--- title: "Chain and Franchise Association's Chen Xiangbin: Small and medium-sized enterprises will face significant challenges in 2025" type: "News" locale: "en" url: "https://longbridge.com/en/news/228373356.md" description: "Chen Xiangbin, chairman of the Taiwan Chain and Franchise Association, pointed out that 2025 will be a year of significant challenges for small and medium-sized enterprises, urging the industry to prepare in advance. This year, the retail service industry is facing multiple challenges such as rising raw material prices and increased labor costs, with electricity price hikes also being a concern. Although the sales performance during the Spring Festival was impressive, the catering industry has already begun to raise prices, reflecting high ingredient costs. Chen Xiangbin emphasized that businesses should actively respond to cost pressures and utilize digital tools to improve efficiency in order to maintain a foothold in a fiercely competitive market" datetime: "2025-02-14T15:50:36.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/228373356.md) - [en](https://longbridge.com/en/news/228373356.md) - [zh-HK](https://longbridge.com/zh-HK/news/228373356.md) generator: "portal-rs" --- # Chain and Franchise Association's Chen Xiangbin: Small and medium-sized enterprises will face significant challenges in 2025 The Taiwan Chain and Franchise Association held a New Year gathering on the 14th, where the association's chairman, Chen Xiangbin, pointed out that the retail service industry is facing multiple challenges this year, including rising raw material prices and increased labor costs. Chen Xiangbin stated that 2025 will be a year of significant tests for small and medium-sized enterprises, urging the industry to prepare in advance. Chen Xiangbin mentioned that the retail service industry is impacted by cost pressures and labor shortages, compounded by the continuous rise in raw material prices. He revealed that although various industries performed well during the Lunar New Year period, many restaurants soon began to announce price increases, reflecting the persistently high costs of ingredients. He admitted that 70% of Taiwan's food supply relies on imports, and tariffs have a significant impact on the domestic restaurant and retail industry. Chen Xiangbin further stated that rising electricity prices are also a major concern this year. He pointed out that the government's original plan to inject a budget of NT$100 billion into Taiwan Power Company has been scrapped, which may lead to further increases in electricity prices. In addition to Taiwan, the overseas retail service industry is also experiencing a wave of store closures. Chen Xiangbin cited the example of the pizza brand Domino's, which has recently closed several loss-making stores in Japan, primarily due to labor shortages and a decline in post-pandemic demand, along with the fact that digital payments are not widely adopted in Japan, reflecting a pessimistic international situation. The Philippine fast-food group Jollibee, which has invested in Taiwan's Mixue and Shuangyue Foods, also announced its exit from the Vietnamese market to refocus on the domestic market in the Philippines. He pointed out that the restaurant retail industry is also facing turbulence and challenges overseas. In the face of these challenges, Chen Xiangbin emphasized that the Taiwan Chain and Franchise Association has diverse resources and can enhance members' competitiveness through joint procurement and other means. He believes that despite the current environment being full of uncertainties, as long as the industry can work together, there is still significant room for development in the future. He urged companies to actively respond to cost pressures and make good use of digital tools to improve efficiency in order to maintain a foothold in a fiercely competitive market. Chen Xiangbin concluded that this year will be a challenging one for Taiwan's retail service industry, with rising electricity prices, climbing raw material costs, and fluctuations in the international market all testing the adaptability of enterprises. However, he also stated that crises can also be opportunities, and through continuous talent development and digital transformation, chain operators are expected to find new growth momentum in adversity while facing challenges. Chen Xiangbin, chairman of the Taiwan Chain and Franchise Association, pointed out that this year will be a significant test for small and medium-sized enterprises, urging the industry to prepare in advance Reporter Hou Sipin/Photography ### Related Stocks - [000759.CN](https://longbridge.com/en/quote/000759.CN.md) - [601086.CN](https://longbridge.com/en/quote/601086.CN.md) - [600785.CN](https://longbridge.com/en/quote/600785.CN.md) ## Related News & Research - [The Outlook for a Smaller Ghana Cocoa Crop Supports Prices](https://longbridge.com/en/news/296516744.md) - [SP Group corrects disclosure, names Schur Finance as buyer of 31,500 shares at DKK 485](https://longbridge.com/en/news/296803384.md) - [WRT World Agricultural Supply and Demand August 24](https://longbridge.com/en/news/296799679.md) - [174K Reasons To Be Bullish On Taiwan Semiconductor Stock](https://longbridge.com/en/news/296634361.md) - [Dino Polska S.A. 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