The people take food as the sky, and since ancient times, the Chinese people have a unique love for food.
As a country on the tip of the tongue, our unique food culture is hidden everywhere, Sichuan's hot pot, Shaanxi's meat sandwich steamed buns, Northeast's grilled cold noodles, Hunan's rice noodles, etc., one side of the landscape to raise one person, one side to nurture one side of the food.
Of course, there are also many delicacies that we have eaten all the way to the capital market, from Haidilao to Jiumaojiu to Sipping and Feeding, or Hefu Noodles, which have just received investment from Tencent, and the catering market has never been indispensable to the figure of capital.
Nowadays, the powder track is repeatedly favored by capital, and financing is hot, which has become a major trend.
Not long ago, a Hong Kong foodie who loves rice noodles came out of a listed company.
A fast-casual chain of restaurants that make rice noodles has been a long-term success in Hong Kong. Why is it bigger? In 2021, just broke into the mainland, currently only opened 3 restaurants in Shenzhen, how much room for growth in the future?
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From Xinjiang stir-fried rice noodles to snail powder, "long-winded powder" has gradually become a major hobby of young consumers, and various characteristic rice noodles have also begun to develop in the market, and have many loyal fans.
Nowadays, the Tan Zai rice noodles that are popular in Hong Kong are also going to be "eaten and listed"!
Recently, another catering company knocked on the door of the Hong Kong Stock Exchange and is about to go public. According to the Hong Kong Stock Exchange, Tan Zai International has passed the listing hearing of the Hong Kong Stock Exchange and started the IPO, and is expected to be listed on October 7.
I have to say that as long as there is a dream, the chain of tomic noodle shops can also be listed!
Tam Tsai International is a well-known restaurant chain operator specializing in rice noodles in Hong Kong, mainly engaged in spicy soup base and non-spicy soup bottom rice noodles with various Hong Kong-style ingredients, which has a history of more than 20 years, and has established a good reputation for high-quality and delicious rice noodles in Hong Kong food culture;
It owns two major brands, "Tan Zai Yunnan Rice Noodles" and "Tan Zai Sange Rice Noodles", which were founded in 1996 and 2008 by the founding shareholders of Tan Zai and the founding shareholders of Sange respectively.
According to the prospectus, on the last practicable date, Tan Chai International co-operated a total of 156 restaurants, of which the stores were mainly set up in Hong Kong, with 76 and 74 Yunnan Rice Noodle Restaurants and 74 Yunnan Rice Noodle Restaurants respectively, and 3 Sange Rice Noodle Restaurants located in Singapore and 3 Yunnan Rice Noodle Restaurants located in the Mainland;
In the past year, Tan Zai International has sold a total of 30.73 million bowls of Yunnan rice noodles, with an average of 640 bowls per store per day.
It is worth mentioning that Tan Zai International ranks first in the field of noodle specialty restaurants in Asia with a market share of 64.4%, ranks second in the Hong Kong fast casual restaurant market with a market share of 10.0%, and ranks third in the Hong Kong casual restaurant market with a market share of 4%.
Behind the listing of Tan Zai rice online, it actually conforms to the general trend of consumption and flour track.
In 2021, the noodle track ushered in the first year of capital, and the enterprise investigation data showed that in the first half of 2021, there were 12 financings in the noodle track, with a total amount of 1.011 billion yuan, behind which there was no shortage of Hillhouse Venture Capital, Sequoia China, Tencent Investment and other institutions.
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Tan Zai International, which made its fortune in Hong Kong, has conquered and accompanied the tastes of Hong Kong people for such a long time, which shows that there must be something outstanding.
The prospectus discloses that the Tam Chai and Sango brands are the most recognized Asian pasta brands in Hong Kong, while more than 50% of people who know the Tan Tsai brand visit more than once a month.
According to the prospectus, for the financial years ended 31 March 2019, 2020 and 2021, Tan Zai's revenue was HK$1.556 billion, HK$1.691 billion and HK$1.795 billion respectively, with a cumulative revenue of more than RMB5 billion in three years, with a compound annual growth rate of 7.4%;
During the same period, the Company's annual net profit was HK$198 million, HK$191 million and HK$288 million respectively, representing a CAGR of 20.7%.
Net profit margins of 12.7%, 11.3% and 16% respectively are among the highest among Hong Kong fast food chains. Cash and cash equivalents at the end of the year were $300 million, $300 million and $460 million.
A closer look reveals that this profit is actually watery, because because of the epidemic, the Hong Kong and Singapore governments have subsidized the company.
Especially this year, the government subsidy is 154.5 million, the landlord rent-free 0.156 billion, the two add up to 170 million, and the electricity price subsidy has not been calculated.
Take these out, the profit of Tan Zai throughout the 21 years is essentially declining.
After all, if you open so many more stores, even if you can make a profit, it will take time to reach the balance of payments.
For the year ended The end of March 2020, the revenue of The Big Happy and Big Happy, one of the three giants of the fast food industry in Hong Kong, was 4.7 times and 1.7 times that of Tan Tsai, respectively, and both had a higher number of stores in Hong Kong than Tam Tsai International;
However, Tan Zai's net profit in fiscal 2020 was 1.6 times and 2.1 times that of Everyone's Happiness and Great Happiness, respectively.
