China Food

Tomato capital Qing Yong: Some Thoughts on food and beverage pricing, brand and cycle crossing

A 6031 does not have as much money as they do, nor does it have such a large and extensive influence. You must establish a new value network. You can not compare with them, and you should supplement them.
A few days ago, I published the article “listen to LP, Zhong Xue’s high valuation exceeds 4 billion yuan” on China investment. This article interviewed several investors and practitioners of the consumption track, including Qing Yong, the founder of tomato capital.

Tomato capital is a comprehensive investment institution focusing on catering, food and its upstream and downstream industries. It has invested in such brands as Banu Maodu hot-pot/" 22375 rel="nofollow" target="_self">hot pot, Momo dim sum Bureau, wangjiadu prefabricated dishes, Xiong Daye dumplings, Fei chef, Ma claw claw, and Mitra vegetable meat. The whole industry chain ecology based on catering investment is the characteristic of tomato, including narrow door Society (training), narrow door food eye (data), narrow door supply chain (upstream and downstream industry chain docking), catering consulting (supply chain, food safety, human resources, financial and tax planning, etc.).
Originally, I just wanted to ask him to express his views on the pricing of “ice cream assassins”, but I didn’t expect that he was separated from me for more than an hour. After listening to Qing Yong’s Thoughts on the pricing of food and beverage products, from products to categories, brands, and investment standards, I can’t help but sigh that even though there are some commonalities between consumption tracks, the business logic of retail and catering is not small.
As an industrial investment institution, focusing on catering is actually quite luxurious today.
On the one hand, this luxury is reflected in the overall environment. Due to the impact of the epidemic, everyone sees the plight of offline catering; On the other hand, it is said that consumption, especially catering, is not a cyclical industry, but in the eyes of many capital, it is an out and out cyclical track. Nothing to vote for? Investment and consumption; Too late to follow the wind? Investment and consumption; Can’t catch up with hard technology? Engage in consumer technology!
Up to now, I can still remember last year’s catering craze. Ramen noodles, coffee and single stores are constantly bombarding the eyes. Now? It’s all news of consumer investors being laid off and changing jobs. Maybe one day consumption and catering will be hot again, and a group of investors and institutions will continue to rush in. After all, the only lesson that mankind has learned from history is that it has not learned any lessons from history.
Therefore, for those who really love catering and want to engage in the catering industry, we might as well take a look at the logic of an organization that is committed to the catering industry in both favorable and adverse circumstances, and Qing Yong’s thinking on product pricing, from products to categories to brands.
Originally, I wanted to adjust the order and bring the more dry content to the front, but in the end, I still felt that it was unnecessary to instill it. It seemed that it was to refine the essence and save time, but in fact, this utilitarian mentality was a detour. I’d better try to keep it as it is, so as to have a more chatting feeling and a complete dialogue and thinking process,
The following is the full text of the interview.
Wild editorial department: how about your recent investment?
Qing Yong: Recently, we have been working hard to see that several projects have been implemented.
Wild editorial department: I feel the epidemic
I don’t think we will make any judgment on whether we can IPO in the end. However, any target may have high expectations during the whole consumption foam period, and it may take many years to digest this valuation.
Maybe the investor’s mood during the foam period is also a herd effect. You have written that some investment institutions are not in tune with each other and directly invest in them, right? Then, according to the valuation, it may take one or two hundred years for the dividend to return to the capital, but it doesn’t matter. Anyway, someone will take the offer; There is no risk control in the terms, that is, the money will be paid first, and the terms will lie flat; Even in order to be able to participate in this project, they may use every possible means, including intimidation and threats, even coaxing and cheating, drinking and lying down, kneeling and licking, and blocking doors.
However, returning to this year’s situation, when the whole consumption is cold, the projects that have been kneeling and licked, and even the projects that have signed agreements, may be broken. For various reasons, no payment can be made, no delivery can be made, and even the projects are said to be dying. That’s the mood.
But did you say that the subject matter has changed? Nothing has changed. Therefore, I think (some institutions) still have no investment cognition. The judgment of the target is not based on logic, nor on the so-called long-term doctrine, nor on the understanding of the industry, the recognition of the founders, or the discovery of the value of the target, but on the investment sentiment of the market: everyone thinks it is good, so I think it is good. Anyway, I will find various good reasons to pile it up.
