I'm planning on starting a hostel in China and free breakfast is still rare. For Y25-40 (Around US$4-6), the choice is very limited.
Here's what my friend told me when he offered free breakfast last year:
"Avoid these shit. It didn't work at all. We provided them with free coffee, free toast with jams last year. Most people found it very basic and wouldn't give a better rating because of this, 5% of them even complained it. 3 people terribly posted negative reviews (~60%-70%) against us because of the free breakfast. When we didn't give offer breakfast, everything was fine, but these free but basic breakfast finally drew some negative reviews to us. They don't know they're paying Y30 and what it can feasibly bring to them.
They may think everything in China is cheap but didn't know that a Western lifestyle in China could be even more expensive than Europe. Cheese, bacon, coffee, cereal, and butter, cream in China are probably even more expensive than in Europe because they're imported with tariff, but the guests would expect everything in China should be 10% of the European price."
Have anyone got an experience by providing free breakfast for a cheap bed? Is it a feasible option?
To make Chinese breakfast, it's usually cheaper and affordable because nothing is needed to be imported, but many western travelers seem to enjoy a western breakfast more.