In the fertile soil of Greater Fujian, two major catering miracles were born.

One is Shaxian Snacks, the light of national cuisine that opened a store in the United States;

The other is Wallace, the evangelist of Western fast food in China.

You may have never eaten it, but why does Brother Dao say that Wallace is a catering miracle?

It has been criticized as a "laxative" by countless people;

On the other hand, he is also known as the "Eternal God".

Word of mouth is extremely polarized, but none of that matters.

There is a terrible fact: in China, the number of Wallace stores has reached 14,000 this year, more than McDonald’s and KFC combined!

McDonald’s Distribution Picture (3383 stores in mainland China)

KFC distribution map (6534 stores in mainland China)

Wallace distribution map (2019 data: 12,000 stores)

In your Wallace, who is considered "trash" in his eyes, is much more powerful than you think.

1

Wallace: The Miracle of Western-style Fast Food in China

The story can be told from 30 years ago.

Around the 1990s, KFC and McDonald's opened the door to my country successively and occupied half of the domestic fast food industry in a short period of time.

In 1994, Dicos, which also sells fried chicken burgers, was born, firmly establishing itself as the third most popular Western fast food company.

It was not until 5 years later, in 2001, that the latecomer Wallace opened the first store in front of Fuzhou Normal University. The founders are two brothers, Hua Huaiqing and his elder brother Hua Huaiyu.

At that time, they were thinking: "If Wallace can open 20 stores in China like KFC in the future, then each of them will buy a Jetta!"

It's not just him. The two smelled the smell of "money", and there were many business wizards who wanted to get a share of the pie.

But only Wallace fought his way out and eventually became a listed company.

Only Wallace can make McDonald's and KFC tremble.

In the "China Catering Report 2018" released by a professional catering research organization, Wallace's total order volume ranked first on all platforms!

Squeezed out by Wallace Who are the second, third, and fourth children who are going down?

They are McDonald's, KFC, Dicos, and Zhengxin Chicken Steak.

Wallace's success is first of all due to the foreign name of Wallace, which calmed the whole village.

When I saw Wallace, those who didn’t know it thought it was a foreign brand, but in fact, it is an authentic local brand like California beef noodles in the United States.

But just having a foreign name is not enough. Wallace’s decisive battle was when he defeated Dirks.

Not long after they opened, Dicos opened diagonally across the street.

Faced with a strong enemy, Fahrenheit Brothers decided to go all out and launched a "Special 123" promotion, which offered 1 yuan for Coca-Cola, 2 yuan for chicken legs, and 3 yuan for hamburgers.

In KFC, you can only buy a box of fries for ten yuan, but in Wallace, you can buy 3!

In fact, the price reduction at the beginning was opposed by many people around :

"You must not lower the price. Hamburgers should be sold so expensive. This is how everyone sells them."

As a result, the turnover on the third day doubled several times. Hualai's There was a line of people lining up at the gate.

Just like that, Wallace became popular.

By 2013, Wallace’s annual revenue reached 670 million. In 2014, the number of stores reached more than 4,800, surpassing KFC in number for the first time!

At the end of 2017, there were 9,000 stores, half more than KFC. Wallace made a perfect counterattack!

Wallace has finally successfully grown into China's largest Western-style fast food chain brand.

By 2020, Wallace’s territory has occupied all over the country, and McCann’s two mainland stores combined are not as many as it.

Picture source "Catering Brand Observation"

How does this crazy Wallace play?

2

While scolding It is a "black shop",

while crying for injustice

There are many rumors on the Internet about Wallace.

Some people ridiculed that there is a 10 McDonald's difference between Wallace and KFC;

Some people directly named Wallace as a blacklist, and even called him a "dirty store";

On Zhihu, Tieba, and Weibo, the topic of eating Wallace's sparseness has been discussed in full swing.

What’s even more terrible is that Wallace has transformed into a folk remedy for constipation.

There is one thing to say, whether it is quality, taste innovation, reputation, or service, Wallace cannot compare to McCann.

But it doesn't matter, Wallace has a mysterious power that can make people call it a "black shop" and cry out for injustice at the same time.

Because Wallace is so cheap! It is simply a price killer and is known as the "Lucky of the fast food industry."

In McDonald's and KFC, delivery fees start at 9 yuan, but in Wallace, afternoon tea is 5 yuan 9 for an afternoon tea, and two burgers are 4 yuan 8, which are magical products.

Some people say that they only eat it because it is cheap. If it is free, they can eat it until they go bankrupt.

Only magic can defeat magic.

Then the question is, why is Wallace so cheap? Isn’t he going to be ruined?

