China Food

A bowl of noodles is valued at 7 billion. What is the basis of Hefu fishing noodles?


“  
how can you make a bowl of noodles so valuable?
 ”
With the arrival of winter, a bowl of hot noodle soup has become the dining choice of many people. This bowl of hot noodle soup can comfort people who are busy in the cold and bring them great satisfaction to their taste buds.
 
Since ancient times, noodles have played an important role in the diet composition of Chinese people. There has always been the saying “South meters to the north” among the people, but with the development of society and science and technology, this division has long been less obvious. Nowadays, noodle shops can be seen everywhere. China catering category and brand development report 2021 The data show that in 2020, the number of noodle stores accounted for 20.8% of the national snack categories, surpassing rice fast food and becoming the largest snack category.
 
According to the data of the red meal brand research institute, since the development of the noodle market, the number of noodle restaurants in China has been conservatively estimated at about 400000. However, among the 1225 flour brands included by the red meal brand research institute, more than 70% of the brand stores are within 50, and few brands with more than 500 stores are as early as the morning star. It can be seen that the degree of branding and informatization of noodles with a large number of stores is still high The old is lower, which also shows that there is a great possibility of chain and large-scale in the flour track.
According to the public data of the National Bureau of statistics, China’s catering revenue in 2020 was 3952.7 billion yuan, a year-on-year decrease of 16.6%. In the first half of 2021, the catering revenue reached 2171.2 billion yuan, a year-on-year increase of 48.6%. It can be seen that domestic catering consumption is gradually recovering, and the overall trend of the catering industry is stable and good.
 
In this context, the noodle track has finally ushered in a big outbreak in the past two years, with a sharp rise in attention and discussion, which has also attracted the attention of many investors. As of November, there have been 18 financing events of noodle category this year, with a total financing amount of more than 2.6 billion yuan. One brand has attracted considerable attention, setting the largest single financing record of the noodle track. It is Hefu fishing for noodles.
 
 
Hefu Laomian focuses on medium and high-end consumers, and is a “government study” As the theme of Chinese noodle restaurant brand, the playing method of Hefu Laomian is quite different from that of many traditional noodle restaurant brands. Since its establishment, it has attracted more attention. Especially in recent years, the popularity and influence of Hefu Laomian have increased day by day, and its characteristics favored by capital have surprised many people in the industry.
 
In July this year, Hefu Laomian completed the e-round financing of about 800 million yuan, creating a new high in the amount of financing for noodles. Since 2015, Hefu Laomian has successively completed six rounds of financing, with the total amount of financing reaching 1.645 billion yuan, and the total amount of financing in the past two years alone has exceeded 1.2 billion yuan, setting a new record in the amount of financing for noodles, which will also promote the market of Hefu Laomian The market valuation rose to nearly 7 billion yuan.
 
Why can a noodle shop achieve such a high market valuation? What’s its excellence? Next, I’ll tell you in detail.
Mobile retail talent cross border dry catering
 
To analyze a brand, we need to do in-depth research on the development process of a brand, and the founder is bound to be the first to pay attention to. Like the establishment process of most brands, the establishment of Hefu Laomian is inseparable from its founder Li Xuelin.
 
1. From 3C retail to catering – follow the trend
 
The entrepreneurial story of Li Xuelin, founder of Hefu Laomian, began in 2000, but the beginning of this story has little to do with catering.
 
At the turn of the century in 2000, China’s national economic development also witnessed a turning point. In that year, the overall level of consumer prices in China increased by 0.4% over the previous year, which was the first time that the phenomenon of rising without falling since the Asian financial crisis in 1997. The active fiscal policy vigorously stimulated the domestic consumer market, promoted the popularization of mobile communication equipment in China and the number of mobile phone users in China Also soared.
According to public data, the number of mobile phone users in China was only 43.296 million in 1999, and by the end of 2000, the number of mobile phone users in China had soared to 84.533 million, an increase of 95% month on month. It can be seen that the mobile phone retail market was a big Treasury waiting to be excavated at that time.
 
