Source丨Chuangyebang (ID: ichangyebang)
Author丨Xie Xuan
Editing丨Haiyao
Picture source丨Dad Xiong official website
In early 2021, Liu Junxiong met Wang Xing as he wished in a hot pot restaurant in Beijing.
As the founder of the current dumpling brand Xiong, Liu Junxiong is full of expectations for this meeting. Although before this, seventy or eighty investors had extended olive branches to him, and some even gave a offer that was more than twice as high as Meituan , hoping to participate in Mr. Xiong's A round of financing.
But in Liu Junxiong's mind, seeing Wang Xing is much more important than valuation. "This is the power of idols. Everyone says that Jack Ma , Wang Xing, Zhang Yiming is so awesome, but I have never seen any of them. I am willing to do such a rare opportunity even if he doesn't give me money." During the interview, some questions were asked and confirmed by Wang Xing repeatedly -
Where is your customer value?
What are your core abilities?
What is your charging model?
Why do you do this instead of others?
What are your unique advantages? You still have a high chance of winning under full competition? Some discussions on
influenced Liu Junxiong's decision-making later - what elements are done by
, this thing will definitely be done; what things are
can be abandoned in stages now; what things are
can be almost ignored; what things are
can be almost ignored; if you grasp several core elements, you can be in an advantageous position in the future competition...
"A great business model, if you make a mistake once, you may become mediocre, and if you make two mistakes, you may die." Faced with this post-90s entrepreneur who is one round smaller than himself, Wang Xing said that decisions can be made slowly, but they must be based on the conclusions drawn after full argumentation and must not be ambiguous.
This is a 3-hour interview.
and even Meituan Vice President Zhu Yonghua was quite curious, "I don't know what Brother Xing likes you. Ordinary entrepreneurs come to see him and chat for an hour will be amazing. Today, we have a few vice presidents, technical experts and post-investment team, with a total of 7 people. We chatted with you for 3 hours, which is incredible."
against Dalemei
catering is to compete for consumers' belly capacity
against Dalemei. This is the most important inspiration that Liu Junxiong got from this conversation.
Wang Xing told Liu Junxiong that when he was studying in the United States, he liked ordering Domino's pizza very much.
This has also become an important starting point for Wang Xing to do business analysis. In his opinion, McDonald's , KFC , Subway , Domino , and Domino , while these American fast food brands are popular in China, they are also making strong and lasting cultural output through super items such as hamburgers, fried chicken, and pizza.
At the same time, Wang Xing also discovered that there is also a super item hidden in Chinese catering - dumplings. Dumpling is very popular abroad, and the term dumpling even carries the understanding of Chinese food to a certain extent by foreigners.
Moreover, compared with the complex requirements of traditional Chinese fast food in frying, stir-frying, cooking and frying, the standardization and fast food properties of dumplings also give them a greater market space.
In Wang Xing's view, whether in the domestic market or the international market, dumplings are a single product that can represent China's going to the world. There will inevitably be a chance to get out of a super unicorn and grow a company that is greater than Domino.
Dalome has more than 18,800 stores in more than 90 countries around the world. In comparison with Dalemei, it adds endless imagination space to dumplings, a single item that is very ordinary for Chinese people.
Source: unsplash
The reason why Dalumei can support the huge global pizza business is that 's key core advantages are digitalization and takeaway delivery.
If you want to copy Domino’s successful experience, Chinese fast food must also work hard on the two major directions of digitalization and takeaway.
takes the influence of digitization on site selection as an example.
At first, Liu Junxiong relied on his experience to choose a location. For example, you must find a suitable neighbor, Baiguoyuan , Guoduomei, brand roast salsa, Ziyan Baiwei Chicken ... Similar store opening logic and similar consumers have all become Mr. Xiong's early site selection strategies.
But with more and more stores, experience alone is not enough. Liu Junxiong and his team made a set of quantitative calculation tools, combining financial calculation tables, flow of people, and online and offline turnover to turn experience into data to form replicable mature experience.
According to this set of calculation tools, a detailed financial calculation report can be formed for each store and roughly calculate the return period of the store.
"Theoretically, we don't want to select a location that has been returned for more than 9 months." From the break-even point to the estimated turnover, and then to the return for this cycle, Mr. Xiong's expansion and operation personnel will synchronize all the data with franchisees, combine the franchisee's personal experience to obtain the optimal value, thereby obtaining a more accurate site selection plan.
"In this way, we can ensure that more than 90% of the site selection will not have any major problems." Liu Junxiong was quite satisfied with this site selection data system. "If you choose the right location, the store's success rate can be increased to 95%. "
is different from Domino's own takeaway delivery network. Mr. Xiong's takeaway differentiation is mainly reflected in raw food takeaway. In Liu Junxiong's view, dumplings that are not easy to lump or spoil have strong takeaway attributes. Raw food takeaway and freshly made dumplings placed in the refrigerator have seized the consumer's share of refrigerators. It also allows dumplings to complete the transition to catering + retail model. What Chinese fast food in Liu Junxiong's eyes requires is to concentrate on seizing all possible spaces.
From Maocai per capita, to noodles with a per capita of more than 20 yuan, Liu Junxiong always believes that Mr. Xiong’s competitor is all Chinese fast foods of the same price. Consumers can’t eat dumplings after eating rice. Each consumer’s belly capacity is limited, and the catering market is competing for consumers’ belly capacity.
