With a clear promotion channel.
Left: Xiabuxiabu, the official website only has one piece of information about the 2017 Xiabuxiabu restaurant’s recruitment and reserve manager; right: Haidilao.
In the third-party recruitment channels, although you can indeed see a lot of recruiting information, many areas are directly recruiting “shop managers.” This “airborne” model may cause management problems.
In contrast, Haidilao usually recruits assistants to the store manager, and has a clear promotion channel. The survival of the fittest and the survival of the fittest can only serve as store manager after passing the company’s assessment.
Let’s talk about the store staff again. According to what we have learned in the research store, due to the impact of the epidemic, the store currently has only 34 employees. (normally 70 People), this situation has been going on for a long time, and the employees said: Working for more than 10 hours a day is simply too busy.
As far as expansion preparations are concerned, it seems that Coucou does not have a clear and comprehensive talent training and management mechanism in terms of talent construction and reserve; there is no reasonable response mechanism when the basic staffing is abnormal.
Will this cause the company’s operating risks due to the chaotic management mechanism, because the service cannot keep up and affect the efficiency of the single store’s operation?? This is where investors need to consider carefully.
The capital chain is abundant, but the return period is relatively long
Whether it is supply chain procurement and preparation, or aggressive recruitment, there are two words: “burning money”. In addition to these two expenses, a new store needs to inject rental costs and decoration costs.
According to the Xiabuxiabu financial report, the total investment in a single store is 5 million yuan, and the investment in Xiabuxiabu is 1.5 million. Assuming that the company plans to add 100 new stores in Xiabuxiabu in 2021, and to achieve all of the 60 new stores, then the total store opening capital needed in 2021 is 450 million yuan.
The 2020H1 financial report shows that Xiabuxiabu holds 250 million in cash and 770 million in short-term financial products. Such capital reserves,For Xiabuxiabu and Coucou’s planned store opening plan in 2021, it is very sufficient.
But this is just to meet the situation of opening a store for one or two years. From the perspective of the continuity of expansion, Xiabuxiabu must have sufficient funds for opening a store each year. How to maintain sufficient funds? It depends on whether the store expansion caused by the money invested can quickly recover blood.
According to calculations, the cash investment payback period for Cocoa is 15-17 months, which is less than 7 months for Tai Er, 6 to 13 months for Haidilao, and 14 months for Xiabuxiabu.
Remarks: The single store model here uses the revenue calculation data of mature stores
The long return period not only means that the cost of opening a new store may be limited, but it also places higher requirements on Xiabuxiabu’s capital chain’s ability to bear pressure.
From a comprehensive point of view, Coupou has enough room for imagination in the future expansion and development, but there are also many potential problems. It is also worth noting that, as far as catering involves food safety issues, this “black swan” also needs to be more vigilant.
Summary
The optimization of Xiabuxiabu’s store expansion strategy, coupled with the rapid growth of the previous single-store model, has attracted many investors to return to the market, driving this round of strong stock price rebound.
From the perspective of the single-store model and capital reserves, Coucou currently has the conditions to accelerate expansion; but from the perspective of talent reserves, supply chain reserves and return cycles, it may be more conservative to expand safe.
The expansion pace of Cocoa’s decision to open 61 stores in 2021 is indeed a conservative choice.
Although conservative, it is undeniable that Cocoa has entered the “accelerated growth period”, but whether this growth period can last for a long time needs to be judged from the actual expansion rhythm, operating efficiency and even long-term tracking of sudden crises.