“Death Run”:How can catering companies get tickets to the future market?
By: Date: 2021-04-08 Categories: industrynews Tags: ,
  ”This year may be the best time window for the catering industry to develop over the years. The development ideas can be summarized in the words’death to run’. Companies must scale up to get tickets to the future market.”
   On March 30, at the Fifth Council of the Fifth Session of the China Chain Store & Franchise Association, KPMG partner Mao Jian made a judgment on the future development trend of catering based on the discussions of the catering directors.
  The catering industry is a very old industry, and at the same time a very innovative industry. The vitality of innovation can be seen from the new tea drinks in recent years.
  The catering industry is a seemingly easy industry to get started, but it is actually a very difficult industry. Its closing rate and opening rate are the highest in the entire pan-retail industry.
  The catering industry is the industry with the most”housekeepers” in all pan-retail industries. All regulatory agencies will manage the catering industry.
  The catering industry can be subdivided into many small categories, and each small category, such as a small subdivision track such as fried chicken, will grow into a large category market. The catering industry is another big industry. If the market growth of the entire catering industry is calculated at an annualized growth rate of 7%, it is expected to reach a market of 7 trillion yuan by 2025. According to KPMG statistics, the average single-day catering expenditure in China is 16 yuan per person, which is very different from the 124 yuan in the United States, and the industry concentration is very low. From these two points, all catering companies have very large Development opportunities.
  What are the trends in the catering industry in the future?
  1. The chain of big brands.
  2, the characteristics of boutique. Without features, there is no passenger flow without giving consumers a reason to enter the store for consumption. The turnover rate during the epidemic has dropped a lot, and the most fundamental reason is the drop in passenger flow.
  3. Small-scale community. The proportion of catering in the form of large-scale Chinese table meals is declining, and there will be more and more small-scale community-based catering formats.
   4. Consumption classification. The per-customer price of inbound consumer flow is declining, and the decline in passenger flow has a significant impact on the revenue of restaurants.
  5. Hierarchical platform. The future trend of the industry is specialty stores + large-brand chain stores. On the one hand, there are large-scale blessings, and on the other hand, there are in-depth category management. The existence of intermediate restaurants is difficult.
  6. Catering companies are listed. The consumption upgrade and the opening of the capital market in the”dual cycle” development pattern will bring catering companies the opportunity to go public.
  7. Regulatory tightening. The government’s supervision of the catering industry will become more and more stringent. For example, carbon tax, environmental protection smoke, drainage, and exhaust supervision, as well as nutrition labeling, all show that the industry’s supervision is increasing.
  What should I do in the future?

   1. Keep the bottom line
  Food safety:The most basic thing the catering industry must hold is the bottom line of food safety. Any food safety issue will collapse the entire chain of brands.
  Crisis & Store Standardization Management System:In the development of chain restaurants, whether it is franchise stores, or channels sinking to fourth, fifth, or even seventh and eighth-line directly-operated stores. Many stores are far away from the sky. If the supervision of a single store is not effective, it is easy to affect the entire brand. Therefore, the construction of a crisis management system and a standardized management system for stores is very important, and to a certain extent has become a bottleneck for the large-scale development of chain brands.

   2. Innovative features
   Perceive market changes:Let headquarters managers perceive market changes, including understanding the needs of consumers in the Z era.
  Define basic styles and hot styles:No matter how many SKUs a certain restaurant brand has, it is the basic style that attracts customers. Many brands need to redefine what the basic style is. On this basis, make a good extension of special models, or even create explosive models, whether it is a fried chicken shop or a tea shop, there is a lot of room for any subdivision track. If there is no explosive model in the catering industry , It is difficult for consumers to have a reason to enter the store.
   Do a good job in talent and organizational construction:Compared with China’s retail or fast-moving consumer goods industry, the digitalization of the catering industry still has a big gap. In the future, there will be a huge gap in catering digital talents. It is necessary to recruit new talents, but also to cultivate talents, and more importantly, have a suitable incentive mechanism to make talents willing to come and retain them, so as to give full play to their value.
  Cultivate specialty stores:Many new tea brands, such as Hey Tea, will combine local cultures in different cities to create local specialty cultural stores, and store operations and brand building from the perspective of local characteristics.
  Supply chain construction:For large-scale chain brands, controlling the upstream of the supply chain is to ensure the food safety of the brand, and to control the purchase cost of food ingredients.
  3. Embrace change
  Internal Circulation:Innovation is something that must be done. The pressure comes from the cost structure of the enterprise. A representative of the board of directors proposed that they are willing to spend two years of profit to invest in innovation to create soil for internal innovation of the enterprise.
  External circulation:Explore the creation of a platform similar to the high seas. Between the company’s private domain traffic pool and large high seas platforms, such as Meituan Dianping and Ele.me, we will build a convergent alliance platform to share the benefits of traffic here. The value of shared traffic.
  Digitalization:The general trend of catering digitalization has been the consensus of the industry leaders. Whether it is front-end store ordering or back-end central kitchen, or the upstream and downstream processes of the supply chain, digital transformation is needed to make the entire process transparent. , Use data to drive the entire business.
  Community operation:More and more food and beverage stores have sunk into the community. Digital methods, such as online marketing and user analysis, must be used to drive community growth.
  Capital grafting:The development of catering brands to a certain level requires the grafting of capital leverage to form scale growth.
   Catering companies must hold the bottom line, innovate their characteristics, and continue to embrace changes in order to”deadly run” and run forward in great strides.