As a well-known brand in the braised food industry, the brand has always attracted the attention of consumers and provided consumers with delicious food. The brand adheres to the ideas of nature, freshness, health and deliciousness, and continuously launches multiple series of superior products, which has attracted consumers' attention. So how much is the franchise fee to invest in a Juewei duck neck restaurant? Detailed cost analysis:
Cost analysis:
1. Rent cost: To open a Juewei duck neck restaurant, you must first have a store, which is usually around 5-20 square meters, depending on the region. The rent will vary depending on the level, but the approximate cost is around tens of thousands of yuan. The cost of opening a store in a core business district is relatively high.
2. Equipment costs: Juewei Yabo store equipment is indispensable. The equipment is uniformly distributed by the headquarters, and the equipment required by each store will be different.
3. Decoration costs: Franchise stores adopt a unified design and unified image from the headquarters. The headquarters will provide investors with decoration plans. The decoration cost is maintained at about 5,000 yuan. Investors can decorate by themselves or entrust the decoration department of the headquarters.
4. Staff wages: Employees are indispensable for the daily operation of the store. The headquarters has no rigid requirements for the number of employees. Investors can make their own decisions based on the actual operation of the store.
Juewei Duck Neck has become China's largest casual braised food brand today, with more than 13,000 stores across China. It earns more than 5 billion a year from selling duck neck. Its central factories are not only spread across the country, but also in Singapore, Canada and Japan.
In the casual braised food industry, Juewei Foods, Zhou Hei Ya and Huang Shang Huang are the three giants in duck braised food in China. Among them, Juewei Duck Neck has the highest share in the casual braised food market because more than 99% of its stores are franchised. Its single brand accounts for nearly 10%.
As of early February 2022, Juewei has 13,665 stores across China, which is three to five times that of Huang Shang Huang and Zhou Hei Ya. Tianfeng Securities even predicts that Juewei will open 38,000 stores in the future.
38,000 may seem like a lot, but it is not unattainable. After all, there are about 130,000 braised food restaurants in the Chinese market, most of which are self-operated by husband and wife. The share of the three giants is less than 20%. %, there is indeed room for industry integration.
Juewei Food is becoming the king behind the scenes of China’s catering and food industry. Especially in the past few years amid the epidemic and weak consumption, it has quietly invested in many catering companies.
In the current Chinese market, Juewei has invested in more than 50 food and catering projects, such as the Liaoji Bangbang Chicken, Hefu Noodles, Banu Hotpot, Forrest Gump Guokui and others have directly or indirectly received investment from Juewei Food.
So how does this duck neck king understand the market challenges it encounters, and why does it want to become a catering king to solve the problem?
01 The past and present life of Juewei Duck Neck
Juewei Food first opened a store in Changsha in 2005. Its founder, Dai Wenjun, was previously the marketing manager of Zhuzhou Qianjin Pharmaceutical. Dai Wenjun is experienced in marketing, research, and training and management of dealers and customers in the pharmaceutical industry.
In China more than 10 years ago, most people in the braised food business came from the kitchen. Dai Wenjun was born in the pharmaceutical marketing industry, and many of Qianjin Pharmaceutical's main customers were chain pharmacies. His experience in the duck neck market where he started his business at that time can be regarded as an advantage in dimensionality reduction.
So, Dai Wenjun entered the braised duck neck industry with his pharmaceutical marketing experience, and he immediately widened the gap between him and his peers in two perspectives:
First of all, he has a lot of experience Strong sense of territory expansion.
Pharmaceutical companies themselves are very dependent on the dealer system. Today, dealers are equivalent to anchors carrying goods. What anchors sell does not have to be products produced by themselves. In turn, pharmaceutical companies do not have to rely solely on their own marketing teams to sell drugs.
This logic is the same in the braised food market. Juewei opened its first store in Hunan in 2005, and by the end of the year it had 61 stores through franchising. In the second year, it considered expanding beyond the province, and in the third year, it decided on the franchise chain operation model.
It was not until 2008 that Juewei Food Co., Ltd. was officially established. Founder Dai Wenjun directly decided that the company's strategy was to "enclose the territory and open stores when it is full" and began to build its own full-scale cold chain system.
Li Gang, a user of Business Reference, is also a very senior consultant in the catering industry. Li Gang told me that there are several factors behind Juewei’s saturated store opening strategy:
First , Chinese residents have a kind of psychological inertia. If a brand has two or more stores within a range of three to five kilometers, it is a relatively reliable chain brand.
