China Food

After Changsha, IDG, source code and other investment institutions cleaned up Fujian catering brands


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trillion GDP cities will become incubators for new consumer brands.
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According to the first-hand information of blue shark consumption, a number of new catering brands such as Zhujiao, Wuzhao, shudufeng and Jiuhao canteen in Fuzhou and Xiamen, Fujian, are becoming the focus of front-line consumption and investment institutions such as IDG, black ant, source code, Fengrui, Shunwei, Wuyuan, buhun, XingTuo, Meihua, Jinshajiang and yuanlai.
 
Over the past year, the first-line capital boss or the person in charge of consumption track investment (many investment giants familiar to blue shark’s consumption circle of friends) have personally taken the initiative to compete for these projects.
 
Some have settled. For example, Zhujiao, the government announced on August 20 that it had obtained 150 million yuan of a-round financing led by buhun venture capital and followed by Guoquan war investment; for example, the youth halogen brand claw announced on September 1 that it had obtained tens of millions of yuan of a-round financing led by XingTuo capital, with a valuation of hundreds of millions of yuan. Some will be disclosed in the last investment process (please look forward to the first-hand information of blue shark consumption) In addition, in 2020, shudufeng (enterprise check data) invested by capital from the source, leweiju invested by thriving capital in March, baolongxian invested by Zhongding capital in July, and Fujian consumption and catering brands ushered in the “spring” of capital.
 
At present, Hunan may be the only province with higher consumption and investment than Fujian, specifically Changsha.
 
According to it orange data, in Changsha alone, Hunan, 20 + brands have been favored by capital, including new star consumer brands such as Mo Mo dim sum Bureau and tea Yan Yue color. In particular, Mo Mo dim sum Bureau, founded for more than one year, announced on September 2 that it had obtained the investment of meituan Longzhu, with a valuation of more than 5 billion yuan.
 
In Changsha, WanDian brands such as Jue Wei duck neck were born. In Fuzhou, Fujian Province, there are also well-known Shaxian snacks, Wallace and other regional and Chinese fast food WanDian brands. According to public information, Shaxian snacks has 88000 stores everywhere, with an annual turnover of more than 50 billion yuan and radiation driven employment of more than 300000 people. Zhang Min (pseudonym) in the industry According to the introduction, Wallace has opened more than 10000 stores across the country, with up to 200000 employees upstream and downstream.
 
Fujian brands with financing (part):
Zhang Min told blue shark consumption: a year ago, the Fujian catering market, which gave birth to Wallace and Shaxian snacks, was also regarded by capital as a “venture capital desert”. From “venture capital desert” to capital pursuit, what chemical changes have taken place between capital and Fujian catering brands?
venture capital
Fuzhou and even Fujian are snack cities. Why was it once regarded as a “venture capital desert” by capital?
As the saying goes: one country’s soil and water nourishes one country’s people. The special geographical location of “eight mountains, one water and one field” forces Fujian people to go far away for their livelihood.
 
Take Shaxian snacks as an example. Shaxian has a total population of 272000 and 60000 Shaxian people operate snacks outside. In the early years, Fujian catering bosses, because they did small business, showed the characteristics of “small shop”, small dishes, small price and small investment “(see Tips).
 
Their first money often comes from their family / relatives and friends, and gradually forms the characteristics of “love to fight and win, dare to take risks and develop in a group”. For example, Shaxian snack training center only recruits Shaxian locals, and zhensha snack can only be opened by Shaxian people. (outsiders can marry Shaxian wife or marry Shaxian if they want to open it).
 
Zhang Min told blue shark that in 2017, the brand “Zhujiao”, which originated in Xiamen, received financial support from relatives, friends and villagers. Now, “Zhujiao” has already spread all over Xiamen, Fuzhou, Shenzhen, Nanning and other places, with more than 300 stores, becoming the largest chain brand in this category.
 
Tips: four features of Fujian Catering:
 
1. The stores are small. Most of the fast-growing top 50 restaurants in Fujian have an area of less than 100 square meters, or even dozens of square meters.
 
2. The products are small. In the past, Fujian catering focused on a sub category. Each restaurant has only one hot dish, and the world depends on a single product. Only good products can bring good business.
 
3. Small consumption. Fuzhou’s small catering brand has a high cost performance. The pig horn guest order is 26-30 yuan and the herbal soup is 11 yuan. In addition to the cheap price, the dishes are also full. Zhou Mapo’s 3 yuan a bowl of Mapo Tofu with a bowl of rice can solve a lunch.
 
