Just over 8 million is enough.
He directly transferred the store.
This is also a kind of joining.
According to reliable sources, McDonald's Company deeply regrets the statement revealed by its senior officials during their recent visit to China that "McDonald's" will start franchising in the mainland of China in the second half of 2002, and the relevant preliminary research work is already in full swing.
As a company with more than 28,000 restaurants in 65,438+020 countries and regions around the world, it is unusual to make such a decision. Therefore, when the reporter asked Beijing McDonald's Company for verification on this matter, Zhang Ziyun, the public relations manager of Beijing McDonald's Company, was extremely sensitive, arguing that this matter was the responsibility of Hong Kong's Asia-Pacific headquarters, and it was inconvenient for him and Beijing to be interviewed. McDonald's is very cautious about an ongoing plan. Is it true that McDonald's headquarters in America is not sure about the success of this policy? Or is there something else?
Why is McDonald's delayed in franchising in the Mainland?
Although franchising has a history of only 8 years in China, there are 465,438+00 franchised brands in China, with 65,438+0.110 million franchise points. The joining exhibition since 1999 has made potential franchisees in China know many domestic joining brands, so that people in the industry call the month of 1 1 every year "joining month" in China. However, careful franchisees found that it was difficult to find McDonald's among the exhibitors at each exhibition. It is understood that since 1990 entered the mainland of China, all McDonald's stores have been set up in the form of joint ventures. As we all know, 70% of McDonald's restaurants in the world are opened by franchise. Why is McDonald's unwilling to adopt this rapid and effective expansion method in Chinese mainland market? To this end, the reporter interviewed Chaoyang, general manager of Beijing Oriental Jia Yun Enterprise Consulting Management Company. Chaoyang has worked in the senior management position of McDonald's in Beijing for many years, and is now engaged in the research and consulting work of fast food franchise.
Chaoyang said: "In fact, McDonald's has been paying close attention to the development of franchising in China." As early as 1999, in the franchise exhibition held at Kempinski Hotel, the staff in charge of franchising in Hong Kong Asia-Pacific Headquarters visited and learned about the progress of franchising in the Mainland. So why doesn't McDonald's want to set up a franchise in China? Chaoyang believes that the reasons are nothing more than the following:
The first is the market environment. When we first entered China, McDonald's was not sure that China people would accept their food. Facts have proved that many things that sell well in the United States may not sell well in China, and so does food. McDonald's knows this very well. The staff of McDonald's headquarters once said that the quality of McDonald's business in Chinese mainland will determine whether they will open a franchise store here, so it is necessary to explore the market in China for some time.
The second is the environment. The environment includes many aspects, but the legal aspect is an important factor. It is hard to imagine what kind of losses a world brand like McDonald's will cause in the world if it is not protected by law after being affected in Chinese mainland. In today's information developed world, the adverse events of McDonald's in any place will soon spread all over the world, which will have an immeasurable impact on this system. In view of the lack of laws related to commercial franchising in China, McDonald's started cautiously on the road of franchising.
Third, local franchisees' understanding of franchising. Whether franchisees can abide by the franchisee code and have the ability to operate independent stores will directly affect the effect of franchisees. Without knowing the franchisees in China, McDonald's can only open a store in the form of joint venture. In addition, the cultural differences between the East and the West also make it more difficult to promote franchising in China to some extent.
Yu Xianyang, an associate professor at Renmin University of China, believes that most people in the East, especially in China, have boss complex, and subconsciously everyone is unwilling to be subordinate to others. Franchising is to conduct business activities under the unified coordination of the franchisee, and the franchisee has limited space to play. In this cultural atmosphere, the soil of franchising in China is not as fertile as expected. McDonald's opened in Taiwan Province Province, China 17 years before it absorbed its first franchise store, which may explain this point to some extent. The immature franchise environment in the mainland seems to be the main reason why McDonald's does not absorb franchise stores.
On the market side, with the increasing acceptance of McDonald's food market in recent years, it should be said that there is a market for foreign fast food in China. However, the reality that can't be ignored is that the domestic understanding of the concept of franchising is not profound because the time of franchising in China is quite short. Some domestic fast food enterprises only want to collect the joining fee and equity after establishing their brands. Franchisees also think that only one joining fee is enough to join the system, which is not a real joining in the eyes of industry experts. In fact, the core of franchising is where franchisees and franchisees complement each other and have the most advantages. Discovering and stimulating the advantages of franchisees is something that franchisees need to seriously consider; At the same time, franchisees need to invest a lot of money after joining, and strive to run the enterprise well. In this process, both sides will get a long-term development. For this, neither domestic champions nor franchisees have enough understanding. At present, the development speed of some famous domestic franchise brands, such as Malan Lamian Noodles and Baiyuan Automobile, has slowed down, which also confirms the current domestic franchise environment.
