China Food

The “ten thousand shop chain” that makes young people addicted and popular with capital, and the business of frying hundreds of billions of snacks?

eat listed enterprises in Fried String snacks?
“If you open a Fried String shop here, you can still lie down and make money even though there are no customers.”
The new Kuafu Fried String shop in Changping, Beijing, has no passenger flow, and the clerk is still confident that business can be expected. The clerk does not understand new consumption, nor does he know how much money the parent company they joined has raised. But he believes that this price and passenger flow can make money in the future.
Not only the industry believes, but now capital is also popular in snack industries such as fried string. Snacks that can make young people “Hi” seem to be setting off a new heat in the air.
On October 27, Xijie Fried String announced that it had completed a round of financing of 295 million yuan, which was jointly led by source capital and xingnahe capital. In the same period, Kuafu Fried String announced that it had completed a round of financing of tens of millions of Yuan A2, with a cumulative amount of more than 150 million yuan. Earlier, Yongdingmen electric roasted string also obtained the angel round financing of Meihua venture capital, and the barbecue brand “mutton string a long time ago” Obtain nearly 100 million yuan of round B financing
“We have obtained the consultation intention of more than 100 investment institutions, including Sequoia and other large institutions,” Wang Kuankuan, founder of sister Xi’s Fried String, told tech planet that the Fried String track is not hot now.
Kuafu fried string is the same. After getting this round of financing, it is the third round of financing since Kuafu this year. Previously, he rejected his investors and came back to take the initiative to invest.
The development speed of Fried String snacks popular by capital also matches the financing speed. Sister Xi fried string has opened 1400 stores in the past two years, and Kuafu fried string has opened 1800 stores as of October. Everyone is very confident in the realization of “one hundred cities and ten thousand stores” in the future.
Not only Fried String, but also stewed chicken and other snack categories have attracted attention. Entrepreneurs have redone the consumer industry. “Addiction, fast store expansion, high gross profit and long-term subscription fee” are the characteristics of new consumer enterprises favored by capital, and the hot snacks fit perfectly.
Only the mighty wave crashing on a sandy shore is a real draught or bubble, and it takes time to tide over the sand.
Secondary entrepreneurship poured into a small string of tracks
How hot the Fried String track is. The founders of sister Xi Fried String and Kuafu Fried String gave up their original career, which can also be seen from the story of starting a new business and making a small string.
Friends who are familiar with Wang kuankuankuan, the founder of Xijie Fried String, know that the “Wang Guiren spicy hot” he founded earlier has opened more than 1500 stores in two years. However, for Wang kuankuankuan, this business is a little boring.
Wang Kuankuan told tech planet that the Malatang business is not non profitable, but lack of imagination. “You know, whether Yang Guofu or Zhang Liang, there are more than 5000 stores now, hundreds open and hundreds die. This business has an obvious ceiling.”
Why can’t this business break through the bottleneck? Wang Kuankuan believes that the single taste of spicy hot, the simple supply chain and the low customer unit price are its limitations. Following this route, he believes that new consumer varieties must be addictive, can make a big fuss from the supply chain, the customer unit price can break through 30 yuan, and finally can be made into the scale of 10000 stores.
Based on the idea of “opening more stores”, in 2019, Wang Kuan decided to hand over the Malatang business to his partners. He started his own business to do sister Xi Malatang, “this time I want to make a career.”
Similar to Wang Kuankuan, yuan Zelu, the founder of Kuafu Fried String, was previously an Internet famous “West young master rougamo” In his opinion, the reason why he started a new business and became a small string was that everyone was innovating brands in the past. Therefore, no matter Yang Guofu / Wang Guiren spicy hot, Xi Shaoye rougamo / Yuan Ji rougamo, they are still doing catering brand business in essence. Even if they can access the Internet for takeout, the ceiling of this business is still obvious.
After starting a new business, yuan Zelu spent 10 months investigating more than 20 categories such as fried chicken and hot-pot/" 22375 rel="nofollow" target="_self">hot pot, and finally judged that Xiaochuan was the category with the most “WanDian gene”.
Wang Kuankuan feels deeply about this. Before that, he opened a spicy hot shop very fast, but now the rocket speed of “three stores a day” has never been experienced. It is not the epidemic that affects the speed of opening a shop. Moreover, in the past, there was no capital attention. Now when they opened fewer than 200 stores, first black ant capital, and then source capital came to the door one after another for investment.
“We didn’t want to accept investment at first, because our own funds were enough, so we wanted to open thousands of stores.” Wang kuankuankuan told tech planet that Chang Kaisi, the investor of source capital, didn’t give up at that time, and invited him to participate in the “code meeting” as a code other than code. After this trip, Wang kuankuankuan learned more about listing and other capital, and slowly polished the current playing method.
In the same period of Kuafu Fried String, yuan Zelu told tech planet that he summed up the 10 word mantra: “small door store, Dalian lock and full supply chain”. That is, small stores with an area of 20-30 square meters are used, and there are almost no hall food; all food materials are supplied centrally by the central kitchen, and the supply chain mode of front sub warehouse is set everywhere; all are open to join in order to achieve rapid share.
