Wang Wang's "annual destiny": the net profit plummeted, the turnover rate is sluggish, do you want to turn around on the market?

Wang Zhuolin, the world's Internet merchant

Editor Wu Lingwei

The national epidemic is steadily good, but the hot pot restaurants have not been able to come out of the state of "collective anxiety".

According to the Data Research Institute of hot pot meals, nearly 70%of the country's hot pot restaurants have suspended the food for half a month due to the epidemic, and 92.3%of the re -work store turnover has not returned to normal level. According to the "Internal References of the Catering Boss", in the first half of this year, Haidilao had 68 stores for 30 days in a row, which could not be opened for 30 days. This situation can be understood as "closed shop".

The deserted hot pot restaurant at this moment is very different from the situation a few months ago. In early April, the Cantonese hotpot chain brand Lao Wang once again submitted a listing application to the Hong Kong Stock Exchange. In January this year, Qixintian also submitted a prospectus. Following Haidilao and Laobu, two brands in the Shenzhen -Zhejiang and Shanghai region began to compete for "the third share of hot pot".

In the past three years, Wang Wang continued to expand, and revenue continued to increase, but net profit continued to decline. According to the prospectus, from 2019 to 2021, the company's revenue was 1.095 billion yuan, 1.125 billion yuan, and 130 billion yuan, respectively, and net profit was 77.949 million yuan, 660.36 million yuan, and 13.129 million yuan, respectively.

Increasing income and increasing profit has become a problem in the entire hot pot industry. In 2021, both Haidilao and Laibu Badbu both developed their first losses since listing, of which Haidilao had earned from 2.3 billion yuan in 2019 to a loss of 4.2 billion last year. Since the second half of last year, the news of the closing shop in hot pot restaurants has caused market attention. At the level of stock price, in 2021, Haidian fell 72.5%, and Laibubu fell 67.38%.

The epidemic caused the catering industry to be impacted. The Cantonese -style hotpot consumer market that Lianwang has regional limitations. The turnover rate of itself is not high, the sub -brand lacks innovation, the takeaway business and retail business are also in the water test stage, and the significant growth potential has not been seen.

If the revenue was calculated in 2021, Haidilao's revenue was 41.1 billion yuan, and it was 2.36 billion yuan. In the same year, the king of Wang, which revenue of 1.3 billion yuan, was nearly 17 from Haidilao.

At this stage, it is not easy to rely on a bowl of pork belly chicken soup to conquer the capital market alone.

The king is trapped in Jiangsu, Zhejiang and Shanghai, can't go or dare not leave?

Hot pot is one of the fastest growing categories in the Chinese food market. However, in the hot pot market with many factions and highly scattered markets, Sichuan -style hot pots with heavy oil and heavy oil account for 284 billion yuan in 2020. The Cantonese -style hotpot mainly focused on the bottom of the soup pot is only 63 billion. It is estimated that by 2023, the Cantonese -style hotpot with a trend of health consumption will reach nearly 100 billion yuan.

The size of the hot pot market in 2025 will reach 850.1 billion yuan

In 2010, the Cantonese hotpot king opened the first store in Shanghai to avoid the fierce competition of the Sichuan -style hot pot brand, followed the differentiated route, and used pork belly chicken as the bottom of the pot bottom, focusing on the concept of "health".

Today, Wang Wang has three major business segments including pot, pot season, and soul -belly chicken soup. There were 150 stores across the country, of which 124 were in Jiangsu, Zhejiang and Shanghai. In Guangdong, only 6 stores were opened in Guangdong, and only 6 stores were opened. There are only 6 and 7 in the north and central regions.

The king of the king of the Cantonese -style hotpot head has been put on the hotpot market in the country, just ranked fourth with a market share of 0.3%, and there is still a big gap between Haidilao, which is 5.8%of the market share.

In order to catch up with the previous players, Lao Wang said that some of the funds raised by the IPO were partially used for opening a store. If you can get enough funds this year, it is expected that there will be 184 new stores in 2024, and the average investment of new stores will be 350-4 million.