Wild editorial department: is this sentiment most obvious in consumption?
Qing Yong: I don’t comment on other industries because we focus on catering. In the catering consumption, this situation is very obvious, because some of the targets we invested in last year (some institutions) blocked our doors, and even threatened, “we will cooperate in the future. You should give us opportunities or how, otherwise we will not be able to do it in the future.”.
This year, great changes have taken place in attitude. I’m wondering if the subject matter has changed? We know very well that nothing has changed. What has changed? It is because the investor’s mood has changed, so he has found many reasons to prove that he has invested and followed a great project. Then, when the investor’s mood retreats, he finds many reasons to prove various problems of the project.
Wild editorial department: tomatoes mainly cover food and beverage. Have you ever thought of doing FMCG?
Qing Yong: our core is still deep cultivation based on catering and catering industry. Our first is based on the food chain, of course, it also includes the food chain of offline physical stores. We are not good at, nor can we understand, those who are purely online and have no traffic sovereignty, or even those who burn traffic and advertisements.
Therefore, tomato is an offline chain based on catering and food, as well as various service providers in the supply chain behind it, and food technology at the back end, that is, it can form 10 times faster new technologies that can change efficiency and improve quality for the supply chain and catering food enterprises at the front end. These are all our concerns.
Wild editorial department: let’s talk about today’s issue. Is there a supply chain and then a brand, or can it be like
Qing Yong: if it is an enterprise incubated by us, there are uncertainties in many things in the early stage. We will give pricing suggestions and analysis based on its entire business logic.
Wild editorial department: can you give us a general example of the logic and idea to give him a pricing proposal?
Qing Yong: what we give is a pricing strategy. For example, we help taoniang to eat small hotpot, which is a sub brand hatched by Banu and a fast-food hotpot.
First, Banu is already a relatively high-priced hotpot, and there are also middle priced hotpots in the market, such as Haidilao and Tan yaxue, and then there are hotpots like Xiabu and Xiabu.
So when we considered taoniang at that time, it was the fast food of hot-pot/" 22375 rel="nofollow" target="_self">hot pot. The logic is that the price of hot-pot/" 22375 rel="nofollow" target="_self">hot pot into fast food is the consideration of the extreme price. The strategy is to try our best to make it the lowest price and still make money. To what extent can we still make money,
We analyzed the take out orders across the country. 86% of the prices were below 30 yuan, but there were almost no chain brands below 30 yuan. That is to say, although the orders were the largest, it was difficult to make money from the pricing of this price band. Between 30 and 40 yuan, accounting for about 10%, of which 64% of the revenue is contributed by Dalian lock. That is to say, the chain rate is the highest in this price band.
On the contrary, if we want to realize the real fast-food chain and have a large enough user group, we need to be infinitely close to the large price band, but at the same time, the price may be slightly higher than the largest one, and maintain a certain profit. Only then can we realize enough profit to support the chain.
Therefore, 30 to 40 yuan is a relatively suitable price. As for the final pricing of the enterprise, it is also related to the purchasing capacity of the back-end, the efficiency of the overall supply chain and the management efficiency of the store. We only give pricing strategies. Taoniang’s pricing strategy is the ultimate cost-effectiveness. We want to make fast-food hotpot with the lowest price in China, such as vegetarian hotpot with less than 20 yuan and meat hotpot with less than 30 yuan. That is to say, the highest customer unit price cannot exceed 30 yuan. The range of 28.8 yuan to 29.8 yuan is the high price. This is the pricing strategy.
There is also a differentiated pricing. For example, uncle Xiong’s consideration at that time was relatively simple, that is, the price should be lower than that of the restaurant food, because you have no restaurant food; It’s higher than frozen dumplings. Because it’s a present package, the price band is set between frozen dumplings and Tangshi dumplings. How much is it? At this time, it still depends on your cost structure and efficiency, because you want to make money eventually. Of course, it should be as low as possible. Why? It should be popular enough, so this is what we call the pricing strategy.
Wild editorial department: so have you ever tried to contact high-end catering brands?
Qing Yong: in general, high-end catering brands do not belong to our focus, but there are also some interactions.