4. Small investment. Because the store is small (less rent and labor), the product is small, and the investment in a single store is less. In addition, with the participation of multiple shareholders, there is less personal investment, which can expand the store quickly and return quickly.
 
“In the past, they only wanted to make money and then spend money. They never thought about capital and listing.” Zhang Min said. Coupled with the “tragic” cases of South Beauty and other catering enterprises being “kidnapped” by capital and failing to come to a good end, these catering bosses subconsciously thought that the capital to gamble was “black heart”. They had a bad impression of the “demonized” capital, “The consequence is that they would rather take money from relatives and friends.”
 
Wallace’s core model is “store crowdfunding, employee partnership and direct management”, which has a far-reaching impact on Fujian catering brand. It is equivalent to disguised employee fund-raising and does not need capital at all. The problem brought by the prevalence of crowdfunding model is that Fujian catering enterprises generally have problems of dispersed equity and complex shareholders, and general VC institutions dare not get involved easily.
sinking capital
With Changsha being swept away by today’s capital, meituan Longzhu and other capital, the valuation of local consumer brands has soared, and small and medium-sized investment institutions have no chance to enter the market. This forced investment institutions to sink and look for good targets in the market. At this time, cities such as Fuzhou and Xiamen have become their only choice.
 
This round of sinking capital happened to meet a new generation of Fujian consumption and catering brand founders who were willing to change and embrace capital.
 
“These founders who get financing are no longer satisfied with doing a profitable business. They have a great driving force to be a powerful company and build a national brand.” Liu Yuan (pseudonym) told blue shark consumption. When they think so, they begin to study the new consumer brand unicorns (future unicorns) that get financing from outside, such as pot circle and chef Fei. After comparison, they find that some products of those companies do not necessarily do well. “Why are they so valuable? They are often overvalued by hundreds of millions of yuan?” the mentality of the founders has changed.
They began to contact capital, such as Xue Haiming, founder of pig horn, and Zheng Jinqing, founder of claw dance. They were one of the earliest Fujian catering brand owners to contact capital. Zhujiao is a Chinese fast food brand, focusing on Minnan pig feet rice, with an annual revenue of hundreds of millions of yuan; There are nearly 200 claw shops with an annual revenue of nearly 100 million yuan and rich profits. They took the investment of buhun venture capital, Guoquan war investment and XingTuo capital respectively. After getting the capital, they found many benefits:
 
1. These head capital are relatively friendly and there are no harsh terms such as gambling. They are afraid of being “kidnapped” by capital.
 
2. Investors from Beijing, Shanghai, Guangzhou and Shenzhen have invested in the “ox X” project. Their thinking logic is different from theirs and can help them. When the claw dance gained a firm foothold in Fuzhou, it was suggested that they quickly enter the Beijing, Shanghai, Guangzhou and Shenzhen market to build brand potential. This kind of backstroke made Zheng Jinqing hesitate very much. Liu Zehui told him at the first meeting that only some famous claw dancers in Fujian would have a hard time fighting with many experts when they came to a place where new consumer brand strategists like Shanghai. It’s better to open the market in places with relatively few experts such as Jiangsu, Zhejiang and Anhui. This suggestion suddenly enlightened Zheng Jinqing.
3. Getting an investment is equivalent to allowing capital to “certify” its own company. They will communicate privately. XX company valued XX money, which is not only a face, but also an important means to motivate employees. “I used to buy people with money, but now I keep people with equity,” Zhang Min said. Li Min (a pseudonym), founder of a well-known catering brand in Fuzhou, told blue shark that if there was no capital, the founder would say how much the company and shares were worth, and the employees would not believe it.
 
Of course, the choice is two-way. The reason why knowledgeable capital is willing to give such favorable investment conditions is that the quality of these targets is good. New Fujian catering brands such as shudufeng, Zhujiao and Wuzhao are profitable companies. Even if investors invest in such projects, they will not lose as long as they pay dividends.
gold generation
More importantly, the founders of Fujian’s new generation of catering brands are “very good at both products and design, as well as direct sales and franchises all over the country, which brightens the eyes of investors.
 
During the visit to entrepreneurs of catering brands in Fuzhou and Xiamen, blue shark consumer learned that pig horn, claw dance, herbal soup, shudufeng, Jiuhao canteen and 1718 seafood hot-pot/" 22375 rel="nofollow" target="_self">hot pot are the leading brands of each subdivision track, and the founders are 30-40 years old, struggling and indomitable in their respective fields. A plate with an annual income of one or two hundred million. In recent years, they have been building a solid brand foundation and are ambitious to be the leader in the industry.
“Now we have caught up with the rise of new brands and new national trends. Claw dancing and pig horn are new Chinese designs, which cater to the pursuit of young people. Fuzhou is a small catering capital. Every restaurant has a hot dish, and they have the ultimate pursuit of products,” Zhang Min said.
 
