On December 23, the "Second China Catering Brand Festival", sponsored by the World Catering Federation, the Central Broadcasting Network and the Red Meal Network, and hosted by the Red Meal Brand Research Institute and the Catering Channel of the Central Broadcasting Network, was held in Guangzhou.
The second China Catering Brand Festival continues the first high-standard, high-quality style, specially invited cross-border influential figures, brand planning experts, senior catering media personnel, industry chain professionals, etc., in the form of independent speeches, roundtable forums, white paper releases, display interaction, etc., with more than 1000 catering brand founders, catering enterprise management, industry chain professionals for in-depth interaction.
The following is the transcript of the keynote speech of "Three Stores in One, Micro Operation" brought by Bai Yu, Senior Vice President of Weimob Group and President of Weimob Smart Catering:
Dear catering colleagues, good morning! I am very happy to come to Guangzhou today, and I would like to share with you some of the catering phenomena we have seen in the past year and some of the experiences and experiences we have gained, and I hope to take this occasion to give you a report.
Four data, four observations
After experiencing the impact of the epidemic in 2020 and 2021, especially in the context of China's economy, where should the future of Chinese catering go? First, I will share a few sets of data with you:
The first important figure is the 70% loss ratio. In fact, in 2020, most of the catering enterprises, especially chain catering enterprises, have various degrees of losses, which is already a common phenomenon. What caused the loss? Presumably everyone knows that today the city is suddenly attacked by the epidemic and needs to strictly control the fight against the epidemic, and such unstable factors will inevitably bring about huge fluctuations in operation.
The second figure is a 50% store closure rate. This year, there are a lot of chain brands that are closing their stores, which is a very normal phenomenon. If a store insists on opening for a long time under the condition of not being very profitable, it may bring greater damage to the corporate brand. Therefore, closing some stores first, and then finding some good areas to reopen stores, is the most correct choice. Even for big brands like McDonald's and KFC, the iteration rate of store updates is 5%-7% per year.
But at the same time, we observed another phenomenon: there are many old brands that have had many problems in their operations in the past year, and some of them are opening stores, and the store increase rate is about 3%. These are brands that have a certain influence in the local area and are in a state of steady growth.
The fourth data is that there were a lot of new brands last year, accounting for about 10%. This is because in the past year, there has been a boom in investment in the catering industry, and according to our statistics, more than 400 catering brands have received various investments, accelerating the growth of the brands themselves.
This leads to a phenomenon we have observed: capital favors the catering industry. In the past year, capital has entered the catering industry on an unprecedented scale, which also reflects a dilemma faced by capital - there are not many areas where China still has a lot of room for growth, and if you look at the retail industry or manufacturing industry, it may be a bigger problem. The catering industry is just needed, and the attractiveness of capital will not be reduced in the future.
Second, we also found that there are many new models in the catering industry, and there is a phenomenon of category reengineering. This makes many categories have different gameplay from traditional catering on the day of their birth, and many aspects of innovation do exceed many traditional catering enterprises.
The third phenomenon, if you analyze the brands that have maintained healthy growth or even sustained profitability in the past two years, we can find that a very important motivation is the ability to manage internally. If the internal management level is relatively high, the company is more likely to maintain profitability in the case of economic downturn.
What is management? It is an enterprise that realizes cost control through internal processes, including cost control of various marketing activities, and the most important thing is to keep the cost within a reasonable degree, and it is even possible to continuously reduce costs.
The fourth phenomenon is that in the new era of consumption, the digitalization and private domain assets of catering brands have become very important. When there is a trend of fewer consumers in the market, what kind of catering brands are more attractive to consumers to consume? Obviously, companies that operate better in the private domain will have the opportunity to capture the hearts and minds of consumers.
Traditional dining attaches great importance to production, which is the basis of traditional business. However, in the new era of consumption, there will be a problem: too much emphasis on production may not be able to invest more energy in brand digitalization and private domain construction. Another type of restaurant enterprise is the new consumer enterprise, which believes that the core of the operation is to operate the brand and the relationship between consumers. They will hope to achieve the purpose of selling tea, noodles, or even anything by operating their relationship with customers, establishing a connection with consumers with good products, and then generating more value in the process of dealing with consumers. These companies on the Internet are always able to stimulate consumer enthusiasm and grab their attention.
Through the comparison of the two, we can find that the operation of catering enterprises in the new consumption era has actually shifted from being centered on dishes to being consumer-centered. Consumer-centric enterprises do not mean that today's production is not doing well, but that the production is the foundation and a necessary condition, but what is more important is the relationship between the brand and the consumer, that is, the operation of private domain traffic.
