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Competition faced by Dicos

International brands include KFC, McDonald's and Burger King, while local brands include Wallace, which has more than 1, stores, Happy Star and Kalezi, which originated in Shanghai, and Wei Xiaobao, which specializes in fried chicken and hamburgers. In the sinking market, there are various scattered shops that have not yet formed large-scale development.

A few years ago, Dicos failed to make several strong attacks on the first-line market, and as a result, it was awarded the market evaluation of "surviving in the cracks". Nowadays, people are more willing to associate Dicos with young people in small towns, which is quite a bit of a must. In fact, whether it is a first-tier city or a small town youth, this is not Dicos' positioning for itself. Dicos has never defined itself like this.

221 is the 25th anniversary of Dicos. On September 12th, with the opening of the store in Wutaishan, Shanxi Province, Dicos, a western fast food chain brand, welcomed its 3,th store. At this point in time, Dicos put forward the brand 3. upgrade plan and the brand slogan of "wholeheartedly for you". While explaining the 3. plan, there are still many questions waiting for Dicos to answer: First-tier cities or sinking markets? Western-style fast food has lost its aura. What imagination does Dicos have? Can Dicos only survive in the cracks? New consumer brands are emerging one after another, and all kinds of "remodeling" are dazzling. How can Dicos keep the loyalty of users?

Consumer-oriented

The above problems all point in one direction: competition. However, the competition that Dicos values is different from the bustling competition in the industry seen by external market analysis.

Therefore, the core of the 3. plan is to take consumers as the core. From products to services to terminals to ways of communicating with consumers, Dicos has to repeatedly verify whether to put consumers first.

During the interview, Shao Xinmou repeatedly stressed that Dicos' biggest challenge lies in itself: whether it can be accepted and recognized by consumers in every era.

Dicos doesn't make a left-right choice between first-tier cities and sinking markets. This is because with the development of the times, consumers and consumption trends have evolved, and western-style fast food is no longer a scarce species, and it is no longer as high as before. Shao Xinmou pointed out that western-style fast food has become an economical national food, and in the Internet age, the cognitive gap between western-style fast food brands in first-and second-tier cities and sinking markets is not as good as before.

To dismantle Dicos' 3. concept of "consumer as the core", Shao Xinmou pointed out that, firstly, under the premise of rapid development of supply chain, brands should use various means to integrate the upstream supply chain more responsibly and bring products to consumers at a more cost-effective price. Secondly, it is necessary to develop products that satisfy consumers and provide services that satisfy consumers. Shao Xinmou said half jokingly, "Unlike clothes, you can only judge whether the fabric of clothes is good or not after washing for 1 times. Catering is a winning or losing business, and it is a process in which the sense of value such as taste and characteristics is immediately reflected."

furthermore, ensure the standard reduction degree. "The developed products can finally be 1% restored in every store." Shao Xinmou said that this is the biggest challenge. "Stores can restore 1% of products, and consumers can have the second and third repurchase." Therefore, before the new products of Dicos are rolled out nationwide, they will be tested in some stores to test the problems that the reduction degree of products will face in the complex and changeable real environment, and then they will be revised and adjusted continuously.

internal control management

there is also the embodiment of management ability behind this. Standardized management makes western-style fast food show stronger resistance in the face of the sudden risk of epidemic situation. According to the "Report on the Development of Chain Catering Industry in 221" issued by China Hotel Association, in the first quarter of 221, the market share of Chinese fast food in the whole fast food was over 85%, while that of western fast food was less than 15%. However, in the first quarter of 221, the number of western-style fast food stores increased by 19.6% compared with two years ago, while the number of Chinese fast food stores decreased by 1.3%. Moreover, at present, Chinese fast food has only reached about 5% of the level in 219, while the business situation of western fast food in the fourth quarter of 22 has increased by 38% compared with 219. The report points out that most western-style fast food enterprises have stronger ability to overcome the crisis because of their perfect operation mode.

the management of terminal stores is very important. Dicos divides the national market into 8 business divisions, and each business division is responsible for the management of about 5 stores. Compared with the current catering industry, where the brand and the dealer are in charge of the product buyout relationship, and the dealer is responsible for the location and management of the store, all the franchised stores of Dicos are supervised and inspected by the headquarters.