Zheng Jinqing had more than ten years of catering experience before doing claw dancing. He was a Linghu Chong roasted fish brand that was once selected as one of the top 100 Chinese catering brands, with an annual profit of tens of millions of yuan. He was once a “person floating in the clouds” and an angel investor of Fuzhou star catering brands such as shudufeng.
 
The founder of herbal soup is a product madman. He drills in the product every day and makes a total of 100 + SKU.
 
In the communication with Xue Haiming, blue shark consumer learned that he was a real “catering veteran” born in 1985. Xue Haiming, an apprentice at the age of 16 and a chef in a five-star hotel at the age of 25, worked in a catering company with 100 chain brands ten years ago. Then he resigned and founded “Ji Li Lao mian”, which has been at the forefront of catering innovative brands.
 
Because Xue Haiming has always maintained the concept of pursuing high product quality, every time he travels around, he meets delicious restaurants. His idea is: “I don’t know the boss, but I must make friends with the chef.” in his opinion, only in sharing and communication can catering people constantly improve, innovate and learn endlessly.
 
Pig horn is famous for “pig feet rice”, but Xue Haiming is most proud of rice. “In our restaurant, most of the people who come to eat are ordinary people. If they can’t cook the most ordinary rice well, what fast food should they make? Our rice should be better than pig’s feet.” in addition to rice, Xue Haiming also pays attention to many details, such as meal paper, which are made by himself, “70 more than the ordinary 120. Each paper has three layers of thickness to ensure that it will not be stained by oil when wiping the mouth.”.
 
The continuous iteration and continuous improvement of product upgrading is the strength of Zhujiao’s courage to “stand up to” well-known Chinese fast food brands such as rural chicken and Mr. rice. “We didn’t spend a penny on advertising, but we did a good job in every bowl of rice.” Xue Haiming told blue shark that at present, the floor efficiency and flow of people of Zhujiao store are no inferior to the so-called “online Red store”.
Don’t turn your back on the front line
Perhaps they inherited the mantle of Wallace and others, or they learned from practice. This group of Fujian new catering brands generally focus on the same or low-level cities as Fuzhou and Xiamen. In other words, these new domestic brands are developed in trillion GDP cities such as Changsha and Fuzhou because their market consumption capacity is large enough to support a new brand to open locally Hundreds of stores have been set up, and the products and models have been mature. Taking this as the base to expand outward, the success rate has been greatly improved.
 
“Before, we did a good job in Fuzhou. Queuing up every day will naturally expand.” Li Min told blue shark consumption. “Coupled with other people’s’ suggestions’, we decisively entered the Shenzhen market. As a result, the money for renting staff dormitories alone is almost equal to our store rent in Fuzhou. We didn’t even understand the cost, and the result is a mess.”
 
After reflection, Li Min suggested to Zheng Jinqing and other Fujian bosses that the current comprehensive height of Fuzhou catering brand can not be compared with the brands in the first-line market. Their brand awareness and sensitivity of “making products with one heart” are not enough, and they almost have no advertising thinking. “The closer we get to the first tier cities, the more exquisite consumers eat, which makes us used to ‘cooking in slippers’. Even if we make the dishes bigger and delicious, we don’t let consumers pay the bill, but are’ looked down upon ‘.”
 
Li Ming (a pseudonym) told blue shark consumers that they entered the Shenzhen market from Fujian and made adjustments up to six times. “First of all, we transformed and upgraded the pots and pans. We found that your kindness was’ cheap ‘, but it made people feel rough. For the first-line market that looks at beauty, consumers think you are very low and worth so much money. Later, I asked the store: don’t be afraid of waste. Even a green dish should ensure that every one is green. It should be like a bowl of’ product ‘, not a single dish A bowl of rice. “
Li Ming also made great adjustments to the whole brand “business district”. He no longer sticks to entering the interior of the mall, but opens outside the mall to reap the natural flow. “Consumers in first tier cities are ‘spoiled’ by brands who harvest traffic by discount. Brands often rotate when they can’t make ends meet, but consumers can eat delicious food at a low price every day. This rhythm is really not suitable for us.”.
 
They found that if they give up the first-line market and go to the sinking market, they will have great opportunities. The outbreak of the epidemic makes many catering chain stores close to bankruptcy. Without the brand franchisees who were “harvested” in the past, it becomes very difficult to attract investment in the sinking market. At this time, it will naturally make the greatest concessions to the enterprises that are still able to open stores, and even take out the budget to “reveal the bottom” for them.
 