Li Xuelin just caught this. He believes that “the mobile phone retail market in 2000 is a blue ocean, and the whole industry trend is positive. This is the best time to enter the mobile phone retail market.” Therefore, in 2000, he established Jitong mobile phone chain company in Rugao, Nantong, and started the mobile phone retail business. Under the leadership of Li Xuelin, Jitong soon developed from the first store in Baipu Town, Rugao City to a mobile phone chain group in all cities of Jiangsu Province, and later became the leader of the mobile phone retail industry in Jiangsu Province.
 
Li Xuelin once concluded that “how to choose a correct industry is the test of every entrepreneur’s world outlook, industrial outlook and human nature outlook. Only in a large-scale industrial market and a market with an upward industrial trend will there be an opportunity to achieve a big brand.” it can be seen that Li Xuelin’s business philosophy is to “follow the trend” “These four words. The world trend is vast. If you follow it, you will prosper and if you go against it, you will die. Many entrepreneurial stories tell a truth – choice is more important than effort.
 
From this point of view, Li Xuelin has long been familiar with business trends, which has laid the foundation for the successful launch of Hefu noodles in the future.
 
After ten years of development, the competition in the mobile phone production and retail industry has become white hot in 2010. In order to strive for greater market share, the smoke of commercial war in the industry filled the air, making Li Xuelin feel more difficult. At this time, he has always had a keen sense of smell and turned his attention to the catering industry, an industry that can’t compete with the communication industry.
 
At that time, with the rise of the domestic Internet era and the gradual improvement of social and economic level, the dual forces of science and technology and economy were quietly changing people’s consumption concept, and people’s demand for consumption upgrading of clothing, food, housing and transportation was increasingly urgent. In the huge catering market, traditional Chinese fast food is difficult to meet the consumer demand of Chinese people.
 
△ picture source: photo network.
Li Xuelin believes that this is a great opportunity. After a series of market research, Li Xuelin finally locked the goal of the second venture in the flour category.
 
There are many market segments in the catering industry. Why choose noodles? The answer given by Li Xuelin is like this, “there is a catering volume market of more than 300 billion in China, and noodles account for 800 billion of them, with a double-digit volume growth rate every year.”
 
The noodle market is large and has great development opportunities. However, throughout the catering industry, there are only a few noodle brands with a certain scale, and there are no thousand store brands.
 
In 1996, Ajisen Ramen entered the Chinese market and started the development of noodle chain and branding. However, for a long time thereafter, small and medium-sized noodle restaurants all over the country still occupied the mainstream position. Although at that time, there were already listed food enterprises such as Ajisen ramen and Kangshifu private beef noodles launched by Dingxin group, large chain noodle food enterprises were always rare. (for details, please refer to: can we build a WanDian brand with more than 2.6 billion funds pouring into noodle products?)
 
At that time, the noodles were quite raised in the boudoir and developed silently. This situation was not broken until the establishment of Hefu Laomian in 2012.
 
The establishment of Hefu Laomian is of special significance. In the past, most noodle shops operated as a shop, but Hefu’s ambition to get noodles was obviously more than that.
 
2. From the central kitchen to the first store – consolidate the foundation
 
“Following the trend” first needs to master the “trend”. After choosing the track, Li Xuelin did not open a shop immediately, but made full preparations. In the first step, Li Xuelin carried out detailed research. It is reported that in the early stage of the second venture, Li Xuelin and his entrepreneurial team not only traveled all over the country, but also Europe, Southeast Asia, the United States, Japan and other developed countries, spending tens of millions of yuan in order to have a more accurate insight into the needs of consumers and the development trend of the market.
 
After entering the new era of consumer economy, consumers pay more attention to quality and experience. According to AI media data, 56% of respondents attach great importance to the taste of restaurants when choosing noodle restaurants. Li Xuelin’s team understands the importance of noodle shops for consumer experience. Therefore, during the research period, in order to find a bowl of noodles that consumers bought, the Hefu entrepreneurial group did not hesitate to fly, stay in hotels and eat noodles from all over the world, starting a difficult “face-to-face journey”.
 
After detailed research, Li Xuelin began his second step plan: forging the supply chain system. In the catering industry, there are many brands that open more stores and then build the supply chain, but Li Xuelin is probably the first to start building the supply chain without opening any stores.
 
