Since the first New Element restaurant opened in 2002, it once became synonymous with fashion because of its light food concept and unique style. After two years of struggling amid the epidemic, news of New Element’s bankruptcy and reorganization finally came out on December 18 this year, and major stores across the country were closed one after another. The first generation of Internet celebrity snacks is about to leave the market sadly, causing society to think about the prospects of the snack industry.
After the trend of Internet celebrity light meals receded, light meal takeout, zero sucrose, sugar substitute drinks, and even processed meal replacement foods have become popular again. What is the current business situation of the light food industry? What's the logic behind it? A reporter from China City News paid a visit.
Offline light food stores are in trouble
On December 20, the reporter came to the New Elements store in Beijing Kerry Center. There were not many customers in the store, and opposite was Santa Claus in the mall. Under the decoration and bustle, the former generation of "Internet celebrities" seem particularly sparse.
New Element (Beijing Kerry Center Store).
“Some key stores, such as Chaoyang Joy City and Blue Harbor stores, have larger areas, higher rents and more expensive water and electricity, and have been closed. Our store is still open, but it is no longer possible to recharge. "The clerk told reporters that since the news came out on December 18, many customers have come to "check in" recently, and more people may come in the future.
When the reporter browsed the menu, he found that the unit price of New Element’s dishes is not cheap. The price of a single dish is about 100 yuan, the average price of drinks is 40 yuan, and the price of desserts is 40-50 yuan. Meituan’s estimated per capita consumption is around 124 yuan, and by asking the store clerk, the reporter learned that New Elements is a high-end light meal, with smaller portions.
During the ordering process, the reporter pointed out several dishes, and the clerk regretfully said that there was a lack of supply for that dish. "Because the company no longer purchases raw materials, and many customers have come to consume after seeing the news recently, the amount of dishes we prepare is normal. When there are more people, some dishes will be out of stock."
Ask As for the business situation in the store, the clerk revealed: "Because the location is close to the China World Trade Center and surrounded by office areas, the Kerry Center store should be profitable. This may also be the reason why our store is not closed for the time being."
The reporter noticed that a customer in the store was asking the clerk about card refunds. "Since the company has issued a notice, it means that it will be responsible to the end." The clerk said that refunds can be processed in all stores that are currently open.
On December 21, the stored-value card refund operation instructions released by the New Elements public account confirmed the news and stated that customers can make an appointment by phone and return it at 15 stores that are still open across the country. payment. Among them, there are 6 in Shanghai, 6 in Beijing, 1 in Nanjing, 1 in Guangzhou, and 1 in Shenzhen. According to the official website, there were 15 stores in Shanghai alone.
According to the official statement, it was the epidemic that knocked down this internet celebrity light food restaurant.
New Element Restaurant stated in the announcement that due to the epidemic, the company's operations have encountered unprecedented difficulties, and store operations have been severely affected. Currently, it has suffered serious operating losses and fallen into a state of broken capital chain. According to relevant According to national laws, it enters the bankruptcy liquidation process.
Screenshots are from the official website.
From 2015 to 2018, light food ushered in an entrepreneurial wave. During this period, at least 1 billion yuan of capital poured into the light food market, starting a "money-burning model" and assisting the offline expansion of light food stores. Among them, Sweetheart Rock Salad received 4 rounds of financing of nearly 100 million yuan; Miyou Salad received 6 million yuan in financing; Lustful Pie Salad completed 22 million yuan in A+ and 10 million in round B financing; Gaga Xianyu received 180 million yuan in round A financing. Financing; Dakaishajie received Pre-A round of financing; Shalv Light Food received 30 million yuan in financing.
However, in recent years, with the rise of coffee, tea, baking, pasta and other industries, the hot money pouring into the light food category is less than in the previous three years. Coupled with the impact of the epidemic, the business of offline stores has generally been hit, and the light food industry is no exception.
In October this year, Bloomberg also reported that another light food brand Wagas planned to sell. Yum China Holdings Co., Ltd., Philippine catering brand Jollibee and Burger King parent company RBI were considering bidding. Wagas, valued at $500 million to $600 million. Although Wagas officials subsequently stated that the news was untrue, none of the three companies mentioned in the above news that were interested in bidding for Wagas responded positively.
Sweetheart Rock Salad, founded in 2014, has received four rounds of nearly 100 million yuan in financing in three years since its establishment due to its unique packaging and innovative concepts. It is known as the originator of light food Internet celebrities. However, in March 2019, it was also reported that Sweetheart Rock Salad was facing a bankruptcy crisis, and its main business was suspended.
NCBD "2021 China Light Salad Industry Investment Decision Analysis Report".
Why does capital not favor offline stores?
Mr. Wu, a financial practitioner, told reporters: "The epidemic has hit the catering industry in all aspects, destroying products with weak investment logic. For example, offline stores like New Elements, The entry threshold for the industry is not high, there are too many players, and the advantages of capital, brand, and technology companies cannot be formed. There is no "moat" and "light food" is not a new concept, so investment will naturally be in the cold."