At present, there is a very cruel reality: it is not enough for restaurant companies to make a good dish, but also to understand the relationship between management and consumers, so as to maximize the value of the brand.
Why are the private domains of most F&B companies useless?
We all know that there are many restaurant companies that are doing private domains, so why are most of the private domain systems useless? We found that many restaurant companies have complete membership software, but the number of members is not enough, that is, the amount of brand digitalization is not enough; some restaurant companies have a certain number of members, but they do not specifically operate these members, which can not produce value; or some restaurant companies also have special personnel to operate members, but their own team is not professional enough, and it also does not bring much value.
In fact, the essence of the private domain of catering is to operate with data-driven omni-channel consumers, and it is necessary to establish the overall relationship between this brand and consumers online and offline omni-channel, and there are many companies that have a large amount of data, and no one to operate it, then this data can not play a value.
We believe that there may be three levels of cognition for restaurant brands to establish contact with consumers and create a private domain operation system:
The bottom line is that brands buy a set of tools and software to achieve digital and private domain operations. But that may not actually bring the value out there.
The second layer of cognition is that the brand will open up the data of different systems to achieve the integration of data and operation, which is equivalent to the integration of the private domain, but this layer of cognition alone is not enough.
The top level of cognition is that in addition to having an integrated system, it is also necessary to have a professional team to assist the brand to operate. The essence of private domain operation is a strong operational capability, and after the brand completes the data, it needs professional operational capabilities to maximize the value of data. The establishment and operation of a private domain is a step-by-step process for brands.
Here are two listed restaurant companies as an example. The first was Ajisen ramen, which was listed in Hong Kong and had a revenue of 1.8 billion yuan in 2020, but now they are only valued at about 1.5 billion. Ajisen Ramen is also doing private domain, with 3 million members, but these members have not undergone deep operation, which is a very traditional catering company. Another company is the opposite. Naixue's tea has a total of 38 million members and revenue of 3 billion yuan in 2020, but the valuation of Naixue's tea given by the capital market is 18 billion, which is 6 times the annual revenue of Naixue.
Why is the capital market giving Naixue's tea 6 times valuation and Ajisen ramen only 0.8 times? Peng Xin, the founder of Naixue's tea, once said such a passage: "As we all know, the marketing costs are actually very high now, and we can also see that there are many consumer goods brands, which rely on very high marketing costs to do a good job in brand promotion." And because we have a very good membership base, we can do brand promotion in a very fast and relatively low cost way. "Nai Xue opened his own member takeaway, and he can place an order in the mini program. 30% of their takeaway comes from the brand's mini program, which can save nearly 70 or 80 million takeaway platform commissions a year.
As you can see, the capital market is sensitive, they have seen Naixue's tea as a new consumer enterprise, this is because Naixue's tea not only has good products, but also established a deep connection between the brand and consumers, after in-depth operation of it, so that the private domain has played the greatest value, not only can sell tea, but also can sell other commodities belonging to him, profitability is nearly 8 times higher than traditional catering enterprises.
Private domain operation 3.0 era: Enterprise WeChat has become the best tool
Talking about the private domain today, Weimob Smart Catering has experienced the process of playing the private domain of catering from 1.0 to 2.0. In the 1.0 era, catering brands establish contact with consumers through mobile phone text messages; in the 2.0 era, they are through WeChat; and now in the 3.0 era, they are establishing contact with consumers through corporate WeChat. The continuous iteration of tools has also helped companies improve their ability to manage consumers.
At present, it is the era of "three stores in one", and a catering brand can open a takeaway store through a small program while opening an offline store, and can also open a mall store through a small program. Consumers can develop them into digital brand assets and then create maximum value through professional operations, which we call "three stores in one".
Nowadays, "three stores in one" has actually become the standard of many catering enterprises, a dine-in store, the traffic to the store every day is a very important resource, then these resources should be fully operated and managed, and after management, they can not only guide them to the store again, but also guide members to the mall to shop. Many restaurant owners tell us, where is the mall so easy to do? In fact, the catering business is the regular customer business, the regular customer refers to the repeat customer within a radius of two to three kilometers in this store, if he feels that the experience of spending in the store is good, it is entirely possible to buy your retail products in your mall. After more than a year of practice, we have helped a large number of enterprises to upgrade the three-store business model.
In this process, we also found that because of the continuous iteration and updating of tools, it has brought a lot of convenience to the digitalization of brands. We believe that in the era of private domain operation 3.0, enterprise WeChat is the best tool and carrier for private domain operation.
What is the difference between Micro And WeChat? There are a few very important differences.
The first difference, the Previously used WeChat members may have developed 100,000, 200,000, 1 million members, but usually only through the public account to reach our consumers, or even through text messages to reach.
