China Food

Master Kang’s brothers want to raise more than 5 billion yuan? Trandex and other catering businesses to be IPO

Another well-known chain catering company may go to Hong Kong for IPO.

Xiaoshidai noted that on March 2, according to people familiar with the matter, the Taiwan food company Dingxin International Group, which owns brands such as Master Kong, is considering an initial public offering (IPO) of its mainland catering business in Hong Kong. The company is inviting banks to compete to service its listing, people familiar with the matter said.

According to people familiar with the matter, the mainland catering businesses that the Taiwan funded company may list in Hong Kong include the well-known fried chicken chain restaurant Dexter and the private beef noodle chain restaurant Master Kong, which specializes in Taiwan style beef noodle. The IPO could raise about $800 million (about 5.169 billion yuan).

The review is still at an early stage and the company may decide not to proceed with an IPO, the company said, citing people familiar with the matter. Dingxin group has yet to comment on the news. As of press release, Dexter has not responded to the inquiry of snacks.

According to public information, Dingxin International Group is a large food distribution group. After more than ten years of development, its total investment in the mainland has reached US $1.2 billion. It has nearly 24000 employees and has well-known brands such as Master Kong, Dexter, Weiquan and FamilyMart.

Let’s take a look.

Texco 2600 stores

First of all, focus on KFC’s “fried chicken opponent” Dexter.

According to official data, Dexter, a member of Dingqiao catering group, was officially established in 1996. Now there are more than 2600 stores in 32 provinces and autonomous regions in China. According to the official website data, about 85% of them are franchise stores, and Dexter has various ways to join, including franchise, cooperative franchise and employee entrepreneurial franchise.

The brand’s signature products, which are popular with consumers, include “crispy fried chicken” from the day of the brand’s birth, “crispy pistol legs” launched in 2009, and fresh lemon drink launched in 2016. According to the official website, DEX sells more than 100 million pieces of crispy fried chicken a year.

According to a report released by the company in 2019, based on a survey of 3000 Internet users aged 20-49, the western fast food restaurants with the highest brand penetration rate are KFC, McDonald’s, DEX, Wallace, Burger King and subway.

“At present, about half of Western fast food consumers often visit KFC, and one quarter of consumers often visit McDonald’s.” The report said.

Interestingly, according to the above report, according to the demographic characteristics and analysis, the proportion of consumers aged 20-29, 30-39 and 40-49 in KFC and McDonald’s is roughly the same, with 1 / 3 of them. Wallace and subway have a higher proportion of consumers aged 20-29, while Burger King and DEX have more consumers aged 40-49.  

Judging from the current scale, there is still a big gap between Dexter and its biggest competitor KFC, and the store growth rate is slower. According to xiaoshidai, by the end of 2020, there are 7166 KFC restaurants under Yum China, with 840 new stores added last year. This year, yum China will also plan to open about 1000 new stores. It can be predicted that KFC brand will still be the main force of new stores.

In addition, in the western fast food market, DEX also faces another strong competitor, McDonald’s. According to xiaoshidai, as of November 2020, McDonald’s has opened more than 3700 restaurants across the country. After McDonald’s, CITIC and Carlyle announced their cooperation in 2017, the fast-food giant’s expansion speed further increased, and accelerated the layout of stores in the Midwest last year.

From low tier cities to first and second tier cities

It is worth noting that although they are both Western-style chain restaurants, the key markets of Dexter, KFC and McDonald’s are not the same.

In the stores of DEX, the proportion in the first and second tier cities is relatively small. According to the data disclosed in 2019, at that time, DEX had 2500 stores across the country, and about 200 of them were in Beijing, Shanghai, Guangzhou and Shenzhen. Shao xinmou, executive director of Dingqiao catering group, has previously said that in such “difficult” markets as Beijing, Shanghai and Guangzhou, DEX is mainly relying on its headquarters to invest in Direct stores to establish its brand.

But with the continuous expansion, it can be predicted that the three Western fast food brands will meet in more and more battlefields.

On the one hand, KFC and McDonald’s are grasping the “sinking”. For example, Qu Cuirong, CEO of Yum China, mentioned in February this year that in order to enter the new market, KFC is experimenting with the “small town mode” customized for the six tier and below cities. The first mock exam will provide localized menu, store layout and operation mode, and less capital investment will be opened.

Dexter, on the other hand, is adding to its first and second tier cities. For example, xiaoshidai introduced that at the beginning of last year, DEX put forward a new strategy of “one city, one store”, which is to open one or more theme stores in the provincial capitals and above cities. In the same city, there is only one store for a theme.

New book themed store in Texas

Later last year, DEX opened two new theme stores in succession, namely, the northwest Bookstore theme restaurant in Lanzhou and the basketball vitality theme restaurant in Jinan. This is the first implementation of the new strategy. Dexter previously told the catering agency that compared with ordinary stores, the theme store will have a larger area, including an interactive area, a display area, a theme wall, etc., as well as a seating area and a ordering table with theme features.

It can be seen that Dexter hopes to bring freshness to consumers through the strategy of “one city, one store” and provide differentiated experience from store environment to menu. More importantly, it is also a signal that DEX, which has been deeply cultivated in the third and fourth tier cities, is accelerating its penetration into the upper tier cities.

