Master Chain Trick &Nbsp; Sell Fried Dough Sticks With Annual Revenue Of 300 Million.

A concept of "China's McDonald's" to make an obscure one unknown. Boss Become Hongkong tycoon Li Jiacheng and Holland baring. fund The investment target of the lockout was followed by the happy bee of Philippines's largest fast food chain group, which bought 85% of Yonghe King in the name of its overseas subsidiary, at a price of 22 million 500 thousand US dollars. Shares 。 These capital operations put the founder of Yonghe and Lin Yu Ao on the Chinese capital stage.

In December 12, 1995, when Yonghe first store opened in Shanghai, the total investment was only $50 thousand. As of 2007, Yonghe King has 85 stores nationwide, with an annual revenue of more than 300 million yuan.

From the resume of Lin You Ao, we saw that he came to China to do business in 1993 and served as chairman of a color printing company and KTV Entertainment Limited. But it was not until he became the king of Yonghe that he really showed a shrewd business sense.

Lin you took the go strategy and began to build his own stage outside Shanghai by using the four corners layout. North China takes Beijing as a stronghold, East China is Shanghai, Southern China is Shenzhen, central China is Wuhan, and takes the 4 cities as the core, and then develops to the surrounding areas.

The annual income of fried dough sticks is 300 million yuan.

A red and white shop marked a friendly old man's head, which is familiar with the facade design of American fast food giant Kentucky Fried Chicken. This is the "Yonghe King" who opened its first shop in Shanghai in 1995.

Yonghe King opened in Shanghai. The main food was soybean milk and fried bread sticks. This practice has also been maintained to this day. As of February this year, Yonghe King has opened 80 direct branch stores and 5 franchised stores in Beijing, Shanghai, Hangzhou, Wuhan, Shenzhen and other cities. The total number of staff is over 3000, and its annual operating income is 300 million yuan. It has become a large catering group specializing in Chinese fast food chain management.

The price is 2 yuan fritters and soya bean milk. How can we achieve the annual turnover of 300 million yuan?

Turning the "small Ben" into "capital" is the key to change the fate of President Lin Yu Ao. Thinking of Lin You Ao, playing golf two days a week, but in mind is the whole layout of Yonghe King.

Hengda is the rule of big market. To do business in China, we must have economic scale. 7-Eleven is also losing money before it can rush to 500 stores. Lin Yu Australia calculates that the Yonghe King should rush to 50 at least to get economic benefits.

50 thousand dollars is obviously not big enough for the big market. Although 8 stores have been opened in two years, the profits of the 8 stores are not enough to support Yonghe King as the first brand of Chinese fast food.

The concept of "McDonald's in China" moved by Lin Ao Ao made Li Jiacheng's new Cci Capital Ltd fund go to the gate in 1997. Investing $2 million, holding 1/3, with the injection of venture capital, Yonghe King's shop speed rushed to 18.

Although the scale is expanding rapidly, the rate of burning money is faster. With the continuous investment and the management expenditure after lengthening the front line, the income of the Yonghe King's single store dropped from 12 thousand yuan to 8000 yuan, the first time it went into a loss.

At that time, the new contract was expired and demanded to be withdrawn. Shareholders did not understand who worked hard for whom. "After the venture fund came in, we didn't get 10 Fen dividends in 4 years," Li Yulin couldn't help complaining.

Lin Youao believes that the introduction of risk funds is the only possibility of "small size bigger". The two partners who met at the poker table first faced the test of whether they could share their difficulties.

Li Yulin finally chose to trust because there was no risk fund, and Yonghe King could not have had the scale at that time.

Although two years later, he left his dream, but Lin's dream attracted him. Baring spent more than $11 million to invest in Yonghe King. The rapid expansion of the shop allowed the Yonghe King to lose for 4 consecutive years, but as expected, if we break through 50 stores, "we finally began to make profits in 2002," he said.

By 2003, the number of shops had reached more than 80, with a turnover of more than 300 million yuan. {page_break}

Master chain store operation tips

Fast food industry is a traditional industry, but the success of Yonghe has attracted the attention of venture capitalists. By the end of 1997, Yonghe Wang's chain store had developed to 9. One day, Lin Ao returned to his office. The secretary told him that Mr. Cai, who was in Hongkong, was looking for him. The message board said, "I am a director of the Hongkong Jia Yi venture capital investment company under the Changjiang group. I have an investment intention for Yonghe King."

The result of negotiations between the two sides is that Yonghe King accepts the other party's shares and sells 1/3 shares. Since then, the Yonghe King has undergone fundamental changes, and has truly become a public company. Enterprise management, financial management and personnel management have entered the international track.

With the money, the pace of opening shop has greatly accelerated, reaching 18 by the end of 1998. However, it is regrettable that the intervention of the fund has not brought about an increase in profits. The average daily income of Yonghe single store has dropped from 12000 yuan to 8000 yuan, and the first time it has been in a loss. At this time, the contract expires according to the contract.

Are there any other companies who are willing to reinvest? The answer is yes, and the fund is bigger than Jardine. The Baring of Holland is unique. They trusted the management of Yonghe. Apart from a financial controller, they did not send more people to interfere with the operation of Yonghe and made preparations for medium and long-term investments.

Since its initial injection of $3 million, the fund has invested a total of 100 million yuan so far. "As of the end of 2001, our accumulated losses have reached 50 million yuan," Lin said. After 4 years of continuous losses, Lin Ao Ao did not think of himself. Li Yulin also doubted whether it was worthwhile to open a chain store.

In fact, before the scale efficiency of chain operation has not been shown, it is bound to lose money. Take McDonald's as an example. They have to open more than 70 stores in a city before they break even. As for Yonghe, Lin you said, "at least 50 stores are needed."

"We have been spending almost zero on advertising," said Lin. "We do not rely on advertising to publicize the guests. It's mainly a word of mouth." In 2002, Yonghe turned profits into profits and reached a profit of 8 million yuan. The scale benefit of Yonghe chain operation has really begun to appear.

Building China's first fast food brand

Yonghe King is developing smoothly according to Lin You Ao's plan. In 2004, a takeover accelerated the plan of Lin You Ao. Philippines's largest fast food chain group, happy bee, bought 85% of Yonghe King, including its entire stock, on behalf of its overseas subsidiaries, thus becoming the new holding company of Yonghe King, whose purchase price was $22 million 500 thousand. "When baring chooses to withdraw at this time, it is decided by the nature of its investment fund, and it is not a good time," Lin said. "Even so, baring is very profitable when it exits."

There is no doubt that the entry of happy bees has enough reasons to give Lin hope more hope, because to become China's first, McDonald's is an opponent that must be crossed. "Happy bee is the only fast-food enterprise in the world that can beat McDonald's outside the United States," Lin introduced the new owner to the reporter with the most exaggerated words. "And the president of happy bee is a Philippine Chinese. The development of the Chinese market is his greatest aspiration and cultural identity to Yonghe King."

Lin hopes to take advantage of the fast food management experience of happy bees, especially the experience of beating McDonald's. Yonghe will send teams to Philippines to learn and train regularly after the happy bee is in charge. The goal is to open more than 1000 stores in China and become the first fast food brand in China.