In Li Xuelin’s view, the branding, standardization and informatization of noodle restaurants are the development trend in the future. However, compared with Western fast food such as McDonald’s and KFC, the rich dishes, diverse tastes and complex production process of Chinese fast food make the standardization of Chinese fast food more difficult and have higher requirements for the supply chain.
 
To build a standardized and large-scale noodle restaurant, we must solve the problems of the supply chain, which is the consensus of Li Xuelin’s team. Therefore, their “face-to-face journey” not only prepares for dish research and development, but also prepares for its central kitchen.
 
The supply chain must be built before the store is opened, which means that more funds need to be invested in the early stage of entrepreneurship, which is a risky practice for most catering entrepreneurs. But based on their keen insight into the trend, they did it. After all, there are two sides to a coin. If this supply chain is really built, relying on a mature supply chain, they can expand rapidly and ensure the operation efficiency of stores, so as to better control the cost of stores.
 
In August 2012, Jiangsu Hefu Catering Management Co., Ltd. was officially established. In December of the same year, a 15000 M2 Hefu central kitchen was completed and put into use, which can meet the basic operation of 1000 + stores in the future. In August 2013, the first store of Hefu Laomian was officially opened in Jiangsu Rugao RT Mart. With the unique scene of “health noodles in the study”, it overturned the traditional cognition of the public facing the restaurant and quickly exploded as soon as it opened.
 
3. From single store to chain store
 
After the first store received a good response, in 2014, Hefu Laomian established a Shanghai office, and the brand gradually expanded to first and second tier cities such as Shanghai and Suzhou. In 2016, Hefu Laomian went out of the East China market and successively developed the market segments of North China, central China and South China. The main store type of “Chinese style study” marked by the brand landed in the high-end shopping malls in the first and second tier cities. In October 2017, Hefu Laomian opened its 100th direct store. In May this year, Hefu Laomian opened its 100th store in Shanghai.
 
The expansion momentum of Hefu Laomian is very strong. In addition to regional expansion, it is also trying to sink second and third tier cities, such as Shijiazhuang, Huizhou and other cities. At present, the stores of Hefu Laomian have spread to many places in the country. According to the data of red meal brand research institute, as of November 2021, the number of stores of Hefu Laomian in the country has exceeded 380.
 
From the perspective of geographical distribution, most of the stores of Hefu Laomian are concentrated in the first tier and new first tier cities. The number of stores in the first tier cities accounted for 53.89%, and the number of stores in the new first tier cities also reached 30%. Among the nearly 200 stores in the first tier cities, more than half of the stores are located in Shanghai, and the number of stores in Beijing has reached 36.1%.
 
In order to meet the consumption needs of white-collar groups, the locations of Hefu Laomian stores are concentrated in the core of the business district of the first tier and new first tier cities. From the store density of Shanghai and Beijing, the current store layout of Hefu Laomian focuses on the East China plate with Shanghai as the center and the Beijing Tianjin plate with Beijing as the center.
 
At present, it is the first noodle restaurant that can open hundreds of stores directly in just a few years. In addition to Ajisen ramen, Hefu Laomian is the first. In addition to the powerful central kitchen behind the Hefu, the reason is inevitably fueled by capital.
 
 
As early as 2015, Hefu Laomian got round a financing, and the amount of round a financing reached 30 million yuan. From the historical financing information, Hefu Laomian almost keeps the financing speed every year, and the financing amount almost doubles every year, which is far faster than other brands.
 
So many people in the industry have a question in their hearts, why can Hefu fish noodles be financed frequently?
Why is Hefu Laomian favored by capital?
From the perspective of financing process, Hefu Ramen ranks first in terms of both financing quantity and amount. Capital likes Hefu Ramen so much, and the strong entrepreneurial team of Hefu must be an important reason. However, investors are so smart that they can throw money in. In addition to the entrepreneurial team, observer Jun believes that the following aspects are also the core reasons:
 
one   Powerful supply chain + complete information management system double drive
 
In the brand management of Hefu Laomian, the central kitchen and information system are undoubtedly two trumps.
 
The unusual path of “supply chain first, back door store” enables Hefu Laomian to meet the standardized operation of more than 1000 stores before opening its first store. Hefu Laomian integrates modern technology into traditional cooking technology, from flour to noodles, from bones to soup bottom, so as to ensure the stability and safety of product taste.
 
