Right now, the light should be in a hurry。
In 1998, he had established a desktop pot brand of breastfeeding, and for more than two decades, this “one-man-one-man-one” type of small hotpot restaurant had become an affordable restaurant for many。
Over the past decade, the feeding group has been expanding with a high-end branding strategy that has not only created a second-fired brand for fishing under the sea, but has also increased the cost of feeding the small-burning pot。
However, the more expensive the feeding is, the less it gets。
According to the 2023 financial paper issued at the end of march of this year by the feeding group, the group with the two brands of nursing and burning pots had a net loss of $199 million in 2023, subject to a 25. 3 per cent increase in its income over the same period。
Annual performance summary/source of feeding group 2022-2023: feeding group 2023 performance bulletin
If such a loss is placed in the performance of the last three years, the nursing group may also be able to reap the approval of a “minus of the loss” - in 2021, the nursing group lost $293 million in net profits and in 2022 it lost $353 million。
But don't forget, at this point in time, many of its colleagues have eased themselves from the epidemic's closed-door surge, showing another report card with a “profit” note. For example, in the fire pot industry, the net profit reached $4. 495 billion in 2023。
Even if not compared to the pole, the whole catering market, including the hot pot, recovered in 2023。
Data from the national statistics institute show that, for the first time in 2023, total revenue from the national catering market exceeded $5 trillion. At the same time, big data on red meals show that the size of the hot pot market in 2023 is expected to rise again to around $520 billion, although in 2022 it fell back to 2017 levels。
In such a market climate, there was once a chance to make a deal with the sea floor, and the number of shops that had been the first to break through thousands of nursing groups has been lost。
Feeding. What's wrong
01
The fare is high
Rinxie was ready to be expensive when he lined up in front of the shop. She was a student many years ago, and she ate a hot pot once before she opened a single page。
But it turns out that even with a steady job, rinxie can't “eat” it — this meal by rinxie and two of his best friends costs $118 on the bottom of the hot pot alone. At the time of the closing, three girls had spent $445, almost “scolding” to leave。
This is also the hot pot brand of the feeding group at this time, which is a picture of consumer evaluation — expensive。
In 2023, the single price of the boiler had reached $142. 3 and the price of the same high-end pot had fallen to less than 99. 1 in the same year. Another colleague, the hot pot under the flag of ninety-nine cents, also had only $113 per passenger unit in 2023。
Average per capita consumption, net income and rate of table-turning by region, 2022-2023
Similarly, in 2023, according to financial data, the unit cost of breastfeeding amounted to $62. 2. Although this price is almost half as high as the lump sum price, it is certainly expensive for consumers who have long accepted the “price-for-money” label。
After all, in 2014, when they were on the market, nursing was on the order of $44. 4. As a result, there are a number of voices on the internet that feed faithful consumers, claiming that the one-man-one-size-size-fits-all fire pot seems to be starting to get a misunderstanding about the two words。
On the social platform, consumers say the hot pot is no longer even
Historically, the feeding group has been almost determined to raise the price of a single guest。
In the absence of a day, there was a dramatic expansion of the nursing home. It is also well understood that the only way to increase profitability is to open new businesses in the initial flat-rate period, when single-shop profitability is almost constant。
Moreover, where is the brand that runs through a single store without expanding
In 2008, there were only 64 straight-camp shops, 452 by 2014 and 552 by 2015. This year, only $2. 425 billion was collected for nursing, while the net profit was $263 million. – the net profit from the bottom of the sea earned $5,758 million in the same year, at $273 million。
However, larger size also implies a need for a stronger supply chain, which, moreover, can only be more stressful if fed or affordable — a supply chain that benefits in volume. At this point, the only feeding that has ever been done is the flat-priced hotpot market, which is considered to be the real blue sea。
As a result, in 2016, the group officially launched high-end brands with far-flung prices. In 2017, the group resolved to “upgrade” the feeding label, removing the “fast-food” label from the feeding head and replacing it with a “recreational meal”. The 2. 0 version of breastfeeding loses its “parity” consumer advantage。
Snack shop/tart source: snack pot tea
In 2020, a nursing group dedicated to brand upgrading launched a nursing sub-branch, in xiabuxiabu, with a single price of between $120 and $150. In 2022, the nursing group “cross the border” to the barbeque sector introduced a barbecue brand with a single price of $250。
Breastfeeding brand matrix/source: corporate official network, waafu securities institute
However, the single price does not represent everything。
02
It's not very efficient
High unit prices are indeed a good thing for chain brands, but only if they are paid for by consumers. Apparently, the fed and the conglomerate consumers do not pay。
The financial data for 2023 show that the rate of breast feeding is only 2. 6, compared to 2. In the same year, the rate was 3. 8, which is not yet the rate during the peak period of bottom fishing, which in 2017 was five。
Performance/source of the run-off rate of nursing restaurants by region: 2023 performance announcement of nursing groups, 2022-2023
Based on the per capita price given in the 2023 financial paper, a simple calculation reveals the efficiency of single-store feeding and assembly (62. 2*2. 6 and 142. 3*2), which has been closed by bottom fishing (99. 1*3. 8)。
As a result, the net profit growth rate of the nursing group, which has been declining since 2016 - from 39. 7 per cent in 2016 to -99. 4 per cent in 2020 - has been matched by a decline in the rate of reversal over the years。
Why don't consumers pay? If only one factor of high and low prices works, it is still significantly lower than the single price of other peers, which is still at 2. 6%。
The well-known strategic positioning specialist and founder of the fujianhua brand positioning advisory, zhang jun hao, told the salt bank that “nursed and compact brand positioning and vegetable characteristics may not attract the target consumer groups sufficiently, resulting in insufficient passenger traffic. Second, there may be deficiencies in the quality of services, the environment and customer experience, resulting in customers being reluctant to visit frequently. Strong market competition can also affect the rate of reversal.”
