Haidilao’s market value is catching up with Baidu.
As of October 7, the total market value of Haidilao was HK $316.940 billion, or about US $40.9 billion. Baidu’s total market value is $43.5 billion.
Today’s Baidu, has fallen behind from “bat”, the market value is far lower than “at”. “Robin Li always thought Baidu was undervalued.” A person close to Baidu told fuel finance that Baidu’s annual revenue in 2019 was 107.4 billion yuan, while that of Ali was 376.844 billion yuan in fiscal year 2019, a difference of less than 4 times. However, the total market value of Alibaba now exceeds 800 billion US dollars, nearly 20 times of the difference.
As for Haidilao, its revenue in 2019 is only 26.5 billion yuan, less than a quarter of that of Baidu. This seems to be another proof that Baidu is undervalued.
Whether Baidu is undervalued or not, but since its listing, the controversy about the high market value of Haidilao has continued. On September 26, 2018, Haidilao was listed on the Hong Kong stock exchange. The market value of Haidilao rose by more than 10% at the beginning of the trading, and its market value once exceeded 100 billion yuan, and it fell back at the end of the day. In the next two years, Haidilao’s share price rose step by step in the dispute.
Photo source: screenshot of tiger securities and fuel Finance
It has been 26 years since Haidilao opened its first store in 1994. As of June 30, 2020, the number of Haidilao global stores is 935. In 2017, Haidilao had a revenue of 10.6 billion yuan, which was also the only Chinese food enterprise with a revenue of more than 10 billion yuan.
According to the financial report, Haidilao’s main income comes from restaurant operation. In 2019, the restaurant’s revenue will reach 25.889 billion yuan, accounting for 96.3% of the total revenue.
However, due to the impact of the epidemic, Haidilao achieved an income of 9.761 billion yuan in the first half of this year, a decrease of 16.5% from 11.695 billion yuan in the same period of last year; the net profit loss in half a year was 965 million yuan, compared with 912 million yuan in the same period of last year, a year-on-year decrease of 205.7%.
Haidilao believes that the main reason for the loss is the temporary closure of stores, the decrease of passenger flow, and the increase of staff and financial costs due to the impact of the new crown epidemic.
But according to Wang Donghao, a specially invited commentator on the international digital catering operation platform, Haidilao’s loss is not only due to the epidemic. The essence of enterprise loss is the competition between revenue and cost. The problem of cost is easy to understand. For such a long time of the epidemic situation, the waste of food materials inventory, the expenditure of rent expenses, the increase of logistics costs, and even the rise of the cost of food and raw materials are all affecting the operating pressure of the enterprise. This is why the price should be increased after the epidemic. However, the problem of starting with service has also emerged. Being kidnapped by public opinion, the opinions of customers are too important to offset the increase in cost by increasing the price, which is not in line with the normal market rules. In turn, Haidilao must develop new products as soon as possible (it is easy to establish a new price system) and increase the product premium. In addition, Haidilao has spared no effort in acquiring “haonoodle” and “Hanshe” and expanding sinking brands “Lin Xiaoman” and “shibakuang”, which is also the reason for the increased cost.
On the evening of September 14, Zhang Yong, chairman of Haidilao, said in his “Friends of Zhang Lei” that “this year, I was most seriously injured, and I was on the verge of death. During the epidemic period, the stores are closed every day, and the wages have to be paid. The company has to pay for it. “
Baidu, on the contrary, achieved growth against the trend. The financial report shows that in the second quarter of 2020, baidu achieved revenue of 26.03 billion yuan; operating profit of 5.6 billion yuan, an increase of 187%; net profit of 5.08 billion yuan, a year-on-year increase of 40%.
Although in the secondary market, Haidilao’s share price is still rising, but whether Haidilao is worth a Baidu is also lingering in the minds of investors.
Decline of service power
In the eyes of gourmet Dong Keping, Haidilao is not in the scope of his concern, because “I am more concerned about whether it is good or not, and what factors support it. Obviously, Haidilao does not belong to the category of delicious food.”