At the same time, the national stores of Hefu Laomian have unified cold chain distribution throughout the whole process, which can maintain the original taste and taste of noodle soup to a great extent. The complete supply chain of Hefu Laomian can not only reduce the risk caused by inconsistent product quality, but also greatly save the cost of store management.
 
On this basis, it is only possible that Hefu Laomian has exhibited nearly 400 stores in just a few years. As its insiders have disclosed, the behind the rapid expansion of stores comes from a set of models completely different from those of traditional catering enterprises.
Moreover, over the years, Hefu has maintained its in-depth thinking on the standard mode of Chinese food and its innovative ability and vitality of rapid iteration. Even in 2021, when the epidemic broke out from time to time, the number of new stores in Hefu Laomian will exceed 100, which shows its solid foundation.
 
While expanding their stores, Hefu Laomian has not stopped its layout in the supply chain. From their various trends, they are still expanding and consolidating the supply chain system. The central kitchen is not the end point of Hefu Laomian in the supply chain layout. Its business scope has touched the production of raw and wet noodles in the middle and upper reaches of the industry. It is reported that in September this year, the Hefu noodle production base was officially inaugurated and put into operation in Rugao, Jiangsu Province, with a production capacity of 20000 tons per year, which can meet the supply demand of 1500 stores.
 
The building of the supply chain of Hefu Laomian is far more than that. At present, the modern chemical plant of nearly 100000 square meters of Hefu Laomian has also entered the design stage, which can support the development needs of Hefu in the next 5-10 years.
 
A strong supply chain system needs to be combined with an information management system in order to give full play to the ultimate effect. Li Xuelin is also familiar with this, so after the construction of the central kitchen, Hefu continues to spend a lot of money to build an information system.
 
△ picture source: Official microblog of Hefu Laomian.
At present, the information management of Hefu Laomian has also made good achievements. Among them, the central data warehouse can realize real-time and accurate operation control of stores across the country, formulate store sales plans and distribution with 99% accuracy, reduce product oversupply and shortage caused by lagging information flow, and effectively improve the operation and management efficiency of stores.
 
In addition to the precise operation control of stores, Hefu Laomian also uses the information system to improve the standardization of store operation process.
 
For example, Hefu Laomian introduced an information-based cashier system for the store. At the same time, the kitchen is equipped with a kitchen display system KDS connected with the cashier system, which can not only reduce the error rate of production, but also improve the speed of production, so as to ensure that the meal can be completed within 15 minutes from ordering the cashier to serving the table.
 
At the consumer level, Hefu Laomian operates users in the form of digital members. Collect and analyze users’ consumption data through the membership system of wechat applet, so as to enable the upgrading of dishes, services, environment and other links, so as to enable consumers to obtain a better consumption experience and facilitate their own innovation iteration.
 
From supply chain to logistics distribution, from store operation to user operation, the information management system has broken through the information circulation barriers in the front, middle and back offices, improved the operation efficiency of stores, and laid a solid foundation for the standardized operation of Hefu Laomian.
Driven by the powerful supply chain and complete information management system, Hefu Laomian can be copied quickly all over the country. It can be seen from the data of red meal brand research institute that the stores of Hefu Laomian have increased exponentially in recent years. Despite the impact of the epidemic, the number of new stores of Hefu Laomian also reached 71 in 2020, only 3 fewer than that in 2019.
 
 
With the gradual expansion of the scale, the driving effect of supply chain and information management system gradually appears. In the first half of this year, the revenue of Hefu Laomian turned from loss to profit. Last year, the operating revenue was 1.1 billion yuan and the net loss was 210 million yuan, while the revenue in the first half of this year was 850 million yuan and the net profit was 13.85 million yuan.
 
Relevant data show that as of June this year, the number of Hefu Laomian stores across the country has reached 340, and the profitability of a single store is stable. The average turnover can reach 550000 yuan / month, the Ping efficiency 4800 yuan / month and the human efficiency 55000 yuan / month. These data are really good results in the flour category.
 
In the catering industry, the degree of standardization, informatization and store management and control ability are all factors valued by investors, and Hefu fish noodles just hold these good cards.
 