However, due to the differences in taste, consumers in the southwest, northeast and other regions are still not high in acceptance of Cantonese hot pot. Sichuan -style hot pot with heavier tastes is still the first choice of investment in many shopping malls, which can also attract consumers. In South China, the "foreigner" king will inevitably face the strong competition of local players.

Wang Wang's urgency of "going out", Qixin Tian felt the same.

Founded in Qixintian in 2006, the seafood hot pot headed by crabs is about 120 yuan. "The Third Poor Market" Qixin Tian has 256 stores in the country and is the largest seafood restaurant in China. However, 82%of stores are concentrated in Jiangsu, Zhejiang and Shanghai, and planned to open 300 newly opened nationwide from this year to 2024.

Before going to the country, Lao Wang and Qixintian's original business also encountered a hurdle. From 2020 to 2021, the turnover rate of Wang Wang fell from 2.5 times/day to 2.3/day, and the average daily sales of the same store fell from 32,600 yuan to 29,000 yuan.

The turnover rate of Qixin Tian has remained at 2.1 times per day in the past three years, and the average turnover rate of 2.25 times/day is lower than the hot pot industry (the annual report of the 2020 China Catering Industry).

The growth logic of the hotpot track is mainly determined by the number of stores, customer unit price and turnover rate. In the case where the unit price and the turnover rate cannot be changed in a short period of time, increasing the number of stores to become the fastest way to increase income. However, as the number of stores increases, the cost of stores and employee costs will increase accordingly. If the operating efficiency continues to be sluggish, the expansion of the store will only increase the burden.

Hot pot restaurant, to play new brands

If "going global" is the first wish of King Lao, telling a new brand story is the second wish.

97%of Laowang's stores are the flagship brand "Pot Cook". The two sub -brands "pot season" and "spiritual belly chicken soup" are mainly promoted by mini hot pot and fast leisure catering. Essence

The prospectus shows that the per capita consumption of pot food is 125 yuan, and the per capita consumption of the sub -brand is about 100 yuan. Different from the 300-700 square meters of pot restaurant shops, the space of the sub-brand is reduced to less than half of the former, and the site selection has more flexibility. However, due to the too small samples, the turnover rate and sales of the sub -brand in the Wang Wang reported that the sub -brand's turnover rate and sales were not mentioned.

Follow King Prospectus

Although the three sub -brands of Wang Wang have their respective scene positioning, the dishes are not much different, and the star products of the pots of pots are pork belly chicken pot, claypot rice, peanut smoothie, and have not been updated for many years. The pot season revolves around the concept of one -person food, just launching a set of small hot pot and dessert, and the soul -belly chicken soup is added with Cantonese -style dishes such as salt and pepper pigeons and honey pork.

Innovative innovation and homogeneous dishes are difficult to attract consumers for a long time, and the low product barriers -Haidilao and Laibubu have launched the bottom of the pork belly chicken pot -competition is too large.

Not only the king, the hot pot brands are keen to hatch new brands outside the main brand to obtain a new growth curve. The mature fresh supply chain resources and capital support of the main brand can also provide sufficient "ammunition" for the new brand charge. But the typical example of the new brand story is Yibubu.

In 1998, the first La Nibubu was opened in Xidanzhu Mall in Beijing, relying on a customer unit price of 50 yuan and a novel small hot pot model to quickly capture the market. The high -end brand launched in 2016 has now become the main force of the group's money. As of 2021, the turnover rate of 183 Qianqian store was stable at 2.5 times/day. It accounted for less than 20%of the total stores in the group, but contributed nearly 40%of revenue to 2.35 billion yuan.

The unit price of the new brand of Laowang is declining, but it has greatly increased the group's overall customer unit price at a customer unit price of up to 140 yuan in 2021. This level is quite rare among the hot pot head players -Haidilao's unit price at the same time is only 107 yuan.

