In the past two years, the hot pot ingredients track has begun to show explosive growth, especially under the impetus of the epidemic, hot pot consumption has changed from going out to stay at home, and the demand for ingredients has increased significantly. It is understood that the pot circle food hub was established in Zhengzhou in 2017, mainly hot pot, barbecue ingredients, covering leisure snacks, fresh, clean vegetables, diet, snacks and other goods of the convenience store chain system; with the B2B and B2C operation mode of Internet + ingredients, offline stores and online malls are parallel. Up to now, it has completed 6 rounds of financing, with a cumulative financing amount of nearly 3 billion yuan and more than 8,000 stores nationwide.
Growing up in the era of traffic, the pot circle food exchange was founded for a short time, but it obtained 3 billion yuan in financing in two years, becoming a capital darling. After experiencing a round of blowout development during the epidemic period, the hot pot food supermarket has fallen into a situation of chicken feathers, and the pot circle food that has been ripened by capital is being questioned by the outside world, how long can the aura of the pot circle food sink be top?
Franchise model acceleration development Franchisees overhead pressure
It is reported that the pot circle food exchange founded in 2017 has become a dark horse in the industry, and it stands out after running horses and enclosures, which is inseparable from the "credit" of franchisees. Under the epidemic situation in 2020, the demand for "eating hot pot at home" has been generated, and the pot circle food exchange has developed steadily in a large number of market demand. In the 10 months of 2020, the number of franchise stores increased by nearly 3200. According to the data, in 2021, the number of offline stores of pot circle food hui will reach more than 8,000, and the franchise and settlement plan will continue to be released, and the expansion rate will be amazing.
In view of the franchise model, the pot circle food hui launched a "0 yuan" approach, while supporting franchisees to start a business, many franchisees into the game, the franchise model is accelerating to open the market door, behind the rapid expansion is the franchisee overhead pressure. Although pot circle food hui claims to be "0 yuan" to join, franchisees need to bear the rent of the store, including decoration equipment fees, first purchase fees and brand deposits.
Joining is not once and for all, the density of pot circle food stores is too large, the pressure of franchisee competition is large, and the profit is declining. The profit situation in winter is slightly better, but the number of customers in summer declines, the loss of goods is large, and the situation of insufficient income occurs from time to time. At a time when the halo above the brand's head continues to expand and grow, franchisees are still worried about returning to their roots.
In the view of Lao Liu, the growth of the pot circle food exchange is inseparable from the development of the franchise model, and the franchise is inseparable from the contribution of franchisees. However, for franchisees, the geographical protection distance is getting closer and closer, and the competitive pressure of peers is greater. The pot circle food exchange strides forward with a halo and forms a strong contrast with the franchisees with huge pressure on their heads.
Homogeneous competition is inward-volume, and the profit dilemma is difficult to solve
Pot circle food hub to hot pot, barbecue ingredients, covering leisure snacks, fresh, clean dishes, diet, snacks and other goods, offline stores, online APP and small programs, want to get a piece of the fresh field is not an easy task. Supermarkets mainly for hot pot ingredients are not uncommon, and in 2020 alone, nearly 8,000 hot pot ingredient-related enterprises were added, an increase of 216% year-on-year.
As we all know, the fresh e-commerce business seems to be glamorous, but in fact, it is surging undercurrents. "Born in traffic, died in reality", the profit dilemma is a long-term fate in the fresh food field. Whether it is fresh e-commerce or fresh vertical players are increasing in the track, the traffic advantage of giants overwhelms many players, and the profit dilemma is not solved. In 2020, the net cash flow generated by the pot circle was 551 million yuan, and the net cash loss from activities in the first quarter of 2021 was 96.47 million yuan.
In the view of Lao Liu, as a player in the field of fresh food, under the pressure of fresh supermarkets such as Hema Fresh, there is not much stock market left for pot circle food. Fresh e-commerce players burn money for the market, take subsidies as the entrance to grab beach users, and the pot circle food sink loses its advantage in front of the inner volume. The profitability problem has not been solved, will acceleration expansion become the key to solving the problem?
Financing continues to be blessed, and the halo of capital is overhead
According to public information, Guoquan Food Hui has completed 6 rounds of financing, with a cumulative financing amount of nearly 3 billion yuan, and in August 2021, the shareholders had the figure of "Maotai" and "Wumei". With the blessing of capital, we will further promote the process of digitization of the pot circle. The development of pot circle food is inseparable from the blessing of capital.
As a member of the fresh track, the pot circle food exchange can not jump out of the strange circle of burning money. From supply chains to logistics and transportation, heavy investment is invested to maintain operations. According to the data of enterprise investigation, in August 2019, it received a round A investment of 45 million yuan from Bu Qi Venture Capital, and in October 2019, it received a round investment of 50 million yuan from Sanquan Foods. In February 2020, it received a $50 million Series B investment from Jiayu Fund, IDG Capital and Buqiu Venture Capital. In July 2020, it received a $60 million Series C investment from Jiayu Fund, Qicheng Capital, IDG Capital and Buqiu Venture Capital. In March 2021, it received a Series D investment of US$300 million from CMB International and Tiantu Investment. In August 2021, it was invested by Moutai Jianxin Fund and Wumart D round.
In the view of Lao Liu, the pot circle food has become the darling of capital, and it has gone farther and farther on the prosperous road ripened by capital. Fresh burning money is the industry's open rule, the aura of the pot circle food is still there, which is inseparable from the blessing of capital and the support of franchisees. With the blessing of capital, how to maintain common interests with franchisees is a problem that must be faced by the pot circle food exchange. Weak moats and problems exposed to the franchise system will become the lifeblood of the pot circle, and the time left for the pot circle food sink is running out. (Jianghu Lao Liu)