"Any questions raised by consumers need the brand to pay the bill." Shao xinmou said. Among them, Shao Xinmou particularly emphasized Dicos' cultivation of store managers. "If there is no suitable manager candidate, this store would rather not open." In Shao Xinmou's view, if a store is compared to a car, the manager can't meet the requirements, just like a driver without a driving license is driving on the road, so Dicos attaches importance to the cultivation and management of the manager.

Dicos stores upload a set of food safety test results required by headquarters to the cloud every day, which is part of Dicos' concept of "strong platform and heavy management". Shao Xinmou pointed out that consumers' trust is very important. "Today, consumers come to stores to spend money, and some of them are paying for their trust in you. If we don't have the ability to manage more stores, we won't rush to open stores, otherwise the stores that don't have the ability to take care of them will eventually bite the whole brand. Shao Xinmou said this.

At present, it is often difficult to recruit and employ workers in terminal stores. Therefore, Dicos is also improving its management by means of science and technology, such as introducing automatic supervision equipment to supervise food safety.

besides strengthening management, Dicos is also adjusting and optimizing the current store layout. Shao Xinmou said that it is normal for a store to open a store. The reason is that the location of the store is unchanged, but the location of the business circle has been changing. Therefore, the store should be adjusted with the adjustment of the business circle, especially under the premise of the current online takeaway. The layout of the previous stores should also be optimized to ensure the temperature and freshness of the products when the takeaway is delivered to customers.

At present, the franchise ratio of Dicos stores has reached 85%. Regarding the expansion rhythm of the next stores, Shao Xinmou pointed out that it will increase by 4-5 stores every year.

entry and exit

Dicos originated from Texas in the south of the United States, and was acquired by Dingxin Group in 1996 to introduce crispy fried chicken. At that time, KFC had accumulated more than 1 stores in China. At the beginning, Dicos chose to enter the market and compete with KFC and McDonald's. The group gave 5 million US dollars to support Dicos to confront the two giants in first-tier cities such as Beijing, Shanghai and Guangzhou. However, due to the high cost, Dicos failed to tear open a hole for its own survival in the above cities, so it chose to switch to second-and third-tier cities.

Then in 25, Dicos announced that it would join the first-line market again, and planned to open 6 stores in Beijing before 28, but it didn't splash too much. Then, Dicos no longer attacked the front line in this radical way, but opened a store in a low-key way. In the past year, Dicos opened nearly 5 new stores, and now it has exceeded 2 stores in the north, Guangzhou and Shenzhen.

Shao xinmou did not shy away from the market evaluation of Dicos in several first-tier cities. He said, "It is undeniable that Dicos did experience some challenges in the process of development, but now when we are developing at a more stable pace, we go back and sum up that the recognition from consumers has helped Dicos stabilize its foundation."

competition is inevitable, and so is the comparison from friends and businessmen. By the end of 22, Yum! China had more than 7, KFC restaurants and 3,7 McDonald's stores. In the face of peers like KFC and McDonald's, Shao Xinmou sees it this way. "Learning is more than competition." Shao Xinmou said that within the team, they often say that it is precisely because the peers have opened up a track like Western-style fast food in China, making the cake bigger, promoting the maturity of the market and improving the supporting industries. Moreover, there is no denying the achievements made by the peers, so Dicos needs to learn, accumulate experience and constantly adjust itself.

going back to the competition problem mentioned at the beginning of the article, Shao xinmou concluded that Dicos is competing with consumer satisfaction. Shao Xinmou said that the supply chain level of western-style catering has actually matured enough, and the current capabilities of major brands in resource integration are similar, so in the end, we have to return to the content of the brand itself.

"No matter how much volume and traffic there is in marketing, the sales volume that can be brought in the end is the real thing." Shao Xinmou said this. Therefore, in the "game" chosen by Dicos, there are his past, present and future self, and he is examining whether every step he takes conforms to the consumer-oriented guidance.