Wang Xiaolong: How To Break The Dilemma Of The Small And Micro Food?

"The impact of the epidemic on the catering industry is even more serious than originally predicted. What we feel is not that spring is coming soon, but that the chill is getting deeper and deeper. The industry shuffling may be more violent. Recently, Hirotake investment director general manager, 100 blessing holding CEO Wang Xiaolong accepts in twenty-first Century economic report special interview said.

Bai Fu holdings is a platform for Hongyi's systematic investment layout and operation management in the catering field. There are more than 10 catering brands, including ho ho Valley, new spicy way, meeting small noodle, West master, seesaw coffee, lewd salad, etc. Prior to the establishment of Bai Fu holdings, Hirotake also bought PizzaExpress, a British restaurant brand, and invested in the power of Jincheng and Quan Wei.

About a month and a half ago, Wang Xiaolong said in an interview with the twenty-first Century economic report that most of the catering businesses had a cash flow crisis in front of the epidemic. If the epidemic lasted for three months, they might fall. Now, although the domestic epidemic situation tends to improve, the epidemic situation is increasing. Beijing, Shanghai and other cities with relatively close international contacts are also likely to be affected by a relatively large epidemic by April. This means that for catering enterprises, three months is not enough safety period.

In such a cold winter industry, no enterprise can be single. Under the premise of ensuring the survival of more than a dozen brands, Bai Fu is launching counter attack. On the one hand, the platform's West master, Ho Ho Valley, and power Jincheng brand are making continuous efforts with the help of group meals and takeaway business. On the other hand, Pak Fu plays the platform power to open shop search plan and help small and micro catering enterprises to solve operational problems. At the same time, it also means that the layout of 100% of its brand expansion.

Wang Xiaolong. Data map

Help small and micro enterprises and their own brand expansion has a good combination point.

"Twenty-first Century": in March 3rd, Pak Fu launched a search operation to collect all kinds of shops to be transferred to other stores, and to support thousands of shops. What is the purpose of this action and what is the meaning of 100 Fu?

Wang Xiaolong: Bai Fu is a platform enterprise with ideas and pursuits. In such a cold winter industry, we will not shrink completely like small and micro enterprises, full of pessimism. Instead, we hope to stand up and give voice to help small and micro enterprises, bring positive energy to the industry, and also reflect a responsibility and responsibility.

On the other hand, our search business has a good combination with our own business development. In the strategic plan at the end of last year, 2020 was our expansion year. Later, the outbreak of the epidemic brought impact, and we initially adopted a series of self rescue measures. At the same time, we can not simply defend, but also need to consider where the industry will recover in the future and advance the layout.

Now we should expand the store and expand the brand on the basis of guaranteeing our own survival. So we launched a shop search plan and shouted slogans of "100 cities and thousands of stores" during the epidemic.

Twenty-first Century: how to integrate small and micro businesses with their own brand expansion?

Wang Xiaolong: we mainly help the enterprises in three different situations. The first is a cash flow break, unable to continue operation, hoping to sublet the restaurant business. Now there is more and more news on the "market rent" in the market. If the shops of these enterprises fail to transfer smoothly, they will continue to bear the cost of rent and deposit. With the cooperation of the brands of Bai Fu, we can take over the shops and continue to open our stores.

The second one is due to lack of experience and ability, and it is difficult for a self catering brand to keep running restaurants. The epidemic has accelerated their closing pace, but for practitioners, they want to continue to work in the catering industry. And there are many brands under the banner of the company. They can authorize the brand to the owners of these stores so that they can continue to operate with a brand. Our support also includes the waiver of franchise fees, the help of supply chain and so on.

Third, some of the small and old brand restaurants did manage well, but now the cash flow is broken due to the epidemic. Pak Fu can cooperate with it in equity financing to help enterprises survive the recession of the epidemic stage. In the future, when the business returns to normal, the withdrawal of equity can be considered again.

Twenty-first Century: today, it is almost two weeks since the launch of the search business. How is the feedback now? Are there any cases of cooperation?

Wang Xiaolong: at present, we have received about 2000 kinds of cooperative consultation. Among them, there are all kinds of shops looking for cooperation, catering network, excellent shop speed distribution, etc. the catering chain's enterprises are willing to contribute, and there are even cross industry support from Shougang sports and Hongyuan real estate.

For the shops that seek cooperation, after we gather information, more than ten brands of our company are already docking resources and gradually implementing what we can do. For example, the boss of a restaurant brand in Shenzhen said in the background of our WeChat public account that enterprises are now affected by the epidemic and the capital chain is broken. His only choice now is to transfer shops and sell stores to help themselves. In this regard, our executives have communicated with him quickly, and are currently evaluating the value of the store itself to our brand and the possibility of cooperation between the two sides.

There is also a private brand catering business, in fact, before the outbreak of the business challenges. In the course of communication, we find that the brand of chafing dish that the enterprise used to make may be difficult to sustain. But if we do the new spicy fish hot pot under the banner of Bai Fu, we may have a chance to live. The original manpower and equipment investment of the enterprise can also be used. This means that the whole business can continue and there will be no unemployment of hundreds of employees.

