China Food

In 2022, will rice noodles and snacks still be the darling of capital?


“ 
is more important than financing. It is self creation.
 ”
From capital “Darling” to rapid cooling, the rice noodle snack track has experienced two days in 2021.  
From January to July 2021, the bullet of capital “flew wildly” on the rice noodle and snack track, and many enterprises gained the injection of capital. The new brands of Lanzhou ramen, Chen Xianggui, Zhang Lala and Ma Jiyong, the baking brand Mo Mo dessert Bureau and the residue beating cake shop of Hutou Bureau, etc. all obtained large amount of financing, and some brands even completed financing twice in a month.  
Sequoia Capital, Hillhouse capital, IDG capital, GGV Jiyuan capital and other well-known investment institutions have joined the war to seize the rice noodle snack track. According to late lastpost, Sequoia China also submitted a letter of intent with a valuation of 1 billion to Ma Jiyong and invested in tiger head twice in four months.  
But the frenzy of capital has not continued. The business model of departmental chain brands has been questioned by the market, such as Momo dim sum Bureau and Hutou Bureau on the dim sum track. Their products have little difference and similar positioning, so it is difficult to form high barriers.
In the final analysis, the calmness of capital is due to the falsely high valuation of similar enterprises. According to the 2 billion valuation of the b-round financing completed by Momo dim sum Bureau in June last year, its single store valuation exceeded 100 million yuan, while the single store valuation of Yuanzu shares, which had been listed for five years at that time, was only 5.99 million yuan. Why can Momo dim sum Bureau, which is similar to other dim sum enterprises, support such a high valuation?  
Because there is no rational return of capital, however. Food is the most important thing for the people, and the business of rice noodles and snacks is “just needed”. There is no doubt that several head brands will be born here, but the phenomenon of multiple financing and constantly pushing up valuation as concentrated as in the first half of last year may not appear again.  
In 2022, the rice noodle food track will still get the attention of capital, but only brands with the characteristics of head players will have the opportunity to become the target of capital.  
In the first half of 2021,
Capital madly bet on rice noodle dot center
In the first half of 2021, capital was almost invested in high-quality rice noodle dessert enterprises.  
Last July, it was a capital feast for all kinds of pasta catering brands. At that time, the “big brother among the upstarts” in Ramen industry and fulaomian announced that they had completed the e-round financing of nearly 800 million yuan. The leading investment institution was CMC capital, and the old shareholders Tencent investment, Longhu capital and Dongzhong of new shares were capital follow-up investment. At this time, the valuation of hefulaomian was about 7 billion yuan.  
In the same month, the Chinese fast food brand met Xiaomian and obtained a strategic investment of more than 100 million yuan, which was led by Country Garden venture capital and followed by xijiade, an old shareholder. After this round of financing, the face value of the company established in 2014 reached nearly 3 billion yuan.
 
encounter small-scale financing, tuyuan Tianyan check
At this time, more than three months have passed since the last round of financing. In March 2021, Xiaomian just completed a round of strategic financing with an amount of tens of millions of yuan. The investment institutions include country garden venture capital, Baifu holdings and xijiade. At that time, the valuation of Xiaomian was only about 1 billion yuan.  
The pasta catering chain brand Wuye noodles also completed the a + round of financing in July. The investors are Gaoling venture capital and Zhiyuan capital. At this time, it is less than a month from the previous round of financing of Wuye noodles. In June, Wuye noodles completed the round a financing of 300 million yuan, which was known as the largest round a financing in the catering industry at that time. The investors were CDH investment and B capital.  
Lanzhou beef noodle brand Chen Xianggui also completed a round of over RMB 100 million financing in July, led by zhengxingu capital, followed by Yunjiu capital, and followed by the old shareholder source capital and angel investor song huanping. After this round of financing, Chen Xianggui valued at nearly 1 billion yuan.  
Before July 2021, ramen said, jinmiantang, Chen Xianggui, Zhang Lala, Ma Jiyong, Ba man and other pasta catering brands have also obtained multiple rounds of financing, which can be described as the “sweet pastry” of capital.  
In addition to the continuous financing of pasta chain brands, many snack brands are also hot targets of capital.  
