Zebra Consumption Shen Tuo Who is the first Chinese fast food chain to win?

The fellow chicken launched a sprint.

Shu Congxuan Chicken, a veteran, entered the catering industry by the way. With a bowl of chicken soup, he became the most special player in the segment. The highly cost-effective social marketing has repeatedly made breakthroughs, helping Laoxiang Chicken become the industry leader with 1,073 stores.

However, the nationalization of Laoxiang Chicken got off to a bad start. Since 2017, it has opened 400 stores in Hubei, Jiangsu, Shanghai and other places. However, all six major overseas markets suffered huge losses, with a total loss of 163 million yuan.

The company still plans to use the IPO to raise funds to open 700 new stores in key cities in other provinces and build its East China headquarters in Shanghai.

Can bucking the trend and promoting nationalization help the company make another leap forward?

Starting in Anhui, compared to the meat-eating in northern Anhui and the inheritance of Anhui cuisine in southern Anhui, Hefei in central Anhui is much inferior in food culture.

There are not many hard dishes that locals can cook, and chicken soup is one of the best.

Therefore, there is a local saying, "From Feidong to Feixi, I bought an old hen" (Feidong and Feixi are both counties under the jurisdiction of Hefei).

Say this sentence in Hefei dialect, with a rhythm and a unique flavor.

In 1982, 20-year-old Shu Congxuan retired from the army and returned to his hometown of Feixi County, Hefei, Anhui Province. He used the wedding money saved by his parents to invest in chicken raising.

Two years later, he was awarded "Hefei City Advanced Self-employed Person".

Later, he discovered opportunities in the catering industry and took advantage of his raw material advantages to join the industry.

In October 2003, the first "Feixi Old Hen" store opened on Shucheng Road, Hefei, and its signature dish was "Feixi Old Hen Soup".

Before the store opened, Shu Congxuan considered the issue of standardized copying and spent nearly a year personally formulating six business manuals, covering production, procurement, service, store opening, hygiene, etc.

Just in Hefei, in addition to Feixi Old Hen, there is also Feidong Old Hen, which was founded in 2008. Both the store shape and product line are exactly the same as the early Feixi Old Hen.

Two old hens started a city derby with almost the same business model and maintained it in Hefei for a long time.

There are quite a few people in Hefei who prefer to go to Feidong Old Hen Chicken to get their three meals a day.

Later, Feidong Old Hen was renamed "Zheng Xiaowan".

In June 2005, Feixi Old Hen ushered in its first leap in development history.

Hefei Innovation Investment, a subsidiary of Hefei State-owned Assets Supervision and Administration Commission, invested 2 million yuan in the company, holding 50% of the shares.

In fact, this is more like an aid with clear shares and actual debt.

The two parties agreed that after two years the founder could repurchase the shares at a minimum price of 2 million yuan. From then on, Shu Congxuan enjoyed the independent management rights of Feixi Old Hen; the company paid an annual dividend of 400,000 yuan.

Sure enough, in 2007, Hefei Innovation Investment withdrew after receiving a dividend of 400,000 yuan, and the shares were transferred to Shu Xiaolong, Shu Congxuan's son.

After two years of critical development, Feixi Old Hen returned to the hands of the Shu Congxuan family.

Hefei's reputation as the "City of Venture Capital" has only become popular in recent years.

In fact, many years ago, this city has been supporting the development of local enterprises through capital - the rise of Feixi Old Hen can be regarded as a successful angel investment.

All this seems to indicate that Shu Congxuan's Feixi Old Hen is different from other chicken soup snack bars.

Upgrade In 2012, Feixi Laohen Chicken underwent its biggest upgrade since its establishment and was renamed "Laoxiang Chicken".

Eliminate the regional nature of the name, get rid of the "earthy flavor", and establish a new brand that is straightforward, smooth, approachable, and has outstanding product features.

The company has changed its new store design language, using fresh green as the main color instead of the original red. It has changed the assembly style that followed the Chinese fast food imitation era and adopted a modern and simple style that young people prefer.

The product line has been enriched, from chicken soup snacks to Chinese fast food, and more efforts have been made to highlight the competitiveness of large single products, such as its core product Feixi Old Hen Soup.

In terms of business model, Shu Congxuan injected his chicken raising business into the catering landscape and established a full industry chain business system covering hen breeding, food processing and catering chains, integrating "first + second + third industry"

Chemical management.

Thanks to this series of operations, Feixi Old Hen has transformed from a local snack bar into a Chinese fast food chain giant.

By the end of 2016, Laoxiang Chicken had more than 350 directly-operated stores in Anhui.

In this process, the company completed the fading out of the first generation and the succession of the second generation. Shu Congxuan’s son Shu Xiaolong and others came to the stage.

After several years of ups and downs, Laoxiangji founders Shu Congxuan and Zhang Qiong no longer hold shares in the company. Their son Shu Xiaolong, his daughter Shu Wen, and daughter-in-law Dong Xue directly and indirectly hold a total of 91.31% of the company's shares.