It is Haidilao’s service that attracts ordinary consumers. When you order, the waiter will remind you that enough is enough, don’t order too much; if you wear glasses, the waiter will prepare glasses cloth for you; in addition, there are apron, transparent sealed bag for cell phone, etc. It is learned that if you are a familiar guest, the waiter will also remember your consumption habits, including that you like to wear slippers or your hair is too long and needs to be tied up.
Double used to be a loyal fan of Haidilao. She liked to come to Haidilao, whether it was a party with colleagues, eating out with her children, or even dating her husband.
“It’s not because the taste of Haidilao attracts me, but that Haidilao has different service strategies for every different group.” Double told rancaijing that the first time they took their children to Haidilao, they would provide small toys as well as regular snacks when waiting for seats. For children who don’t like to sit in baby chairs, they provide extra cushions, offer to help with their children, etc. “at that time, this service really made me feel like I went to a very professional parent-child restaurant”.
Another time, double and colleagues had a dinner together. The opposite table was on a birthday. The waiter pushed the dining car to bring the cake and fruit platter, and sang birthday songs. The atmosphere was super good. Double and they joked, “coincidentally, we have a birthday today.” who would have thought that before long, the waiter really pushed the dining car to double and brought them fruit platters with birthday wishes.
However, it was two or three years ago. Although Haidilao’s service has not declined now, it has been available in many restaurants, and it is common to see that double thinks Haidilao is not necessary. “No matter how good the service is, it’s very difficult to continue to attract consumers only by service. After all, consumers enter the store to enjoy better food, and the service can only be said to have added value. Innovation and taste improvement are our jobs. “
For a long time, Haidilao’s ultra-high turnover rate has always been an advantage beyond the reach of peers. However, in recent two years, its turnover rate has continued to decline. According to relevant financial report data, in 2018, the average turnover rate of Haidilao was 5.2 times a day, and in 2019, it dropped to 4.8 times, the lowest in recent three years. In the first half of 2020, the average turnover rate of Haidilao restaurant will be reduced to 3.3 times again. In other words, Haidilao is not as popular as it used to be.
According to the report “analysis report on market prospect and investment strategic planning of China’s hotpot chain industry” issued by prospective industry research institute, the market scale of China’s hotpot industry is growing year by year, with an average annual compound growth rate of 11.34%. In 2019, the market scale of hot-pot/" 22375 rel="nofollow" target="_self">hot pot industry is nearly 529.5 billion yuan. The total number of hotpot shops has increased year by year. From 230000 in 2013 to 300000 in 2017, with an average annual growth of 6.9%. It is preliminarily estimated that the growth trend will be maintained in 2019, with a total of nearly 350000 hotpot shops.
Wang Donghao analyzed that among the 350000 hotpot shops, they can be roughly divided into three categories: one is the high-end private hotpot (with seafood, beef or glue as the core, focusing on quality, environment or customized service); the other is the popular hot-pot/" 22375 rel="nofollow" target="_self">hot pot on the Internet (focusing on fashion, style, short and fast, focusing on flow and Internet publicity); and the third is the conventional hot-pot/" 22375 rel="nofollow" target="_self">hot pot, which is produced from the production The product itself has no obvious advantages, and there is no special memory. Dezhuang, Banu, Xiaolongkan and Haidilao are all in this category. Although these brands have no obvious advantages, they all represent their own unique selling points, including Dezhuang Yikou soup, Banu’s fresh duck blood, hot and spicy butter pot of Xiaolongkan and humanized service of Haidilao.
It is worth noting that Haidilao launched these services more than ten years ago. At that time, most restaurants were not very particular about it. Therefore, Haidilao’s service surprised consumers. In March 2011, a book “Haidilao you can’t learn” not only put Haidilao’s service on the altar, but also made founder Zhang Yong a “famous teacher” among catering entrepreneurs. The “sea bottom fishing service” created by it has become the object of catering practitioners to imitate several times.
Founded in 2001, Banu Maodu hot-pot/" 22375 rel="nofollow" target="_self">hot pot was once one of Haidilao’s many imitators. When Banu just entered Zhengzhou, due to the difficulties in development, he tried to learn from Haidilao’s service first. It is reported that Du zhongbing, the leader of Banu, once mentioned in a sharing that at the beginning, Banu fully learned Haidilao’s services, such as sending rubber bands and glasses cloth, and never let go of dancing noodles. However, he later found that he couldn’t learn from it. According to the report of Chinese entrepreneur, “service is not the characteristic of barnu, but only the tripe and mushroom soup”. Du zhongbing has mentioned more than once that “Productism is the foundation of service industry”.