Second, saturated stores can use the power of takeout platforms to achieve fresh delivery within 30 minutes, highlighting the word "fresh".
Thirdly, the consumption of casual braised food is mostly impulse consumption, and customers usually only have a consumption impulse after walking a few hundred meters after seeing the first store, and this impulse will occur within 30 minutes. disappear within.
So, Juewei’s saturated store opening is actually letting the two stores work together. The first store generates consumption impulses, and the second store takes over consumer demand.
There is a saying in the catering industry that in the development process of catering enterprises, the problem to be solved from stage 0-1 is to make good products, and the problem to be solved from stage 1-10 is to support it with supply chain and talents. For rapid replication, what needs to be solved from the 10-100 stage is to use funds and systematic operations to support rapid replication.
So, opening stores at full capacity means that when Juewei started, the strategy it chose was not to fight from the 0-1 stage, but to directly use resources from 1-10, and from 10-100. Two stages.
This choice is placed on a boss who started his career by craftsmanship. In fact, it will take a long time to overcome the knot. Think about it, my brand is built on my unique formula. If I expand nationwide, I have to hand over my unique recipe to many strangers, so I have to think again.
But Dai Wenjun was born as a eater, and the recipe for the unique duck neck was something he learned from various workshops after he entered the industry. Instead, he was not constrained by the product process.
Another vision of Dai Wenjun that is different from his peers is that he knows how to draw on the experience of pharmaceutical companies in uniting distributors to unite the braised food distributors and franchise stores recruited during the expansion of Juewei.
The dealer is an outsider, and both parties know this. So how can outsiders be willing to run Juewei Food as their own business? Juewei Food's trick is to build "war zones" across the country and assign them to dealers to manage.
In 2012, Juewei Food established an organization called the "Franchise Committee", which gradually divided 128 war zones across the country, allowing franchisees to serve as war zone committee members, and the most senior franchisee committee members can participate in the company's operations. core discussions, and the most subordinate franchisee committee members can manage and guide the stores in the war zone.
In the franchisee system of Juewei Food, they also deliberately refer to this franchisee committee as the "Additional Committee". You see, it sounds the same as the school's parent committee. This homophone is also intended to make franchisees think that they have a sense of home ground like a parent committee.
If the adding committee members manage well, they can get different levels of purchase prices from Juewei Company. People who want to join Juewei to open a new store should not go to the company, but go directly to the members to apply and enter the income system of the members.
If you do well, you can be sent by the company to Singapore and Hong Kong for further studies every year.
This set of gameplay has never been seen by bosses in the braised food industry. They suddenly felt that they had management rights and very stylish growth incentives in a high-end organization. In this way, Juewei has gradually united 3,000 franchisee members.
These are two different perspectives that Dai Wenjun, who was born in the pharmaceutical marketing industry, brought into the ancient braised food industry. With the benefit of hindsight, we can clearly see how much benefit his cross-border experience has brought to Juewei Food.
But having said that, Dai Wenjun’s two visions are focused on strengthening marketing capabilities, so won’t it invest in the product side?
No, Juewei has also spent a lot of money and resources over the years to lay out its own central factory and cold chain logistics to distribute products to its more than 13,000 stores to control quality and efficiency. The name of its delivery company is pretty cool, "Perfect Match".
The supply chain system established by Juewei also became the driving force behind its later decision to expand into a catering industry giant.
02 Rapid expansion forces supply chain construction
If braised food production wants to expand, it is impossible to rely on traditional small workshops and must spend money to build a standardized supply chain.
According to this logic, when Juewei established the strategy of "encircling territory and opening stores at full capacity" in 2008, it began to introduce a full cold chain system, cooperating with American companies to develop cold chains, and cooperating with German companies. In order to engage in informatization, in 2016, we also found a well-known Japanese consulting company called "Funai Soken" to comprehensively sort out and improve Juewei's supply chain system.
If we look at Juewei and Zhou Hei Ya of that era, we will find that there is an interesting divergence in the freshness preservation methods of these two companies:
Zhou Hei Ya insists on direct sales. Yes, it has chosen the "fresh-locking" technology for its duck neck products since 2012.
What does "lock freshness" mean? It is to fill the sealed packaging box with nitrogen to keep the food fresh. The food inside can be kept fresh for 5 to 7 days. After Zhou Heiya adopted this fresh-keeping technology, he could use two central factories in Hubei and Hebei to deliver goods to stores across the country.
