This article is from public number: investment community (ID: pedalaily2012) , author: Qian any, from the title FIG ctrip
Being caught off guard, another time-honored family is pushed to the cusp.
On March 13, according to Hong Kong media reports, the well-known chain dessert brand Xu Liushan was continuously rented by the owner. On March 11, Quanji Toys Co., Ltd. entered the Hong Kong High Court for liquidation. The website of the Hong Kong Judiciary shows that the case has been scheduled for processing on June 3.
Xu Liushan is going to wind up? As soon as the news came out, netizens quickly exploded. “For the first time in my early twenties, I ate Xu Liushan and felt like a heroine of a Hong Kong novel or TVB drama. The failure of these era landmarks is so sad.” A food blogger on Weibo Writes, and subsequently triggers a large number of followers.
Public opinion continues to ferment. At noon on the 13th, Xu Liushan acknowledged through the official Weibo “Xu Liushan China” that individual stores in Hong Kong were closed. However, it was also pointed out that the mainland cities were not affected. At present, Xu Liu Shan stores in the mainland cities have resumed catering and take-out business.
In fact, arrears of rent are only the tip of the iceberg in Xu Liushan’s operating difficulties. It is understood that Xu Liushan has closed more than 10 Hong Kong stores in the past few months, and many have been appealed by owners to recover rent. The company’s investigation showed that Xu Liushan’s stores in cities such as Guangzhou, Shenzhen, and Shanghai also experienced large-scale cancellations. This chain of sugar water shops, which has been in the famous Chinese world for more than 60 years, is quietly declining.
Hong Kong stores owe rent and nearly 150 stores in mainland cities have been cancelled
Xu Liushan has existed for a long time.
On March 11th, the Xu Liu Shan branch in Mingling Mall, Fanling, Hong Kong was sued by the owner to the High Court of Hong Kong, stating that the shop had arrears in rent, air-conditioning and management fees since August last year and January this year. About 521,000 Hong Kong dollars. The owner requested Xu Liushan to immediately repay the arrears, return the store and pay the management fee after January this year.
The lawsuit shows that in January 2018, Xu Liushan signed a 24-month lease with the owner of the store in Fanling Mingdu Shopping Center. The store was rented at a monthly rent of HK $ 200,000, and air-conditioning and management fees were required. However, Xu Liushan did not pay the rent from August to November last year, and has occupied the premises after the lease expired in November.
Meanwhile, Xu Liushan’s branch in Huijing Mall, Lam Tin, Hong Kong was also accused of defaulting on rents of nearly HK $ 190,000. The owner, Bansque Limited, appealed to the High Court of Hong Kong, demanding the repossession of the shop, and recovering the arrears that the branch started in October last year. rent. In fact, back in November last year, Bansque Limited has appealed to the High Court of Hong Kong to recover the rent from July to October 2019 from Xu Liushan.
Arrears of rent just ripped off the first gap. Since last year, the number of tourists to Hong Kong has been declining, and the business in traditional tourist areas has been reduced by at least 60%. Xu Liushan’s performance in Hong Kong has been hit hard. It is understood that in the past year, at least 12 Hong Kong branches of Hui Lau Shan closed, and many branches including Causeway Bay Lee Garden Hill Road and Tsim Sha Tsui Cameron Road have been appealed by the owners to recover rent.
To make matters worse, the haze is gradually spreading from Hong Kong to mainland city stores. Although Xu Liushan officially responded that the rent arrears did not affect mainland stores, the performance of the mainland market was not satisfactory.
The investment community searched for “Xu Liushan Catering” on the corporate search and found that there were more than 200 companies registered, but nearly 150 were in the state of cancellation. Xu Liushan Shenzhen has 41 branches and currently only 10 are still operating.
Adding to the impact of the epidemic, the situation is worrying. Searching on take-out platforms such as Meituan, Hungry, etc., only 2 stores in Beijing are operating normally, and the rest are closed and closed.
60 years of entrepreneurial history: started selling herbal tea and opened 260 stores worldwide
Xu Liushan is the “sugar shop” memory of several generations in the Chinese world.
In the 1950s, a Hong Konger named Xu Liushan took to the streets of Yuen Long to sell herbal tea and guiling paste with a trolley. In the 1970s, he opened the first traditional herbal tea shop in the Yuen Long Pau Chung Square, with excellent business.
In 1992, Xu Liushan set off a wave of “Mango Similao”, the first in Hong Kong, and established the exclusive status of its Hong Kong-style fresh fruit dessert shop. After that, Xu Liushan developed a series of creative desserts and beverages with mango as the main ingredient, and once became the most popular fresh fruit dessert chain in Hong Kong, with 50 stores in Hong Kong alone.
In 2000, Xu Liushan launched the “Cup fresh fruit special drink”, creating a brand new take-away drink mode. The unique dessert taste plus the leisure concept of “walk and drink” quickly attracted tourists from all over the world and became one of the must-see attractions in Hong Kong. At that time, Xu Liushan’s reputation was thunderous, with stores all over Hong Kong’s streets and alleys, and almost every store would be overcrowded.
After establishing a foothold in Hong Kong, Xu Liushan accelerated its expansion. Starting to enter the Mainland in 2004, the first stations were Guangdong and Shanghai, and then radiated to North and East China.
In 2008, Xu Liushan opened its first store in Shenzhen, then went deeper into South China, East China, North China, Central China, Southwest China, Northeast China and other places. In 2012, it entered Malaysia and headed for Southeast Asia. In 2017, Xu Liushan entered South Korea and opened its first store in Seoul. Along the way, Xu Liushan opened nearly 300 stores across Hong Kong, mainland China, Singapore, Australia, the United States, Canada and other parts of the world.