In general, high-end catering brands have high demand for food materials and high demand for cooking
If some items are not occupied, will you succeed in occupying that item? No, because first, it needs a large user base. If it is assumed that it is a small product, its user volume is too small. Once you focus on a certain product, it is difficult to support the scale. To a certain extent, the performance will be diluted, so you cannot make small products.
In addition, the popularity risk of a single item should be considered. A single item that has not experienced historical precipitation may be very popular this year, but it will not be popular next year, and people will not eat it the next year. Therefore, it is necessary to find those categories with anti popularity and anti popularity. Commodities without addiction are easy to become popular. Only commodities with addiction can resist popularity.
Even if it is anti epidemic, it does not mean that everything will be all right. Another problem is the maturity of the supply chain. Once a single product is relatively mature and hot, it will drive the maturity of the back-end supply chain, and any brand at the front end can be classified. Just like crayfish, once the category is generalized, even a fast-food restaurant will serve crayfish, and your special crayfish restaurant will be greatly challenged. Because it is less difficult for consumers to obtain, although you are the number one, your advantages will be greatly diluted.
So the third thing is the challenge brought by focusing on single products. Single product is always a phased strategy. We only establish market awareness and optimize our back-end supply chain through the explosion of funds. When this part is completed, the product is equal to the category. Later, we need to upgrade from category to brand, and finally we need to build a brand.
What consumers ultimately want to recognize is not products, nor categories, but brands. In this process, it is necessary to move from single product to multiple products, and extend your product values to other products. For example, Banu pushes Maodu hotpot. Maodu is a product, and there is a value behind it called Productism. Papain fermentation is healthier and more natural, and all products are treated with such a value.
I push that the lunch meat of wangjiadu is low-temperature lunch meat, the bean sprouts in well water are bean sprouts without medicinal water, and the duck blood is the first fresh duck blood that has passed the food safety certification… Every product is based on the product principle. At this time, consumers are no longer affected by the fluctuations of the product, and the values behind the product are recognized. At this time, the brand is established and the cycle can be traversed.
Therefore, in the end, the food enterprise upgraded to the most scarce and valuable thing, that is, the brand that the enterprise ultimately wants to build. For Banu, the core is not maw, nor hot-pot/" 22375 rel="nofollow" target="_self">hot pot, but Banu. It needs to go from tripe to hotpot, and then to Banu. Like Xi tea, we all agree that it is not meat grapes, but based on products to fruit tea products. Finally, Xi tea, an innovative and inspirational tea, is a brand with spiritual attributes, which is its success.
Of course, there are also some low-priced ice cream tea drinks made by snow ice city, right? In fact, it is just a point, but the value of ice cream tea drinks is universal to every product, that is, it is enough
Wild editorial department: a brand created through large-scale online marketing and low prices. If there are no values and consumers do not know what to buy, the brand is actually a logo.
Qing Yong: I don’t comment on these brands online. We don’t understand. However, some brands with rapid scale expansion offline, if they do not convey certain values, will actually decline very quickly. The first place of growth this year may be the first place of store closure next year. This situation often occurs in my report. Simple scale is meaningless.
Consumers continue to re purchase, on the one hand, they are addicted to the things themselves, on the other hand, they are addicted to the body, and on the other hand, they are addicted to the spirit. Physical addiction is easy to be replaced. You sell coffee, I also sell coffee, you sell hot-pot/" 22375 rel="nofollow" target="_self">hot pot, I also sell hot-pot/" 22375 rel="nofollow" target="_self">hot pot.
Online brands (this problem) is more prominent because online traffic is about equal to sales volume and re purchase is low. Why? Because it cannot convey values through various scenarios, there are too few paths. Offline brands are relatively easy to build because you want to come to our store to contact people and the environment and experience my services and products. If you do well in all aspects and have enough contacts, it is relatively easy to build a brand.
Why do some online brands with little foundation come and die quickly? It’s because the customer contacts the brand. Maybe only when planting grass and buying things. Although the sales volume is large enough, what kind of trust do you convey to the customer? I’m afraid this is not solid. So I think it’s useless to just look at sales. Last year, we didn’t set up a company. The sales were particularly high. The sales of a single store was about 20 square meters, and the revenue was 1 million. Moreover, the queue was very strong. We think there is no reason for this brand not to invest, right? We finally rejected it.
Wild editorial department: why?
