Kunpeng plan Haidilao finally let go of the franchise.
On March 4, Haidilao announced that it would implement the franchise model of Haidilao restaurants. It is reported that this is the first time that Haidilao has opened up to join since its establishment 30 years ago.
As early as a few years ago, Haidilao also resolutely stated that it would not accept the franchise method.
So what does it mean for Haidilao to open up the franchise this time? Will there be a guarantee in terms of quality control? Will it eventually lead to difficulties in the development of enterprises because of the scale effect?
In fact, since Haidilao's listing, expansion has been its basic strategy.
Looking at Haidilao's financial report, it is not difficult to find that Haidilao's major expansion began in 2020, because the annual revenue and net profit in 2019 hit a new high, so after the disclosure of the 2019 financial report, Haidilao founder Daniel Zhang announced a large-scale store expansion plan.
However, Daniel Zhang underestimated the impact of the epidemic and opened a store against the trend to make Haidilao suffer. The aggressive expansion strategy soon left Haidilao in the mire of losses.
The huge loss of performance coupled with the ** of the stock price, coupled with the market's personal evaluation of Daniel Zhang, finally in order to alleviate the impact of **, Daniel Zhang chose to resign as the CEO of the group, and he was replaced by Yang Lijuan, a veteran of Haidilao.
After Yang Lijuan took the helm of Haidilao, she quickly pressed the pause button for expansion and began to shrink in an all-round way, and with the blessing of the "Woodpecker Plan", Haidilao finally turned a profit.
After entering 2023, due to the dissipation of the epidemic, the former contrarian expansion has made Haidilao taste the sweetness. On February 20, Haidilao issued a positive profit forecast, which showed that as of December 31, 2023, Haidilao's annual revenue from continuing operations is expected to be no less than 4140 billion yuan, with an increase of not less than 333%；Compared to 16 in 2022400 million yuan net profit (excluding Tehai international business), 2023 net profit will not be less than 440 billion yuan.
As for the increase in profit, Haidilao believes that it is mainly due to the increase in turnover rate and the improvement of operational efficiency of Haidilao restaurants.
It is reported that the performance not only far surpassed the pre-epidemic period, but even hit a record high.
But what is puzzling is that despite its "explosive" performance, the market has not given some feedback. With the blessing of good performance, Haidilao's share price in 2023 will still be **3475%, after entering 2024, as of March 5, it will still continue**, with a range of 839%。
Of course, for the stock price, on the one hand, there are reasons for the market itself, and on the other hand, the logic of the company itself has changed. Therefore, from the perspective of the development path of consumer listed companies, continuous expansion and large-scale are an unavoidable road, after all, if the company cannot continue to expand, the valuation given by the market will be reduced.
At this time, Haidilao opened up to join, also to reduce its own burden. Regarding the issue of quality control, Haidilao said that Haidilao's franchised restaurants will receive personnel training, first-chain system, management experience, food safety control, brand marketing services, performance appraisal and other middle and back office services provided by the group, so as to ensure food safety and customer experience.
Not only that, Haidilao also emphasized that it will adopt a number of criteria for the selection of franchisees, including a high degree of recognition of Haidilao's brand and values, vision planning, industry experience, financial foundation, etcand implement uniform operation and quality standards in all self-operated and franchised restaurants.
At present, Haidilao's approach is indeed no problem, but in the long run, when the number of restaurants reaches an order of magnitude, the marginal effect is a high probability event, and the company will fall into a cycle of layoffs and store closures. If this happens, then Haidilao may not have the good luck this time.
Kanjian Finance believes that in the process of development, in order to expand revenue, there is no problem in expanding the scale, but enterprises should pay attention to the situation of increasing revenue without increasing profits, scale is on the one hand, and the quality control of enterprises is also a very important aspect, especially catering enterprises, if there is a food safety problem in a store, then other stores will also be implicated, so from this point of view, Haidilao should still be cautious.