Frustrated foreign markets

Quanjude national expansion for many years, but the vast majority of revenues and profits are still from the Beijing area, and most directly managed stores outside the Beijing area are in the red, "roast duck" to leave Beijing on the soil seems to have become the industry **** knowledge. Some catering companies use income or other criteria as the basis for the division of China into several economic zones, in the center of each economic zone to set up flagship stores in the city; to be firmly established, and then to the surrounding small and medium-sized cities to expand the strategy. This seemingly steady approach, in fact, hides an irreversible risk.

The advance team was nearly wiped out

The 2008 annual report released by Quanjude shows that in addition to the company's 150 million yuan profit in Beijing, only the Shanghai store realized a profit of 926,700 yuan in 2008, and all other directly-managed stores outside of Beijing suffered losses, with a combined loss of about 10 million yuan.

Obviously, this almost total wipeout-like expansion failure can never be simply attributed to the impact of the overall environment, or the discomfort of the dishes, flavors and so on.

Looking at China's entire restaurant industry, we can see that the same problems that occurred in Quanjude's expansion also exist in the vast majority of restaurant brands that are expanding off-site. Only because of Quanjude brand long, plus as a listed company, abundant funds, according to the established strategy of rapid expansion, expansion failure is more noticeable.