Last month, the Beijing Haidian District Market Supervision Bureau to carry out food safety inspection of food and beverage, Haidian District, 19 food stores were investigated and dealt with according to the law, in which Yang Guofu hot spicy hot because there is a food business personnel did not wear clean work clothes, hats, problems were investigated and dealt with.

It is worth mentioning that, in less than two months, this is the second time Yang Guofu hot pot was investigated and dealt with. March 2, Yang Guofu hot pot a catering stores due to the existence of food business premises did not keep the environment clean and tidy problem, was ordered to correct, given a warning.

Yang Guofu spicy hot pot management ability and franchise model, is the key reason for its food safety problems occur frequently.

For Yang Guofu spicy hot pot with more than 6,000 franchises, more profit is actually not from the catering business of to C, but the supply chain business of to B (franchises) - instead of being a spicy hot pot company, it is more of a porter of spicy hot pot raw materials.

Only, the franchise model is Yang Guofu spicy hot to get rapid expansion of the "magic weapon", but management and quality control short boards often make its losses outweigh the gains: once a franchise food safety problems, the entire brand will be implicated.

Now, only one step away from the listing of Yang Guofu spicy hot, can deliver a qualified answer sheet?

Yang Guofu spicy hot, is considered a "national spicy hot" existence.

The founder of Yang Guofu spicy hot pot is named Yang Guofu. 2003, the first Yang Guofu spicy hot pot (then called "Yangji spicy hot pot") opened in Harbin Yonghe Street.

Unlike the traditional spicy hot soup base, which is heavy in oil and salt, Yang Guofu improved the spicy hot soup by adding whole milk powder and cow bone powder, etc., to create a fresh and nutritious soup base with milk flavor, which is more in line with the taste of people in the north. The first store soon burst into flames.

The Northeast region is concerned about human relations, Yang Guofu's many relatives and friends to see Yang Guofu spicy hot pot low cost, fast payback, have requested to join. After that, the door to join more and more people want to join, Yang Guofu began to charge a franchise fee in accordance with different areas, which laid the foundation for the expansion of the company's territory. Public information shows that within two years, Harbin and its surrounding Yang Guofu spicy hot pot stores opened to more than 70.

In 2007, "Yang Guofu" trademark registration success, Harbin Yang Guofu spicy hot pot Catering Company Limited was formally established, and launched a franchise business.

In 2009, Yang Guofu and the traditional spicy hot pot sales model for a reform, the first "weighing by the catty" model, that is, no longer in accordance with the fixed price of the bowl of a bowl of sales, but to allow customers to consume according to their own amount of food on their own. This mode of operation not only enhances the consumer dining experience, but also subverts the traditional mode of operation of the spicy hot industry, so that the street spicy hot formally into the fast-food business.

Source: Yang Guofu official micro

Since then, Yang Guofu's spicy hot pot business has entered the development of the fast lane: first, stores throughout the entire Heilongjiang Province, and then extended to the entire eastern provinces, the country and even overseas.

The company's official website shows that by 2019, Yang Guofu's spicy hot pot franchise has entered 400 cities across the country, reaching more than 5,500 stores; up to now, Yang Guofu's spicy hot pot has exceeded 6,000 stores nationwide.

In addition, since 2017, Yang Guofu Spicy Hot Pot has begun to expand overseas, and as of September 30, 2021, it has 21 overseas franchised restaurants in Australia, Canada, South Korea, the United States, Japan, and Singapore***.

According to Frost & Sullivan data, Yang Guofu Spicy Hot Pot ranked No. 1 in China's Chinese fast-food market, as well as No. 1 in the spicy hot-pot market, based on total merchandise transactions and the number of restaurants at the end of 2020.

February 8 this year, Yang Guofu hot spicy hot to the International Department of the China Securities Regulatory Commission submitted a listing application materials to the "hot spicy hot the first stock" launched a sprint.

The prospectus shows that from 2019 to 2020 and January to September 2021 (hereinafter referred to as the "reporting period"), Yang Guofu spicy hot to achieve operating income of 1.182 billion yuan, 1.114 billion yuan, 1.163 billion yuan, net profit of 181 million yuan, 169 million yuan, 202 million yuan. During the reporting period, although 2020 was affected by the new crown epidemic, Yang Guofu spicy hot pot performance declined, but the overall trend of growth.

From the data alone, as a fast food brand that insists on not financing, Yang Guofu spicy hot can not be said to be unsuccessful.

Yang Guofu spicy hot with 19 years of time, walked to the spicy hot industry leader, it can be said that its franchise model and the supply chain efforts to build, can not be ignored.

The prospectus shows that franchised restaurants are the main source of income for Yang Guofu spicy hot pot.