Photo source: microblog Banu tripe hot-pot/" 22375 rel="nofollow" target="_self">hot pot
Recently, a “plagiarism” news has linked Haidilao and Banu Maodu hotpot together again.
On September 15, an article issued in the name of Haidilao fans said that he had recently found several dishes, such as “living soybean sprouts”, spirococcus, tripe, fennel fried dough sticks, tender duck blood and other dishes while eating in a Haidilao restaurant in Zhengzhou, which was very similar to the Banu Maodu hot-pot/" 22375 rel="nofollow" target="_self">hot pot.
On September 17, Banu Maodu hot-pot/" 22375 rel="nofollow" target="_self">hot pot responded that Haidilao is a respectable enterprise, which has pioneered the service-oriented principle. Now it is focusing on the products that customers like. Haidilao is very welcome to join the camp of Banu’s Productism.
Wang Donghao said that hot-pot/" 22375 rel="nofollow" target="_self">hot pot products are highly consistent and easy to imitate. In the industry, no one has applied for patents related to the appearance of dishes. In other words, how to define and prove the originality of Banu dishes needs to be considered. Therefore, Haidilao can not be regarded as “plagiarized”.
In fact, up to now, Haidilao has not made a statement on this matter.
Wang Donghao told Ranran finance and economics that in recent years, the attitude of the industry towards Haidilao has also begun to change from “unable to learn” to “not to learn”. The problem lies not only in Haidilao, but also in imitators.
For imitators, one is that they can’t learn. It takes time for the mechanism of mentoring and mentoring to be established. However, with the rapid development of the hot-pot/" 22375 rel="nofollow" target="_self">hot pot market, new entrants are not allowed to do so, so they can’t afford it. When the team is trained, the golden cycle of hot-pot/" 22375 rel="nofollow" target="_self">hot pot brand has been missed. The other is that they can’t learn. Human resources and other departments support this service mode, which requires a lot of investment to maintain the satisfaction and happiness of employees. Without the scale of collectivization, it is impossible to achieve the climate and support the expenses.
But on the other hand, why not learn? For Haidilao, it is not easy to turn when the plate is too big, and the disadvantages of the products are more and more obvious, but at the same time, consumers are no longer only satisfied with the service experience of Haidilao. As his core, service has hindered him a lot of energy and money. Self rescue needs to be transformed, and more efforts are needed to be spent on re research and development. The pace is fast but the resources are tight, which indirectly leads to the problem of “plagiarism”.
However, in Dong Keping’s opinion, Haidilao can achieve such a large scale and trigger so many topics, which is itself an example to learn from. Learning is not only to see the strengths, but also to see its weaknesses, that is, experience and lessons. This is the attitude of learning. At present, Haidilao is still a giant that no one can surpass. There must be a reason why people can do this. Therefore, Haidilao is always worth learning, and we should learn Haidilao seriously even if it is in the bud.
Sub brands are still under exploration
“Lin Xiaoman”, “Qin Xiaoxian”, “fanfanlin”, “Xiaofu”, “baobaowenwu” In August of this year, Haidilao’s “Eighteen blanching” applied for registration of five trademarks.
According to Tianyan information, Beijing shibakuang Catering Management Co., Ltd. was registered on September 29, 2019. It is a wholly-owned subsidiary of Xinpai (Shanghai) Catering Management Co., Ltd., and Xinpai (Shanghai) is a wholly-owned subsidiary of Haidilao.
The business status of these trademarks covers catering, accommodation, food, convenience food and other categories.
Among them, “fanfanlin” and “Qin Xiaoxian” have recently started trial operation in Beijing. After a query on the Beijing public review website, it was found that fanfanlin and Qin Xiaoxian had been included as new restaurants, which were classified as fast food, simple meal and dessert respectively.