Why is tanzai international in the number of stores lower than the giants, but the profitability is several times that of the giants?
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This may be related to the unique business model of Tan Zai International.
According to the data, Tan Zai International has established a highly standardized and scalable business model.
The highly standardized business model is reflected in the following aspects: standardized food processing procedures at the restaurant level, cooking equipment, central kitchen, central procurement, and standardized restaurant operating policies and procedures.
In addition, Tan Zai International can become a market leader in the Noodle Industry in Hong Kong, which is unique:
The extensive restaurant network occupies a leading position in the Hong Kong market; the Hong Kong rice noodle market pioneers, brand awareness is high; rice noodles are regarded as a popular new generation of refreshing food;
Standardization, the most important thing for a successful catering enterprise is to be replicable, so as to have an advantage in the speed of development, so as to form a scale that improves efficiency and reduces costs. Clear positioning, positioning as a fast casual restaurant, the stores are self-operated, product quality is guaranteed.
Of course, after the listing, Tan Chai International also began its ambitions to expand internationally, which is also frank in the prospectus, planning to open 38, 24, 25 and 15 new restaurants in Hong Kong, Singapore, Japan and Australia by the end of March 2024, while the mainland is an important market for Tan Tsai International in the future, and it plans to open about 58 new restaurants in Chinese mainland.
The external expansion market is large but the development is also difficult, as far as the local expansion of Hong Kong is concerned, due to the local recognition of the brand, new stores can help the performance, but this market space has been basically saturated.
According to the data, the scale of casual restaurants in Chinese mainland has grown rapidly, with $65.5 billion in 2020, and the market is expected to grow to $113.6 billion in 2025.
Obviously, the most important growth point of Tan Zai in the future must be the domestic market, but the fierce competition in the domestic catering market is more than that of Hong Kong, and the catering of various price categories is endless, whether Tan Zai's dishes can capture the stomach of consumers as always is not yet known?
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In short, take the road of wanton expansion to be cautious, before there is Haidilao, after the rich mother, are the lessons of the past!
Tan Tsai, who sells nearly 100,000 bowls of rice noodles every day, is no stranger to Hong Kong people and mainland tourists who often visit Hong Kong. But what is less known is that tan zai yunnan rice noodles and tan zai three brother rice noodles that are jointly listed today also had a period of love-hate entanglement in dog blood.
The founding family of Tam Chai Rice Noodles, tam du shou, all of whom were from Hunan, immigrated to Hong Kong in the mid-to-late 1960s. In 1996, Tan Dushou's third son Tan Zequn, the sixth son Tan Zeqiang and his daughter Tan Yanping jointly established the original "Tan Zai Yunnan Rice Noodles".
Tan Zai Rice Noodles did have no doubt in its operation in the early years, but within the company, the shareholders were not very united, and internal family disputes gradually emerged.
After the death of Tan Dushou in 2006, the contradictions between brothers and sisters became increasingly prominent.
Finally, due to differences in business philosophy, the Tan family announced in 2008 that its stores would be operated separately, with the fourth sister and his wife and the fifth brother inheriting the original brand "Tan Zai Yunnan Rice Noodles", and the third brother and the sixth brother creating "Tan Zai Three Brother Rice Noodles".
After the separation, the brothers and sisters still had to fight and attack each other, until the strong intervention of the Japanese restaurant giant Toridoll Group in 2017. Japan's Torito Corporation is the operator of the world's largest udon chain "Maru Kamewa Noodles".
In 2018, Dong Li Duo Hong Kong, a wholly-owned subsidiary of Japan's Dong Li Duo Company, wholly acquired two major brands of Tan Zai for a total price of HK$1.9 billion, and the founder and original shareholders of the Tan Zai brand no longer have any interests, and since then, Tan Zai International has become a Japanese corporate holding company.
In addition, it is worth mentioning that Tan Zai suddenly paid more than 280 million dividends to its shareholders before the listing in July 2021, and the profit in 2020 was 290 million. It is so cruel to harm the interests of minority shareholders, which is too unkind.
Not long ago, the same industry "nine mao nine" listed in Hong Kong stocks, the dark disk and the first day have risen sharply, but the performance of "Taixing" and "Reward" longer ago was not satisfactory, and the dark disk and the first day were broken.
However, with high profitability, high operational efficiency, and the just-needed track, Tan Zai is still quite good in all aspects;
Of course, as one of the participants in this year's popular noodle track, the specific situation of Tan Zai International still has to be tested by the market and investors, so let's wait for its listing performance on October 7!
Resources:
IPO catcher "Tan Zai International rushed to the Hong Kong Stock Exchange, what kind of "taste" is hidden in a bowl of rice noodles? 》、
Jiatou Global"Xiaomi Line Achieves Big Business, Tan Zai International (02217. HK) hot offer! 》、
Food Capital Bureau," "Tan Zai International, a rice noodle shop that is all over Hong Kong, intends to raise US$100 million through the hearing of the Hong Kong Stock Exchange",
Huashengtong "annual sales of 30 million bowls, three years of revenue of 5 billion!" What are the future prospects for Hong Kong's "King of Flour"? 》、
"A bowl of rice noodles is about to support an IPO: 30.73 million bowls sold a year, all over Hong Kong, the founder's family ancestral home in Hunan"