And, it had closed down recently.
So.. What happened?
Hype?
Hype is always an easy way to dump the blame on. Why not let us look at it from a bigger picture.
There is always a factor of Absorption and Consumer Switching Cost (Barrier of entry, whatever you want to call it).
Attracting consumers to the stall does not equate to a strong business.
Sometimes, it is just about market Absorption. When there is just too much supply (crowd) you probably will get a queue, especially if you offered a different product. And so, it is relatively simple to keep opening new stalls, just open them in areas where there is a lot of “Excess” traffic. Which is also the reason why rental fees in hot areas are so high.
However, if a business could only depend on “market absorption” to sustain its business, then there will be a problem. As market absorption is sometimes out of your control, a new mall may open beside, new shop spaces carved out as the mall expands.
Competitor will come in when they see your queue! (oh! there is huge market demand that I can come and soak up some too!) Adam Smith anyone?
Coupled with the low switching cost of the consumer, it is extremely easy for them to just jump to the next stall to avoid your queue.
Conversely, when we look at current businesses being “disrupted” as some consumers are being drawn to the new offerings, do the consumers come back after a while? What draws the consumer back? Why do they not stay with the new offering?
Or does the new offerings offered nothing more than just a new/ different product?
So when can we be sure that a queue is a “good queue” and it really suggests that this business is really just different or special?