Whether Chain Expansion Depends On The Perfection Of Internal System
At its height, Ma Lan pulled noodles in more than 400 stores in more than 100 cities across the country. In 1999, Ma Lan pulled the chain store to Losangeles, then opened chains in France, Paris and Singapore.
Ma Lan's ramen, which can be seen everywhere, has a tendency to catch up with McDonald's and Kentucky Fried Chicken. But now Ma Lan's noodle is hard to see the momentum of the original noodle boss.
The decline of Ma Lan Ramen is closely related to its rapid expansion. As early as 2002, Ma Lan pulled noodles into Fujian. Shortly after opening 7 stores quickly, that is, from 2003, some stores were running poorly. Finally, all the stores in Fujian were closed.
In Beijing, a number of stores that had sprouted Ma Lan pulled noodles were on a health checkup, and they were also on the blacklist of food hygiene and safety. In 2005, 20 Ma Lan noodles in Shenyang were closed.
It is widely believed that the rapid decline of Ma Lan Ramen is due to its rapid expansion. Before it lacked strict standardization and standardized management mechanism and food processing mechanism, it began to run wildly.
Several reasons for expansion failure
In recent years, catering enterprises with development as the theme are everywhere, and chain operations have been raging, especially those with a certain brand awareness. Chain operation is a shortcut to convert intangible assets into tangible assets, so as to achieve the ideal path of rapid development of enterprises.
Some small brands are also eager to join the chain operation as a "money" or even "cheat money" means. In this way, the results can be imagined that the failure rate has been climbing steadily, and even some of the fast food chains' "a large area" has been miserable.
The reasons for the failure are summarized as follows:
1., it is too simple to understand the meaning of chain operation and attach too much importance to the effectiveness of chain operation, ignoring the risks arising from chain operation.
The 2. is to see the unity of the trademark and visual image on the surface and fail to practice "internal strength", that is, the standardization of management mode and standardization of product service.
3. the development of different places does not pay attention to market research, ignoring the characteristics of regional market, trying to spread the world with a product.
4. do not qualify for the franchisee or partners, the number of franchisee is mixed, and the number of poorly run enterprises is seriously out of control, thus affecting the brand image of the entire chain group.
5., too much attention is paid to visible products (dishes) and neglect of the improvement of invisible service quality. The problem of walking on one leg seriously affects the overall chain image.
Some people call the fast expanding restaurant chain operation "enclosure movement". Due to the lack of experienced and mature management team, it is impossible for us to do a thorough and steady preparatory investigation and market research. In the later stage, we can not carry out effective operation and supervision of high quality. After "enclosure", indigestion is unavoidable. One of the most obvious and direct consequences is that the service can not keep up with the new store.
The chain of enterprises only pursues formal consistency, uniform decoration, consistent brand and publicity, while ignoring its essential consistency, that is, the consistency of dishes quality, the consistency of services and the consistency of management. It can not provide comprehensive and humane quality service, and can not achieve the management concept of "want to be in front of guests, before guests". When customers fail to feel the meticulous service, the reputation of the brand will be reduced. This also directly affects the turnover rate and affects the restaurant's profit target.
The rate of return should not be scale.
Zhang boss runs a very old and time-honored restaurant business. Every day, the restaurant is packed like usual. The walkway is crowded with customers waiting for empty tables. However, the boss did not accelerate the pace of opening stores because of customers' enrichment. On the contrary, he had never opened a chain store since 2005.
Since 2005, stores have stopped expanding and stopped shop opening. And decided to use 3 years to improve the internal system.
Zhang boss did not mean the expansion of hotel area and the increase of seats. The people who come to eat know one thing: if they catch up with the meal, there must be no vacant place. If they want to have a meal, they will have to wait for a while. People who are used to eating naturally are willing to wait for a while.
From the style of the shop area that has remained unchanged for many years, we can see the slow strategy adopted by its boss.
In 10 years or so, the chain opened to 16. One by one, rolling development is a self run store. Although silent, unknown, but in those years, people who asked to join a chain store were not broken, and there were three thousand or four thousand before and after. Not only that, even some investors have been involved in this business. One mouth is to invest millions, which requires a certain percentage of shares through equity acquisition. There are more than 100 investors who are willing to invest. Those who wish to invest in shares are sincere and offer detailed plans for stock ownership. Whether they are franchisees or investors, they are politely declined by the boss.