Haidilao related staff told ran finance that the company not only encourages internal entrepreneurship, but also pays attention to the cultivation of diversified talents. The two brands of fanfanlin and Qin Xiaoxian are entrepreneurial projects tried by internal employees and are still in the exploratory stage.
This is just a corner of Haidilao’s sub brand development.
In recent years, Haidilao has created many sub brands, such as Beijing’s “shibakuan”, Chengdu’s “Laopai youmianer”, Zhengzhou’s “baibran private noodle” and Xi’an’s “Xinqin style noodle shop”.
According to the Beijing business daily, Haidilao’s internal entrepreneurial drive to open a new brand has many similarities with the previous practice of Xibei youmian village. From the beginning of Xibei oatmeal noodles, to Maixiang village, super rougamo and Xibei yogurt house, to gongchangzhang, which has attracted much attention but has not yet opened, Xibei naked noodle village has not given up its attempt in the field of fast food.
Haidilao is not only building a sub brand in the fast food field, but also expanding its takeout business. According to the financial report, in the first half of this year, the delivery business grew strongly, with revenue of over 400 million yuan, accounting for 4.2% of the total revenue from 1.6%. According to Haidilao, the growth of its delivery business is mainly due to the increase in the number of takeout orders.
The reason why Haidilao has made many cross-border attempts in recent years is “for people”. According to Zhang Yong in Zhang Lei’s friends, “I started my business because I wanted to have a house of my own when I got married, so I set up such a hot-pot/" 22375 rel="nofollow" target="_self">hot pot shop with four tables. At that time, I felt very happy when I worked for tens or 100 yuan a month. Later, I found that you could earn 200 yuan a night by setting up a spicy hot-pot/" 22375 rel="nofollow" target="_self">hot pot. This difference was so great that the house was quickly bought. But I fell into a strange circle, because I bought a house, but the lobby manager or chef around me could not buy it. In order for them to buy a house, I have to open another store and let him be the manager. But I didn’t expect to walk into this dead end, because there will always be people who can’t afford a house, and only one store manager can afford a house. So there’s no way. I just have to keep opening stores. “
According to the financial report, Haidilao was not affected by the epidemic, but faster. In the first half of this year, there were 173 new restaurants in Haidilao, equivalent to an average of one new restaurant opening every day. In the whole year of 2019, Haidilao opened a total of 308 stores, equivalent to an average of 1.2 days to open a new store.
On September 4, Haidilao announced that it would spend nearly 150 million yuan to acquire two major catering brands and restaurants in China and New York.
According to the announcement, Haidilao Singapore, a wholly-owned company of Haidilao, entered into the Hanshe agreement on September 4 to acquire 80% of Shanghai Shuhai’s shares with RMB 120 million; Haidilao Singapore, a wholly-owned company, acquired 80% of the issued and issued common shares of HN & T holdings with us $3.04 million (about RMB 20.76 million).
It is reported that Shanghai Shuhai, which acquired this time, owns nine Chinese restaurants operated by Hanshe Chinese cuisine in Beijing, Shanghai and Hangzhou, and HN & T holdings is two restaurants in New York.
However, compared with yihaiyao, Shuhai supply chain, Weihai consulting and Haihai technology, Haidilao’s multi brand strategic effect is average, and its contribution to revenue is better than none.
Founded in 2009, Shuhai initially provided back-end supply chain services for Haidilao, such as food material procurement and vegetable processing, and began to serve external customers in 2016. At present, the products sold by Shuhai mainly cover Chinese food materials, and the proportion of hot-pot/" 22375 rel="nofollow" target="_self">hot pot ingredients in the income of external customers is very low. In 2018, Shuhai’s revenue exceeded 3 billion yuan, and its valuation reached 2 billion US dollars.
Yihai international was listed in Hong Kong as early as 2016, with a current market value of HK $129.9 billion.
Industry insiders believe that multi brand strategy is feasible in the period of vigorous development of the company. According to Wang Xing, it is a quick trial and error. However, once the company encounters a crisis, the sub brand is also the first to be abandoned.
Recently, Coca Cola’s practice is a warning. According to Fox News, Coca Cola plans to cut its wholly-owned or partially owned Global 500 brands by more than half in response to the new crown epidemic crisis.
