Xiabu Xiabu successfully opened the market with the “one-person food” form.
Editor’s note: This article comes from WeChat public account “Zinc scale” (ID: znkedu) , author Li Yan Lin, editor Li Lin. Authorized release.
After the epidemic, affected industries have accelerated the process of survival of the fittest. The head companies are getting more and more prosperous, and the waist companies are living steadily, while the rest may be struggling at the edge of the elimination line.
As the first hot pot brand listed in the country, Xiabuxiabu released its 2019 performance report on March 30. Its net profit fell by nearly 40%, and the same store sales growth rate also declined. Seeing that the epidemic has not completely passed, Xiabuxiabu’s performance report has shown some weakness.
This six-year-old food and beverage brand has become more popular. After six years on the market, it is even more difficult to continue to maintain its long-term success while implementing “independent activism.”
Before the situation, strive to develop diversification
On March 30, Xiabuxiabu released its 2019 annual results announcement. In 2019, Xiabuxiabu realized revenue of 6.03 billion yuan, a year-on-year increase of 27.4%; the company’s total profit attributable to owners for the year was 288 million yuan, a year-on-year decrease of 37.7 %.
Increasing income does not increase profits, and the impact of the “Black Swan” has not yet fully manifested. Such a result is not a good sign for Xiabuxiabu, which is continuously pursuing diversified development.
In fact, SARS has important significance for the development of Xiabuxiabu.
Before SARS, He Guangqi, the founder of Xiabu Xiabu, came to Beijing from Taiwan and transformed from jewellery to fast food, but the business has been tepid. At the worst, he only sold three pots a day.
But after SARS, the way of eating and sharing changed the traditional concept of diet. Xiabuxiabu relied on the “one-person food” mode to successfully open the market.
Since then, Xiabu Xiabu has taken advantage of it all the way. Until December 2014, it was listed on the Hong Kong Stock Exchange and officially became the “first hot pot chain” in China. However, the growth momentum has gradually emerged from 2016. In the face of fierce market competition, Xiabuxiabu also had to rethink the way forward.
In 2016, Xiabuxiabu made a series of transformation measures. First launched is the high-end casual dining brand “Minato Restaurant”, which focuses on Haidilao, focusing on tabletop Zen-style dining. In three years, Coudou restaurant has achieved the goal of opening 100 stores, with an average of 7 stores opened every month.
The success of the restaurant has given Xiabu Xiabu the courage to continue copying.
In October 2019, Xiabuxiabu launched a new sub-brand “in xiabuxia”, which focuses on young and new generation consumers.bu “, following the business philosophy of” hot pot + tea “, trying to continue to tap the development potential of” one-person food. “
In addition, Xiabu Xiabu also launched the “Xiabu Xiaoxian” takeaway service in 2016, and established a seasoning joint venture company to produce and sell soup bases, dips and seasoning dips; It also launched the instant hot pot business “Zao Zhuo Shao Tang”; in 2018, it opened a separate tea shop-tea rice tea, and entered the new tea drinking track.
Unfortunately, a series of heavy punches have had very little effect. In response, Xiabuxiabu gave an explanation in the report: “It is significantly affected by IFRS 16.” As of December 31, 2019, the Group had a total of 1022 restaurants, but also closed 53 restaurants Xiabu Xiabu was interpreted as “for various commercial reasons.”
Xiabuxiabu will be available in 2014
Do you want a new restaurant with a loss of tens of millions?
Under the condition that Xiabuxiabu’s profits have decreased, the once-popular “coupon restaurant” has caught up.
It is understood that the largest income of Xiabu Xiabu Group comes from Xiabu Xiabu restaurants. In 2019, Xiabu Xiabu restaurants received a net income of 4.67 billion yuan, a year-on-year increase of 14.6%. A year-on-year increase of 116%, a difference of nearly eight times.
When the restaurant was launched, Xiabu Xiabu was designed to supplement the gap in the high-end market and has covered more people. In the past, the unit price of Xiabu Xiabu was between 40-50 yuan, and the unit price of the restaurant was set at about 130 yuan. Therefore, many people think that the restaurant is the standard sea fishing.
However, the development of the restaurant was not smooth at first. Data show that in 2017, the revenue of Minato Restaurant accounted for only 3.2% of the total revenue, and the operating loss generated by Minato Restaurant in 2017 reached 24.9 million yuan.
The challenge is not only with mature and strong opponents like Haidilao, but also with internal competition. The upgraded version of Xiabuxiabu is very similar in location and product, and consumers are likely to prefer the already familiar Xiabuxiabu.
However, the stamina now exhibited by Minato Restaurant has also found some comfort for Xiabuxiabu in an increasingly competitive environment.
In addition, other businesses launched at the same time have not seen a splash. Investigating the reasons, perhaps Xiabu Xiabu was still too hasty. The combo boxing can sometimes be surprisingly successful, but sometimes it can only be achieved without success. For Xiabu Xiabu thisFor such a traditional catering company, the addition is inevitable, but reasonable is more important.
As for the new tea drinking track, the original competition is already fierce. Without differentiated products and positioning, it is obviously difficult to get a share. Taking advantage of its own supply chain, production and sales of soup base and seasoning are good choices.
Couple restaurant
Accelerating the formation of “catering + retail” format
During the epidemic, the impact of traditional offline catering companies cannot be underestimated. The Evergrande Research Institute has released an epidemic report, which estimates that due to the impact of the epidemic, the loss of the catering retail industry in the 7 days of the Spring Festival may be as high as 500 billion yuan.
Xibei Noodle Village claims that the cash flow can only last for three months at most, and the loss of Haidilao City for 15 days is more than 1.1 billion yuan … One layer of haze covers the offline catering industry, and no one knows what will happen tomorrow Turbulence.
As stated by Zhao Yi, Executive Vice President of Xiabuxiabu: “The epidemic has made Xiabuxiabu work one year, and it will enter the state in two or three weeks, accelerating the process of reform and optimization. “
Although offline is still the main battlefield of the catering industry, takeaway and online operations have become the second battlefield that cannot be ignored. The process of promoting “catering + retailing” in the entire industry has also accelerated. Xiabuxiabu’s hotpot base appeared in Li Jiaqi’s live broadcast room, Haidilao launched the convenient dish brand “opened the meal”, and Xibei Noodle Village launched a heated instant express. Home …
Whether it is landing takeout or entering the live broadcast room, it is an important means for offline catering to broaden the consumer population through new retail channels and harvest a stable development model.
After the test of epidemic situation, catering companies will make greater efforts to improve the supply chain, faster replication capabilities, and more sound support systems, which may be the magic weapon for traditional catering companies to overcome difficulties.
But it’s also worth noting that the perfect upstream supply chain supply, the customer flow brought by dine-in and delivery, and the multi-channel traffic brought by the online flagship store and live broadcast provide more scenes of people and goods yards. How to build a more suitable product based on such a lower-level foundation and build a more stable superstructure is still a problem worth exploring.