Following the acquisition of Little Sheep in 2114 and the suspension of its franchise for two years, Yum! Brands reopened its franchise; At the beginning of the new year in 2115, Yum! started the franchise business of Pizza Hut in China in an all-round way, which became a heavy news in the franchise field of China. It not only added new strength to the franchise in China, but also proved that the franchise market in China entered an orderly and healthy development stage. Pizza Hut Joining Application Form

As Su Jingshi, vice president of Yum! Global and president of China District, said earlier on the joining strategy of KFC (special reading), "The lack of large-scale development and joining of KFC was related to the domestic market environment at that time. At that time, the market conditions suitable for KFC to join were nonexistent, qualified franchisees could hardly be found, and the KFC brand was still in the process of building, so it was the fastest and most effective to join directly, and KFC had very good operating efficiency, high return on investment and Yum!"

This time Pizza Hut started franchising in an all-round way, and China Chain Store & Franchise Association made a special interview on this.

The franchise development strategy is "quality rather than quantity"

According to the person in charge of Yum!' s franchise department, Pizza Hut, just like its name, has won the love of China consumers with the belief of "winning" since it opened its first restaurant in China in Beijing in 1991. So far, Pizza Hut has more than 1,111 happy restaurants in more than 311 cities in China. The concept of "Happy Leisure" initiated by Pizza Hut in China has also been welcomed by consumers. After more than 21 years of accumulation, the "Happy" strategy has become the belief of Pizza Hut, and has penetrated into the context of brand development. Now, Pizza Hut is not only an expert in the field of pizza, but also an expert in casual dining.

With the rapid development of domestic catering industry in recent years, many people who are interested in catering industry have accumulated rich operating experience. At this time, it is more mature for Pizza Hut to open franchise. In order to support the development of Pizza Hut brand, in early 2115, Yum! Brands launched the franchise business of Pizza Hut Happy Restaurant in an all-round way, and opened it nationwide. In the development of joining strategy, Yum! especially emphasizes the principle of "emphasizing quality rather than quantity", hoping to find suitable joining partners to build brands together. Pizza Hut expects franchisees to have enthusiasm for brand and catering business, good entrepreneurial quality, successful enterprise management experience and transferable funds of more than 3 million yuan. At the same time, franchisees should be willing to handle daily business matters and be able to manage restaurants in person. Experience in catering service and retail related industries will be preferred.

franchise mode "not from scratch"

Pizza Hut adopts the franchise mode of "not from scratch" in China. The franchise of "not starting from scratch" is to transfer a mature Pizza Hut restaurant to a franchise applicant who has passed the qualification evaluation, and at the same time authorize it to continue to operate under the Pizza Hut brand. That is, franchisees take over an already-opened Pizza Hut restaurant instead of opening a new one. Franchisees don't need to build it from scratch, which avoids a lot of complicated work of choosing their own sites, preparing to open stores, and recruiting and training new employees. Taking over an established Pizza Hut restaurant from China Yum! will greatly reduce the risk of franchisees and improve their chances of success.

according to the development plan for joining Pizza Hut, suitable "alternative franchise stores" have been selected from the existing Pizza Hut restaurants. Pizza Hut will recommend restaurants within the scope of "alternative franchise stores" for the applicants who have passed the qualification evaluation. Yum! does not accept joining applicants to designate a certain restaurant or a certain city to join.

at present, only the "not starting from scratch" joining mode is open, and Yum will not accept the application for opening a new store for the time being. Pizza Hut adopts the form of single-store franchise, and all franchisees do not enjoy exclusive rights in regional or business circles.

if the funds are insufficient, the principal applicant must be responsible for the operation.

Pizza Hut's financial qualification requirements for franchisees are that the self-owned funds that can be realized are not less than 3 million yuan, and the total personal assets are not less than 6 million yuan. If the applicant has insufficient funds, he can apply with a partner, but the proportion of his own funds must be greater than 31%. Partners must also go through the application process together, be interviewed by Yum! and be independently investigated by third-party companies, and the capital ratio of the main operators must be greater than 31%. Partners are only investors and do not participate in the daily operation and management of the restaurant. After joining successfully, the principal applicant should play the role of "main operator", that is, be responsible for handling the daily business matters and personally managing the restaurant, and the partners will not participate in the daily operation and management of the restaurant.

investment fee for joining

initial investment:

initial fee for joining: about RMB 311,111 (one-time fee, charged in US dollars)

training fee: RMB 61,111 (franchisees must complete five-month training before taking over the store)

restaurant purchase fee: RMB 3 million or more

continuing operation fee:

franchise continuation fee.

including:

a healthy franchise system: perfect franchise policy and process, good franchise relationship and professional franchise management team.

financial support system: assist in applying for bank loans and professional financial management consulting.

First-class operation management and support: the "Whampoa Military Academy" of chain catering retail, a perfect operation management system, a well-trained operation team and a comprehensive tracking and assessment system.

strong market planning and publicity: strong national promotion activities, providing single-store marketing plan counseling, brand public relations and media advertising investment, and professional planning product design and production.

public affairs support: provide professional public relations consultation and assist in handling crisis affairs.

All-round training courses and systems: training plan for leading figures, top-notch training courses, scientific training system and a group of thousands of lecturers; In addition, the contents of restaurant training mainly include operation and basic duty management. The training place is arranged nearby according to the actual situation. Franchisees need to complete the training content before changing stores. The main operators must attend the training in person and cannot be replaced by others.

unified procurement and distribution: large-scale unified procurement and powerful distribution system; In order to ensure the unified product quality and healthy development of Pizza Hut brand, franchisees can only purchase unified food raw materials, packaging and equipment and facilities from suppliers approved by Yum! The development of new products and price adjustment will be determined by Yum! according to market conditions. According to the franchise contract, franchisees are not allowed to sell any products in restaurants without Yum's permission, and they are not allowed to adjust their prices at will.

duration of the franchise contract "11+11"

The franchise contract of Pizza Hut lasts for ten years. If the franchisees meet all the evaluation criteria during the operation period, they can apply for renewal for ten years. This is a major investment and long-term cooperation. Yum has a complete evaluation process for applicants. First of all, it will reply to applicants by email or telephone within about 2 weeks after receiving the online application form. The next joining application process includes interview review, restaurant internship, background investigation, restaurant selection and store transfer, and the time required depends on the case, at least 7 months.

the difference between joining with KFC and Little Sheep

From the text, the joining mode of Pizza Hut and KFC (special reading) is exactly the same, that is, "not starting from scratch", which is what the applicant popularly calls "transferring the old store". However, the two brands belong to different catering formats, KFC is a fast food and Pizza Hut is a leisure catering, and their brand characteristics and operating methods are also different. Therefore, Yum's requirements for franchisees will be different.

Compared with the joining mode of Little Sheep brand, it is completely different. Little Sheep adopts the mode of "joining in a single store", and authorizes franchisees who have passed the qualification evaluation to use the Little Sheep brand to set up a shop in the geographical range determined by both parties. The Franchisor will provide the franchisee with site selection evaluation, franchisee and employee training, restaurant line planning, project acceptance and other preparatory support, and enjoy the supplier resources such as restaurant design, equipment and facilities supply and decoration construction. Compared with KFC and Pizza Hut, Little Sheep franchisees have higher flexibility in operating areas.

Reference: Pizza Hut China official website.