Even so, Xu Liushan was overtaken by a rising star from Hong Kong, established in 1995 by Man Kee Dessert. Compared with Xu Liushan, the expansion speed of Man Kee Dessert is even more fierce.
When Xu Liushan initially set his sights on the Guangdong market, in 2005, aiming at the huge potential of mainland catering, Man Kee Dessert started to go north. From 2008 to 2013, the volume of Man Kee Desserts increased rapidly, with more than 90 new stores opened in one year. And when Xu Liushan thought after going north, the market share was already eroded.
Man Kee Dessert currently has more than 400 directly operated stores in China and Singapore, and it is expected that the number of stores will reach 500 by 2020. In addition, compared to Xu Liushan’s main mango product, Man Kee’s dessert selection is more yuan. In addition to mango, Man Kee also has many durian products.
Huang Jihuang, a 500 million Hong Kong dollar “sells himself”, three years ago, the parent company’s IPO in Hong Kong failed
In the perception of many people, Xu Liushan is just a global dessert chain opened by Hong Kong people. In fact, it changed hands twice during the expansion process. At present, Xu Liushan has become the “brother” company of Shao Guo Huang Jihuang.
In 2009, Xu Liushan’s shareholders sold all their shares to Navis Capital, a Malaysian investment company. Perhaps due to competitive pressure, in 2015, Navis Capital changed hands again, and Huang Jihuang acquired it wholly, with a final transaction price of HK $ 500 million.
The acquisition was less than two years old. In August 2017, Huang Jihuang and Xu Liushan’s parent companies Huangtian International Holdings Co., Ltd. submitted a listing application to the Hong Kong Stock Exchange, but the IPO ultimately failed.
From the prospectus, from 2014 to 2017, key data such as daily sales, foot traffic, and turnover of single stores of Huang Jihuang and Xu Liushan continued to fall.
In 2015, the average daily sales of each restaurant in Xu Liu Shan’s directly operated stores was 6,576 yuan, and the estimated turnover rate was 11.2; the franchise stores were 5,503 yuan and 9.3. By 2016, these two figures have dropped to 6,319 yuan and 10.8 for directly-operated stores and 5,145 yuan and 8.2 for franchise stores, respectively. In the first 5 months of 2017, the daily sales of direct-operated stores were 6,319 yuan, and franchise stores continued to fall to 4,567 yuan.
In addition, the drop in passenger traffic has also been severe. Among them, Huang Jihuang’s self-operated stores reached 568 in 2014, and then fell to 56 in 2016. Franchised stores fell from 14,036 in 2014 to 13,845. And its restaurants are opened and closed frequently. For example, during the opening of 29 Huang Jihuang and 17 Xu Liushan, 13 Huang Jihuang and 14 Xu Liushan were also closed.
The most ridiculous is Huang Tian International’s franchise model. Xu Liushan has quickly started to join the franchise since it was acquired. As of May 2017, Xu Liushan had 161 self-operated stores and 112 franchised stores, compared with 179 self-operated stores and 52 franchised stores in the same period of 2016.
For Huangtian International, which sells goods to franchisees and collects franchise fees as a profit model, the continued growth of the company depends on the continuous expansion of the scale of franchise stores. However, the lack of supervision of stores has also triggered several brand crises.
The last straw that crushed a camel? Xu Liushan: Don’t miss it, see you in our shop
Hong Kong ’s economy and industries have been hit hard since June last year, Especially in the catering industry. Huang Jiahe, the chairman of the Hong Kong Catering Association, has revealed that since June last year, the cumulative loss of the catering industry has reached HK $ 10.5 billion, a year-on-year drop of 1.5% to 20%.
Huang Jiahe estimates that 400 small and medium-sized restaurants have closed in the past six months. Many restaurants have reduced temporary workers and required regular employees to take unpaid leave. Elimination will bring another wave of closing, and it is expected that the unemployment rate in the catering industry will rise.
In an interview in February this year, Huang Jiahe also said that nearly 90% of the reservations for the Spring Festival and other events in the catering industry were cancelled. In January alone, more than 100 restaurants have closed and the situation has exceeded 2003. SARS period. In addition, the Hong Kong retail industry also said that clothing and department store business has fallen sharply since New Year’s Eve, and has fallen by 50% within 10 days.
The chairman of the Hong Kong Retail Association Xie Qiu Anyi also publicly pointed out that last year the retail industry was “worryful”. Originally, I hoped that the atmosphere would improve in January. I expected a visible recovery during the Lunar New Year. However, the retail industry was severely hit again because of the new crown pneumonia epidemic.
Recently, Hong Kong has announced the establishment of an epidemic prevention and anti-epidemic fund of more than 25 billion Hong Kong dollars. In addition to supporting medical expenses, it will also support injured industries and employees to prevent large-scale failures and downsizing. Among them, a one-time subsidy of HK $ 80,000 will be granted to licensed travel agencies, a 200,000-HK $ subsidy will be given to large restaurants and factory canteens, and a small-scale restaurant such as food manufacturers and fresh food outlets will also be granted 80,000-HK $ subsidy. In addition, retailers can also receive a subsidy of HK $ 80,000.
Today, after a long and dark winter, the freezing food industry is recovering . As stated in Xu Liushan’s open letter: Friends who like Xu Liushan, don’t miss it, wait for the epidemic to pass.
Hope, Xu Liushan, don’t become a memory.
This article is from public number: investment community (ID: pedaily2012) , author : Ren Qian