In March 2021, Standard Chartered bakery of Hutou Bureau, a baking brand, completed Angel round financing, and the investors were Sequoia China and Challenger venture capital. Four months later, on July 14, Standard Chartered cake Bank of Hutou bureau announced that it had completed nearly US $50 million of round a financing, which was jointly led by GGV Jiyuan capital and tiger Global Fund, and followed by Sequoia China, IDG and angel investor song huanping. At this time, the single store valuation of Standard Chartered cake Bank of Hutou bureau is as high as 375 million yuan, and the two rounds of financing are less than half a year apart.  
In June 2021, Changsha new baking chain brand Momo dim sum bureau also received a round of financing from today’s capital. After this round of financing, the valuation of Momo dim sum bureau reached 2 billion yuan, and the valuation of a single store exceeded 100 million yuan.
Financing situation of Momo dim sum Bureau, tuyuan Tianyan check
This is the second investment obtained by Mo Mo dim sum Bureau in half a year. In April 2021, Momo dim sum Bureau completed the pre-A round of financing, and the specific amount was not disclosed. It was jointly participated by Qingliu capital, Yuanjing capital, Yuanlai capital, early day capital and Yuanqi capital.  
In April 2021, xuanma, the first in the category of egg yolk pastry, completed a round B equity financing of more than 100 million yuan. The investors are Jinding capital, Qinglan investment, an old shareholder, and maixing investment, a new investor.  
Time honored dim sum enterprises are also “targeted” by capital. According to AI financial news agency, Dong Wenda, Secretary of master Bao’s board of directors, once said that master Bao had received an investment letter of intent valued at 10 billion yuan in the first half of 2021. At this time, master Bao had less than 100 stores, which means that the average valuation of master Bao’s stores has exceeded 100 million yuan. However, master Bao said that he would not consider financing for the time being.
It can be seen that in the first half of the year, many capitals participated in the investment of rice noodle snack track. In addition to well-known investment institutions such as Sequoia China, hilling capital, IDG, GGV Jiyuan capital, CDH investment and CMC capital, there are also Challenger venture capital, Qingliu capital, Yuanjing capital today capital, tiger Global Fund, Shunwei capital, Challenger venture capital All kinds of capital, such as Xianfeng Changqing, have entered the Bureau.  
There are many investment institutions that have invested in many enterprises here. Public information shows that in the first half of 2021, Sequoia China and Challenger venture capital invested in Hutou Bureau and Ma Jiyong, of which Sequoia China participated in two rounds of financing of Hutou Bureau: Angel round and pre-A round; IDG has invested in Baman Hunan rice noodles, Hutou Bureau and dad sugar, which is mainly made of handmade toast; Tomato capital invested in Mo Mo dim sum Bureau and Baman Hunan rice noodles.  
Some investment institutions firmly bet on an enterprise and participated in more than one round of financing. For example, country garden venture capital participated in two strategic financing when it met small faces.   
In the first half of 2021, capital’s enthusiasm for rice noodles and snacks was high, but in the second half of 2021, capital became calm about rice noodles and snacks.
In the second half of 2021,
Capital has become rational
The capital feast of rice noodles and snacks did not last until the second half of 2021.  
After August 2021, the number of rice noodle and dim sum enterprises harvesting financing has decreased. Although some relevant enterprises have obtained financing, the heat has cooled down. The trend of capital can best explain the problem. Obviously, the business model of rice noodles and snacks has not fully run through.  
Take the pasta catering brands Chen Xianggui, Ma Jiyong and Zhang Lala as examples. In terms of market positioning, the stores of these brands are mainly opened near shopping malls and office buildings with large traffic. The target customers are young white-collar workers and family customers, and the customer unit price is between 30-50 yuan. Compared with the 10-20 yuan of traditional Lanzhou Ramen stores, these brands have no price advantage.
So is Lanzhou beef noodles also worth such a high premium?
Chen Xianggui store, tuyuan Chen Xianggui official microblog
From the perspective of products, these three brands are mainly Lanzhou beef noodles. Like the traditional Lanzhou beef noodles, they are noodles + beef + other ingredients, and there is no great innovation in taste. No matter how the brand marketing “differentiation”, product homogenization is an indisputable fact.  
