Restaurant declares bankrupt in less than two weeks after offering eat-all-you-can deal

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  • Chinese hot-pot restaurant Jiamener has shut down after an all-you-can-eat deal left them with over $80,000 in debt
  • The promotion lasted just 11 days into its projected month, as it started drawing over 500 customers a day after word spread

A restaurant located in Chengdu, China has discovered that offering eat-all-you-can meals can be a disastrous business model.

The hot pot restaurant, Jiamener, which started its promotion in June 2017 and opened back in December, shut down after only two weeks of offering $19 all-you-can-eat deal.

Customers and patronizers helped themselves to so much during the promotion that the shuttered restaurant is now almost $80,000 in debt.

In exchange for the fee, customers were given a membership card which entitled them to unlimited food. However, customers were reportedly sharing their cards with family, friends, and possibly even their pets considering the amount of damage they did. This meant the cost of purchase for the card and the amount the business was making was totally offset.

The restaurant was receiving over 500 customers a day, and had constant queues even before they could open their doors in the morning.

To cope with the demand, staff were reportedly working 10-hour shifts and one of the restaurant owners said he had only slept two or three hours a night during the promotion.

One of the restaurant’s owners told local media that the company was aware that it might lose money from the deal, but it had aimed to develop a loyal clientele. Still, the promotion proved so disastrous that the restaurant lost money and is now deeply in debt.