As Wang Cen, chairman of B capital, said: “now catering is going in a small direction, with small shops and small menus. Now the test is the freshness rate of dishes”. It is difficult to imagine that subsequent snacks will follow the mode of “direct marketing, gate stores and decentralized supply chain”, which is difficult to do large-scale in a short time.
Similar patterns, the only way out?
In Longde square, the largest residential community in Asia – Beijing Tiantongyuan, there are a series of new consumer brands, such as honey Snow Ice City, Kuafu Fried String, bubble mart and so on.
On the first floor, at the corner of honeysnow ice city, is the Kuafu Fried String store mentioned at the beginning of the article, which has been open for less than 10 days. The freezer of fried string selection placed near the road is side by side with the checkout counter. Two clerks. After the customer selects it, he gives it to the clerk to fry the string in the back kitchen. The post-90s Li Qiang spent 70 yuan and bought dozens of small strings, almost all of which were meat. “The kebab is spicy, like when I was a child.”
This is the common store form of several well-known Fried String brands. Most of them are in the small stores near the road of Shangchao. There is no hall food. On site takeout and online takeout are the main consumption forms. “We sell about 40-50 orders a day on weekdays, and about 10 orders for takeout.” Zhang Feng, a clerk at the Fried String shop, told tech planet that because it has been newly opened for more than a week, the order quantity has not been made yet.
During the completion of Li Qiang’s order, there was no second consumer, only one online order. But Zhang Feng is not worried about the business situation. “In a good time, he can achieve a turnover of 3000 yuan a day.” the shopping mall has a good passenger flow on Saturday and Sunday, so he doesn’t worry about profitability.
According to Wang Kuankuan, the founder of sister Xi, his family’s franchise fee is 40000, 50000 and 60000 yuan, as well as a management fee of 10000 yuan per year. Taking into account the expensive rent and labor cost of the shopping mall, the operating cost of each small Fried String shop is not low. However, both sister Xi and Kuafu’s Fried String stores expand very rapidly. They open thousands of stores a year, reflecting the opening speed of Ruixing coffee that year.
The reason why they can open stores quickly on this scale is that these Fried String franchise stores adopt unified goods distribution. As long as the franchise stores consider the problems of site selection and daily operation, enterprises can also do quality control through the supply of food materials for a long time, and charge for a long time in the mode of “similar software subscription”.
Sister Xi and Kuafu explored the supply chain full distribution mode of fried string, that is, all fried strings are made in the central kitchen and the ingredients can be cooked on site. According to Wang Kuankuan, sister Xi will first build a fried string configuration center locally, make popular strings such as streaky pork, imported beef string, palm treasure string, boneless chicken claw string and spare ribs string, then freeze them for assembly, and finally distribute them to franchise stores through cold chain.
At present, sister Xi has eight storage and distribution centers and its own factories in China, covering 29 provincial administrative regions and 304 cities. Kuafu fried string has also completed the layout of many scenes such as line 1-5 cities, streets, shopping malls and takeout.
No matter where it is opened, the main consumer groups of such snacks are young people. Wang Kuankuan told tech planet that when it was designed, it was considered that “appetites are the main thing, supplemented by satiety.” therefore, the fried string is very spicy. In addition, there is no large amount of roasted string. 9 yuan 15 string beef and 10 yuan 8 string palm treasure are just like street snacks in the past. Young people can eat while walking after buying.
Why not make shop food, but generally adopt the model of small shop? Let young people go after consumption?
It is understood that Kuafu has also made a model of “big fried yard”. The model similar to the barbecue shop is too heavy and costs millions. The speed of opening the shop will be very slow. Later, this model has not been developed. Wang Kuan also stressed that sister Xi’s opening cost will be controlled within 300000 and take the boutique model.
There is no other reason why I don’t want to be a big store. This model is not conducive to opening stores and expanding the city. It is not the capital’s favorite “WanDian model”.
How is the online Red catering brand always popular?
Catering is the most popular area of online Red brands. The West young master rougamo associated with Kuafu Fried String and later diaoye beef brisket are all cases of decline of online red.
In the process of starting a business, Wang kuankuankuan has also considered a problem, that is, why online Red shops are easy to die out. Wang Kuan believes that many brands are “difficult to match under their reputation”. Therefore, the solution summarized by Wang Kuan is to make an article in the field of Fried String from the two fields of health and national tide, so as to change the situation that fried string and other snacks “have category but no product”.
The health of fried buns needs to make an issue from the source of food. Sister Xi’s fried buns include beef, long-term fresh-keeping vegetables and other categories imported from Australia. The whole process is industrialized to improve the health and safety of food. Kuafu miscellaneous fried buns are improved from oil extraction, and the exclusively developed herbal halogen oil improves the taste and safety. There is also a “master can’t fry” Fried String brand emphasizes that it will not reuse oil and solve health and safety problems through consumer self-help frying.
