For catering giants, expanding the market is inevitable, not just Haidilao and Xibei . In the past few years, some first- and second-tier brands have also gradually moved to the downward market, but they are basically concentrated in the city centers of third- and fourth-tier cities, that is, the population must have a certain scale. But it will be basically difficult to sink further, or the time has not yet come.
People who are concerned about catering should also find that when they return to their hometown, there are also some small-scale chain stores in their hometown, but they are basically some chain restaurants made by locals. The largest store is only 20 or 30 stores, and it is open in a concentrated area in surrounding towns. Large chain restaurants, including tea drinks, are rarely, or they go bankrupt after opening. Why?
There are several factors in this.
First, the taste factor, people in towns are basically locals, and basically have no or rarely leave their own city, so the taste can only be used to local dishes. Other foreign products can either be retained after improvement or are difficult to accept by local people, so don’t say they are consumed. For large chain restaurants, products and tastes are unified, and there is no way for a town to provide a taste.
Second, the distribution problem, the advantage of large chain catering lies in unified procurement and unified delivery, which improves efficiency and saves costs. The first distance between towns is far, and the second is difficult to concentrate. A town may open a store at most, and the distance between towns may be dozens or hundreds of kilometers. Even if a warehouse is established to improve distribution efficiency, planning from return on investment is not cost-effective. A warehouse and a vehicle are both a considerable investment.
chain catering has a characteristic, which is to open stores in a cluster. Some chain brands in Guangzhou have a high population density, have this demand and this market, so they may be able to open two stores within 100 meters, so the delivery cost is very low. The population density of townships is low and there are few business districts with crowded streams, so it is difficult to achieve clustered stores.
3, high management cost. Unlike the city, townships are convenient for transportation. Your management staff can easily patrol. It is no problem to check five or six stores a day. However, townships may travel back and forth in a day, which is only enough to check two or three stores, and the cost is much higher.
Personally believe that the most important factor is the taste problem, even if you are willing to pay for this transportation cost and management cost. If customers don’t accept your products, and if the products cannot be sold, it will be useless.
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