Yum Plus Chinese Restaurant: Will Huang Huang Huang Be A Good Business?

Yisheng, who has always been obsessed with Chinese cuisine, is playing again.

In April 8th, NYSE:YUMC announced in a notice that it formally completed the controlling takeover of Huang Jihuang (Huang Ji Huang Group). After the completion of the acquisition, yum China will set up the Chinese food business department, which consists of three core Chinese food brands: little fat sheep, Oriental White and Huang Jihuang.

Yum China said in its announcement that the company hopes to have stronger foothold in the Chinese food and beverage industry and enhance its expertise in the field, because Chinese cuisine has a large share in the Chinese catering market.

Previously, yum has tried hard, but neither the white east nor the small sheep that it bought is expected. With the help of splitting and listing in 2016, the headquarters simply took the opportunity to peel two Chinese food brands to Yum China.

After being bought, the little sheep suffered from acclimatization. The number of storefronts has shrunk from the more than 700 highest in the world to the "nearly 300" in the world today. The East is both bleak and bleak. There is not even a "friendship link" on Yum China's official website. Its official website has always shown "upgrading".

The Chinese food industry analyst Zhu Dan Peng believes that Western food and Chinese food are two different systems. "Interlacing, such as mountains, Chinese food is precise docking, different cities, regions, stores, seasons, dishes, scenes have different strategies, which is very demanding for team or operator." In his view, if we use foreign simple standardized chain thinking to do Chinese food, the effect will be greatly reduced.

Will Huang Chi Huang, who owns more than 600 stores, become the next little fat sheep? How will the new China business division of Yum win the Chinese food market? In response, yum China's public affairs department told the newspaper that the company was about to release its first quarter earnings report and is now in a quiet period, unable to disclose further information.

Huang Jihuang Holdings

Last August, yum China announced that Yum China and Huang Chi Huang restaurant had signed a final agreement to acquire the controlling power of the latter. According to the terms of the transaction and the approval of the regulatory authorities, the transaction is expected to end in early 2020.

Despite this year's attack of a new crown pneumonia outbreak, there is no resistance to this transaction.

According to Qixin Bao data, Beijing Huang kehuang Restaurant Management Co., Ltd. was founded in January 21, 2003. Its legal representative is Huang Geng. Its registered capital is 1 million yuan. In July 1, 2015, Morgan Stanley injected hundreds of millions of dollars into angel's financing. In August 2019, Huang Chi Huang was bought by Yum China. However, there is no change in stockholder's equity at present, and Huang has 9 branches and 727 foreign investment enterprises.

At present, Huang Chi Huang restaurant has 640 brand new restaurants, "Huang Ji Huang, three juices and stew pot" brand besides the whole world. It also introduced the Chinese fast food brand "three full stew cooked rice". Besides, it also entered the market of family compound condiment, and sold all kinds of sauces with "one juice and vegetable" as the brand in the major business super channels, as well as online channels such as Tmall and Jingdong.

So far, yum China has not released the specific holding ratio and investment amount, but the industry generally believed that Huang had not had much advantage in the acquisition because of its failure to come to Hong Kong.

In fact, in the past few years Huang's development has been going downhill. According to the listing application submitted by Huang tihuang Huang before the HKEx, in 2014 -2016, the revenue of Huang kehuang was 417 million yuan, 499 million yuan and 400 million yuan respectively. During that time, the number of daily sales of Huang kehuang single store was 93.1, 80.8 and 66.6 respectively. The daily sales volume of single store was 16 thousand yuan, 15 thousand yuan, 13 thousand yuan respectively, and the turnover rate was 1.5, 1.3 and 1.3 respectively. The situation is obvious.

In this regard, Huang Tian international explained at that time because of market competition and restaurant sales reduction. But in the industry view, the core of the problem is the lack of innovation. "Consumers feel that Huang kehuang" pot pot "is almost taste, and there is not much selectivity in dishes. Huang Chi Huang, a Southern China franchisee, told reporters.

This is the most promising change that Yum China has taken over. According to Yum China, "joining Yum China, Huang kehuang brand hopes to speed up the digital transformation of product development, brand digital marketing and store operation, further enhance operational efficiency and improve customer experience. Yum China also hopes to deepen its understanding of Chinese food and further apply it to the operation system of other Chinese cuisine brands through Huang kehuang brand.

Next little fat sheep?

At the same time, yum China also said that the company has been deepening its understanding of the Chinese market through various ways. Huang Chi Huang is the third overweight layout of Yum China for the Chinese food market after the Oriental White and little fat sheep.

But lessons learned are still vivid. Take small fat sheep as an example. After buying small sheep, yum has spent a lot of energy on the standardization of menu, supply chain and store service. In the process, there are many conflicts between the two sides, both in terms of culture and understanding of Chinese food and beverage market.

According to the media interview with Yum Sheng, a former CEO Su Jing, in 2014, after the official acquisition of small sheep, yum concentrated on solving the three major problems of small fat sheep "loose system, lack of standardized management and continued expansion bottleneck". In the process of docking the yum original system with the little sheep, it found that the workload was very large. It is not easy to integrate them, so it takes a long time.

In the same year, little sheep joined in again, but the chafing dish market has already been no longer the same. The rising stars such as seabed, sipping, feeding and feeding have risen rapidly, and the competition in hotpot industry has become increasingly fierce. Over the years, the TOP10 list has been replaced frequently. According to the prospective industry research institute, in the 2015-2018 years of the ten big pot brands, not only did the top spot change frequently, the rest also changed significantly, but only 4 of the list in 2015 were still on the 2018 list, while the small sheep ranked the first in 2017, and fell out of the list in 2018.

As for Huang Chi Huang, who is now a famous brand of "stew pot", will become the next little fat sheep in the hands of Yum? Zhu Danpon believes that it will depend on the future work of Baisheng Chinese food division. "Baisheng knows that the three Chinese brands have low contribution to the performance. After the establishment of the Chinese food business department, the resources of the three brands should be re integrated, but the final effect is still to be seen."

Industry analysts believe that for the current Huang Chi Huang, drinks, desserts are short boards, and its resources in the sauce can be used by other brands of Yum.

According to Huang kehuang official website, Huang Chi Huang production headquarters in Beijing is responsible for processing and processing Huang Ji Huang special condiments, and has the production capacity of Huang Ji Huang special condiment for all stores. Beijing Huang Huang Huang Trading Co., Ltd. is responsible for the marketing and distribution of all kinds of special materials and special condiments needed by various outlets and franchisees. The northwest, North China, Southern China and East China branch are responsible for the market development and management of various jurisdictions, and establish an integrated management network corresponding to the functional departments of the headquarters.

At the same time, Huang Ji Huang's original three sauce stew pot operation mode, and no chefs, no lampblack, no raw materials repeated use of the "three noes" implementation, so that the restaurant mode has a strong replicability. At this level, Huang has passed many of the most difficult standardization paths in the year.

However, Baisheng also has a considerable understanding and understanding of the complexity of the Chinese food market. "Huang's integration may take a lot of time, energy and resources, and the acquisition may not achieve the expected synergy." Yum China said in its announcement.

?