China Food

Shu Congxuan, chairman of Laoxiang chicken: if the digitization is completed, it can turn over; Otherwise, the ship will capsize

On the eve of
IPO, he talked about his understanding of digitization.
In many Chinese fast food brands, the chicken has always been one of the “tossing and turning”. From the popular “cluck cluck cluck” copy on Weibo to the Dasheng toys jointly marketed with the Guochao animation “havoc in heaven” recently, the chicken has always been active in the center of consumers’ attention.
In the eyes of catering people, the local chicken is not only good at activity marketing, but also worth learning from their whole set of digital management system. On August 2, at the main meeting of CCFA new consumption Forum – 2022 China chain catering summit, Shu Congxuan, chairman of Laoxiang chicken, delivered a keynote speech “the road of digital transformation and upgrading of Laoxiang chicken”. Shu Congxuan started with the reason why the rural chicken should do digital transformation and upgrading, and reviewed the process and experience of the rural chicken over the years.
▲ Shu Congxuan’s speech (photographer: Tan Qiansheng)
“Digital transformation and upgrading is not a multiple-choice question, but a must answer question.”
“digitization, don’t think of holding back big moves to take shape at one time.”
In his speech, Shu Congxuan’s golden sentences frequently appeared, which aroused the resonance of many colleagues on the scene.
In addition, Shu Congxuan also shared the actions of the local chicken in the front-end digital marketing, the middle-end industrial digital, the back-end supply chain, and the financial digital, and how to help the enterprise to do a good job in “more, faster, better and cheaper” through digital construction.
Sharing points:
  • Digital transformation is not the responsibility of the person in charge of the digital center, but the responsibility of all employees.
  • This is a protracted war, and there must be a long-term principle in digitization.
  • Creating “online stores” will help to enhance the brand power of enterprises.
  • If an enterprise is digitalized, it can turn around; If I don’t do it well, I’ll capsize.
The following is an excerpt from the public speech:
It’s a great honor to have the opportunity to share with you the digital transformation road of rural chickens. At present, there are 1000 stores and nearly 20000 employees in Laoxiang chicken. It is an enterprise integrating breeding, processing and sales in the industry. Our industrial chain is relatively long, including chicken breeding, central kitchen and more than 1000 stores. Digital transformation and upgrading is the core strategy of rural chicken.
I’ve dug a hole and torn the skin
Digitization needs to fight a protracted war
Why digital transformation?
Because the habits of consumers are changing, taxi, dinner, business trip and shopping can all be conducted online, and people have become accustomed to the digital lifestyle. Data technology is reshaping the industry and rebuilding the industry.
For example, we have to face nearly 20000 employees and more than 1000 stores. A large number of business flows, logistics, information flows, capital flows and passenger flows are intertwined. It is difficult to supervise and track. The information is not transparent and the management is labor-intensive.
In order to achieve the overall efficiency improvement on the demand side and the supply side, it is imperative to make digital transformation. We regard digital transformation as the core strategy of the enterprise. This is not the responsibility of the person in charge of the digital center, it is all the staff
In this process, meituan has brought us great help. For example, together with meituan, we have promoted the online transaction in stores, accumulated all user evaluations and star ratings, and timely optimized the service experience. In the second half of 2021, the average star rating of the local chicken stores increased from 3.82 points to 4.2 points, and the scores of some individual stores reached 4.8 points. The average monthly visitors of online stores also increased by more than 200000. At the same time, the “online store” has also become an important communication channel for our users. On the meituan app, we can intuitively display our brand dynamics and open the membership system together. Before the digital transformation, the exposure of our whole network was about 100 million every year. After the transformation, we can reach 3 billion. Now, the exposure of our marketing has exceeded 300000 every year, the growth of our members has exceeded 10 times, and the daily life index of our members has increased 70 times.
In the aspect of refined data analysis of takeout, we set up a takeout operation center. With the assistance of meituan, we split the market data from the original package to the analysis by city. Around the characteristics of different cities, we customized the annual planning of each city according to different dimensions such as business objectives, digital construction and menu optimization. In 2021, the year-on-year growth rate of our take out orders and transaction volume exceeded 35%, which was a relatively large achievement.
Zhongtai University, stable backstage
Cook a bowl of good chicken soup with digital technology
In the middle stage, we have also opened up end-to-end channels.
For example, in the construction of intelligent cloud service system, we iterated from 1.0 era to 3.0, and now we are in the stage of Intelligent Cloud Service. Now we have basically moved our business online, including work log, emergency inspection, assignment, training, customer service, etc. By establishing a capability center, we can break the system chimney, eliminate information islands and save costs.
We have also spent a lot of energy on data governance. Before there was no governance, we found that many data were chaotic and unusable. For example, the store sells belts. According to the statistics at the end of the month, some people fill in trouser belts, some fill in belts, and some fill in belts, which are not right at all. What is the unit? A bundle? A box? A dozen? How much is it. After data governance, the availability of our data is much stronger and a set of data assets has been formed. In the process of building the data center, we iterated over 21 versions. Now the center has been used 3.11 million times, at least 17803 times a day, and 419 times a month per capita.
The backstage keywords are “refinement” and “high agility”.
It is mainly to open up the relationship between producers and consumers, improve the integrated experience of customers, and improve the efficiency of the industrial system. In terms of finance, we have integrated industry and finance, which has improved the management efficiency. From 200 people to now, we only need 36 people. The reconciliation difference has decreased from 0.5% in the past to 0.3% now. Now the financial statements are issued very quickly. Basically, the statements can be issued on the evening of the 2nd of each month.
▲ the digital process of a bowl of chicken soup (picture provided by the chicken)
From our most
Shu Congxuan, chairman of Laoxiang chicken: if the digitization is completed, it can turn over; Otherwise, the ship will capsize



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