From winning the favor of consumers, to become increasingly dependent on, Internet enterprises are laughing, but the traditional enterprises to cry, especially the traditional catering industry enterprises.
The power of the Internet makes the traditional catering suffered unprecedented threats, many views summed up the traditional catering is estimated to stop. So traditional catering can only pray, or clever traditional catering enterprises will “pay tuition” to change. After all, experts know that if you don’t change, you can literally starve to death.
Closed door: after diversification tired of management
One of the hallmarks of traditional restaurants is that they rely on guessing consumers’ preferences to position their products, even though consumers may not know exactly what they like. Enterprises blindly cater to consumers to change, and may eventually lose themselves in the industry.
The view of some catering enterprises is that diversified diet classification can always attract customers with different needs, not only allowing customers to drink morning tea, afternoon tea, but also eat dinner. For example, the environment and decoration of many cha chaan teng are quite good. Cha chaan Teng usually has several fixed set meals or drinks, not only Chinese dim sum, but also cantonese food, Western food, cold food and other different kinds of food.
The result is a restaurant that does everything from Chinese to western, but not enough. The reason seems to be that the business lines are “too complicated”, and consumers have higher and higher requirements for consumption quality, so the profits of cha Chaan Teng are not optimistic, and the final result is that the operation will not last long. There are many such examples in many local tea restaurants in Guangzhou.
The reason for the final failure is basically the same, because catering enterprises generally have the impulse to diversify after making profits, such as opening water bars and carrying out take-out business. This practice of scattering “eggs” in different baskets seems to expand the business coil money, but actually increases the risk. For example, the hot pot industry xiaolong Kan expansion of “Dragon Tea” drinks, Xiabu Xiabu launched high-end hot pot brand “gather together”, as well as their delivery services and so on, the layman may think that catering enterprises “extensive”, estimated to make a lot of money, but profit is probably only the enterprise itself more clear.
Because diversification also means that the limited resources of catering enterprises will be dispersed, and from another level, catering can not focus on one area. Catering enterprises will be the sales front pulled too long, but the results can not take into account each line of business, direction, target is not strong, everything is also loose.
However, some of these phenomena do not know the traditional food is really not seen, or pretend to be invisible.
Blind expansion: strength grasp not to aggravate enterprise backwardness
Most of the traditional catering enterprises think that as long as the expansion of the store can be well-known. But in fact, without a good market research, planning for the location of stores, advertising, publicity, and finally is likely to intensify spending money, gradually falling.
In reality, many traditional catering companies are just thunder and no rain, Wuhan Zhou Black Duck is an example.
Although Zhou Black Duck is a fighter jet in the duck’s neck, its performance has risen like a rocket in the past few years, but in 2018, it also quietly flameout. The 2018 semi-annual report shows that Zhou Black Duck’s revenue is 1.597 billion yuan, down 1.3% year on year, and the net profit attributable to shareholders is 332 million yuan, down 17.3% year on year. The total sales volume of duck products is 18,000 tons, 1,200 tons less than last year. So far this year, Zhou Black Duck’s share price is down 50%, which could be explained by the “Davis double kill effect”.
As we all know, Zhouheiya sells directly from stores, most of which are located near airports and train stations. A big mistake in strategy is to expand blindly, so you don’t see the money burning.
It is reported that in the first half of 2018, Zhouheiya opened 214 self-operated stores, bringing the total number of stores to 1,196, 304 more than the 892 stores in the same period last year, covering 16 provinces and 78 cities. Zhou Black duck shop speed is really amazing. With such a good product, the addition of more stores should increase revenues. But it happened that revenue did not increase but fell, which shows that the week black duck’s average store income is on the decline.
This just shows that zhou Black duck’s customers are losing. The loss of customers directly reduced revenue, and the rapid expansion directly increased costs, so profits fell by a greater margin.
Is falling revenue and losing customers an industry problem? But rival Juwei Duck Neck saw its first-half revenue rise 12.6% year on year to 2.085 billion yuan, while its profit rose 32.6% year on year to 315 million yuan. Huangshang Huanghuang also achieved high revenue and profit growth of more than 30 percent. Both are substantially more than expected, it seems that this is not the industry’s problem, is the week black duck own problem.
In addition, Chaixiang Shuxiang, founded in 2011 and known as the “Starbucks of the tea world”, announced the suspension of all its stores on January 1, 2017. A tea beverage company with a turnover of 400,000 yuan in one month will inevitably cause a lot of discussion in the industry when it suddenly closes its shop. But in fact, the reason for closing its shop is basically the same as that of making no money.
It is understood that from 2011 to 2013, Tea Xiang Shuxiang expanded to 10 branches. It is worth noting that the tea and book stores generally cover an area of about 150 square meters, and Shanghai Lingkong SOHO flagship store covers an area of more than 500 square meters. Although the turnover of Tea Xiang Shuxiang reached 400,000 yuan in the first month of opening, the decoration cost of the store is high, and the rent of the store is also quite expensive. The high cost foreshadows the closing of the store.