According to latepost, the monthly turnover of Chen Xianggui, Zhang Lala and Ma Jiyong can reach 500000-600000 yuan and the floor efficiency is 5000 yuan. Caixin reported that the average turnover of Hefu Laomian single store is 550000 yuan / month, the Ping efficiency is 4800 yuan / month, the human efficiency is 55000 yuan / month, and the customer unit price is 45 yuan. It can be said that the revenue of “Chen Xianggui” has reached a high level in the industry.  
But this does not mean that “Chen Xianggui” are already making money. According to yingshang.com, the proportion of stores opened by Chen Xianggui, Ma Jiyong and Zhang Lala in the shopping center is as high as 76%, 84% and 81% respectively, which means that the store rent borne by “Chen Xianggui” is higher than that of ordinary Ramen shops.  
China China Index Research Institute released the first half of the 2021 year rent index research report of Chinese shops. In the first half of 2021, the average daily rent of Xintiandi in Shanghai was 24.8 yuan / Ping / day, which was equivalent to 744 yuan / Ping per month, according to a noodle shop 50 square meters, then a new noodle shop in Xintiandi was probably 37 thousand per month.  
Labor costs are also not low. According to the new consumer promotion official, Chen Xianggui’s Shanghai Xiexin Xingguang Plaza store employs 14 people. According to Chen Xianggui’s salary of 5000-8000 yuan, the monthly labor cost of a store is more than 70000 yuan. In this way, the monthly rental and labor costs alone have exceeded 100000 yuan.  
This has not calculated the costs and expenses of food materials, equipment, decoration, utilities, marketing expenses and other aspects.  
In fact, most of the “Chen Xianggui” are still in a state of loss. According to Caijing magazine, a store in Zhang Lala in Shanghai loses at least 60000 yuan a month. Zhang Lala’s Ramen master revealed that Zhang Lala “has more stores that lose money and less money”. He also said that “according to Chen Xianggui and Ma Jiyong’s masters, they are the same – they have made a great momentum and are losing money as a whole.”  
Is the “Chen Xianggui” who have been at a loss worth overestimating?  
In April last year, Sequoia China gave Ma Jiyong a letter of intent with a valuation of more than 1 billion yuan. At that time, Ma Jiyong had about 15 stores, that is, the average valuation of each store was 66.67 million yuan. What is this concept?  
When Ajisen China (Ajisen Ramen), the “first share of ramen”, was listed, its market value was 9 billion yuan. At that time, there were about 150 stores, equivalent to a single store market value of about 60 million yuan. In other words, the valuation of majiyong single store, which has not been listed for less than three years, is even higher than that of Ajisen Ramen when it was listed.  
The situation of dim sum enterprises is similar. Take Momo dim sum Bureau as an example. It turns the store into a small and precise factory. The oven of the store is mainly responsible for baking sweet potatoes and cheese crisps during the day, and egg yolk crisps and wife cakes at night. It relies on the “front store and back factory” mode to achieve more efficient production.  
In order to speed up the production of store products, Wang Yuxiao, founder of Momo dim sum Bureau, said that in the future, there are plans to put half of the products in the factory to complete the production, but in this way, is Momo dim sum still “baked every day” or “hand baked”?  
At the snack track, the use of frozen baked products seems to have become an “open secret”. When consumers find that the “daily freshly baked” snacks in their hands are actually frozen semi-finished products with a high degree of industrialization, are they still willing to check in?  
In terms of valuation, Mo Mo dim sum bureau is also “unreasonable”. When Momo dim sum Bureau completed round B financing, the valuation was as high as 2 billion yuan, and the valuation of a single store exceeded 100 million yuan.  
Momo dim sum Bureau store, tuyuan Momo dim sum Bureau official microblog
Yuanzu shares, which has similar genes and has been listed for five years, has 699 stores as of June 2021, with a market value of about 4.188 billion yuan and a single store valuation of about 5.99 million yuan. After calculation, the single store valuation of Momo dim sum bureau is more than 16 times that of Yuanzu shares.  
Perhaps for “Chen Xianggui” and “Mo Mo dim sum bureau”, at present, profit is not the main purpose. It is their pursuit at this stage to get financing, quickly expand stores, run horses and enclosure and expand market coverage. Only in this way can they continue financing and continue to live.  