What did KFC bring to McDonald's?
KFC, which is also an internationally renowned brand, opened its first franchise store in Xi 'an as early as 1993. How to explain the phenomenon that there are nearly 20 franchise stores now? This makes people in the industry can't help but ask, is KFC more adaptable? At this time, McDonald's decided to be in franchise development, China. Is it because the conditions for franchise development in China are ripe? Or have no choice under pressure? It can be said that McDonald's restaurant has been operating in China for 65,438+00 years, and has trained and reserved a group of experienced managers in the mainland. If franchising is launched at this time, there are already a number of talents in the mainland who understand the operation of McDonald's restaurants, which is understandable.
Let's look at the development of KFC in China in recent years, and maybe we can get the answer. As an old rival of McDonald's, KFC set foot in the mainland catering market as early as 1987. By the end of 2000, KFC had more than 400 restaurants in China, far exceeding McDonald's 340. At the same time, the survey of 20 large and medium-sized cities in China by a new generation of market monitoring institutions, the British Market Research Bureau and the American Meng Tian Company will definitely surprise McDonald's. According to the survey, 27.8% of the residents claim to be frequent customers of KFC, which greatly exceeds the 18.2% of McDonald's. Seeing that KFC's development speed in China is much faster than its own, and it has made huge profits from the China market, McDonald's is definitely unwilling to lag behind. In China, the biggest potential market, it is hard to say that McDonald's operation in China is successful if it cannot form a balanced situation with its competitors. The cruel reality is that compared with the development of KFC in China, McDonald's has obviously fallen behind. Especially when KFC announced that it had become the number one in China's fast food industry in terms of number of stores, sales volume and market reputation, McDonald's did not want to see itself in an embarrassing position of backwardness in the future contest. If the development of McDonald's in China is still half or even a beat, the trend that McDonald's is at a disadvantage in the China market competition will be more obvious.
Joining McDonald's is not easy.
For catering enterprises, franchising is the most effective and fastest way to expand. Although avoiding investment risks is also one of the most important advantages of franchising, once any franchise store fails, it will cause irreparable losses to the whole system. Therefore, McDonald's should know best how to explore the road of franchise development in China as soon as possible, and at the same time, it will not be left too far by KFC, otherwise it will be crushed by its rivals in the China market. This seems to be the main reason that forced McDonald's to franchise development in China market.
However, joining McDonald's is actually very difficult. For McDonald's decision to start franchising in the mainland from next year, industry experts believe that joining McDonald's is not easy. Chaoyang said: McDonald's company has high requirements for the management level of franchisees. At present, there are very few franchisees who meet the requirements of McDonald's in China. Even abroad, McDonald's is very demanding in choosing franchisees. In some countries, applicants need to have more than 10 working experience in McDonald's before they can apply to become its franchisees. McDonald's believes that 10 can fully understand whether a person has the corresponding talents, whether he can find enough funds and whether he can run a store well. Of course, there are many ways for McDonald's to choose franchisees, but the main considerations are basically the same. It is said that in 1999, McDonald's only selected three of the tens of thousands of applicants in Taiwan Province Province as its franchisees, which shows the difficulty of joining.
Chaoyang believes that many people in China have a shallow understanding of franchising. Many people who want to apply to McDonald's will find that the practice after joining McDonald's is quite different from what they originally imagined. Maybe at first they just thought it was a good business, and they could make money by investing. It should be said that there are many people who have this idea, but in fact McDonald's does not need such franchisees. Any famous franchise enterprise needs a franchisee who can integrate with the enterprise in a down-to-earth manner, maintain the sustainable development of the enterprise, and have a deep understanding of the whole company system and franchise, and McDonald's is no exception. Those potential franchisees who want to join McDonald's must have at least the following four conditions: first, they have entrepreneurial spirit and strong desire for success; Second, there is a strong business background, especially in dealing with interpersonal relationships and financial management; Third, they are willing to participate in the training program, which requires all-out efforts and may take a year or even longer to complete; The fourth is to have corresponding financial qualifications.
So it is conceivable that even if McDonald's franchise in China, the initial speed will not be too fast. Chinese mainland needs 8 million yuan to join KFC, and I believe there will be more money to join McDonald's. At present, it costs about 3.3 million Hong Kong dollars to buy a new McDonald's restaurant in Hong Kong, plus a large franchise fee. To be a member of the McDonald's family, you need considerable economic strength.