“In 2021, theme stores in more cities will open one after another. In the future, DEX will also consider launching new stores with different themes in the same city to continuously enrich the consumer experience. ” The company previously told the snack agent.

Youth and digitalization

From the third-party research and other data, we can see that compared with the competitors, Dexter still has more room to improve in the young customers. In order to attract more young consumers, the western food chain has tried many creative ideas in recent years.

Dexter’s “chicken eating company” Theme Store

For example, xiaoshidai introduced that Dexter launched NBA themed stores in 2019 to attract sports crowds and young consumers; in 2018, customers who had cooperated with yiermo to place orders for Dexter’s world of Warcraft new packages had the opportunity to meet the courier who became the character of “Warcraft hero” in Cosplay to deliver meals; and they also joined hands with the world’s popular mobile game “survival of the Jedi”, which is also famous for “eating chicken” It is reported that the game players are concentrated in the first and second tier market, mostly after 95 or 00.

In terms of product innovation, Dexter, who is not satisfied with only being a “fried chicken expert” and hopes to attract more young customers, has been trying to launch more new products in recent years.

For example, xiaoshidai introduced that the limited time new products of “ocean season theme series” launched by Dex in 2019 mainly focus on “high appearance and high value”, aiming at young customers aged 25-29, and returning to the menu in 2020. Last year, Dexter also launched a new series of stores across the country, including Angus Beef Burger with black pepper and chicken burger with fried cheese.

In May last year, Dexter officially announced that Jia Ling became its member’s annual spokesperson

Among them, fried cheese chicken royal castle is also a restricted item of Dexter for two consecutive years. Because of its good sales, it has become a regular dish after this listing. This is also a common practice of Dexter’s “Shangxin”, that is, first limit the test, try the situation, and then adjust, upgrade and promote it.

In last year’s exchange, when talking about the idea of creating “the next popular model with memory”, Xie Yahui, chief marketing officer of Dexter, once told the snack agent that in the fast-paced western fast food industry, the “popular formula” contains four factors: meeting the needs of consumers, having a strange new experience, high appearance and delicious.

In addition, DEX is also catering to emerging trends, such as water testing, the current hot plant meat products. According to xiaoshidai, in October 2020, DEX launched a limited time plant meat burger in 2600 restaurants across the country during the dinner period. In January this year, DEX launched seven kinds of plant egg dishes in more than 500 restaurants during the breakfast period.

Digital innovation is also one of Dexter’s key strategies to attract young customers, improve store efficiency and consumer insight.

Shao xinmou, executive director of Dingqiao catering group, disclosed in August last year that Dexter has 50 million collective members and 5 million paid exclusive members. According to the data in 2019, the average consumption frequency and unit price of paid members are 20% higher than that of ordinary members. At the same time, DEX continues to expand its digital scene, including tmall stores, live delivery and so on.

Master Kang

Another chain catering brand of Dingxin, Master Kong Private beef noodle, is rumored to go to Hong Kong for IPO this time.

“Master Kong” is a famous brand of Dingxin international group. According to public information, the business of Master Kang’s instant noodles belongs to the food business group, while the business of Master Kang’s private beef noodle shop belongs to the catering business group.

Compared with Dexter, the dishes of Master Kang’s private beef noodle business are much smaller. According to the official website, Master Kang’s private beef noodle is a new type of catering chain business of Dingxin international group. It opened its first store in Beijing in 2006. At present, it has opened about 120 stores in Beijing, Shanghai, Guangzhou, Shenzhen, Zhengzhou, Xiamen, Chengdu and other cities.

Perhaps many consumers see this restaurant chain in some transportation hubs, including airports, railway stations and other crowded places. According to previous media reports, according to Master Kang, it is often invited to open a shop.

This may be related to the fact that Master Kong’s instant noodles are often regarded as “travel food”, which is conducive to successfully extending the brand’s high popularity to the catering business of “do now and sell now”, and cutting into more consumption scenarios in addition to convenient and cheap packaged food.

In fact, this restaurant called “Master Kang private beef noodles” doesn’t just sell beef noodles. According to the official website of xiaoshidai, it also sells a variety of dishes, snacks, desserts and drinks, such as fatty beef rice, shredded chicken rolls, spicy pot, cold seaweed, chicken wings, hand grasping cake, bittern, yogurt pudding, milk tea, juice and beer. But the main dish is still beef noodles with different flavors.

Master Kang’s private beef noodle dishes

With the name of “Master Kang”, this chain restaurant naturally has a certain popularity, but it also brings interference factors to its development to some extent.

For example, consumers will naturally compare the price of noodles in restaurants with that of packaged instant noodles. Xiaoshidai today searched tmall platform and found that the price of Master Kang’s instant noodles with braised beef noodles is 4 yuan / barrel, while the price of Master Kang’s private beef noodles is 30-60 yuan per bowl. The existing impression of Master Kong instant noodle brand may make it difficult for customers to pay for “high price” Master Kang restaurant noodles.

If they can go on the market smoothly, will Dexter and Master Kang speed up their scramble for “territory”? Snack generation will continue to pay attention.

Pay attention to “xiaoshidai” (wechat: foodinc) “and reply to” Dexter “and” Master Kang “to see the wonderful news.


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