2. New consumption experience of government study food
 
In addition to the supply chain and information system, another major feature of Hefu Laomian is the new consumption experience of the study, which forms an obvious brand separation from other noodle brands, which should also be a core element to impress capital.
 
Hefu Laomian integrates the traditional Chinese study culture into the noodle shop. This form of study improves the overall sense of value and advocates a new consumption mode. As founder Li Xuelin said, “Hefu operates a brand and advocates a way of life, not just noodles!”
 
From “three bowls of soup for one kilogram of bone” to today’s “original soup for health and study for heart”, the concept of “slow fast food” is derived from the government study diet.
 
As the name suggests, “fast food” is a pre prepared meal that can quickly provide customers with food, “slow” is reflected in eating slowly. It is to enjoy delicious food, not just to fill their stomachs. Living in a fast-paced era, efficiency is emphasized everywhere, and the concept of “slow fast food” just meets their psychological needs for “slow” for those urban white-collar workers who walk in a hurry every day.
 
△ picture source: Official microblog of Hefu Laomian.
Based on this setting, compared with the traditional Chinese noodle restaurant, Hefu Laomian brings consumers a different consumption experience. First, it is efficient, such as horizontal queuing and ordering after selecting dishes, so as to reduce customers’ anxiety in queuing and waiting time; second, it is humanized. It is free to order for more than 15 minutes, unlimited free noodles and instant replacement of noodles without tendons And other commitments, at the institutional level, really let consumers feel sincerity and intention.
The third is to replace the smoke and anger with the aroma of books. Hefu fished noodles respected the life concept of meditation and self-cultivation. Fished noodles in the government study added a bit of high-level sense and literary flavor to a bowl of soup noodles. In addition, the antique store decoration design grasped the upsurge of “national style” and met the consumers’ dual pursuit of “new” and “beauty”.
 
three   Hefu Laomian is more than selling noodles
 
Nowadays, with the increasingly fierce competition among catering enterprises, relying solely on one brand to fight the world is not strong in anti risk ability, so the catering industry has long been blowing a vice brand wind, expanding other sub brands and opening up the second or even third development curve.
 
Obviously, Hefu has long planned to fish noodles. Walking with multiple legs can make it more solid. The diversified brand matrix is obviously conducive to Hefu to grasp consumers at different levels and different needs.
 
When it comes to diversified layout, we have to mention the classic case of Yum China. At present, yum China’s chain brands include KFC, pizza hut, Xiaofeiyang, Huang Jihuang and coffii & joy, which are distributed in different segments. The difference is that the diversified development of Hefu Laomian is in the structure of “noodles +”.
 
Using this form of “noodles +” can maximize the use of the original supply chain system and make rational use of the supply chain value of Hefu.
 
In September 2020, Hefu Laomian launched the sub brand of “noodles + hotpot” – Hefu hotpot and her noodles by adding the hotpot scene to the regular stores. In addition to the usual dishes, hot-pot/" 22375 rel="nofollow" target="_self">hot pot series are added, with prices ranging from 108 yuan to 168 yuan. In this way, the customer unit price of the store is increased.
 
Source: Official WeChat official account of Ho Fu noodle.
On April 30 this year, the brand “Hefu Xiaomian Xiaojiu”, a subsidiary of Hefu Laomian, opened in 1996 square in Shanghai, which is the first store of Xiaomian Xiaojiu in China. Different from the previous mode of embedding consumption scenes in conventional stores, Xiaomian Xiaojiu is opened separately in the mode of “noodles + tavern”. The tavern’s own leisure and social attributes expand the single consumption scene of eating noodles into afternoon tea after the afternoon market, night consumption after the evening market and weekend social gatherings.
 
In addition, the new brand “Caishen small stall”, which is being hatched by Hefu Laomian, is still in the process of market verification. Under the framework of “noodles +”, Caishen small stall has added dishes such as pickled cabbage fish and boiled beef offal in addition to noodles, but the price is slightly lower than that of Hefu Laomian, so as to expand a wider range of consumer groups.
 
In fact, as the first curve, Hefu Laomian still has a lot of room to rise, which can be seen from the fact that stores in first tier cities such as Guangzhou and Shenzhen account for only 7.22%. However, the forward-looking Hefu began to layout its sub brands in advance.
 