The key to getting together is the product innovation and category cross -border based on people's insight.

The founder Zhang Zhenwei positioned the consumer to be a 25-35-year-old urban white-collar woman, emphasizing the social attributes of the brand. For example, the new "seafood lollipop", the shrimp and fish slip into the shape of a lollipop, which stimulates that female consumers' photos and meals are interesting. The launch of tea sediment, tea latte, tea milk and tea and other high -grim tea products, pricing ranging from 16 yuan to 26 yuan, which increases the profit space.

Gaming seafood stick

And Haidilao takes away the route of "mass production" brand, which has been acquired or founded a number of new brands, such as "eighteen 汆", "fish faction", "Bai bran private noodles", "Qin Xiaoxian", "meal forest "" Grape Valley Three Meals "," Brother Miao fried chicken ", etc., involved in porridge noodle noodle food, and even opened the" Tea Making Park "milk tea shop. Among them, although none of the barking brands, it contributed nearly 200 million income to Haidilao in 2021.

In 2012, the catering brand "U Ding Cai", founded by several former executives of Haidilao, was once highly hoped. The brand was listed in the New Third Board in 2016 and was listed at the end of 2019. During the period, U Dingcai has not made much money. There are less than 50 stores across the country, and now they are still in the dilemma of business adjustments and closing stores.

Takeaway business has become standard

The prevention and control of the epidemic, and the consumer scene of home has become a breakthrough point for the development of catering brands. As early as 2010, Haidilao, which began to take takeaway, broke the gap in the hot pot takeaway market and consumers' solidification of hot pot dining scenarios. In the past two years, Haidilao's takeaway business revenue has exceeded 700 million, accounting for between 1.7%-2.5%of the total revenue. In March of this year, Haidilao also restarted barbecue delivery services, launching skewers, tin foil dishes, etc. to deal with warm weather.

The "industry standards" established by Haidilao's hotpot takeaway also affects the takeaway business as standard for hot pot brands such as Jianzheng, Qixintian, and Dalongyu.

At present, the revenue composition of Lao Wang has takeaway business and retail business in addition to the restaurant operation business.

Wang Wang has deployed takeaway business since 2018, selling pork belly chicken and vegetable package. Are you hungry? A two -person package price is about 250 yuan. From 2019 to 2021, the revenue of Lao Wang takeaway business was 27 million, 59.1 million, and 47.9 million, accounting for 2.5%, 5.3%, and 3.7%of the total revenue.

Behind the hot pot takeaway test is the supply chain capacity. The king is also focusing on the value -added potential takeaway business. After this IPO, King Lao will establish No. 2 central kitchen in the Jiangsu and Zhejiang area, replacing the original central kitchen, making hot pot soup base seasoning and sauce, processing meat and seafood, producing frozen food and dipping sauce. product.

For the king of Lao, who has shocked the listing, Haidilao, who has declined with performance, is still "Super Giant, and the revenue of Lao Wang is only 3%. There are also many powerful opponents on the track. Sister Hesuke has received 100 million yuan in financing and developed to first -tier and second -tier cities. A group of sideline hotpot restaurants of a group of stars in the entertainment industry are also stirring the market. If new species provide hot pot ingredients for pots, it has been established for 3 years. 3 billion yuan, plus Hema and other merchants who provide hot pot takeaway, are seizing the market for hot pot to home.

At present, Wang Wang has achieved a certain consumer mind by differential tastes, and has stabilized in the Cantonese hot pot track.However, the label of pork belly chicken soup has also narrowed the new research and development threshold of Wang Wang.Whether it is a takeaway business or a retail business, it is the top priority to find a new growth point.After walking out of Jiangsu, Zhejiang and Shanghai, if you encounter "not acceptable to the soil and water", it may be far from improving the efficiency of store operations.The king of the king of the hot pot restaurant's "losing the law within five years" has entered the "year of the destiny" this year. Compared with the impact of the "third share of the hot pot", there are many things to do.

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