Specifically, in 2019~2020 and January~September 2021, Yang Guofu Hot & Spicy's revenue from franchised restaurants will be 1.036 billion yuan, 1.056 billion yuan and 1.097 billion yuan, respectively, accounting for 87.6%, 94.8% and 94.3% of the total revenue, respectively, gradually increasing. Correspondingly, the proportion of self-operated restaurant revenue gradually declined, respectively, 1.4%, 0.7%, 0.5%.

It must be said that Yang Guofu spicy hot pot with more than 6,000 franchisees, almost lying to earn money.

On the one hand, earning the franchisee's franchise fee, but also do not need to pay for the rent and store labor costs; on the other hand, in accordance with the requirements of the franchise, join the restaurant to use the soup base, seasonings, etc. must be used in Yang Guofu hot and spicy hot pot own factory production of products. On this basis, Yang Guofu spicy hot also sells goods related to store operations to franchisees, including ingredients, equipment and so on.

Reflected in the data, in 2019 and 2020, Yang Guofu spicy hot pot "sales of self-produced goods" revenue of 298 million yuan and 320 million yuan, respectively, accounting for 25.2% and 28.7% of the revenue of the respective period; to the franchisee "sales of goods purchased from third parties", respectively, of 25.2% and 28.7%; to the franchisee "sales of goods purchased from third parties", respectively, of 25.2% and 28.7%. Goods" to franchisees, respectively, 679 million yuan and 680 million yuan, accounting for 57.4% and 61.1% of the revenue for the period. These two items alone accounted for nearly 90% of Yang Guofu spicy hot pot's overall revenue.

Source: Yang Guofu official micro

This means that Yang Guofu spicy hot pot is not involved in the actual operation of the franchised restaurant, more as a brand licensee and supplier of raw materials, the first exclusive "seasoning" to bind the franchisee, and then use this to sell non-exclusive other products --The company's main goal is to provide the best possible service to its customers," he said.

Compared to selling spicy hot, Yang Guofu spicy hot obviously more willing to do more profitable supplier, and only continue to open stores, sell more raw materials, in order to achieve continuous growth in revenue.

This is also reflected in the prospectus. According to the prospectus, Yang Guofu spicy hot pot plans to open no less than 1,000 franchised restaurants per year in 2022~2024.

Only, the franchisee is ultimately limited, the number of stores will eventually reach the ceiling, and the ability of the franchisee, the level of uneven easily bring food safety risks. Yang Guofu spicy hot pot supplier road, in the end, how far can go?

Yang Guofu spicy hot, food safety is a major problem that is difficult to bypass.

Enterprise search data shows that in the Yang Guofu spicy hot pot related risks in the column, only the associated enterprises sensitive public opinion reached 134, which is not lacking in "there are food safety issues," "was notified" and other words.

According to the official website of the State Administration for Market Supervision and Regulation, during the period of 2018-2021, Yang Guofu spicy hot pot has been ordered to suspend and rectify due to a number of violations.

According to a set of data released by the Beijing Consumer Association in January 2022, Yang Guofu Spicy Hot Pot ranked third with 17 stores in the ranking of the number of stores with food safety problems of different brands since the food safety inspection in October 2021.

Source:Yang Guofu official micro

Not only that, in the Sina black cat complaint platform, a large number of consumers complained that in Yang Guofu spicy hot pot when dining, ate worms, hair, plastic bags and other foreign objects, and even some consumers complained that Yang Guofu spicy hot pot harmed their own eat out of gastroenteritis.

For catering, food safety is a matter of life and death, not only will directly jeopardize the physical health of consumers, but also seriously damage the social reputation of enterprises. Standing in the perspective of capital, this means that the brand risk is too great, the investment safety factor is low.

By joining the crazy store, Yang Guofu spicy hot from the street bowl of spicy hot, closer and closer to the IPO. Just, want to enter the larger capital market, Yang Guofu spicy hot must be good to do some internal work.

Part of this article

Reference:

1. "Yang Guofu hot spicy hot pot behind the IPO: a northeastern family of" Takeoff?"

2. "Yang Guofu spicy hot sprint" spicy hot the first stock: spicy hot to eat can not afford? The first is the "Yang Guofu Spicy Hot": 15-year-old school dropout, 52-year-old impact listing", financial breakfast

4. "Yang Guofu Spicy Hot" franchisees are required to buy the company designated monitoring, or can not renew the contract? The first time I've seen this, I've seen it in a lot of different ways. ,Jiangsu News

Author | Wild Mist

Typesetting | 艺馨

Producer | Xiaoyuan

Outtakes | A Taste of Research