Wallace, "Black and Red", is there any saving?

Wallace also searched for food security. This time, it was a bit "spicy eyes" and staged directly: "raw meat burger".

Produced ｜ NBS New Products n Author ｜ Wu Wenwu

Recently, Mr. Shijiazhuang bought two burgers at a Wallette store. After returning home, the child ate half and said that the taste of the burger is different and it is difficult to chew. Essence

The bizarre experience of Mr. Wang, the director of the Wallasm store involved in the incident, responded that it may be due to the negligence of the new employee. It was not intentional. The cost of the burger has been refunded.

Soon the topic of "the manager responded to Wallace Burger to eat raw meat" on Weibo, which caused a hot discussion on the entire network. Some netizens teased that "the spray package has made a new product?"

According to the company's investigation APP, since this year, many Wallasm stores have been administrative punishment by the local market regulatory authorities for violating food safety laws such as food safety laws that operate more than shelf life foods.

Among them, the nearest penalty was on July 7. Zhu Ruyi Wallace Western restaurants in Makou Town, Hanyuan City, Hubei Province were fined 10,000 yuan by the Hanchuan Market Supervision and Administration Bureau for violation of the Food Safety Law.

Wallace, one is known as the "king of Chinese fast food", and the other has been constantly problems. Wallace is a hot and black company that coexists with black and red. Now, Wallace has reached the time of crisis.

01 Hot Wallace: 20,000 stores, earning 3.5 billion annual earnings

In large and medium -sized cities, people eat foreign fast food, and they are usually used to going to McDonald's, KFC, Hamburg King, etc., but for people living in small cities or small counties, the first hamburger is probably Wallace.

In the 1990s, KFC and McDonald's successively entered the Chinese market. I believe that many people have heard of the grand occasion at the opening of the business, and soon set off a "foreign fast food" boom.

In the context of foreign fast food burst, Hua Huaiyu and Hua Huaiqing two brothers saw business opportunities. At that time, McDonald's and KFC were mainly in first -tier cities. Third -tier cities must be promising.

Brothers of the Brothers said that they did it. In January 2001, they founded the first Wallette store in Fuzhou. All Wallace's model directly imitated KFC and McDonald's model. Residents in third -tier cities do not have enough strong spending power, and their sales are not high.

After touching the wall, the Brothers of the Brother Brothers decided to compete completely. Wallace adopted the market strategy of "rural surrounding cities" to quickly enter the second and third -tier cities, and came up with a low -cost "killer". Activity, Coca -Cola 1 yuan, chicken legs 2 yuan, and 3 yuan of burgers, which directly increased the turnover of Wallace stores.

Although Wallace's products are half lower than KFC and McDonald's, they are directly aligned with the latter in product category, services and store decoration, but everything is operated around low costs.

Wallace has become a popular market with a low price and explored the cooperation chain model of store crowdfunding, employee partnership and direct management as its core chain model. The store puts the shares to employees or trained external collaborators through crowdfunding.

In 2006, Wallace had only 200 stores in the national market, but in 2013, the national stores expanded to more than 4,800 stores. The Wallace official website shows that the number of stores in the country in the country has reached 20,000. With the industry data as of the middle of 2021, the number of Wallace stores is already the sum of the two stores of McDonald's and KFC.

Wallace is a well -deserved "King of China Fast Food". There is a saying in the industry describing Wallace: KFC is where McDonald's, but there must be Wallace without KFC and McDonald's.

Wallace also landed on the capital market. In April 2016, Wallace landed on the New Third Board. Data show that Wallace achieved revenue of 3.494 billion yuan in 2020, close to 3.5 billion yuan.

However, Wallace has also been affected by the epidemic in recent years. According to the 2021 annual report released by Wallace at the end of April this year, Wallace achieved revenue of 3.37 billion yuan in 2021, a year -on -year decrease of 69.40%, net profit of 7020 million yuan, year -on -year, year -on -year Turn losses into profit.

With a low -cost strategy, cooperative joint venture, and industrial chain, Wallace built its own business model and quickly expanded and won the title of "King of China Fast Food".

02 Black and Red Wallace: "Jet Warrior", cut leeks

Although Wallace stores are all over the country and the number of stores has reached 20,000, Wallace also has a black and red side.

Wallace has always imitated KFC and McDonald's as a "cottage KFC". To this day, Wallace is still regarded as a cottage brand by the market.

With the rapid expansion of Wallace, the number of stores has increased geometrically, and various problems have followed, and the food safety issues are more frequent.

For example, some netizens have ate Wallace's chicken wings, and some netizens complained that they had eaten bugs in the Wallace takeaway package. Until recently, Wallace's burgers have shocked raw meat. It is called by netizens: "Jet Warrior".

Wallace is a frequent guest in the Black List. In 2021, Wallace has repeatedly searched for food security issues. In July 2021, the chef of the Beijing Wallace shop was sanitary problems. The chicken nuggets were picked up and fry, and the old oil mixed with new oil was repeatedly used. 11 stores have different degrees of problems. Since 2022, Wallace has been punished many times for food safety problems. According to the company's inspection APP, since February this year, Wallace has been punished by local market regulatory departments in stores in Wuhan, Wuzhong City, Wuhua County, Changwu City, Hanchuan City and other regions.

Frequent food safety issues have caused Wallace to be controversial. At the same time, Wallace's own income model and the profitability of franchise stores have also been controversial.

Wallace looks like a fast -food chain brand. In fact, Wallace propaganda stores are directly operated, but in fact, it is necessary to open a Wallette store to pay a certain fee and participate in training. But it is essentially a business joining business.

