If it goes well, Daniang dumplings will become a “family” with Lugang Town, which specializes in table dishes.
Xiaoshidai recently found that the official website of the State Administration of market supervision publicized the case of Beifu Development Industrial Co., Ltd. purchasing shares of Bellagio Holding Co., Ltd., which disclosed a purchase case involving several Chinese food chains.
According to the document, in this transaction, Bev Development Industrial Co., Ltd. (hereinafter referred to as “Bev”) intends to acquire 83.85% equity of Bellagio Holdings Limited (hereinafter referred to as “Bellagio”). The related regional markets of the two sides include Shanghai, Beijing and Nanjing. After the deal is completed, Bev will actually control Bellagio.
What does this deal have to do with Daniang dumplings?
Let’s take a look at the background of both parties. According to the above documents, Bev, the buyer, has no main business, but its three related parties are engaged in the catering industry. The three related parties are Daniang dumpling catering group Co., Ltd., Shanghai Jiayou haomian Catering Management Co., Ltd. and Shiquan delicious (Beijing) Catering Management Co., Ltd.
Among them, Daniang dumpling catering group Co., Ltd. has the largest number of stores. The company operates “Daniang dumpling” and “thousands of households” two Chinese fast food chain brands.
Today, the snacks agency browsed the group’s official website and found that Daniang dumpling brand alone had 195 chain stores in 2006. In recent years, it has opened more than 440 chain stores with annual sales of nearly 1.95 billion yuan. In addition to catering stores, the group also established upstream business of frozen food processing and cold chain logistics distribution.
Shanghai Jiayou haomian Catering Management Co., Ltd. and Shiquan delicious (Beijing) Catering Management Co., Ltd. respectively operate the brands of “Jiayou haomian” and “Shujiang roast fish”. According to the public documents, jiayouhaomian has nearly 100 stores, and Shujiang roast fish has more than 50 stores.
As for the seller, Bellagio, in 2001, the company set up a Taiwanese food chain called Lugang town. According to the document, Lukang town currently operates 60 stores in 14 cities in China.
According to the article published by the catering media “red food website” last year, the annual revenue of Lukang town is 600 million.
In the article, Han Dingguo, chairman of Lugang Town, revealed that the brand is testing its sub brands, including “Mr. Lu” in the small dining hall of the positioning table and “ice” which is mainly engaged in ice products. He also said he hopes to tap the potential of young consumers under the age of 25.
Xiaoshidai also found that before the negotiation, Lukang town also introduced ACTIS, a private equity investment company, as the investor in 2012, and Han Dingguo was elected as the chairman of Lugang town. According to the notice of the British alliance at that time, Han Dingguo was a senior executive of the China business unit of Yum! Brands.
Materials and pictures
Catering + Hotel
What is the opportunity to push the two sides to come together?
First of all, we have to understand the “big boss” behind Daniang dumpling and jiayouhaomian: gemei group. The latter is a hotel chain group listed in the United States.
According to the official website of Daniang dumpling group, the group was acquired by the current wholly-owned shareholder, gemei group, in 2017. In addition, gemei group has a number of catering chain brands, including jiayouhaomian, Shujiang roast fish, Chongqing Laozao hot-pot/" 22375 rel="nofollow" target="_self">hot pot, babella and yusteamer.
Optimistic about the synergy effect between hotel accommodation and catering is a key reason to promote gmei group to “cross-border” into the catering industry and constantly increase the scale.
After searching the public information, Shao Wei, the executive director of Daniang dumpling as the representative of the management, once mentioned in the public activities that “the hotel has a natural connection with catering. Longqi is breakfast. The hotel needs catering, and catering also needs Hotel”. The merger and acquisition of Daniang dumplings is based on the development trend of the catering industry and the complementary choice of resource advantages of both sides.
According to public reports, the catering industry, which was at a relatively low stage at that time, showed signs of recovery. Meanwhile, Gome group also hoped to promote the expansion of Daniang dumplings with the help of the resources of hotel franchisees, and put forward the goal of opening 10000 stores.
Shao Wei also revealed that after the merger and acquisition of Daniang dumplings by gemei group, the group did not adjust its original team and invited the founder of Daniang dumpling back to serve as the group’s consultant.
Classification of Daniang dumplings
It’s not clear what Bev plans to do after taking “Lugang town”. However, for Lukang Town, there are some problems to be faced.
Xiaoshidai visited the official website of the brand today and noticed that Lukang town has 73 stores in 14 cities across the country. However, according to the latest public documents, it currently operates 60 stores in 14 cities in China.
Next, similar domestic small and medium-sized catering chain integration may come one after another. CICC proposed this year that the competition pattern of domestic catering industry is very scattered, which is a typical “big industry, small company”. Therefore, there is a large space for the improvement of chain rate and concentration.
According to the company’s data, the size of China’s catering market will reach 4.7 trillion yuan in 2019, with Chinese catering accounting for about 80%. The compound annual growth rate in the past five years has reached 10.9%, significantly faster than the average level of the consumer industry.
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