It is also prosperous and old, and it is the current status of many old brands.
Editor’s note: This article is from WeChat public account “bullet finance” ( ID: wwwhygc), author Yin Taibai.
The old Chinese character Quanjude still couldn’t stop the car on the road of loss.
According to the semi-annual performance report, in the first half of 2019, Quanjude achieved a total operating income of 758 million yuan, down 13.43% year-on-year; realized a total profit of 406 million yuan, down 58.16% year-on-year.
This is not the first time that Quanjude has experienced weak growth. From 2012 to 2018, Quanjude’s operating income was 1.944 billion, 1.902 billion, 1.846 billion, 1.853 billion, 1.847 billion, 1.86 billion, 1.777 billion, net. The profits were RMB 152 million, 111 million, 126 million, 131 million, 140 million, 136 million, and 73 million.
Although the performance of Quanjude has regressed in recent years, the net profit of the six-month period has fallen by nearly 60%, which is still unprecedented.
In the face of the double decline in revenue and net profit, Quanjude gave a painful response: the number of receptions in the restaurant stores decreased, the operating income declined, and the income of some upstream food industries decreased, leading to the company. Operating results decreased year-on-year.
The Quanjude, which was founded in 1864, has survived the vicissitudes of life, escaped the war, conformed to the changes, and passed through the three important historical periods of the late Qing Dynasty, the Republic of China, and the New China. Now it has finally ushered in the best era. However, it is impossible to extricate himself from the slump of performance, which seems to be unreasonable, but it is reasonable to think carefully.
恃宠和骄
The highlight of Quanjude appears five years after listing.
In 2007, Quanjude was listed on the Shenzhen Stock Exchange and became the first listed restaurant in China. On the day of the listing, the stock price rose by 223.18%, and the company created 18 multi-millionaires.
At the beginning of the listing, Quanjude triumphed with the label of “State Banquet” and its performance also rose. This high-speed growth trend reached its peak in 2012.
In this year, Quanjude’s total operating income soared to 1.944 billion and its net profit reached 152 million yuan.
The glory of Quanjude originated from a strategic reorganization. In April 2004, BTG Group became the largest shareholder of Quanjude, and all the imitation food restaurants, Fengzeyuan Hotel and Sichuan Hotel were included in the package and China was established. Quanjude Co., Ltd., the domestic Chinese catering industry giant was born.
But everything has two sides, the advantage of gold signboard has gained capital support, Quanjude is even more powerful, and there is no such thing as a moment of glory. It is gradually drifting away on the road of expansion. Catering companies want to maintain rapid growth, expansion is the best choice. .
According to public information, as of December 31, 2018, Quanjude opened a total of 121 stores, including 46 directly operated stores, 75 franchise stores, and even opened to Myanmar, Japan, Australia and other countries and regions. Compared with the beginning of the listing, there are 9 directly operated stores and 61 franchised stores. Quanjude is obviously “fat”.
The expansion plan has brought a lot of trouble to Quanjude. On the one hand, this kind of Chinese restaurant that is highly dependent on the chef has its own limitations that are difficult to expand. On the other hand, the training rate of the new chef is far behind the expansion of the store. speed.
The data reflects from the side that the road to expansion of Quanjude is not smooth.
According to previous earnings reports, most of Quanjude’s revenue still comes from the Beijing area, while the rest of the region contributes less than 10% of revenue and lower profits, which means: in addition to slow performance In addition to the improvement, Quanjude also faces the predicament of not going out of Beijing.
For the obstacles on the road to expansion, Quanjude also gave a solution: hope for black technology.
Quanjude has teamed up with a German technology company to develop a microcomputer-based fool oven specifically for roast ducks, and plans to use it in some stores in Beijing.
Standardization does help store expansion, but the simple and tidy assembly line makes the roast duck completely lose the unspeakable taste on the tip of the tongue, while enjoying the huge brand premium while fooling consumers with the popular roast duck. Quanjude, who was dismissed as “betrayed a hundred years of traditional craftsmanship”, completely destroyed the last glimmer of consumerism.
The Quanjude, who lost his soul, gradually tasted the bitter fruit. Although the stores are more and more open, fewer consumers are available.
In fact, for consumers, the price of Quanjude is not unsatisfactory, but when the price is not proportional to the taste, this is somewhat arrogant and arrogant. Yes, this year’s consumer is just not used to anyone.
In the US group comments, the evaluation of most stores in Beijing only reached 3.8 points. Consumers’ evaluations are generally “taste, high price”, “extremely disappointing, poor service, not worth a try.” “.