Therefore, the sub brand is not so much the second, third and fourth curve as other cards held by Hefu. These cards, together with the two trumps of self built supply chain and complete information management system, are in the forefront of the brand strength of Hefu Laomian in the whole noodle category. It is not surprising that it can be frequently favored by capital.
Noodles are everywhere
 
In the initial stage and development stage, Hefu Laomian is ahead of many competitors in the same track, but with more and more entrepreneurs entering the flour track, the competition in the flour market is becoming more and more intense. The foundation and influence of the old noodle restaurant brand are still in existence, and the emerging brands are rising. Some cutting-edge brands founded in recent one or two years have also been warmly pursued by capital.
 
From this point of view, there are many challenges facing Hefu Laomian.
 
one   Noodles are full of smoke and fierce competition
 
Although there is still no QianDian brand in the noodle category, the track has been crowded with players of all sizes. It is not easy for Hefu to take the lead.
 
 
First of all, the influence of old noodle restaurants represented by Ajisen ramen and Mr. Li beef noodles still exists. Since these brands were founded earlier, they belong to the first batch of chain noodle restaurants in China, and their popularity is naturally higher. Despite the changes of the times, the accumulated brand influence of the old noodle restaurant can not be underestimated. Brand aging is a problem that time-honored brands can’t avoid. However, we can see that many noodle restaurant brands are also actively seeking change, and they still have certain advantages in scale for the time being.
 
Secondly, the brand strength of noodle restaurants established in the same period is also good, such as meeting Xiaomian. Chongqing Xiaomian has always been a category without brand, until the emergence of Xiaomian broke this situation. Meet Xiaomian, subvert the “dirty, messy and slow” image of traditional Xiaomian street shops, and walk out of their own unique style. It is not only sought after by consumers, but also favored by capital. Up to now, five rounds of financing have been completed when meeting Xiaomian, with a market valuation of nearly 3 billion yuan. Compared with the “study noodles” of Hefu, the price of small noodles is slightly lower, which makes its customer base more extensive. Perhaps it is better to meet small noodles in terms of turnover rate.
 
Moreover, cutting-edge brands are rising, such as Ma Jiyong, Zhang Lala and Chen Xianggui. Although the number of stores has not exceeded 100, there has already been capital injection.
 
The existence of these brands makes the noodle track more popular than ever, but also intensifies the competition, which virtually brings some pressure to Hefu Laomian.
 
two   The per capita consumption is high, and the repurchase rate may become a problem
 
Although noodles are also one of the important staple foods on the national table, they have a wide audience. However, in the eyes of many consumers, they still hold a more traditional concept about the consumption of noodles, that is, it is acceptable to spend dozens or even hundreds on a dinner, but it may be a little unacceptable for them to spend dozens on a bowl of noodles. In your opinion, this also lies in the problem of concept and sense of value.
 
According to the data of AI media, among the respondents, the single consumption price of noodle restaurant is 43.9% at 16 ~ 30 yuan, the consumption price is 33.1% at 31 ~ 50 yuan, and the single consumption level of the general public in noodle restaurant is 16 ~ 50 yuan.
 
At the same time, according to the data of red meal brand research institute, the mode and median per capita consumption of Hefu Laomian stores fall in the range of 46 ~ 50 yuan. It is not difficult to see that the per capita consumption of Hefu Laomian is close to the upper limit of the single consumption of the general public in noodle restaurants. Although pasta is in the stage of consumption upgrading, and the consumer price preference of pasta is becoming higher and higher, cost performance is always a topic in any age.
△ picture source: Official microblog of Hefu Laomian.
In the final analysis, “slow fast food” has always been unable to get rid of the essential attribute of fast food. Fifty yuan per capita can go to a dinner, but if it is a meal of noodles, many consumers may pay more attention to whether this bowl of noodles can bring equal value to customers. This also means that Hefu Laomian needs to spend more time on shaping its sense of value.
 
After all, many consumers may go into Hefu Ramen to try the concept of “government study diet” and feel that it tastes good, but how to make consumers come and continue often, that is, to form re purchase, may also be a problem that Hefu Ramen needs to think carefully.
 
three   Direct marketing and sinking obstacles
 
At present, Hefu Laomian is directly operated except for several airport franchised stores. For chain catering brands, this is conducive to ensuring the management and control ability of stores and improving standardized services, but it is also not conducive to the rapid expansion of brands.
 
