On February 4, Jiumaojiu Group announced that from February 1, 2024, the company will gradually open its franchise and cooperation business of Taier sauerkraut fish and Shan's sour soup hot pot.
Among them, Taier sauerkraut fish will be opened to franchise business in Xinjiang, Taiwan and other provinces, as well as domestic airports and high-speed rail and other transportation hubs, as well as Australia, New Zealand and other places. The sour soup hot pot outside the mountain will first open the cooperative business of designated shopping malls, and plans to fully open the franchise on February 3, 2025.
The background of Jiumaojiu's open franchise business lies in the intensification of market competition and the upgrading of consumption structure. Jiang Han, a senior researcher at Pangu Think Tank, pointed out that its purpose is to further expand its market share and improve brand awareness and influence.
According to the latest data, China's catering revenue will exceed the 5 trillion yuan mark for the first time in 2023, a record high, according to Zhu Danpeng, an analyst of China's food industry. Behind this, it is not only a process of rapid development and expansion of China's catering market, but also a process of rapid expansion of various chain stores.
Taier let go of the franchise, it should be to enhance the overall brand effect. In Zhu Danpeng's view, only when the scale of the enterprise reaches a certain degree can the scale effect be further amplified, which is the same reason as the opening of the entire new Chinese milk tea and coffee brands.
According to public information, Jiumaojiu was first established in Haikou by the founder Guan Yihong, and expanded its business to Guangzhou in 2003, and then established and decided to use "Jiumaojiu" as the brand name. In 2010, Jiumaojiu determined the business strategy of chain catering and opened a national layout.
At the same time, Jiumaojiu opened a multi-brand development strategy and successively opened too.
Second, Uncle Nawei is a chef, a restaurant, Lai Meili and other brands. As of June 30, 2023, there are a total of 621 restaurants in Jiumaojiu.
Two, nine hairs. 9. The number of restaurants for hot pot, Uncle Nawei is a chef, and Lai Meili grilled fish is 496, 75, 43, 1, and 6 respectively.
It is not difficult to see that in addition to Taier, the number of other brand stores under Jiumaojiu is less than 100, and there are even brands with only 1 store.
However, if it expands its scale through its own funds, it may take a long time. Taking Taier, which has the largest number of stores, as an example, in the first half of 2023, a total of 67 new restaurants will be opened in Jiumaojiu, including 46 Taier restaurants.
In contrast, the number of stores is increasing day by day after the opening of the franchise, with a total layout of more than 2,100 stores, ranking first in the market share of the pickled fish market, among which, as of December 24, the stock of stores in East China alone exceeded 700.
Taier, who has the largest number of stores, can only rank second in the sauerkraut fish track, Jiumao.
Nine, the hot pot, Uncle Nawei is the chef, Lai Meimei's grilled fish market position can be imagined, therefore, it was announced that it will open the franchise business.
Jiang Han pointed out that the advantages of opening up the franchise business are mainly reflected in three aspects: first, accelerate the expansion speed, rapidly expand the number of stores through the franchise model, and increase market share; the second is to share the risk, so that Jiumaojiu and the franchisee share the market risk and reduce the operating pressure; The third is innovation and development, the introduction of more diversified business ideas and management models, to promote enterprise innovation and development.
Jiang Han further pointed out that the opening of the franchise business also faces many challenges. First of all, Jiumaojiu needs to strengthen the management and training of franchisees to ensure the uniformity of brand service and quality, and avoid affecting the brand image and consumer reputation. Secondly, Jiumaojiu needs to reasonably distribute profits with franchisees and balance the interests of both parties. Finally, with the increasing number of market participants, Jiumaojiu needs to continuously improve the quality of its products and services to cope with the increasingly fierce market competition.
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