Qing Yong: we can see that there are hundreds of thousands of members in total, and about several thousand of them have re purchases. The highest number of re purchases is only 4 times a year, and only 1% of customers have re purchases. This means that customers do not really agree with you. You are not a brand, you rely on traffic, you open the store in the most popular position, you do a lot of marketing actions, and people consume based on a phenomenon.
Wild editorial department: which factors do tomato investment value more or most?
Qing Yong: the first is the selection category. First of all, we hope to find a category that is large enough and just enough. This is the first category. Most of the projects we invest in, accounting for more than a majority of them, should be just needed. They are the most close to the public consumers, food materials and prices. They are the things that people want to eat no matter whether the economy is good or bad. They must be calculated on a daily basis, or even on a meal basis.
If its rigid demand attribute is slightly weak, what we are looking at is the brand added value, that is, it is either enough rigid demand or high enough brand added value. What is the brand added value? Just like what you said, consumers are willing to go further and even pay extra premium (of course, it does not mean that the brand needs to do this)
Just like Banu, if it is simply a belly, it is a flank war. You can make maw, I can also make maw, and I can find your supplier. Why does it still have more consumers to consume? It’s not because of its belly, it’s Banu’s Productism versus Haidilao’s servism, which is the core.
Because the focus of Haidilao is on service and people, and the focus of Banu is on products. As for the income of 100 yuan, how much I distribute to the people and how much I distribute to the products is more here and less there. This is a natural choice. Therefore, it is necessary to find a natural bug in its strategic design. As long as it continues to strengthen in your field, it will only be attacked forever.
Of course, in its field, you only have to be beaten. For example, if shakeshack chooses the anti efficiency strategy, you have to accept about 200 stores, and you have to accept the slow growth. You can’t have tens of thousands of stores like McDonald’s, which is 200 times more than you, and you have to accept this.
Including our support after the vote like Uncle Xiong: you have to stand on the opposite side of xijiade to win the respect of xijiade. If you only make dumplings, you can’t do anything like xijiade. People’s products, services and quality are better than you, and their brands are louder than you. There is no way to compare with them.
Don’t compete in the value network of xijiade. You must create a new value network. If its environmental service is so good, I will remove the environmental service and sell a good dumpling at a cheaper price. At this time, it can’t learn.
What if some coffee brands do not have the ability of Ruixing digital? So the solution it chose was to make de – spatial coffee in the shopping center Therefore, each person has different advantages, and his solutions will also be different. So “irradiating the giant’s shadow with strong light” means that the strong light is in line with your advantage, and you should continue to strengthen it.
At the store model level, we usually look at the four effects of the store model. We often talk about our human effects, floor effects, timeliness and quality effects.
The so-called human efficiency is “the income generated by the salary of every 10000 yuan”. The salary and welfare expenses of an employee in a first tier city may top three or four employees in the fourth and fifth tier cities. Which is more efficient? Therefore, it is the operating income generated by every 10000 yuan of wages, which is called human efficiency.
Second, we talk about floor area efficiency. Floor area efficiency is not the income generated per square meter. What we are talking about is “the income generated by rent and depreciation and amortization of a single square meter”. Because some have only 10 square meters, but the rent is 100000. Some have 100 square meters, and the rent is only 5000. Then, with depreciation and amortization, it may be 7000 or 8000 in a month. Which floor area efficiency is higher?
Timeliness refers to the use of time, how long it takes to use 24 hours, how much revenue is generated per hour, and how many time periods are used to generate profits every day.
Quality efficiency is the number of SKUs, “return on value generated by each single product”
Qing Yong: Yes, they are neither willing nor able to do it. If we are willing to do it, we should go deep. Only through differentiation can we live in his shadow.
Source: Wild editor (ID: Wild editor), reprinted with permission. Reprint authorization and media business cooperation: Amy (wechat: 13701559246);
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Tomato capital Qing Yong: Some Thoughts on food and beverage pricing, brand and cycle crossing




















像Shake Shack站在麦当劳的对面,它是用反效率逻辑来立足,当头部品牌意识到你会威胁到它的时候,却无法追随、模仿你,无法跟你竞争,只能在既定的赛道里面挨打。

























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