The turnover rate continues to decline. How long can the story of Green Tea Restaurant be told?
source | Manager Media's "Manager" magazine
full media reporter/He Wenwen
source/public account
Green Tea Restaurant parent company Green Tea Group Co., Ltd. (hereinafter referred to as "Green Tea Group") is about to go public. On April 8 this year, Green Tea Group submitted a prospectus for listing on the main board of the Hong Kong Stock Exchange. In just three days, it passed the listing hearing on April 11. It is worth noting that this is the third time Green Tea Group has submitted a listing application. As early as March last year, Green Tea Group submitted its listing application to the Hong Kong Stock Exchange for the first time. However, now that four months have passed, it is still unknown whether Green Tea Group can successfully go public.
From an Internet celebrity restaurant that was once the king of queues, to a table turnover rate of only 3.23 times per day, Green Tea Restaurant, which has lost its Internet celebrity effect, now plans to open 275 more restaurants in three years! However, the passenger flow and table turnover rate have declined, the average cash investment payback period has been extended, and food safety incidents have occurred frequently. Under various unfavorable factors, how should Green Tea Group impress investors?
The average cash investment payback period is extended
The prospectus shows that Green Tea Group was established in 2008. Green Tea Group's most well-known catering brand, Green Tea Restaurant, originated from the Green Tea International Youth Hostel founded by Wang Qinsong and Lu Changmei in 2004. It also provides affordable meals for backpackers. In 2008, the two opened the first green tea restaurant in Hangzhou. After the establishment of
green tea restaurant, it once became a popular target among consumers. It integrates Cantonese cuisine, Shandong cuisine, Sichuan cuisine and other local cuisines. It has a wide variety of dishes and the per capita consumption is about 60 yuan. Its high cost performance has become a label of Green Tea Restaurant. Coupled with the location in a shopping mall, the rather classical art decoration, and the comfortable and clean dining environment, Green Tea Restaurant has become the choice of many urban white-collar workers. When it first opened, Green Tea Restaurant was the king of queues. Nowadays, during holidays, you can still see many consumers queuing up at the door. However, from the perspective of business performance and various key performance indicators, the growth of Green Tea Restaurant is slightly weak.
From 2019 to 2021, Green Tea Group achieved revenue of 1.736 billion yuan, 1.569 billion yuan and 2.293 billion yuan respectively, and net profits of 106 million yuan, -55 million yuan and 114 million yuan respectively. Among them, the catering industry was hit hard by the epidemic in 2020, and Green Tea Group was no exception. Its net profit in 2020 dropped by 161 million yuan year-on-year, a decrease of 151.89%. By 2021, revenue and net profit have recovered.
From the perspective of regional sales revenue, Green Tea Group’s revenue mainly comes from East China, Guangdong Province, North China, and other regions. In 2021, the revenue proportions of these top three regions are 27.0%, 28.3%, and 26.4% respectively. Others Sales revenue from regions is slightly smaller, accounting for only 18.3%.
At the same time, during the reporting period, the key performance indicators of the three regions that contributed significantly to the company's revenue showed an overall downward trend. In 2019, the overall average daily sales of each store was 32.4 thousand yuan. In 2020, it fell to 23.0 thousand yuan due to the epidemic. It recovered in 2021, but it was still 4.3 thousand yuan less than in 2019, at 28.1 thousand yuan. Specifically, Guangdong Province has seen the biggest change. The average daily sales per store decreased by 9.2 thousand yuan from 40.0 thousand yuan in 2019 to 30.8 thousand yuan in 2021, while in East China it dropped by 4.9 thousand yuan from 31.1 thousand yuan. Yuan to 26.2 thousand Yuan, while in North China it decreased by 4.4 Thousand Yuan.
Judging from the table turnover rate, the table turnover rate of green tea restaurants has also declined. From 2019 to 2021, the table turnover rates were 3.34 times/day, 2.62 times/day, and 3.23 times/day respectively. In 2015, Wang Qinsong, the founder of Green Tea Restaurant, said in an interview with the "China Chain" media that "Green Tea Restaurant turns over 4 times a day to maintain capital, and the maximum is 7 times." However, judging from the current trend, the turnover of Green Tea Restaurant It is difficult to return to the glorious moment. After the catering industry was hit hard by the epidemic in 2020, as epidemic prevention and control has become normalized, people's willingness to shop in stores has declined. The average number of guests per restaurant per day at Green Tea Restaurant is also declining from 650 in 2019 to 535 in 2021. The decrease in the average daily number of guests will naturally prevent the table turnover rate of each restaurant from increasing.
Not only that, Green Tea Restaurant also faces the problem of extended cash investment payback period.According to the prospectus, the average cash investment payback period for restaurants opened in 2018 and in operation as of the latest practical date is 17.5 months. The average cash investment payback period for Chinese restaurants opened in 2019, 2020 and 2021 and operating as of the latest practicable date is 29.1 months. Green Tea Group explained that the main reason for the extension of the average cash investment payback period was the negative impact of the epidemic on business operations during the same period.
For the capital market, the shorter the investment return period of and , the better. From 17.5 months to 29.1 months, the average cash investment payback period of restaurants has been extended, which increases the risk for investors. Moreover, under the butterfly effect of the epidemic, unfavorable factors for the development of the catering industry are increasing, which is a potentially huge risk for Green Tea Group.