Currently, the proportion of takeaway sales in 700 franchise stores across the country has accounted for 26%.
The uncooked community and sinking market
In 2020, the epidemic broke out and it had just been established less than a year ago. Mr. Xiong, who mainly focuses on offline community stores, has ushered in a significant increase in performance.
"We are still relatively lucky. Dumplings are actually a product that is more urgently needed in the staple food category, and most of our locations are in the community and close to the vegetable market. So as long as our stores are not required to close, most of them have achieved growth during the epidemic." Liu Junxiong attributed Mr. Xiong's performance growth to consumers' stocking demand during the epidemic.
small and firm, which is a unique advantage of community stores.
Liu Junxiong did the calculations. First of all, if brands want to enter a commercial complex, some even have to pay a sponsorship fee. The money cannot be transferred or refunded, which is a real cost. Secondly, the mall's venue contract is only 2-3 years. After it expires, it will face adjustments in the mall's investment strategy, or a rent increase of about 10%. Once the brand's square meter does not contribute enough, it may be transferred to a worse position.
But the community store does not have these problems, no entry fee is required. The landlord’s direct rent is an average of 6,000 yuan for rent. If you sign for 5 years, the renewal price will increase by 3-6% after 5 years, which is particularly friendly to ordinary entrepreneurs.
"In commercial complexes, there are few brands that have been more than 5 years old. Some are indeed very profitable, but some are losing money when they enter. On the contrary, fruit shops and braised food shops at the entrance of the community can be opened for 10 years."Although many people say that community stores have dividends, Liu Junxiong feels that the dividends in the past two years are far from as good as before. Now the real dividend is still in the sinking market. The businesses there have not been completely transformed, and there is still a great opportunity.
Since June 2021, Mr. Xiong has expanded more than 190 stores in Sichuan in a year, and has also entered a more sinking market. The characteristics of the sinking market of
are stable and predictable. Although the daily turnover is only more than 2,000 yuan, it can still have a net profit of about 20,000 yuan in one month, and in some areas, it is even Can open a store next to KFC. First- and second-tier cities have an epidemic in two days, but small cities rarely have the problem of the epidemic. In such a closed small market, although the turnover is not high, it is an extremely healthy model.
stores do not make money, which is a shame for operation
For chain franchise brands, systematic operation capabilities and sustainable profits are the fundamentals. How much management are there for
Complex?
S-level franchise partners have good locations, strong business awareness, and sufficient store production capacity. As long as you give some direction guidance, your performance will rise rapidly;
A-level franchisees have a strong desire and good location, but they often lack some methods and there are obstacles in production capacity. This requires the brand to provide resources and increase support in training and operation;
and some franchisees do not want to do it. They open at 8:00 in the morning and get off work at 6:00 in the evening. They can still take time to play mahjong, and earn 20,000 yuan a month. I feel very happy.
A variety of franchisees need assistance according to local conditions. "Operation" has become the most important and core business module of Mr. Xiong's team, from early investment promotion, expansion, construction, to daily training, supervision, and order explosion. Mr. Xiong even formed a "shop explosion group" to provide basic services such as flyer distribution and customer traffic for benchmark stores.
Liu Junxiong admitted that this is a way to lose money and gain publicity. Since the beginning of the business, the heavy operation model has provided many support for the stores, but it once made Mr. Xiong's headquarters lose "spreading". "The catering matter is actually not a matter of strategy, but an execution. Everyone understands the truth, but few people put the details into practice. At present, we think that operation is a very valuable thing. If it is done, it may form the characteristics of Mr. Xiong’s operating model. "
In addition to being together with the operation team every day and "calculating accounts" with the financial director, it is another focus of Liu Junxiong's work.
General department reports may avoid the important points, but financial data will not deceive people. Human efficiency, average sales of stores, profit ratio of stores, ratings of takeaway platforms, cash flow statements... Some are monthly reports, some have to be reviewed every week, and some have to be watched every day.
This is also another management strategy for Liu Junxiong.
translates financial data into business language and synchronizes it to the heads of various business departments. From the perspective of financial data, it provides guidance for each business module. "If it is conveyed from my perspective, they will feel that the boss pressed it down, which may have my strong personal appeal, but if it is interpreted from the perspective of financial data, it will appear more fair, objective, and more professional in finance, and everyone will accept and understand it faster. "
Dumplings, a food with a history of 1,800 years, have traveled through cycles without market education, have infinite ways to play, and have natural and eternal market demand.
In order to conquer the tongues with different preferences from south to north, Mr. Xiong played with dumplings.
In order to build the Sichuan market, Mr. Xiong's team, who started in Guangzhou, began to think about dipping dumplings, such as vinegar, chili, soy sauce, garlic sauce, , peanut butter, sesame paste, red oil, golden soup...
In addition to dipping, there is also a lot of stuffing to make.Shepherd's purse stuffing in East China is the best, the most popular in Beijing are cabbage and green onions, and leeks are a popular taste nationwide.
dumplings also have infinite cross-border capabilities and creativity. Dried dumplings with peanut butter, black truffle stuffed dumplings, cashew stuffed dumplings, durian stuffed dumplings, Buddha Jump Wall stuffed dumplings, soup dumplings, topping dumplings, pepper-flavored dumplings, dumpling taverns...
Liu Junxiong felt that he might be a relay in the long river of history. He should run his own stick well and pass the baton in his hand to the next generation.
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