But can everything really go so smoothly?  
The update and iteration speed of the industry is very fast. From the perspective of baking track, Christine, the “first stock of baking”, has lost money for eight years, and 99 stores will be reduced in 2020. In June 2021, Shanghai baking brand yizhiduo was exposed to be closed overnight, with more than 70 stores closed; After 21 years of “hard work” in Hangzhou, buoyant forest, a baking chain brand, had to close its stores and factories.
 
Looking at these front waves that were photographed on the beach, capital has calmed down a lot.  
In 2022,
Where is the rice noodle snack track going?  
Indeed, the market potential of China’s catering industry is still great.  
According to the data of the National Bureau of statistics, China’s catering revenue reached 4.69 trillion yuan in 2021, up 18.6% year-on-year, returning to the level of 2019. According to the report on China’s chain catering industry in 2021 jointly issued by China Chain Operation Association (CCFA) and Huaxing capital, it is expected that the scale of China’s catering market will reach 6.6 trillion in 2024.
In China’s huge catering market, there are more traditional husband and wife stores, and there are not many large-scale chain catering brands. According to the report of Huajing Industry Research Institute, the current chain rate of China’s catering industry is only 10.9%, while that of the United States is as high as 54.5%, which shows that there is still a lot of room for growth for rice noodle dessert enterprises in the future.  
Coupled with the rapid development of catering industrialization and the improvement of storage and preservation technology, it is ready to build a national rice noodle dessert chain brand. Now it depends on which brand can win from the fierce market competition. This year is destined to be a more tragic year.  
Since 2022, pasta players such as Xiaomian, Ma Jiyong, Chen Xianggui and Zhang Lala have slowed down their expansion.  
The chain noodle restaurant “fun noodles” founded by Lu Zhengyao, former chairman of Ruixing, was even worse, and even failed to reach the stage of financing. According to Lu Zhengyao’s assumption, “fun noodles” also wants to follow the path of “opening stores – hot market – financing – listing”. As a result, it encountered financing failure after opening many stores. Three months after opening the store, it was hastily renamed “fun Bayu” and transformed into a snack category in Sichuan and Chongqing.
qubayu related dishes, tuyuan qubayu go official microblog
Obviously, it is not so easy for online Red brands to achieve national expansion. In particular, these online Red brands rely on popular shopping malls and office buildings. The rents in these places are high, which means that the cost of online Red brands is very high. Even if the profits are diluted by large-scale production, they want to achieve high floor efficiency, high pricing has almost become the only choice.  
However, for most consumers, high pricing should be based on the “real materials” of the product itself, so that consumers feel “worth it”, rather than relying solely on marketing and packaging.  
Taoyuan family dependents’ village was a living example. The first store opened next to LV and earned enough attention, but the products are just commonly visible fried dough sticks, steamed stuffed buns, baked cakes, etc., and the prices of these products are surprisingly high. Fried dough sticks cost 6 yuan, baked cakes cost 25 yuan, steamed stuffed buns cost 13 yuan, and two are required to start selling.  
Can consumers accept high pricing for the same product after marketing and packaging? Taoyuan dependents’ village was once very popular, but now it has fallen into the dilemma of large-scale store closures.   
In addition, generation Z has a serious curiosity hunting psychology. They are indeed easier to try new things than the post-80s and post-90s, but their consumption also has a characteristic of being loyal to themselves and not high loyalty to the brand. On this basis, online popular brands should show their real strength to attract young people.  
In 2022, the rice noodle dim sum track will return to rationality. However, in view of the broad market, it is expected that the track will still become the object of capital investment. However, the focus of players in the industry this year should not only seek financing, but also build good products and make their own blood.
Author: Bai CAI; Editor: Li Xin; Source: Online insight (ID: lxinsight), reprint has been authorized. Reprint authorization and media business cooperation: Amy (wechat: 13701559246); Join the community: Cherry (micro signal: 15240428449). Foodaily fbic & Expo 2022] foodaily daily food joined hands with the world’s top business and industrial partners to build fbic222 global food and beverage Innovation Conference & the first foodaily Expo “new food era – brand ecology” in Shanghai from May 31 to June 2, 2022. We invite you to witness it together. (click the picture to see the detailed introduction).

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