The Jiamener hotpot restaurant in Chengdu, Sichuan province was forced to close its doors after it offered a month long all you can eat promo. On June 1, the restaurant offered its membership card holders the all you can eat offer, the member was charged about $25 or 120 yuan for the deal.
The restaurant incurred an expense for all the food of over $100,000 or 500,000 yuan. The promo was very popular as customers would start lining up at 8am and the last of the customers would still be there until midnight.
The restaurant owners mistakenly believed that they could gain a loyal following with the promo. At the onset, the owners knew the promo was a losing proposition but they felt that the acquired customer base was worth the loss. Little did they anticipate that the promo would be so successful.
The restaurant owners were taken aback by the uncivilized behavior they witness from the customers. The loss they incurred over the month long promo was too much for their finances and they had to shut their doors.