In recent years, China's chain catering industry has shown a vigorous development trend, and the market size has continued to expand. By the end of 2021, the number of chain restaurant outlets in China had reached 1.52 million, a year-on-year increase of 131%。With the increasing pursuit of rational consumption and quality by consumers, some brands with affordable and high-quality routes, such as West Master and Luckin, have made a lot of profits.
Franchise strategy of emerging chain brands: unique models and operation management.
Compared with the "direct + franchising" model of the established chain giant KFC and the "developmental franchising" model of McDonald's, emerging chain brands such as Luckin and Heytea have shown unique characteristics in terms of franchise model and operation management, and have successfully gained a firm foothold in the fiercely competitive market.
For example, Luckin Coffee has rapidly expanded its stores in high-tier cities through the "joint operation model" and "franchise with stores" strategy, and actively developed the sinking market. Luckin Coffee emphasizes the trust connection between the brand and its operating partners, and has established a standardized store quality management and operation system through strict control of store locations. According to public financial report data, Luckin Coffee's revenue in the second quarter of 2023 increased by 88% year-on-year to 6201.4 billion yuan, more than Starbucks China's 59600 million yuan.
Another well-known chain brand, Heytea, has always adhered to the direct sales model, but it also began to open up to franchises at the end of last year. Heytea provides a full range of operational support for franchisees, including site selection guidance, store decoration and professional training. In addition, Heytea has also established a complete chain system to ensure that franchisees can obtain stable raw materials, thereby reducing operational risks.
As a chain brand with the vision of providing global Chinese fast food services, the upgraded franchise policy has attracted much attention and attracted the interest of many entrepreneurs. Although its franchise model is somewhat similar to KFC, it has unique features in terms of brand support, including brand licensing, technical training, equipment** and marketing.
Young Master Xi said that compared with the rapid expansion of the market through franchising, they pay more attention to the protection of the brand. The purpose of franchising is to get more people involved in the building and development of the brand. Therefore, the requirements for the selection of franchisees are quite strict, and the threshold is also high, which requires franchisees to have certain financial strength and business philosophy consistent with the brand.
At present, Master Xi's franchise policy has covered many cities and overseas markets, providing franchisees with broader market opportunities and development space, and also providing consumers with more diversified food choices.
In general, whether it is the traditional KFC and McDonald's, or the up-and-coming chain brands such as Luckin Coffee, Heytea and the much-talked-about West Young Master, they all have their own characteristics and advantages in terms of franchise model and operation management. For entrepreneurs who intend to join the chain catering industry, it is important to carefully understand the brand's franchise policies and conditions and carefully choose partners. Only on the basis of a full understanding of brand strength, business philosophy and development direction can we better achieve entrepreneurial success.