Who is the first flower in Chinese fast food chain? The old country chicken launched a sprint.
Veteran Shu Congxuan Chicken entered the catering industry by the way and became the most special player in the subdivision track with a bowl of chicken soup. Cost-effective social marketing has repeatedly gone out of the circle, helping hometown chickens to win the industry leader with 1073 stores.
However, the nationalization of Laoxiang Chicken got off to a bad start. 20 17 Up to now, 400 stores have been opened in Hubei, Jiangsu, Shanghai and other places, but all six foreign markets have suffered huge losses, with a total loss of 654.38+63 million yuan.
The company still plans to use IPO to raise funds, open 700 new stores in key cities in other provinces and establish its East China headquarters in Shanghai. Going against the trend and promoting nationalization can help the company leap forward again?
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In Anhui, compared with the big mouth eating meat in northern Anhui and the inheritance of Anhui cuisine in southern Anhui, Hefei in the central part is much inferior in food culture. There are not many hard dishes that locals can eat, and chicken soup is one of the best.
So there is a local saying that "I bought an old hen from Feidong to Feixi" (Feidong and Feixi are counties under the jurisdiction of Hefei). This sentence is said in a fat way, with a cadence and a unique flavor.
1982, 20-year-old Shu Congxuan retired and returned to his hometown of Feixi County, Hefei, Anhui Province. He took the wedding money saved by his parents and concentrated on raising chickens. Two years later, he was named "Hefei Advanced Self-employed".
Later, when he discovered the opportunity in the catering industry, he took advantage of his raw materials and took advantage of it. On June 5438- 10, 2003, the first "Feixi old hen" store opened in Shucheng Road, Hefei, and its specialty was "Feixi old hen soup".
Before opening the store, Shu Congxuan considered the issue of standardized reproduction, and spent nearly 1 year to personally formulate six business manuals, covering production, procurement, service, opening a store, hygiene and other contents.
In Hefei, in addition to Feixi old hen, there is also a Feidong old hen founded in 2008, which is exactly the same as the early Feixi old hen in terms of store form and product line.
Two old hens started the same city derby with almost the same business model and maintained it in Hefei for a long time. Many Hefei people prefer to go to Feidong old hen to solve their three meals a day. Later, Feidong old hen was renamed "Steamed Small Bowl".
In June 2005, Feixi old hen ushered in the first leap in the history of development. Hefei Innovation Investment under the State-owned Assets Supervision and Administration Commission of Hefei invested 2 million yuan, holding 50% of the shares.
In fact, this is more like a debt-for-equity swap. The two sides agreed that after two years, the founder can buy back the shares at a minimum of 2 million yuan, and since then Shu Congxuan has enjoyed the independent management right of Feixi old hen; The company pays dividends of 400,000 yuan every year.
Sure enough, in 2007, Hefei Innovation Investment withdrew after receiving a dividend of 400,000 yuan, and its shares were transferred to Shu Xiaolong, the son of Shu Congxuan. Feixi old hen returned to Shu Congxuan's home after two years of key development.
The name of Hefei "City of Venture Capital" has only sounded in recent years. In fact, many years ago, the city has been supporting the development of local enterprises through capital-the rise of Feixi old hen is a successful angel investment.
All this seems to explain the difference between Shu Congxuan's Feixi old hen and other chicken soup snack bars.
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20 12 feixi old hen ushered in the biggest upgrade after its establishment and changed its name to "hometown chicken". Eliminate the regionality of the name, get rid of the "earthy flavor" and establish a new brand that is straightforward and easy to read, has a sense of closeness and outstanding product characteristics.
The company changed the brand-new storefront design language, with fresh green as the main color, replacing the original red color, changing the assembly style that followed the imitation era of Chinese fast food before, and adopting the modern minimalist style that young people prefer.
Enrich the product line, upgrade from chicken soup snacks to Chinese fast food in an all-round way, and pay more attention to highlighting the competitiveness of large single products, such as our core product Feixi old hen soup.
In terms of business model, Shu Congxuan injected his chicken business into the catering map, and established a business system of the whole industry chain covering hen breeding, food processing and catering chain, with the integrated operation of "first+second+third industry".
Thanks to this series of operations, Feixi old hen has transformed from a local snack bar to a Chinese fast food chain giant. By the end of 20 16, there were more than 350 direct stores of Laoxiang Chicken in Anhui.