The reason why we pay more attention to health is also to reduce the unhealthy impression of Fried String among young people. From the taste scores of public comments on soxi sister and Kuafu Fried String, they are basically near the qualified score line of 4.3. Of course, this is higher than the score of fried string of some street snacks.
In addition, on how to establish the brand of Fried String store, they both chose IP.
Xijie’s and Kuafu’s bags are paper national fashion packaging styles, and young people also like these bags with cultural connotation. According to Wang kuankuankuan, after he decided on Xijie’s brand at that time, he went to the design studio in Nanjing to make the main kV design. The designer adopted the red paper-cut design style.
“I’m not very satisfied with the design, so I’ll pay 80000 yuan for the design.” Wang Kuankuan mentioned that he didn’t expect his partners to like it very much. Later, he made do with it. I didn’t expect consumers to like it very much. Some girls would take the initiative to take a group photo with a bag. Kuafu Fried String first wanted to be called “Leshan Fried String”. Later, he thought that Kuafu, an ancient myth in China, had more cultural connotation. Yuan Zelu spent $600000 to buy Kuafu’s trademark at that time.
In terms of maintaining the constant popularity of the brand, it is also an important measure to insist on promoting new businesses. Wang Kuankuan introduced that it is not impossible to make fried chicken and other new products in the future, and even make some self-developed drinks. Yuan Zelu of Kuafu Fried String also told tech planet that he is more optimistic about proteins and meat in snacks. Fried chicken and chicken chops are on the way to prove or be proved, as well as the recently popular small crispy meat category. In the future, we will mainly do in-depth development of string products and the combination of Fried String and wine.
Guochao snacks should finally bear the consumption confidence of this young people, and let the young people hold Guochao bags with fried strings in their left hand and new tea in their right hand. If this goal is achieved, although hundreds of millions of Xi sisters and Kuafu have been sold, there is still a long way to go.
Can you eat 100 billion yuan of snacks?
Before the realization of the final current, the biggest problem for sister Xi and Kuafu is that after the circuit is heated by capital, will it fall into the tuyere in an instant?
After all, there are no evergreen trees in the new consumption track. From the four outlets of coffee, catering, noodles to low alcohol wine, the hot new consumption tracks are one after another, and the snack categories such as fried string will not be the last.
For a long time, the dominant brands on the snack track are Jue Wei duck neck, Zhou black duck, Zhengxin chicken chops, Wallace, etc. Zhou Heiya, which has been established for 15 years, currently has 2590 direct + franchise stores. The number of Zhengxin chicken chops, which have also been established for 15 years, has reached 22030 nationwide, with a total of 12399 unique foods four years earlier than Zhou Heiya.
It can be said that the snack track is the easiest to achieve the goal of “one hundred cities and ten thousand stores”, but now capital obviously doesn’t want to wait 15 years. The speed of copying Ruixing coffee is the result we want, and fried string and other snacks do have its advantages compared with the four new consumption outlets.
In the coffee outlet, Ruixing “flashed” first. Since then, manner, m stand and seesaw have risen one after another. “China Starbucks” must have. However, Chinese people still need to cultivate their consumption habits of coffee. Snacks such as fried string are local characteristics and do not need to obtain customers through large-scale subsidies.
Then there is the milk tea track. Xi tea, Naixue and honey snow ice cities are constantly listed or opened WanDian, which is the sweet honey of the new tea track in the eyes of capital  ; This track emphasizes heavy capital investment. It only needs 200 million investment leverage to open thousands of stores.
Then, the small noodle track of Hefu Laomian, Xiaomian and Wuye mixed noodles was popular by capital, and the industry collective looked for the next Madonna KFC; The logic of fried string is very similar to that of small noodles, but fried string can be like coffee, and takeout / takeout accounts for a high proportion. Wang Kuankuan mentioned that he will make small programs in the future and have the predetermined mode of liking tea.
Finally, Helens, Meijian and other liquor brands have been hotly discussed. Everyone is paying attention to the low alcohol liquor that makes young people slightly drunk. The root of the first mock exam is whether the low alcohol is a consumer proposition. After all, if you don’t drink it, you will not be able to subsidize it.
Of course, although the Fried String snack mode is indeed very good in the eyes of capital, it is also common that the life cycle of Fried String stores is short and the re purchase frequency is not high enough. More importantly, how to ensure franchisees make money by Fried String snacks? After all, there are still some Internet dealers who make complaints about losing money.
According to the average data given by yuan Zelu to tech planet, in order to control the current cycle within 10 months, the monthly profit of qualified and excellent franchisees is between 15000-20000 yuan. These data also need to be combined with their actual situation to see this business for people in the industry.
However, as yuan Zelu said to tech planet, snacks account for 40% of the catering industry, and there will be two kinds of new brands: Super monomer and super scale in the future. Super monomer is like Wen Heyou, but super scale is more promising. “In the next ten years, I believe that no less than 30 super brands in China will be listed, and we also hope to create” the first share of Fried String “
Author: Yang Xiaohe; Source: Tech planet (ID: tech618), reprint authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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