposes Deep – seated Concerns, and the Sustainability of Profitability under Scale Expansion is Doubtful
Although Meet You Noodles’ listing is of industry significance, the 27.84% drop from the issue price on the first day of listing reflects the rational doubts of the capital market about its “balance between scale and profitability” and also reveals three core challenges in the Chinese noodle restaurant track.
Firstly, the profitability of single stores is declining, and expansion may dilute brand value. Data shows that in the first half of 2025, the average daily sales of direct – operated and franchised stores of Meet You Noodles decreased by 888 yuan and 1,035 yuan respectively year – on – year. The turnover rate dropped from 3.8/3.6 to 3.4/3.1, and the order volume decreased from 390 to 371. This set of data indicates that with the rapid expansion of stores (planning to open 150 – 230 new stores per year in the next three years), the traffic of single stores is diverted, and the increase in customer consumption frequency or average customer price fails to offset the negative impact of the increasing store density. If the profitability of single stores continues to decline, the brand will fall into a vicious cycle of “expansion – rising costs – diluted single – store profits – further reliance on expansion,” which may ultimately damage the long – term value of the brand.
Secondly, the cost pressure is difficult to relieve, and the profit margin is continuously squeezed. In Meet You Noodles’ cost structure, raw materials and consumables (31.4%), rent (15.6%), and labor (22.6%) together account for more than 69%. Although the raw material cost has decreased compared with 2022 (38.3%), it is still the largest cost item. Moreover, rent and labor costs are rising rigidly due to the recovery of the consumer market and intensified competition in urban core business districts. In addition, its supply chain concentration is relatively low (the procurement from the top five suppliers only accounts for 33.1%), making it difficult to reduce costs through large – scale procurement, which further weakens the profit elasticity. If it cannot transfer costs through supply chain optimization or price increases in the future, profit growth will hit a ceiling.
Thirdly, the homogeneous competition in the industry is intensifying, and the differentiation advantage needs to be strengthened. The Chinese noodle restaurant track has a low threshold and its products are easy to copy. Although Meet You Noodles focuses on Sichuan – Chongqing flavor, brands such as HeFu Noodles (herbal soup noodles) and Chen Xianggui (Lanzhou beef noodles) also establish their brand images through regional flavors, resulting in consumers having a weaker perception of the “brand” than the “category.” Meet You Noodles’ average customer price of 32 yuan is in the low – to – middle range. Its product innovation mainly focuses on taste adjustment (such as spicy and sour vermicelli and pea miscellaneous noodles), rather than scenario upgrading or experience differentiation (such as social attributes and cultural IP). Against the backdrop of the upgrading of consumer demand from “filling the stomach” to “eating well” and “eating for the experience,” if it cannot increase the average customer price through brand premium, it will be difficult to support long – term growth by relying solely on scale expansion.
Advice for Entrepreneurs: Shift from “Scale – First” to “Quality – First” and Build a Sustainable Profit Moat
The break – even on Meet You Noodles’ IPO is not only a warning against “blind expansion” in the industry but also provides three key insights for entrepreneurs:
-
Single – store profitability is the prerequisite for expansion. Avoid “sacrificing quality for scale.” The core of chain catering is that the “single – store model is replicable,” rather than simply pursuing the number of stores. Entrepreneurs should focus on core indicators such as the average daily sales of single stores, turnover rate, and gross profit margin to ensure that the profit cycle of newly opened stores (such as 6 – 12 months) is controllable. The decline in Meet You Noodles’ single – store data has sounded the alarm. It is recommended to verify the model through pilot stores before expansion and prioritize high – traffic areas for intensive layout to avoid diluting the traffic of single stores due to over – expansion.
-
Strengthen the supply chain capabilities to reduce the risk of cost fluctuations. The supply chain is the “invisible moat” of catering chains. Meet You Noodles has a low supply chain concentration (the top five suppliers account for only 33.1%), resulting in weak cost – control capabilities. Entrepreneurs can improve supply chain concentration and efficiency by building their own central kitchens, signing long – term agreements with core suppliers, and introducing digital procurement systems, thereby reducing the impact of raw material price fluctuations on profits. For example, Haidilao effectively controls costs through its own Shuhai supply chain for unified procurement and processing of ingredients.
-
Shift from “product competition” to “brand competition” to enhance premium capabilities. The homogeneous competition in the Chinese noodle restaurant industry essentially stems from the lack of “brand power.” Entrepreneurs should break out of the “taste competition trap” and build brand uniqueness through scenario innovation (such as national – trend themed stores and community social spaces), cultural empowerment (such as Sichuan – Chongqing noodle historical story IP), and membership systems (such as points redemption and exclusive dishes). For example, Meet You Noodles can create an experiential “Noodle Museum” in combination with Sichuan – Chongqing regional culture or launch a limited – edition “intangible cultural heritage handmade noodles” to increase the average customer price from 32 yuan to 40 – 50 yuan while enhancing user stickiness.
-
Rationally view capital and focus on “long – term value” rather than “short – term expansion.” The injection of capital can accelerate expansion, but it may also magnify risks. Entrepreneurs should clearly understand that “listing is not the end but the starting point of standardized development.” The break – even on Meet You Noodles’ IPO suggests that investors are more concerned about the sustainability of profitability than the scale growth rate. Therefore, after financing, priority should be given to investing in “back – end capabilities” such as the supply chain and digital systems (such as intelligent scheduling and inventory management) rather than simply opening new stores, ensuring that each step of expansion is supported by quality.
In summary, the break – even on Meet You Noodles’ IPO is a turning point for the Chinese noodle restaurant track from “blind capital enthusiasm” to “rational development.” For entrepreneurs, they should shift from “scale – first” to “quality – first” and build a sustainable profit model by strengthening single – store profitability, optimizing the supply chain, and enhancing brand premium. Only in this way can they achieve long – term and stable development in the “slow – paced” catering industry.
