As China's most successful restaurant chain, KFC currently has more than 1,700 stores in China. KFC is known for its strict site selection, and the 28 stores in Hangzhou are also distributed in the same way: nearly 20% of the stores are distributed along Yan'an Road from Qingchun Road to Wushan Square area, in addition to the current Xia Sha, Binjiang, basically most of the downtown area to open stores. Even the popularity is considered insufficient along South Yan'an Road, such as Chungjin Plaza, KFC also opened stores in January this year. We seem to see something in KFC's choice of locations for store openings.

A store to win to make money, can not be separated from two major factors: rent and location. From the entry into Hangzhou to two years after the gloomy exit, Shanghai Liangyou Jin Companion convenience store is a good example, the growth of rent has exceeded the growth of turnover. Convenience stores are limited in the number of goods, in the 2000-2500 kinds of about, and daily turnover of more than 5000 yuan has been considered very good, in addition to labor, water and electricity, other expenses, basically do not make money, and supermarkets gross profit is only about 25%. KFC selected location is ideal, turnover is fixed and guaranteed, encounter promotional season, turnover can also increase, gross profit is much higher than supermarkets and convenience stores, coupled with a certain number of stores to support the reduction of input costs, so it is not surprising that KFC make money. A good brand can also offset part of the rent, brand awareness is also more and more developers, small owners value. That's why some people jokingly say that following KFC and having food for all seasons is still a bit true.

From the current market supply of stores, South Yan'an Road, Chungjin Plaza, the second floor of the store transfer or rental (transfer fee of 20,000-30,000 yuan, the rent of 1,000-3,000 yuan/square meter/year, much lower than the market rent), the northern part of the clothing market scattered stores and some professional wholesale markets such as the Four Seasons Green, etc., and the tenant is still to the Yan'an Road, Wulin Plaza, Qingchun Road, along Fengqi Road, as well as the city of the four seasons, and more The demand for tenants is still from Wulin Square of Yan'an Road to Qingchun Road, along Fengqi Road and in the west of the city. There is still a gap between supply and demand. The question is how this contradiction between? In addition to developers, owners to adjust the business format (such as Chung King Plaza), owners should also adjust the mindset, to choose a stable return on business, but also to look at the brand awareness.

For rent-seekers, choosing the right business format is also a very real problem. Eyeglasses, jewelry, clothing business due to higher gross profit, part of the business gross profit can be up to 30% or more, can afford higher rents. And the ideal reasonable area of 50-150 square meters, is also one of the factors to ensure an ideal return on investment. So this kind of business can choose the area with ideal location. However, food and beverage, supermarkets, convenience stores due to greater investment in the early stage, low gross margin (between 20% -25%), so the rental affordability is not high, if there is no good brand support, the selected area can only be in the second or third level of the lot or around the professional market, through a certain amount of traffic to pull the turnover, coupled with a longer term lease (generally more than 5 years), or can be operated for a few years after some of the winnings.