The path chosen by Juewei is to build factories all over the country, and also build short- and medium-distance cold chain distribution systems, using production and distribution speed to keep food fresh. The duck necks delivered to franchise stores by Juewei are not sealed in boxes, but in bulk. They look fresher and customers can weigh them to buy.
After running these two paths for a few years, the differences emerged:
First of all, although Zhou Heiya's "Fresh Lock" was more advanced, it was not able to get rid of his opponents.
Although this kind of fresh-locking technology is more advanced, at the terminal, customers are faced with a fresh-locked duck neck produced in Hubei 4 days ago, and another that is sold on the same day. For ordinary packaged duck necks, I don’t necessarily think that “locked freshness” is more attractive than “really fresh”.
Secondly, since Juewei wants to provide daily delivery to stores across the country, it needs to build production bases everywhere.
Over the years, Juewei has built 21 production bases across the country to provide 24-hour supply to stores within a radius of 300 kilometers. This basically covers the entire country except Taiwan. arrive.
Once the production base is built, Juewei will be forced to expand its stores to dilute the cost of the production base. By 2018, when Juewei exceeded 10,000 stores through franchises, Zhou Hei Ya only had more than 1,000 stores.
Under the influence of scale effect, Juewei’s operating profit margin in 2019 was the highest among the three duck brine giants, and its cost per ton of product was only 70% of Zhou Hei Ya’s.
These numbers are very telling. So in 2019, Zhou Heiya no longer insisted on self-operation, but also opened up the franchise model, and also began to expand factories across the country to support its own expansion.
At this time, the point of interest in Juewei Food is no longer expanding. Not only that, Dai Wenjun also stopped the "saturated store opening" strategy that had been used for 10 years, and replaced the strategy with "deeply cultivating the main business of duck neck and building a food ecosystem."
The so-called "deep cultivation of the main duck neck business" can be understood as a shift from the pursuit of scale to the pursuit of profits. Starting from 2019, if you want to join Juewei and open a store in first- and second-tier cities in Jiangsu, Zhejiang and Shanghai, for example, you will find that local franchisees will not accept you.
What is "building a food ecosystem"? This is what we were talking about in the previous lecture, moving from the duck brine industry to all categories of gourmet food.
03 Take “building a gourmet ecosystem” as the goal
More importantly, Juewei began to realize that making industrial investments in all gourmet categories is not just for supply. When the chain is full, building a catering empire is a more valuable purpose in itself.
So, in 2019, Juewei Food officially decided to use "building a food ecology" as the second curve to develop its efforts. Dai Wenjun told shareholders that the capabilities of Juewei Food can also be used to empower specialty foods and light catering and serve as their accelerator. You see what this says is already very much an investment institution.
How to empower the law? First, it goes without saying that we share the procurement, production, warehousing, and distribution of the industry chain. In addition, Juewei has experience in how to integrate online and offline, how to carry out digital transformation, how to recruit people, and how to capitalize. With these experiences, Juewei will also send teams to teach the invested companies.
Brands like Liaoji Bangbang Chicken used to mainly open stores in shopping malls, and the cost was quite high. After Juewei became a shareholder, they suggested that Liaoji reduce its scale in supermarkets and rent a braised food stall. , and at the same time lend it its franchisee resources to help it open small stores in the community. In this way, Liao Ji optimizes costs.
Basically, every time Juewei invests in a company, it has to help it build an internal business school, such as Hefu University in Hefu, Xingfu Academy of Xingfu Cake, Liaoji Management School of Liaoji, n Duo Sushi also has an N Duo Business School, which was built with the help of Juewei to help these catering juniors cultivate high-end talents.
This is what Dai Wenjun calls the idea of ??empowerment and ecology. Does his way of thinking sound familiar to you? In Dai Wenjun’s view, many catering and food entrepreneurs today face the same problems as the braised food industry ten years ago. Except for product capabilities, they lack other capabilities. Juewei has already accumulated these capabilities when building its own supply chain and managing franchisees.
After thinking about this matter, Juewei not only directly invests in entrepreneurial projects through Shenzhen Wangju, it also cooperates with many external investment institutions and uses the power of others to capture these seed players. In addition, Juewei has cooperated with Xinjin Siyiwu, a fund that cooperates with Qiaqia Food, and invested in the tea brand book Yishao Xiancao.
Juewei Food has also established a fund called "Juewei Fund" in partnership with Ele.me. This fund mainly makes investments based on Ele.me's food delivery data. Brands such as Braised Pork Ribs Rice, Long Time BBQ, Steamed Liuji Steamed Vegetables, etc., which have become very popular in takeaways in recent years, have also invested in Juejue Fund.