According to media reports, Wallace Headquarters has announced that its 50%of the stores have a profit of about 480,000 yuan a year, 30%of stores have a profit of about 600,000 yuan a year, 15%of stores have a profit of 800,000, only 4 %Of the stores or minorities.

However, in fact, not all stores can be profitable, and even Wallace has fallen into doubts of cutting leeks, and the employees and employees of the store are difficult to return.

According to several media reports, in May this year, a young lady in Hangzhou took 30,000 yuan in the store manager of the Wallasm store. It has been at a loss for ten months. It is a bit difficult to refund the money, which has caused heated discussions.

What is more concerned about is that selling raw materials to franchisees is the main business of Wallace. As early as 2015, the data of raw material supply accounted for 99%of its total revenue.

03 Wallace has suffering?

As mentioned earlier, Wallace's revenue in 2020 was nearly 3.5 billion yuan. Now the number of stores across the country is 20,000. What kind of Wallace must make a lot of money?

But this is not the case, Wallace may not be able to say it! Data show that from 2016 to 2020, Wallace's revenue was 1.108 billion yuan, 1.645 billion yuan, 2.326 billion yuan, 2.550 billion yuan, and 3.494 billion yuan, respectively. The net profit was 21.54 million yuan, 34.98 million yuan, 50.76 million yuan, 54.6 million yuan, and 92.09 million yuan, showing a stable growth trend.

However, Wallace's gross profit margin has been relatively low, and in 2020, it has decreased to 4.7%, and negative growth has also occurred, which is far lower than the average level of 20%of the industry.

Moreover, Wallace is facing increasing market pressure, facing the pressure of strong giants, and later there is a strong pursuit of the Chinese burger brand of the same product.

First, the power of the giant, Wallace is increasingly facing the pressure of KFC and McDonald's to accelerate the sinking of the market.

In the past, Wallace's main second and third -tier cities have occupied market opportunities, but in recent years, the market wind direction has changed, and the sinking of the catering industry market has become a general trend.

The two major foreign fast food giants of KFC and McDonald's are accelerating the sinking market, accelerating the pace of store expansion in second- and third -tier cities, and even county -level cities. When these two brands enter, Wallace will lose a lot of customers.

Besides, there are the strong rise of similar Chinese burger brands.

In fact, in addition to the native burger brand of Wallace, there are also several other burger brand stores in China, such as the superborn of Dongguan, Guangdong, but the headquarters in Guangzhou, the Beck burger that originated in Beijing, and the faction of Hubei faction originated in Hubei. Le Burger and Happy Star, and Kalez, which originated in Shanghai, have achieved good development results.

For example, Tastin, which was founded in 2012, has also played the price and national tide style in recent years, attracting many consumers, and also developed the concept of rollover the Chinese burger brand. pressure.

It can be seen that factors such as fierce market competition, low gross profit margin, and impact of the epidemic have formed a lot of operating and market pressure on Wallace.

04 Wallace, is there any rescue?

Although Wallace is currently a fast -food chain giant with 20,000 stores, the market reputation is getting worse and worse. So, is Wallace still rescued?

From the perspective of the new NBS product, Wallace can only be itself! Wallace's self -rescue can be carried out around the entire keyword of "upgrade", which needs to be upgraded around the core aspects of the brand, category, and quality control.

First of all, the brand upgrade, Wallace needs to get rid of the cottage brand image and have its own brand new kernel.

When Wallace first established, Wallace chose low -cost and key development of second -tier and third -tier cities markets. These markets are gap in the market. Wallace occupies market opportunities, spread out the market network, and also has a certain brand image.

However, now, including second- and third -tier cities, there is a new boom in catering consumption. Wallace's past cottage brand image is no longer suitable for present and future, but it will limit the development of Wallace.

Wallace invited Hua and China Marketing Consulting Institutions in 2019 to carry out a brand upgrade, but from the perspective of market offline stores, the brand image upgrade is not thorough. Wallace will need to conduct store brands nationwide in the future. Image upgrade.

Secondly, the category upgrade, Wallace needs to upgrade the product category quality.

Wallace's low -cost strategy has opened the market in the past. Now that consumption is upgraded, prices are not exactly the only standard for people to make catering consumption, and pay more attention to food health, taste and quality. Wallace needs to upgrade the category quality, not only to improve product categories, but also to improve product prices accordingly. Consumers are willing to pay for more quality catering products.

The third is that the product control upgrade, Wallace needs a comprehensive product control upgrade.

As a chain catering company, although the main business income is to supply raw materials for franchisees, Wallace food safety issues are frequent, and even netizens have said that they have said that Wallace food safety issues have been said to be "accustomed to", and it is even more. He was worn on a very disgraceful "hat" such as "Jet Package" and "Jet Warrior".

Frequent food safety issues directly reflect the loss of Wallace's operation specifications and food safety supervision specifications. Wallace needs a comprehensive upgrade of quality control.

Wallace cannot only learn fur, but also to learn the essence of KFC and McDonald's standardization. Later, these local chain brands in the same industry are better than Wallace, so Wallace also has a sense of crisis. Essence

With the continuous upgrading of catering consumption, people attach increasing importance to food safety issues, and Wallace's low -cost strategy in the past is destined not to go far in the future, and the market leaves a lot of time to Wallace.

If Wallace does not think for progress, does not seek improvement, and does not save himself, it will definitely be abandoned by more and more consumers in the future!

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