In addition, there is also a brand of tea drinking in Beijing, Tianjin and Hebei. The enterprise itself has done a good job in its direct operation system, but the puzzle is that it does not know how to expand it. Although we did not achieve direct business cooperation after the exchange, we shared the brand expansion strategy and introduced the investors in the system to the founder. Many brands, like this enterprise, have no experience in capital operation, strategy formulation and expansion rhythm control.

On the basis of ensuring survival, we must seize the new market.

Twenty-first Century: it has been two months since the confirmation of the first new crown pneumonia virus and the improvement of the domestic epidemic situation. At present, what is the status of the restaurant brand under 100 Fu?

Wang Xiaolong: we have been affected by some epidemic situation. Some stores can not be opened. Some stores even open, and guests can't eat face to face. This is a big challenge to our barbecue, chafing dish and pizza format.

But unlike most catering businesses, our response is fast, and we have adopted measures to increase revenue and reduce expenditure. We also attach great importance to cash flow management. The 100 Fu level is characterized by capital attributes. I am also an investor. I have experienced the SARS of 2003 and the economic crisis of 2008.

At present, the existence of 100 Fu itself is no problem, of course, its brand is also uneven. For example, he and ho Valley soon got 230 million bank loans, and their accounts were not short of money, and businesses could support for a long time. There are also some small brands that have great pressure to survive and are in a state of contraction. Some brands want to expand on the basis of survival. We are all concerned about the attitude of one thing and one discussion, providing them with targeted internal support.

Many independent brands are not supported by brotherhood companies. Bai Fu has a certain advantage as a multi brand group army. For example, some catering enterprises know something about the preferential policies of the government. We have special financial personnel to collect and collect all kinds of policy information every day, and then share them with everyone. The enterprises will soon understand the policy and apply for the relevant preferential treatment. There are also some enterprises trying to shake the electricity supplier, if the effect is good, they will share with the member enterprises, which is why we move faster each time.

Twenty-first Century: at present, because of the decline in the number of restaurants, many catering enterprises are making efforts to take online takeaway and other online scenes. Do you think this is only suitable for a certain type of enterprise, or should all enterprises exert their efforts in this respect?

Wang Xiaolong: first of all, the digitization and on-line of the catering industry are very obvious. The trend of the epidemic has accelerated this trend. Second, the different formats and methods of online application are different.

The sale and self promotion of fast food products is a natural choice, but there may be some changes to the meal. Dinner is about taste and taste. It can make the food into a semi finished product. After it gets home, it can be processed by the customer simply, and the feeling is now achieved. The market in this area is also very large.

For example, the right Jin Cheng of bafu has made a "power to roast" project, which can provide small oven and ingredients, so that people can eat barbecue at home. The original barbecue is the social scene, and now the family barbecue scene has been developed through the takeaway form, which is very popular in Beijing. I believe that when the epidemic is over, there will be a family dinner when it is willing to choose this way. A barbecue meat, if it is four people, usually spend more than 200 yuan, and the cost of oven distribution may account for 5%-10%, so that it can be counted as a whole.

Capital access is a good thing, but it should not be the mentality of bottom hunting.

Twenty-first Century: in addition to the continuous investment of Bai Fu, we can see that many other institutions are investing more in catering enterprises. Can it be a good time to invest in the catering industry?

Wang Xiaolong: in such a severe situation, there is no doubt that capital is willing to take part in the industry. But I do not think that capital should be done with the mentality of bottom hunting. The catering industry is generally complex and competitive, so it is hard to say that revenue will be seen in the short term.

Moreover, not every industry will be good at entering the bottom of the industry. It also needs to see the specific circumstances of the enterprise and the value-added services provided by the organization. Capital investment decision making speed can be fast, but the industry recovery and enterprise expansion can not be speeded up. The catering industry needs more long-term rational capital investment.

Twenty-first Century: at present, there are many support policies for enterprises from the central government to the local government. What kind of room do you think there will be room for improvement at the policy level?

Wang Xiaolong: we do see a lot of helping and supporting policies being launched. This is worth noting. If we say that further improvement of space, I think the first is the identification criteria for small and medium enterprises, it is worth considering. Some local policies stipulate that enterprises with more than 100 million income and 300 employees are large enterprises and enjoy limited social security relief policies. Catering enterprises open several stores, it is easy to achieve this standard, can not enjoy more concessions. But in fact, the catering industry has solved many people's employment problems. The profits of the industry as a whole are not large. Whether we can have a certain flexibility in policy according to the characteristics of the industry, and increase the support for catering enterprises, is what we would like to see.

Second, at present, many policies call on financial institutions to provide financial support for catering enterprises. However, most banks still do not want to do business with small and medium-sized enterprises, because it costs energy and benefits. In this regard, Nanshan issued a government guarantee fund in Shenzhen. Such endorsement has provided more opportunities for small and medium-sized enterprises to get financing. We also hope to see relevant initiatives in more cities.

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