75 new restaurants opened in 63 years, can they bring economies of scale?Currently, as of the Latest Practicable Date, Green Tea Group has a total of 240 restaurants covering 18 provinces, four municipalities and three autonomous regions in China. According to Green Tea Group’s plan, 75 to 100 new restaurants will be opened every year from 2022 to 2024.
Judging from the regions where restaurants are distributed, newly opened restaurants are mainly concentrated in second-, third-tier and lower-tier cities, and Green Tea Group expects in its prospectus that new restaurants will reach breakeven for the first time within one to five months, and investment recovery The average period is 18 months. Restaurants that have been opened or will be opened in 2022 will also achieve their first break-even and investment recovery within this time.
Judging from the operations of newly opened restaurants from 2019 to 2021, Green Tea Group opened 60, 23, and 59 new restaurants respectively. During the same period, 58, 66, and 44 restaurants recorded losses, while Most of them are newly opened restaurants. However, the epidemic has been recurring, and there is a possibility of an outbreak in various regions at any time. Emergency situations such as the suspension of dine-in dining and the inability of stores to operate normally may occur at any time. Against this background, can the operation of newly opened restaurants successfully achieve the expected results?
Green Tea Restaurant specializes in fusion cuisine and is cost-effective, so its per capita consumption basically remains at around 60 yuan, and the per capita consumption did not change much during the reporting period. From 2019 to 2021, the raw materials and consumables used in restaurant operations accounted for approximately 37.2%, 38.0%, and 36.9% of total revenue respectively, accounting for a relatively large proportion. However, as the prices of agricultural products such as meat and vegetables increase, the cost of raw materials may further increase. At the same time, Green Tea Group’s operating profits may be further squeezed.
Food safety incidents occur frequently
In 2020, the topic of #GreenTeaRestaurantWaiter grabbing vegetables with bare hands before serving the food# has aroused heated discussions among netizens and consumers. According to Beijing News report, a green tea restaurant store in Shijiazhuang was exposed to food safety issues, and the local supervision and administration department also intervened in the investigation. In the prospectus book, Green Tea Group also describes this.
In addition, in 2021, according to a food safety supervision and sampling information notice (Issue 44, 2021) issued by Zhejiang Provincial Administration for Market Regulation , among which, Tibetan Green Tea Catering The Hangzhou Jingtan Road Branch of the Management Co., Ltd. processed homemade spicy and sour sting jellyfish (production date/batch number: 2021/9/13). The residual amount of aluminum (calculated as Al in ready-to-eat jellyfish) was detected as 724 mg/kg. , the standard stipulates that it is no more than 500mg/kg.
In response, the Hangzhou Jingtan Road Branch of Tibet Green Tea Catering Management Co., Ltd. raised objections to the inspection results and applied for re-inspection. After re-inspection by the Zhejiang Provincial Food and Drug Inspection Institute, the initial inspection conclusion was maintained.
It is understood that aluminum-containing food additives can be used as leavening agents, stabilizers, anti-caking agents and dyes. In the process of jellyfish processing, a large amount of salt and alum (sulfuric acid) are also required. Aluminum potassium ) salts fresh jellyfish to dehydrate them in large quantities, and at the same time prevents the jellyfish from rotting. The main toxicity of aluminum is neurotoxicity, reproductive and developmental toxicity, and it is not carcinogenic. Whether eating aluminum-containing foods is harmful to the human body is closely related to its quantity and the length of time it is eaten.
In September 2020, according to the notice on the unqualified conditions of 6 batches of food issued by Anhui Provincial Market Supervision Administration (Issue 35, 2020), the Hefei Branch of Tibet Green Tea Catering Management Co., Ltd. For the seabass on sale (freshwater fish), the detection value of enrofloxacin (calculated as the sum of enrofloxacin and ciprofloxacin ) is 273 μg/kg, and the standard stipulates that it is not more than 100 μg/kg.
It is understood that enrofloxacin belongs to the fluoroquinolones, a class of synthetic broad-spectrum antibacterial drugs, and is an animal-specific drug. The maximum residue limit in the muscles and fat of cattle, poultry and other animals is 100 μg/kg. , banned in laying hens (cannot be detected in eggs). Long-term consumption of foods with excessive enrofloxacin residues may have a certain impact on human health.
In the catering industry, food safety incidents have attracted particular attention from consumers. The repeated food safety problems of Green Tea Group also remind companies that they need to further strengthen the control of food quality and hygiene issues in the production and operation process to ensure that consumers health and safety.
Creative fusion dishes and affordable prices are the characteristics of Green Tea Restaurant. Since its opening, Green Tea Restaurant has become popular with its signature dishes such as bread, green tea roasted chicken, and stone pot chicken soup with tofu. However, with the popularity of fashionable fast food and the development of the catering industry, the Internet celebrity effect of green tea restaurants has also weakened. Under the influence of the epidemic, the catering industry is struggling. With the decrease in customer traffic, the decline in table turnover rate, and the extension of the average cash investment payback period of restaurants, can Green Tea Group still impress investors?
If copyright is involved, please inform us to delete it. We remain neutral about the opinions in the article
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-