Don’t look at Wallace selling so cheaply, but when it comes to being “stingy”, who can It can't be compared to it.

1. Choose the cheapest location

KFC stores are mostly located in urban commercial centers, places with large flow of people, good location, and large store area.

In order to avoid competition, Wallace avoided places with large flow of people and chose stores in cities below the third and fourth tiers. The store area is also smaller than KFC, so rent, decoration, The cost of utility bills is also lower.

Many Wallace stores don’t even have ovens and only use microwaves instead.

2. Choose the cheapest raw materials

Wallace’s products themselves are very low cost.

More flour, less meat. Take chicken popcorn as an example. The flour ratio is about 30-40, while KFC’s is 10-20. Eat a Wallace double chicken drumstick, where more than half of the fried chicken drumsticks are made of flour.

As for the chicken, where KFC usually uses chicken legs, Wallace will choose chicken breasts, and the price is quite different.

KFC on the left, Wallace on the right

Individual fried chicken wings and fried chicken legs do not have strict weight standards like KFC. Wallace's are generally smaller than KFC's.

Not only does it save materials, it can be made by oneself and will never make money for others.

Wallace owns more than a dozen bread production companies. In addition to supplying Wallace's needs, these bread factories also sell bread to others.

Think about it, you would never guess that the bite of bread you accidentally eat one day might come from Wallace.

Wallace can earn 500 million a year just by selling bread.

3. Never advertise or ask for endorsements

KFC’s advertising on TV and the Internet has taken off, and its spokespersons have changed one after another. With these huge marketing expenses, Hualai There are basically no scholars, and it never asks for endorsements.

Although the product is really average, everyone is very tolerant of it:

In this era where pancakes and fruit start at five yuan and milk tea costs more than ten yuan, ten coins can be exchanged for it. Three Wallace's burgers, what more bicycles do you need?

3

Wallaces, are you really "low"?

Looking back Come on, in addition to low prices, the smartest thing Wallace did is:

Choose third- and fourth-tier cities to avoid becoming the "dead soul" of big brothers such as KFC and McDonald's.

Although Wallace has now blossomed across the country, it still cannot get rid of the labels of "low" and "cottage".

But there is an interesting phenomenon. When the "low" Wallace wanted to go to a first-tier city to make a breakthrough and have a confrontation with Big Brother, he did not expect that before this day, Big Brother came down. It has sunk into the eighteenth-tier cities.

Not only KFC and McDonald’s, but also Haidilao, Starbucks, and Heytea are all seeking to sink the market.

But they all met with failure.

In August this year, KFC officially opened its first small-town model store in China. However, Ele.me’s takeaway shows that in the three months since its opening, users have generally reported that the price is high and unaffordable.

When Haidilao opened its store in Shiqi, Zhongshan, Guangdong, it was very popular at first. But after a period of freshness, it became less popular than first- and second-tier cities.

As can be seen from Dianping, many consumers commented that it was expensive, the portion was small, and they were not full, etc.

In early July, Heytea opened its first store in Changsha, Hunan, but few people visited it. Facing the 500-meter-long Changsha with its beautiful tea, HeyTea is really no match.

Many catering companies will think that expanding into third- and fourth-tier cities is like a top student in the city competing against candidates in the county.

But if this were the case, these giants would not have such a headache.

Doing catering in county towns is different from developed first- and second-tier cities. It has its own unique business experience.

Many people say that Wallace is a copycat, but in this way, Wallace has also developed his own characteristics.

At the beginning, China was still groping for its foreign fast food. No foreign fast food brand would sell a whole chicken, and KFC only sold chicken legs and wings.

Wallace spotted this business opportunity and combined it with Chinese tastes to create the first roasted whole chicken with honey sauce, which only costs 19 yuan.

After the launch of this roasted chicken, many consumers flocked to it. Even KFC imitated Wallace and launched a roasted whole chicken for 149 yuan. However, netizens were persuaded by the price and said: bother. !

Another example is Mixue Bingcheng and Zhengxin Chicken Steak. These two very typical sinking kings are strong in using low prices to enter the sinking market.

As the founder of Wallace said: "Since McDonald's is consumed by ordinary people in European countries, then why don't we at Wallace make "affordable burgers" that the Chinese people can afford? What?"

So, if you want to make money in the sinking market, you still have to study some so-called "low" methods and make them perfect.

When you make money, do you still think it is low?

Conclusion:

But how long can Wallace remain popular?

Some people predict that it will definitely decline in the next 5 to 10 years.

Such a prediction is not groundless.