Before 2015, the site of Chaixiang Shuxiang was usually located next to Starbucks. However, since 2015, Chaixiang Shuxiang has positioned its stores in office-oriented communities and popular business sections. The problem emerged, although the office area large flow of people, but the per capita stay time is not long. In short, improper expansion, coupled with the immature concept of site selection, increased the cost of tea fragrance and accelerated its decline.
In general, the rapid expansion of the enterprise store is not necessarily a good thing, control the expansion, the “scepter” is a reasonable play in the industry focus and stand.
Confusion: Is hosting an online event transforming the Internet?
In addition, traditional catering with the prospect of transformation should be clear about the difference between building an Internet platform and combining online and offline. Blindly doing online and offline is not really transforming the Internet.
It is obvious that many catering companies want to borrow wechat’s help to spread their brands. So one after another began to register the public account, in the public account to write a few tweets, coupons, the use of forwarding set praise huili and other ways to promote the new product. In fact, this is not the transformation of the Internet, just the offline promotion into the online, at most the use of O2O mode, not the transformation of the Internet.
Take Xiabu Xiabu as an example. With the accelerated fermentation of the Internet, Xiabu Xiabu will not miss the huge business opportunity of the Internet. Fans are consumption power. Therefore, in order to tap the huge potential and economic benefits brought by fans, Xiabu Xiabu cooperated with Lvshu Technology to plan the wechat shake interaction of “520 Snatch Fresh Love”, realizing the dual effect of online and offline drainage.
It is reported that Xiabu Xiabu “520 Loot fresh love” wechat shake the effect is amazing. Within 26 days, the total number of people who participated in Xiabu Xiabu Shaking exceeded 6 million, with an average of 200,000 shaking times per day. The highest record was 350,000 shaking times per day, and the number of wechat fans rose sharply, with a total increase of nearly 600,000.
However, since Xiabu Xiabu did not integrate and decompose the data, and enjoyed the short-term pleasure brought by O2O, it resumed to rely on normal store publicity to carry out the traditional store operation.
In fact, the most frequent online and offline activities to a number of beverage enterprises. For example, mengniu, Yili and other brands hold activities to pull passers-by to scan the TWO-DIMENSIONAL code to participate in the activities. It is worth mentioning that one of the steps consumers take before participating in activities is to pay attention to the public account related to the enterprise. It is not surprising that traditional enterprises want to promote their brand publicity by taking advantage of the attention of consumers.
No matter how you food tycoon tricks, it should be clear that the comprehensive Internet of food and beverage should have the characteristics of product digitalization, consumption data, user social, brand community. This point, traditional catering enterprises should pay attention to.
So, where will traditional catering enterprises go in the future?
In the future of popular catering, traditional catering should focus on user data and cross-industry integration
With the improvement of national living standard and the innovation of life style, various types of public and business activities in the society are increasingly frequent, coupled with the rapid development of domestic tourism market and other factors, driving the sales of food and beverage market. At present, the catering industry has gradually formed a popular catering as the main body, all kinds of catering industry balanced development pattern.
In addition, the accelerated upgrade of the Internet, the traditional food hungry for a long time had to change. Therefore, when the enterprise is uncertain about how to go in the future, it might as well pay some tuition fees in advance to try the water in the industry, and it may be much better to declare bankruptcy than to grope for it.
First of all, reasonable and effective integration of user data is a key factor in the transformation of traditional catering.
For example, at present, almost all restaurants in shopping malls will wait in line before eating. Unlike before, you had to wait around the store for the attendant to call you, and you might get the wrong number if you weren’t careful. It is understood that as long as you scan the TWO-DIMENSIONAL code on the queue paper, there will be a reminder when it is your turn to have dinner. There is no need to worry about the wrong number, and you can even do other things in the process of waiting for the queue, such as shopping and so on.
This is actually a good trend. Catering enterprises integrate user data through the Internet, which is faster and much more accurate than the artificial data integration of traditional catering companies.
Secondly, cross-border industry integration will enhance the endogenous driving force of the traditional catering industry.
The full penetration of modern service concept and Internet technology makes the boundary of traditional catering industry increasingly blurred. The great catering value derived from the integration of tourism catering, Internet catering, catering real estate, catering finance and other cross-border industries will become the endogenous driving force for the deep integration of related industries and catering industry in the future.
At the capital level, if traditional catering enterprises can effectively make up for the dispersion of industrial concentration through capital cross-border restructuring, then the realistic capital return will also become the internal motivation for further industry concentration. Moreover, in the future, the integration of catering crowd-innovation, crowd-funding platform, entrepreneurship and industrial investment based on capital level may become the next good development trend of catering industry. In the coffee industry, the cooperation between Starbucks and Alibaba, Luckin and Tencent and other traditional catering and Internet platforms is vividly reflected.
In a word, residents’ catering has entered the era of popular consumption. Traditional catering needs to change not only thinking, but also viewing the market from the perspective of consumers, leading consumers to produce consumption consensus, rather than blindly catering to them. The future catering market is still a prosperous scene, the article finally gives the traditional catering advice is: step forward, broad sky.
Article/Liu Kuang public number, ID: Liukuang110, this article first kuang Venture capital network