In fact, in 2005, the business reached the present scale. Every day the customers were full of customers, and the return on investment of each shop was much larger than that of the same industry. Since then, many investors want to inject capital, and of course, more people want to join the franchise. The boss wants to do this brand well instead of making it bigger quickly. Store managers know that instead of introducing external investment, they must rely on their endogenous growth step by step, mainly because they worry about rapid expansion and make this brand bad. The development of brands depends on their own development. The control of brand and reputation is in their own hands.
From kitchen to storefront, every link has formulated clear standard process regulations. For example, every dish is produced through standardized process and delivered to the customer's table. In this process, a large number of customer satisfaction surveys were conducted, and on this basis, the unscientific links in the internal system were corrected.
The most striking feature of the 16 chain stores is the surprisingly high return on investment in each store. Zhang's idea is to open a shop to a higher than average return on investment, which is why he is unwilling to accept the rapid expansion of external funds. If you blindly open a lot of shops and the return is not high, that is, the meaning of going to the shop, not only does not make money, but it has damaged the reputation and reputation of the brand.
Business door is ingenious.
Zhang boss is not eager to expand the store and business area, but let every store show the scene of customers waiting and eating in line.
This is an ingenious card produced by Zhang boss. In fact, although the restaurant tastes delicious, there is absolutely no special dish. It is a homely dish, which is also consistent with the meaning of the hotel sign: it's like eating at home, casual and casual. Compared with the dazzling dishes in some hotels, the dishes in the store can be described simply. However, close to the prices of ordinary people, coupled with the booming atmosphere in the shops, has attracted the "lazy people" who do not want to cook their own meals and do not want to spend too much money.
With so many people coming up, do not the boss want to make more money? The boss has a rare calm: do not expand rapidly, do not introduce investment, do not join, not because there is no ambition, do not want to expand the business, but because the restaurant industry because of the expansion of the collapse of the lessons abound.
Zhang boss's summary in operation is to ensure that the rate of return on investment of each single shop is higher than the average level of the industry. This is the most important goal. After reaching this goal, we must standardize the internal system. Only after the standardization system is gradually improved, will it be difficult to expand.
From this point of view, expansion should be the last and least important thing. Although some brand single store businesses are in good condition, they must be cautious before expansion. One of the important reasons for their concerns is that the mode is not perfect. They may expose fatal defects in the practice of rapid expansion.
Issues to be considered in chain expansion
The regional differences of catering consumption are large, and the difference between "ten winds and different customs" is very different. A similar food and beverage product combination in different regions may be very different. The change of catering consumption demand is fast, and the phenomenon of "follow suit" is inevitable in every catering market. As a big food and beverage industry, and small as fashionable dishes, many consumers will like the "rush to the market". After the rush of "first pot of gold", the restaurant operators are forced to enter the era of "meager profit", which is saturated with the frustration of many catering operators in the rapid competition of catering business.
There are no similar food and beverage outlets in the chain restaurants, and the business form or product mix of the branch stores is unique. The main task will be to guide consumption in the business circle and cultivate the market to create popularity. For example, the western style fast food restaurants, coffee shops, Japanese cuisine restaurants and ethnic restaurants with local characteristics will be temporarily enjoying a "cake" and undertaking the risk of developing the market.
There is already a competition in the form of catering, which is the problem of peer competition. The basis for the competition of chain catering enterprises comes from two points: how to make full use of the advantages of scale advantages and headquarters, and how to do well the localization of branches.
New competitors are emerging. The catering enterprises that are coming in advance will face challenges from the latecomers. The competition situation will change dramatically in the short term. If the scale of food and beverage consumption is not promoted in the short term, the situation will deteriorate.
The advantages of catering enterprises will be through continuous innovation, improve services, management, planning, marketing and other means to obtain relative competitive advantage, and this advantage will be very difficult to obtain, in fact, "cake" is divided into food is inevitable, chain restaurants generally in theory, the single shop recovery period is set to 12-18 months, will not exceed.
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