But today to do marketing, the first thing is to completely reach most of the members, you have to notify the message to each of your consumers, in the past WeChat members did not have a particularly good way to reach, the reading rate of public account articles is usually only 1% to 3%, 100,000 members Only 1,000 people may see your tweets. If it is a text message, the reach rate is only about 1%, and most of it is blocked as spam TEXT messages. In this way, it seems that there are hundreds of thousands of members, but only 1% can be contacted normally, so there is no way to do marketing.
And what is the reach rate of using micro-enterprises for marketing? First of all, he can see your information in the group; secondly, he can also clearly see your information in the friend list, and the reach rate can be increased to more than 50%, which is about 50 times higher than the original WeChat membership. This reach rate is extremely exciting for all marketers.
The second difference is the two-way effect. Micro do any activity is two-way, whether it is a WeChat group or a friend list, the feedback is instantaneous, and the original WeChat members can only receive your information one-way, can not give feedback in time.
The third difference is insight. In fact, Micro Is a service that Tencent provides to all enterprises, and is an important platform to help enterprises manage consumers, which has become an infrastructure with rich internal systems. For example, it has a lot of labels that can be directly attached to your micro members, whether the consumer has read your articles, downloaded your coupons, purchased your products, whether there is a store to verify, all the above labels can be seen in the micro background, so that the restaurant company to operate and manage these consumers will be more efficient and convenient.
Weimob Smart Catering has been a catering member for 15 years, and has been doing private domain operations for 15 years, and finally saw a very good tool and platform. This has created good conditions for restaurant companies and pushed the efficiency and effect of private domain operations of restaurant companies to a new height.
Next, I will give you a few typical examples. The first case is Ding Tai Feng, this year, when we helped him do marketing during the epidemic, it was through micro-enterprises to pull the store's activities. Through the test, we saw several very important changes: the first is to manage all consumers in layers through micro-micro, because there are a large number of labels, through different labels can filter out different groups of people, for different groups of people to do different activities; the second change, but also the most important change, the original we use WeChat members to do activities, the response rate is 1%-3%, and when we use micro to do activities, the response rate increased to 10%.
The second case is Canaanite, which is baking. The company is in Hangzhou and has more than 20 stores. It turns out that there are many members, and like many restaurant companies, in the past their members only did marketing. In 2020, we will try to help Canaan guide consumers and members to their mini programs to order takeaways, which can eliminate the division of the platform. This year, their Mini Program takeaway orders increased by 3-10 times compared with the original, and the platform commission saved in one year reached 600,000.
Many people may ask, what drives consumers to choose to use the merchant's mini program to order takeaway instead of on the platform? Very simply, most consumers are residents or office workers within one kilometer of the store, and the waiters in the store can let them scan the code to join the brand's micro welfare group, and then push the takeaway mini program code in the welfare group to scan the code to order food.
There are two completely different points for ordering takeaway in the Mini Program and ordering takeaway on the platform, one is that the previous member stored value can be used on the takeaway; the other is that consumers themselves will also think that they still need to pay additional delivery fees or other fees on the platform, and now there is no need to pay extra fees for ordering food in the takeaway Mini Program.
The third case is the left court and the right court. The Left Court and the Right Courtyard operate very well in Shanghai. In the past two years, we have helped him run the membership mall. There are two very important actions in the middle: first, all the stored value offline can be used in the mall, and all offline cards and coupons can also be verified online; second, it is to tell consumers that there are still many goods in the mall that are doing activities. After two actions, the repurchase rate of the member mall of the left court and the right courtyard this year exceeded 28%, and the annual revenue was close to 5 million. So what can the mall sell? The left court and the right courtyard mainly sell semi-finished products, including beef balls. These products can be consumed in dine-in, so why do consumers buy them? It is because when you spend in the store, you feel that things are good, and since the mall can still buy, then buy something to go home to the family to taste, which is a completely logical action.
epilogue
In the future, China's catering market must be the era of brand digitalization. Doing a good job is the foundation of an enterprise, which is the theme that will never change, but if you only focus on selling products and don't know how to manage the relationship between brands and consumers, you may be farther and farther away from digitalization and become a new consumer enterprise.
Since we want to be a new consumer enterprise, the most important thing is to know how to manage the relationship between brands and consumers. When we talk about the choice of private domain today, it actually determines the future of the enterprise and determines whether the brand can occupy a place among the young people in the future for a long time. Today, all catering managers are at a crossroads, what was done well in the past needs to be retained and carried forward, while what may not have been recognized and done enough in the past, especially brand digitalization and private domain construction, needs to be continuously improved.
Are you ready?