< p> He cited entrepreneur Buffett's "moat" theory as an example. Brand power, product features, sales strength, and franchises are all sources of "moat." A company's "moat" is the most important, stable, and Durable competitive advantage. The characteristics of the light food industry are precisely the low threshold and high degree of homogeneity, making it difficult to have barriers.The light food takeaway business is booming
Offline light food restaurants have entered winter, but the online light food business is still booming.
At about 12 noon on December 21, the reporter walked into a restaurant in Beijing. There is no dine-in business here, there is no traditional store, only a neatly arranged kitchen like a cubicle. There is a business license on the outside. The packaged takeout is placed on the dining shelf outside the kitchen. When it's time to eat, the takeaway guy picks it up and leaves, which is very convenient.
“Most of the restaurants here are takeaways, not dine-in business. We will manage the merchants who have settled in, regularly check the hygiene conditions of the stores, and ensure food safety.” ***Xiang Kitchen management staff told reporters, such as If you need it, you can communicate with the merchant, place an order on the takeout software, and choose self-pickup.
***The shared kitchen is similar to the open kitchen of an offline restaurant, and the meal preparation process is transparent. The reporter asked a merchant of the light food chain brand "Li Zibai" through the window. The other party said that ***Xiang Kitchen often conducts surprise inspections and they all wear gloves when preparing meals to ensure that the ingredients are fresh and clean.
“We prepare meals in advance, otherwise we will be too busy at lunch.” The store owner said bluntly, “Only doing takeout business is cheaper than opening an offline store.”
The neatly packed takeout bags on the counter indicate the business is booming.
In the exclusive kitchen during the lunch rush, the store is busy preparing meals.
Compared with the high rent, water, electricity and decoration costs of offline stores in large shopping malls, the light food industry has the characteristics of low threshold, high degree of homogeneity and easy standardization, so the entry threshold is not high. Due to the impact of the epidemic, while offline stores are experiencing a downturn, the takeout industry is booming. It seems reasonable for small and medium-sized businesses to choose to expand online.
But light takeout is also very "voluptuous". Fangfang, an office worker, opened the Ele.me APP to search for nearby light snacks. There were 10 restaurants within a radius of about 1 kilometer.
“In order to control my weight, I ate light food for three months, but I really didn’t like eating grass, so I could only choose a relatively delicious restaurant among the short ones. Because The cooking method of light food is simple, just mixing and matching ingredients, and the taste is not memorable, so I will choose a store with more gifts and more affordable prices, starting at at least 30 yuan." Fangfang said.
"I am a non-sticky customer. The motivation for choosing light meals is not out of love for food, but out of necessity." Fangfang said frankly that she chooses light meals because cooking at home requires preparing a variety of ingredients and the calories It’s also hard to master, so ordering takeout is faster and more worry-free.
Health is an eternal necessity. Entrepreneurs who are constantly entering the industry may be interested in this timeless concept. But as the number of “players” increases, homogeneous competition becomes more intense.
Tianyancha data shows that as of June 13 this year, there are more than 8,600 light meal replacement-related companies in my country with statuses of active, existing, moving in, and moving out. More than 8,000 light meal replacement companies were established in the past five years.
Where is the “moat” of the light food industry?
2014 is known as the first year of light food, and since then countless entrepreneurs have entered the industry. After the storm, some brands have withdrawn from the market, investment has become more rational, and brands no longer "race to gain territory."
But this does not mean that the future of the light food industry is bleak.
The "2021 China Light Salad Industry Investment Decision Analysis Report" released by NCBD (Meal Book) shows that China's light salad market will reach 5.56 billion yuan in 2020, a year-on-year increase of 13.7%; it is expected to exceed 9 billion yuan in 2021, reaching 9.23 billion yuan; the number of light salad consumers is expected to increase from 11.8 million people in 2020 to 18.16 million people in 2021.
We might as well broaden our horizons and rethink the definition of light food. Does light food just mean salad?
On December 10, 2021, the "Guidelines for the Development of Light Food and Catering" released by the China Cuisine Association's group standards conference mentioned that light food exhibits "three lows and two highs" (low calories, low fat, Low salt, high protein, high dietary fiber) characteristics.
The "China Meal Replacement Industry Development and Market Research Analysis Report in the First Quarter of 2021" released by iiMedia Consulting shows that China's meal replacement market continues to expand, with the market size increasing to 47.62 billion yuan in 2020. The market structure of the meal replacement industry is mainly dominated by categories such as cereals, meal replacement powders, protein bars, and meat products. Data shows that more than 70% of the surveyed users prefer oatmeal, followed by meal replacement powder, accounting for 45.4%. The meal replacement market segment is ushering in development opportunities.
“In China’s catering industry, it is difficult to monopolize a certain category. The big brands in the light food market are not like the fast food and coffee industries, where there are strong brands such as McDonald’s and Starbucks. The siphon effect Seriously, there are still many consumption tracks for the concept of 'health'." Mr. Wu told reporters that the current market consensus is that making light meal replacement products in the future will have a brighter future than opening a store with heavy assets.
■Reporter: Fang Ziwei
■Pictures: provided by the interviewee
■Editors: Zhang Aqiang, Yue Yue