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The general manager of Quanjude: Haidilao do not charge a service fee, we should not be charged

Wen Caijing reporter Eddie Yang

Editor Yu Le

"Quanjude is going to have an operation." On the morning of March 17, Zhou Yanlong, party secretary and general manager of China Quanjude Group, said at the Sixth China Catering Innovation Conference, "In our track, we are the only one running, and we will end up exhausted. We have to return to the track of other runners."

Zhou Yanlong speech is the theme of "activation of the old, the operating room revolution". He bluntly said, the old is not a crime, whether it is a new or old, no enterprise does not want their own name, that is, their own brand; however, the old can not rely on the old.

Quanjude has begun to face its own problems. Zhou Yanlong used "live, good up" six words to describe the future direction of Quanjude, in fact, also explains the current serious situation.

Zhou Yanlong (right), general manager of Quanjude, at the 6th China Catering Innovation Conference. Photography/Yang Li Eddie

In 2020, Quanjude is expected to realize operating income of 760 million-800 million yuan, nearly cut from the previous year, with a net profit loss of 240 million-264 million yuan. If the epidemic in 2020 makes all catering enterprises have a hard time, it is still justifiable, but Quanjude's performance in 2019 is not as good as it should be: annual revenue of 1.566 billion yuan, a year-on-year decline of 11.87%; mother net profit of 44.628 million yuan, a year-on-year decrease of 38.9%. In fact, since 2011, Quanjude revenue surged to 1.8 billion yuan, reaching the peak of history, has fallen into the downward channel, away from the once "2 billion yuan revenue" dream more and more far.

After the epidemic, Quanjude has made some changes. July 24, 2020, in the Quanjude 156th birthday, Zhou Yanlong announced three major business adjustment initiatives, including lowering the price of roast duck, adjusting the menu in Beijing, as well as the total elimination of service charges. Previously, Quanjude was criticized by consumers for charging 15% of total consumption for private rooms and 10% for halls.

Zhou Yanlong admitted that in the past, when the Golden Week holiday was the busiest, "we did not have service", so the service charge should not be charged. "Haidilao you can not learn" I read the book several times, I still can not learn. Haidilao's service is implanted in the company and its employees like a gene, and we can't do it. Haidilao are not charging service fees, we can not charge."

For lowering the price of dishes, Zhou Yanlong said: "From Quanjude alone, there is no problem, but a comparison with competitors, it is found that competitors' cost-effective are better than ours. We reduce the price, is to be friends with consumers. This is the measure we took after we found the problem."

Quanjude realized that its old friends were abandoning it, while failing to make new ones. In the past, Quanjude was really a duck brand that represented Beijing, and even China, and when foreign tourists came to Beijing, a meal at Quanjude was almost as important as a climb on the Great Wall. But now, the younger generation of tourists, more and more "will eat", will not be limited to the "old". Da Dong, Four Seasons, Yihe Bistro, etc. are all options for them. The knowledge of roast duck restaurants has evolved from the interpersonal communication of local friends in Beijing to social media such as Dianping and Xiaohongshu.

"Quanjude has three major stores in Beijing, such as the Hepingmen store, all of which are in the large thousands or tens of thousands of square meters, and a significant portion of the clientele are foreign tourists.

We are thinking about a question, in addition to tourists, can we serve the people around us." Zhou Yanlong said, "We should first of all do a good job of Beijing people's dining, serve the bosses around the family name, when their families come to guests, they will bring to Quanjude."

Zhou Yanlong also shared two "dangerous data" of Quanjude. "We have two data that are dangerous, one is that the age group of our main consumers are all 8-10 years older than our main competitors; the second is that the age of our operation team is also 10 years older than our competitors." Both figures show that Quanjude is trapped by the word "old".

"We are 'old men talking about youth'. It's really time to put your foot down. Consumer rejuvenation is a trend, against the trend is only a dead end." Zhou Yanlong said that Quanjude needs such channels as mass commenting to reach out to younger groups.

He believes that catering and retail are similar, and can be applied to the concept of "people, goods, field". Quanjude needs to understand how the post-90s and even younger groups view "people, goods, field", to re-understand the expectations of young people on the old school.

For the National Palace in recent years from the "old" new life, incarnation of the national tide of the route, Zhou Yanlong said, this is also the way Quanjude to go, "This is not to study the problem, is determined to do." This year, Quanjude will conduct a nationwide trial of three types of stores business model, in the promotion, decoration, dishes are unified to enhance the brand repositioning.

Zhou Yanlong's statement, can be seen in recent years, Quanjude's deep introspection of their own situation. Zhou Yanlong belongs to the "critical order", in December 2019, the original general manager of Quanjude Zhang Li resigned, then general manager of Donglaishun Zhou Yanlong took over.

Previously in 2018, the leadership team was Zhang Li as general manager of Quanjude Group, Xing Ying as chairman. At that time, Xing Ying frankly said in an exclusive interview with a reporter from "Finance" that "2 billion (revenue) is a dream in the hearts of the board of directors and the management in these years." However, this dream has not been realized. "Just to bite the bullet with the previous year, to reach the current level, but also has made great efforts."

For the termination of several attempts and failures, Xing Ying believes that the outside world is still "the results of heroes". But he believes that for a long-established state-owned enterprise like Quanjude, it is far more important to draw lessons from experience than to draw conclusions.

At the same time, he also asked, "How can a 154-year-old duck adapt to the 80s, 90s and 95s? Is it just to keep our duck of more than 100 years unchanged to adapt to the new consumer body?" It can be seen that these issues, Quanjude in recent years are thinking, and seems to stay only in the thinking stage, the action is not obvious progress.

Xing Ying insisted at the time, in the restaurant industry in the fierce and volatile situation, go slow to avoid going wrong. However, the fierce and brutal market competition will not give extra favor to the century-old brand, Quanjude has no time to take its time.