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What are the development strategies of Quanjude?
China's traditional culture has a long history of thousands of years, and the long-established enterprises are the "living fossils" of the traditional culture of the Chinese nation, representing the unique material and spiritual civilization of the Chinese nation.

Old brands of food and beverage are usually operated for more than 160 years, and some have even developed for hundreds of years. Most of them were created in a special historical background, focusing on cultural heritage, and each brand has written a colorful and legendary chapter behind the scenes.

The old is in our country for hundreds of years in all walks of life in the fierce competition under the survival of the treasures, most of the old enterprises through the country's arduous struggle, in the fierce competition to stand out, the formation of the brand, after hundreds of years of operation, the accumulation of a good reputation.

Such as Quanjude, dog indifferent, Donglaishun and many other catering old brands are well known to the public, coupled with the Ministry of Commerce, "China's old" recognized the support, the formation of a brand effect, so that the old enterprises can rely on the "China's old" brand characteristics and origins.

Numerous companies have been able to create a unique cohesive force to attract consumers by relying on the "China Old Firm" brand feature and the long history of traditional culture, which has created a unique and distinctive profit model of catering old firms.

Numerous long-established enterprises use their unique specialty items to attract customers and form a competitive advantage. Among them, a part of the old enterprises to operate a certain technical skills as a specialty, many of which have become intangible cultural heritage, such as Quanjude's "hanging oven roast duck technology" and so on.

The fact that old enterprises have survived to this day is largely due to the inheritance of generations of craftsmen, and most of the existing old enterprises have relied on their own unique traditional skills to develop and grow, and are still relying on their unique traditional skills to continue to develop. The traditional technical crafts that old firms have inherited for many years and rely on for their survival are also one of their unique profit models.

I. Introduction of Quanjude

1. Introduction of the Company

First established in 1864, Quanjude started as a roasted duck company, and has made Peking duck a specialty food in Beijing by its own efforts. In January 1999, the trademark "Quanjude" was recognized by the State Administration for Industry and Commerce as a "Well-known Trademark", and in 2007, it was listed on the Shenzhen Stock Exchange, becoming the first A-share-listed restaurant company. In 2007, Quanjude was listed on the Shenzhen Stock Exchange, becoming the first A-share-listed catering company with a long-established reputation.

The main business of Quanjude is catering service, food processing and sales, and its subsidiaries include "Quanjude", "Imitation Cuisine", "Fengzeyuan" and "Sichuan Restaurant". "Sichuan Restaurant" and other specialty restaurant brands.

As of the end of 2020, Quanjude has 117 offline food and beverage stores*** in the first and second-tier cities in China, including 107 stores under the brand of Quanjude, 1 store under the brand of Imitation Cuisine, 5 stores under the brand of Fengzeyuan, and 4 stores under the brand of Sichuan Hotel, forming a development pattern with Quanjude as the core and the synergistic development of multiple brands.

Quanjude has adopted a relevant diversification strategy at the strategic level, and has developed horizontally the auxiliary business that serves the catering business, i.e., the merchandising business, on the basis of the roasted duck specialties. In addition, it has also launched a number of outstanding catering brands of veteran brands such as Imitation Cuisine, Fung Tsai Yuen and Sichuan Restaurant, forming a synergistic effect of multi-brands, and its dishes have formed a variety of roasted, barbecued, shabu-shabu, Szechuan, Shandong, palace and Beijing flavors and styles. flavors and styles, extending from a pure roast duck market to a diversified catering market.

In addition, Quanjude has vertically integrated its industrial chain, forming a complete catering industry chain with roast duck as the mainstay.

2. Organizational Structure

Quanjude has set up a general meeting of shareholders, a board of directors and a board of supervisors, as well as 13 functional departments, each of which is responsible for its own duties to ensure the development of the company.

3. Business Composition

The main business of Quanjude consists of two parts: catering and food. The catering business is famous for brands such as "Quanjude", "Imitation Cuisine", "Fengzeyuan" and "Sichuan Restaurant", forming a synergistic development pattern of multiple brands. It has formed a development pattern of synergistic development of multiple brands.

The food business has Quanjude Imitation Cuisine Foods Limited, which is responsible for the research and development as well as the production and sales of duck blanks, the raw material for roast ducks, and other deli pastries. The main products of Imitation Cuisine Foods include vacuum-packed and gift-boxed roast ducks as well as duck derivatives that are sold by Quanjude to various outlets, in addition to seasonal pastries such as egg custard puffs, mooncakes, and dumplings, as well as their gift-boxed packages.

4. Industry Position

According to the change of Quanjude's ranking in the "Top 100 Catering Enterprises in China" released by the China Culinary Association every year for the past 10 years, Quanjude's ranking has gradually declined from No. 5 in 2011 to No. 75 in 2020, which fully demonstrates that its development is not as good as before and its industry status is not as good as before. The status quo is not as good as before, and its industry status is in a downhill stage.

2. Problems with Quanjude's Profit Model

1. Profit Points Need to Be Expanded

(1) Single Auxiliary Business

All Jude takes catering business as its main business, and sales of commodities as its auxiliary business. Quanjude's auxiliary business is relatively single, which will lead to the enterprise's ability to resist risk is poor, will reduce the enterprise's ability to resist the risk of changes in the industry, if the enterprise's competitiveness of the merchandising business declines or changes in the industry, it will have a greater impact on the operation of the Quanjude

Compared with Quanjude, Haijilao mainly focuses on the catering business, and supplemented by other catering business, takeaway business, condiments and ingredients. Sales business, auxiliary business is more abundant, even if one of the business is facing risks, the enterprise can rely on other businesses to resist risks and make timely industrial adjustments to cope with the risks.

So Quanjude should try to change the status quo of relatively single auxiliary business, continue to explore new profit points, further expand the scope of business, and improve the ability to withstand risks.

(2) Limited geographical development

The products of Quanjude have certain regional characteristics, and the consumer groups are mainly targeted at groups with strong interest in traditional Chinese dishes and tour groups from other provinces and cities traveling to Beijing and the surrounding areas.