James quinkey, chief executive of Coca Cola, said in a conference call with analysts that the carbonated beverage giant would eliminate other small brands with poor performance worldwide, and pointed out that more than half of its hundreds of brands are single national brands with small or almost no scale. Zhan kunjie believes that in terms of eliminating the above-mentioned small brands, “we are not decisive enough.”
Baidu, on the other hand, has found another growth point besides the core business of search. Q2 financial report shows that Baidu AI’s new business revenue has achieved double-digit year-on-year growth, accounting for nearly 20% of Baidu’s total revenue, becoming a new growth engine.
Haidilao in urgent need of change
Haidilao, a service-oriented enterprise, is facing a situation that has to be changed, and this change has existed in Haidilao for a long time.
On October 28, 2018, Haidilao’s first smart restaurant officially opened in Beijing. Recently, ran Caijing visited this smart restaurant. During the off peak period, we can find that there are still scattered guests who are eating, and new guests are constantly coming in.
After a simple communication with the staff here, the company found that the smart restaurant was more of a gimmick than a common store. Consumers who come to dinner are still ordering through iPad, delivering food by intelligent robot, and the dishes are similar, so they need to communicate with the waiters.
Therefore, in addition to a 3D naked eye LED screen and a large screen surrounding the restaurant interior in the alleyway area compared with the normal stores, the company has not experienced too much “wisdom”.
As a matter of fact, Haidilao tried to be intelligent as early as smart restaurant, such as allowing customers to order directly on the desktop. However, due to the need for top-level projection, it did not achieve a fundamental innovation in technology.
Wang Donghao told ran finance and economics that after the epidemic, the consumption power of consumers has been polarized. On the one hand, high-end private hotpot continues to be popular, and the consumption level of users is less affected; on the other hand, the consumption level of a large part of the group has actually declined, and the demand for the number of meals for hotpot has also decreased after the decline. In the Limited dining opportunities, Haidilao Service alone is not enough.
Consumers are more willing to spend value, which is the rise of Productism. At the same time, young consumers, including students, are also moving to the hot-pot/" 22375 rel="nofollow" target="_self">hot pot of online popularity. After all, more recordable pictures need to be displayed in social interaction, and the service is only a personal experience, which is difficult to transmit and can not show a sense of superiority.
With the increase of stores year by year, the problems of Haidilao are gradually revealed.
In 2017, the “opinion news” of the Legal Evening News published an article on an undercover investigation, which disclosed in detail the mess of the kitchen in Haidilao’s Beijing Jinsong store and Taiyanggong store, and even rats crawling into the eating cabinet. Only three hours after the report was sent out, Haidilao apologized in a very sincere manner and immediately gave the corresponding measures.
This incident did not make Haidilao completely eliminate the most common but also the most taboo food safety problems in catering.
Looking at Haidilao’s official microblog, the latest apology letter was on July 20, which was about “a customer found plastic in black chicken rolls ordered by Haidilao’s Liancheng Plaza store”.
But this is not the only apology Haidilao made in July.
In July 14th, two days after the incident of “eating hard plastic sheets in black chicken rolls”, the notice issued by the Hangzhou Municipal Bureau of supervision showed that a group of chopsticks used in the new Hangzhou Tianhai store in Tianhai had detected coliform bacteria. Haidilao apologized again.
In “Friends of Zhang Lei”, Zhang Yong said that if an enterprise will collapse and can’t cross the cycle, he must make two mistakes at the same time, one is greed, the other is stupidity. Greedy and stupid. “If an enterprise wants to go through the cycle, you can only make one mistake. You can be greedy, but you can’t be stupid. If you are stupid, don’t be greedy.”
Obviously, Zhang Yong will not make such a mistake. However, Haidilao still has a long way to go before it can regain its glory and become the first choice for consumers to eat together again. This is the same situation as Baidu.
In 2011, Zhang Yong wrote on his microblog that “it’s hard to match the reputation, which is the status quo of Haidilao”. Many people commented on the following: Mr. Zhang is too modest.
Zhang Yong tried to convince each other again: “I know which toe hurts myself.”.
Now, it seems that Zhang Yong’s toes are very painful.
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