Li Min told blue shark: “If big brands don’t come in, we’ll be ‘big brands’ after we go in. At the same time, compared with those brands that are’ completely industrialized, no smoke and fire, too personalized ‘, we harvest a wave of customers by cheap and decoration, and there is no re purchase. Fujian’s new catering brand is full of inclusive localization improvement and ultra-high cost performance, which can also attract consumers to pay. At the same time, low rent Jin can let us spend more money on the decoration of stores and make ourselves look taller. “They found that Fujian’s new catering brands grow up slowly in second and third tier cities, and then go back to the front line, which may get twice the result with half the effort. At present, Wuzhao is playing this way, expanding in Ningbo, Wenzhou and other cities in Zhejiang Province, and finally entering Hangzhou and Shanghai.
 
In fact, capital is more concerned about how the new catering brand can quickly increase the density of stores. With the huge retail capacity at the front end, it can reverse the construction of supply chain competition barriers, enlarge the scale effect of the supply chain, and make differentiated products that others can’t do, so as to make higher quality products at lower prices. On the contrary, strong supply chain capacity provides strong support for store expansion Force support, thus forming a benign growth flywheel.
 
Taking Zhujiao as an example, the consolidated supply chain capacity provides a strong guarantee for the rapid expansion of stores. The upgrading of automatic production lines, the stability of supply chain and standardized output all make the brand less and less dependent on labor and greatly improve human efficiency. Zhujiao, which has 300 + stores, has become the largest start-up company in the same category, and this advantage is still being amplified.
 
In addition, the huge store system also adds points to brand building. After all, the claw dance, pig horn and Minnan pig foot rice stores in the commercial centers and streets of Fuzhou, Xiamen and other cities (even cities such as Jiangsu and Zhejiang) make consumers feel ubiquitous and readily available, and naturally become the first choice brand in their hearts.
Fujian restaurant, don’t float!
From the “venture capital desert” abandoned by capital to the “fragrant pastry” of capital, the new generation of Fujian catering brand founders are embarking on a new journey. China has a consumer market of 45 trillion yuan, which is enough to support the growth of Fujian new catering brands such as Wuzhao and Zhujiao into national brands, but they still have to face many challenges.
 
For example, the logic of large single items in Fujian catering in the past has been unable to meet the needs of consumer groups in the new era in time. They must make more in-depth thinking and Exploration on the timely update of SKU to meet the young consumers’ pursuit of taste diversity.
 
The large number of store shareholders and complex ownership structure are bound to bring management challenges. It is worth paying attention to how to deal with these historical problems. In addition, the Wallace like joint venture model can only be regarded as a management store at the capital level, and there is almost no premium space. How to solve it?
Jiuhao canteen
Of course, in the face of relatively calm capital, even if there is no larger PE or secondary market listing, there is not so much imagination space, but good projects can still run out. Because the current chip, medical and other project capital is difficult to “enter the bureau”, what is the capital investment? Or consumption. Fujian still has many good new catering brands to be developed by capital.
 
Zhang Min predicted that new consumer brands that rely on crazy money investment flow to obtain revenue 2VC will enter a “bottleneck period” this year, and those brands that “fight” with money will linger on the edge of danger. Those excellent Fujian catering brands that do not rely on any online traffic, rely on the advantage of “making money in every store”, have strong control over the supply chain and hold the most important assets – customers, fans and active members, which are still the objects of capital competition in the future.
 
However, Zhang Min repeatedly reminded that capital only adds to the icing on the cake, and Fujian’s new catering brand should not be pursued by capital. Xue Haiming, Zheng Jinqing and other self-made Fujian catering people should be sober. No matter how much capital is sought after, they should still make products as solidly as in the past, return to the essence of business, speak with good products and services, and do not unilaterally pursue fast-paced expansion, resulting in the rupture of the capital chain.
 
Li Min, who has suffered losses, said: “Even if there are many reminders from others, only by paying for the lessons can we be forced to find out the reasons for the lack of flat efficiency and human efficiency. In the past, we could mess around, but now we can’t, because once a ‘war zone’ has a problem, all stores will be affected. Therefore, before entering a market, we must make full research and make decisions. Once we drift away If you can’t create new value for customers and make no progress, that’s the beginning of failure. “
Original title: Pig’s feet rice, chicken feet, Chinese fast food… After Changsha, IDG, source code and other investment institutions sweep Fujian catering brands
Author: Li Jiaqi; source: blue shark consumption (ID: lansha Youhuo), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
joining the community: Cherry (wechat: 15240428449). Read
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