Zhengxin Chicken Chop is a well-known brand that is unique in the catering industry. Recently, however, there was shocking news that the brand had suffered a massive store closure, with more than 10,000 stores closed. Back in March 2021, the number of Zhengxin chicken steak stores has exceeded 25,000, but now there are less than 12,000, a direct decrease of 13,000. The actual number is probably even bigger, because in the meantime, they have continued to open stores. So what exactly happened to Zhengxin Chicken Cutlet?
The owner of Zhengxin started the wholesale business of frozen food, and it was not until 2000 that he opened his first branch. In the early stage, Zhengxin mainly focused on direct sales and went relatively stable. He began to join in 2013, signed Huang Bo as a spokesperson in 2015, exceeded 10,000 stores in 2017, 20,000 in 2019, and reached the largest number of stores in March 2021, exceeding 25,000. The rate of expansion is one of the fastest in the restaurant industry. In 2018, they also launched the "Forest Project", which aims to achieve the goal of 100,000 stores. They dare to come up with this number because they have the strength.
First of all, Zhengxin Chicken Chop has a high degree of standardization and a mature business model. Secondly, the investment in a single store is small, and it only takes about 200,000 yuan to open a store. Third, the company is very strong and has built a complete ecosystem. They have a large and powerful ** chain, it is said that there are 12 factories and more than 50 front-end factories in the country, and the material distribution can penetrate into all the township level. In addition, they do not need to rely on third-party logistics, and they also have their own renovation companies and online operation companies. This scale and skill is almost unmatched in the industry.
However, judging from the current key data, Zhengxin Chicken Chop has indeed encountered a huge problem. We interviewed several franchisees, and their feedback mainly focused on the following points: First, the stores were too dense, which led to fierce competition and negatively affected the business. Second, there are more similar chicken steak products on the market, including fried chicken burger brands like its Sting, and there is little difference. In addition, the market publicity of Zhengxin chicken steak is insufficient, the appeal to consumers is weakened, and the feeling of brand aging is gradually emerging. Fourth, the management of store operations may be lax, and negative problems often arise, causing great damage to the brand.
In addition to these issues, there is another factor that needs attention. Zhengxin Chicken Chop takes the route of direct sales with franchises, and at the same time has a large number of directly operated stores, and there are quite a few of them. According to the data, the directly operated stores account for about 1 3 of the total. This can lead to a problem where directly managed stores steal the business of franchisees. When the franchise store is doing well, the company may open a directly operated store nearby. As the company grows, it's hard to avoid it.
In addition, from the feedback of some franchisees, they are not satisfied with the cooperative relationship with the company, believing that the company is too controlling over the franchisees. If this discordant relationship persists, it is easy for franchisees to give up on cooperation when faced with difficult situations. For the current Zhengxin Chicken Chop, how to survive the current crisis, how to let franchisees make profits, and how to improve the relationship with franchisees are all difficult problems in front of them. As for the dream of 100,000 stores, it may need to be withdrawn for the time being.
The withering and crisis of Zhengxin chicken steak has caused widespread concern and controversy in the society. This incident not only had an impact on the brand itself, but also triggered people's thinking about the development model of the entire catering industry. The business competition is fierce, and the market is flooded with all kinds of homogeneous products, which brings great challenges to the maintenance and development of the brand.
As everyone's attention to food safety increases, more and more people eat less or even no fried food, how long have you not eaten Zhengxin chicken cutlet?