The business of making money really has no difference between big and small.
I wrote about Babi Food, which is listed on the market with a small business of steamed buns of 2 yuan (reviewing the article, " can make 1 billion "), and after listing, it has hit the daily limit for 8 consecutive days, and now the total market value has exceeded 8.8 billion yuan.
Zhongjing Food, which makes mushroom sauce, has landed on the GEM with a market value of more than 7.7 billion yuan.
There is also "the number one hot spot" Wei Long, who plans to go public in Hong Kong this year.
These inconspicuous small foods contain huge business.
However, some people just don’t follow the ordinary path.
Zhengxin Chicken Steak . Currently, there are more stores nationwide than KFC +McDonald's , but not to mention going public, there is not even a financing plan so far.
How does Zhengxin Chicken Steak be so confident and not make money by relying on the capital market? Let’s talk about it today.
small business that earns 10 billion yuan a year
What three things did you do right?
During the epidemic, many catering industries have been dead for life, but Zhengxin Chicken Chop is an exception to the expansion against the trend.
Don’t look like a small shop. Zhengxin Chicken Chop has been working hard for 20 years. The number of stores alone is the well-deserved " sinking market chain catering NO.1".
As of mid-2020, the number of Zhengxin Chicken Chop stores nationwide has reached 2,030 , three times that of KFC China and 7 times that of McDonald's China.
Even in April last year when the epidemic was raging, Zhengxin Chicken Chop insisted on opening nearly 600 stores.
Why can Zhengxin Chicken Steak be so confident? Because they did three things right.
First, choose the right category.
Food is the most important thing for people. There are so many snacks in China that they cannot count. However, if you want to say the most popular one is fried chicken.
After all, everyone has been bombarded by KFC and McDonald's advertisements for many years, and has long cultivated consumption habits.
Therefore, in all Chinese food supply chains, chicken is the most mature in the country.
From food safety standards, to breeding, production, processing, cold chain transportation , warehousing to stores, and then to supporting supply service providers, chicken has a mature and complete upstream and downstream chain.
has mature supply chain support, which means that the product quality is relatively stable, the model is easy to replicate, and it is also the basis for large-scale store opening.
So, it is relatively simple to do the fried chicken business.
Generally, fried chicken is a semi-finished cold chain to the store, and then fry it with powder. It is easy to operate and can be completed in just 1-2 people.
In this way, the raw materials are easy and labor costs are not expensive, so the fried chicken shop has opened all over the streets and alleys.
, choose the right business model. Although there are more than 20,000 stores in
Zhengxin Chicken Chop now, it has been established for 20 years and its rapid expansion has only been concentrated in the past five years.
Why?
Because Zhengxin Chicken Steak opened the franchise system in 2013.
Before, Zhengxin Chicken Steak spent 13 years to open nearly 1,000 direct snack bars nationwide.
Since 2013, Zhengxin Chicken Steak has gradually entered a period of brand expansion.
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Ordinary people who hold hundreds of thousands of people who plan to do some small business will naturally choose to open a snack bar.
With a low franchise fee of 80,000 to 100,000 yuan , Zhengxin Chicken Chop Store has quickly opened nationwide. As of May 1, 2020, the total number of stores was 21,426.
In addition to the low franchise fee, Zhengxin Chicken Chop also builds its own supply chain platform.
From breeding, production, processing, cold chain transportation, warehousing to stores, and then to supporting supplier services, Zhengxin’s supply chain not only provides one-stop solutions for franchisees, but also provides supply chain ecological services for other brand restaurants.
Zhengxin’s food supply chain currently serves more than 28,000 stores, and the annual sales of reached more than 10 billion yuan .
, selected the right consumer group.
According to a senior snack supplier, "0 yuan is completely different from the consumer group of 15 yuan. "
So, Zhengxin chicken chops are targeting the consumer group at a price of 10 yuan.
The new iconic " Chicken Steak + Sour Plum Juice " set, the promotion strategy is "the original price of chicken steak is 12 yuan, the current price is 10 yuan, and you can get 5 yuan sour Plum Juice".
Moreover, most of the stores of Zhengxin Chicken Chowder are in crowded areas such as snack streets, train stations, school business districts, and main township streets. Dining in is not provided, and it is generally a stall store of about 8 to 30 square meters.
seems inconspicuous, but it has truly covered the sinking market and firmly grasped the stomachs of young people in the town. Chen Chuanwu, the founder of Zhengxin Chicken Steak, also said that Zhengxin is just ", earning a difference in chicken chops ".
not following the ordinary path
can really outperform?
Generally speaking, if a brand develops to a certain scale, the conventional way is to raise funds and go public.
However, Chen Chuanwu, the founder of Zhengxin Chicken Steak, attaches more importance to the word "stable ". After 20 years of development, the keyword is still to open a store.
Chen Chuanwu’s ideal goal is to open 50,000 stores .
Chen Chuanwu said in an interview with the media that one of the reasons for firmly following the route of large-scale expansion is that he has a premonition that the proportion of catering chains will become higher and higher.
"For Zhengxin, we must use scale to solve the logistics supply chain problems of low-cost and large-scale production."
In other words, Chen Chuanwu will not send Zhengxin chicken steaks to the market for the time being, but wants to further deepen, consolidate and consolidate the "moat" of the supply chain.
However, whether it is on the market or not, it will face a problem: only has one or two big items, how can you fight the bloody path?
Expanding the category is basically one of the ways that cannot be escaped.
Therefore, Zhengxin Chicken Chop has launched the "Forest Plan" strategy since 2018. In addition to the main brands, it has incubated sub-brands of new categories such as hand-crank tea, hamburgers, roast duck necks, dumplings, snail noodles, etc.
However, the new products are still price band no more than 10 yuan. The purpose is not to "become the circle", but to deepen the same type of consumer group.
Zhengxin Chicken Steak is not busy with brand upgrading, but is holding on to the treasure land of the sinking market and not letting go.
Of course, Zhengxin has also tried to open up e-commerce retail channels on platforms such as WeChat, Tmall and other platforms, and sells brand hand-pie cakes, pancakes, seasoning packages, braised snacks and other products.
However, " sales contribution is not obvious ".
Now, the post-90s and post-00s have become the mainstream consumer group. You can order a takeaway with just a finger. You only focus on opening offline stores. Whether Zhengxin chicken chops can still pass the online market is still a question mark.
written at the end
In fact, Zhengxin Chicken Steak has also begun to get anxious.
Starting from 2020, Zhengxin chicken chops have increased from 12 yuan to around 15 yuan.
is estimated to be two reasons.
One is that the raw materials are expensive, and the previous price can no longer guarantee the profitability of the store. Second, Zhengxin needs to upgrade the brand.
However, any brand that wants to upgrade and transform will be a test of consumer loyalty. If you get the exam correctly, you will be successful in upgrading and fighting monsters. If you get the exam wrong, you will probably suffer heavy losses.
But, every day, what is not a choice?
The key is that before choosing , you must think carefully.
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