In this process, the company completed the fade-out of the first generation and the succession of the second generation, and Shu Xiaolong, the son of Shu Congxuan, came to the stage.
After years of tossing and turning, Shu Congxuan and Zhang Qiong, the founders of Laoxiang Chicken, no longer hold shares in the company, but their son Shu Xiaolong, daughter Wen Shu and daughter-in-law Dong Xue directly and indirectly hold shares in the company totaling 965,438+0.365,438+0%.
At present, Shu Congxuan is the chairman of the company, Zhang Qiong is the deputy general manager, Shu Xiaolong is the vice chairman, and Dongxue is the director and deputy general manager.
Shu Congde, born in 1983, is currently the director and general manager of the company, and is also the executive partner of Tianjin Tongchuang and Tianjin Yi Tong, two employee-owned funds of the company, holding 2.97% of the shares before the company's issuance. According to the company's disclosure, Shu Congde is not related to the Shu Congxuan family.
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From 2065438 to April 2009, Laoxiang Chicken made the most crucial financing. Yu He Investment controlled by Guoyuan Securities invested RMB 654.38+99 million, and currently holds 4.94% of the shares before the company's issuance.
At that time, the development of hometown chicken entered a new stage: after years of deep cultivation, Anhui local market entered a bottleneck period, and the company urgently needed to expand the national market to maintain growth.
At the beginning of 20 17, Hubei Laoxiang Chicken and Jiangsu Laoxiang Chicken were established, and stores in other provinces successively landed; The following year, the company acquired some stores of "Wuhan Yonghe" to further accelerate the pace of development in the country; Shanghai 20 19, Zhejiang, Guangdong and Beijing 2020, the company entered the first-tier cities one after another.
By the end of 20021,there were 99 direct stores and 82 franchisees in Laoxiang Chicken, with Anhui as the largest market (673 stores in total), followed by Jiangsu (158), Hubei (130) and Shanghai (76540).
Large-scale business expansion led to a sharp increase in the company's asset-liability ratio, which was only 23.4 1% at the end of 20 1. After 202 1 cash dividend 10248 yuan, the year-end asset-liability ratio reached 50 10%.
At the same time, the market expansion in major new areas and the impact of the epidemic on the catering industry have affected the company's performance.
In 20021year, although the headquarters business still maintained a fairly strong profitability, the wholly-owned subsidiaries Hubei Laoxiang Chicken, Jiangsu Laoxiang Chicken, Laoxiang Chicken (Shanghai), Zhejiang Laoxiang Chicken, Guangdong Laoxiang Chicken and Beijing Laoxiang Chicken lost 38.423 million yuan, 38.9854 million yuan and 22.40 million yuan respectively.
In other words, the company used the money earned in the Anhui market to make up for the deficit in other provinces.
This strategic choice has affected the overall performance of the company. From 20 19 to 202 1, the company's operating income was 2.859 billion yuan, 3.454 billion yuan and 4.393 billion yuan respectively, but the gross profit rate dropped from 19.02% to 16.56%, and the net profit attributable to the mother was/kloc-respectively.
Since 2020, hometown chickens have been released to join. At present, franchise stores have been operating in Anhui, Jiangsu and other places, one of the reasons may be to save profits.
It is worth mentioning that in the process of nationalization, the company also broke out more serious internal control problems. During the period of 20 17 and 10 -20 19, Wang Moxing, the financial manager of Jiangsu Laoxiang Chicken, misappropriated the company's Alipay account funds of 24,738,800 yuan. The company only discovered it in May, 20 19, and called the police the next month. However, due to Wang's death, the company had no way to pursue it, so it had to swallow the bitter fruit.
Judging from the current situation, hometown chickens should also carry out the national strategy to the end. This time, the company plans to spend most of its IPO funds on opening 700 new stores in key cities such as Shanghai, Nanjing, Wuhan, Hangzhou and Shenzhen, and establishing its East China headquarters in Shanghai.
The Yangtze River Delta has always been a blessed place for Anhui people. The richest man in Jiangsu, who was all-powerful earlier, was mostly from Anhui; Bobby food is also a commercial miracle created by Anhui people from Shanghai. However, it may not be so easy for the second generation of Shu family to reach the top of China chain catering industry.