As early as 2017, founder Li Xuelin said in an interview that Hefu Ramen would open 1000 Direct stores in 2023. With a strong supply chain system and strong capital, we have every reason to believe that the achievement of QianDian is only a matter of time for Hefu ramen.
 
However, at present, affected by the epidemic situation and other factors, the opening speed of Hefu Laomian is not as fast as expected. Although the number of Hefu Laomian stores has increased exponentially in recent years, there is still a long distance between Hefu Laomian and the Millennium store goal. For example, in the first half of this year, some consumers said that Hefu Laomian will open 450 stores by the end of the year, and the number of stores has not reached the end of the year There are more than 400.
 
In your opinion, the direct operation mode is conducive to the unified operation and control of the brand, but the speed of store expansion has been affected to a certain extent. However, it depends on the development needs of your own brand, and the rapid expansion may not be what Hefu wants.
 
In addition, sinking is also a big challenge for Hefu. Hefu Laomian, which is positioned at the middle and high-end, is mainly distributed in the first tier and new first tier cities. As more and more catering entrepreneurs enter the situation category track, sinking the market can not be ignored if they want to expand more rapidly. And Hefu has already begun the layout of the first and second tier cities. However, the positioning and dishes of the middle and high-end brands Pricing, may cause some restrictions on the sinking of the brand.
 
However, if Hefu launched a sub brand to penetrate the sinking market, this may be a feasible strategy. After completing the e-round financing of Hefu Laomian in July this year, it once said that one purpose of financing is to build a new brand. Whether Hefu Laomian will build a new brand for the sinking market? Let’s wait and see.
 
four   Layout new retail
 
The epidemic has given birth to “catering + retail”, and it is not surprising that the diversified development of Hefu Ramen has entered the “new catering retail”. Earlier, Hefu Ramen has launched a retail business – Hefu home, with retail products covering noodles, rice, convenience dishes and snacks. Hefu Ramen retail stores have been stationed on tmall, JD and other mainstream e-commerce platforms. In the future, Hefu Ramen will be opened “Hefu express store” provides retail product sales, self heating and hall food services to further expand new retail business.
 
However, it is worth noting that relevant people of Hefu revealed that the new retail model has limited effect on solving the R & D power of the product itself. Hefu express store is more a new channel to collect user feedback, insight into user needs and product differentiation, which is not much different from tmall, JD and other online stores in essence.
 
However, in your opinion, online retail business can more or less increase the flow of noodles for Hefu, while offline express stores may pave the way for b-end retail in addition to the extension of C-end new retail. After all, there is not only a central kitchen behind Hefu, but also a production base of raw and wet noodles.

The seemingly simple bowl of “study noodles” is the result of many financial and painstaking efforts by the people of Hefu. Looking at the overall situation, the infrastructure construction of Hefu Laomian in the early stage is not only to operate a noodle restaurant, but to layout from the height of the industry, and its ambition is not limited to a noodle restaurant.
 
From this point of view, it is no wonder that Hefu Laomian can often receive olive branches handed over by capital.
 
However, facing the highly competitive noodle track, how to move forward steadily on the basis of expanding the territory and extending the industry is a big challenge for Hefu Laomian. However, observer Jun is still looking forward to more surprises for Hefu Laomian in the future!

Reference source:

[1] With more than 2.6 billion funds pouring into flour products, can we smash a WanDian brand||   Category insight  | Red meal Brand Research Institute

[2] Hefu Ramen plans to open 150 new stores in 2021, and Xiaomian Xiaojiu, a sub brand, will also make efforts  |  Red meal network

[3] Exclusive interview with founder of Hefu Laomian: Li Xuelin  |  Sohu Finance

[4] “Hefu Laomian” completed the e-round financing of nearly 800 million yuan, and plans to reach 450 stores by the end of the year  |  36 krypton

[6] Under the epidemic, the catering industry set off a capital boom, and Hefu fished noodles completed nearly 800 million e-round financing  | Red meal network

Author: Li Qi; source: food brand watch (ID: cyppgc88), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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