In other words, the point is that consumers feel that “money is worthless”. Consumers do not have a matching experience, either with brand characteristics or with quality of service, when the price of a single passenger is higher than that of their peers or above historical levels。
It is difficult for most consumers to have a strong brand image when it comes to feeding or gathering. Unlike the barlow fire pot, which is tied to its hair, the bottomr works, while the firepot provides the atmosphere. Perhaps in the early days, the “fire pot + milk tea” business model was a special feature, but in the current consumption climate, where hot pots are used for milk tea, it has long been lost。
During halloween, the fire pot was launched with the customer's own dey halloween equipment activity/schematic source: weibo@firepot factory
That's what rinxiang thought. She was impressed by nine bucks of soy sauce and a hot pan。
In response, zhang hyo-hoon, director of the institute of in-depth science and technology, mentioned that “there is a certain visibility (both of the two brands) and the shop is better located, but competition is not sufficiently competitive, and it is understandable that in the last two years, when the marketing strategy has been adjusted, the sex ratio has fallen, compared to the past two years, and that the rate of falling is not high.”
The feeding group also knows that it sells expensively. In official terms, it attributes its losses to high-end losses, which are downgraded to consumption, and the launching of small dishes to try to save “the hearts and minds of the people”, but it is still repulsed by public opinion — which is still considered to be expensive。
Concentrating pricing and weight issues causing consumers to “show”/source: little red book
In fact, the nursing group should have learned something from the “failure” of in xiabuxiabu – a brand that consumers are not exactly the same as feeding on vegetables, ideas, and brands, and that is almost exclusively paid for on a change in the price of a single guest。
It seems, however, that nursing has not yet incorporated the essence of “no value”。
03
Sink? It's not a matter of scale
Today, a growing number of brands are looking to the vast market of the sinking, supplementing the profits with large-scale shop extensions in the short term and reaching consumers. This was also the case at the outset, after all, with the experience of taking a pretty net profit by expanding the store in 2015。
But now the nursing group is prepared to delay its sinking in the opposite direction. In its 2023 financial statements, the feeding group specifically mentioned that, given the current market situation, the downswing of two- and three-line cities had slowed down and that new stores would be more concentrated in the first-line or part-line cities。
The reason for this is simply to sink. According to the financial statements, the rate of outturns in cities in line 2 and 3 is 1. 9 and 1. 8 respectively, while the rate of outturns in first-line cities is below the rate of outturns in the brand。
In other words, the profitability of the two brands in the second-line and below-line cities is all the more important. This is also the negative effect of high unit prices, which, after all, are more sensitive to second-line and lower-level urban residents, despite their considerable consumption power。
22 august 2021, beijing, nursery/text source: visual china
Besides, in the face of today's situation, the nursing group, especially overpriced. To put it simply, holding a front-line city base is a better option. The reason for this is that, after three years of planning to break 100 shops, it has now disappeared from the money of the nursing group。
Another key is that since the nursing group is able to learn from its successful expansion up to 2015, it should be able to see the risks associated with a larger expansion after 2016。
After 2016, the feeding group worked not only to upgrade and raise the price of a single guest, but also to accelerate the pace of expansion. In 2016, the “ten hundred and ten” scheme for breastfeeding was introduced, offering to open thousands of shops by 2020, with a profit of $10 billion and a net profit of $1 billion。
The reality is that the nursing group has made great strides in expanding its stores, with the number of nursing units opening more than 100 per year in the three years between 2017 and 2019, and the number of its main stores breaking down by 2019. The size of the store was not reached until 2020。
However, upgrading goes hand in hand with expansion, which ultimately leads to a decline in the productivity of the nursing group and the profit margin. The short-term large-scale expansion of shops and the failure of management and supply chains to keep pace with the price of money are also good。
The country's supply chain is not yet fully established and only central kitchens are available in beijing。
According to the financial report of the feeding group in 2023, there are still $129 million in cash and cash equivalents on its books, as well as approximately $654 million in financial products, which are still sufficient to sustain its expansion plan in 2024。
It is only time for the nursing group to wonder whether, in the present case, there should be a bulwark on the scale of the food-cooking course. After all, it now accounts for 95 per cent of profit earnings, and its profitability is not limited to scale。
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