Relying on "a bowl of chicken soup", more than 1,000 stores have been opened, and more than 4 billion can be sold a year! And also to go public.
Friends who often order takeout must have eaten "fellow chicken".
How can this chicken soup that every household can make be on the altar and even dominate Chinese rice fast food?
This starts with the story of the man behind the hometown chicken, a post-60s veteran Shu Congxuan.
1
In 1982, time flew by, and at the age of 20, Shu was discharged from the army and returned to the countryside in his hometown of Feixi County. Faced with the vastness of the farmland and the scorching sun, he did not want to follow in the footsteps of his predecessors and cultivate the fields. So he began to actively think about new ways of developing.
At that time, every household in Feixi County had a few chickens, and the threshold for this breeding industry was low and the input cost was not high. After careful consideration, Shu Congxuan believes that perhaps raising chickens can become a potential business.
An untapped market awaits him to conquer. He conducted in-depth research and study on the chicken industry, and learned that raising chickens can not only supply his own needs, but also provide welfare and increase income for the surrounding villagers. The idea took root in his mind and gradually became his goal for the future.
With enthusiasm and determination for entrepreneurship, Shu Congxuan will do what he says. With the support and understanding of his family, he used a sum of money he received after leaving the army as a start-up capital to start preparing his own chicken business. He humbly consulted farmers with rich experience in raising chickens to learn breeding skills and management methods. With his efforts, the chicken farm gradually took off.
2
In 1999, Shu Congxuan has become the largest farmer in Hefei through hard work and continuous research, and his achievements have amazed people. However, over time, the problem of oversupply in the market surfaced, and profits began to gradually decline. The once-promising farming industry is in trouble.
After experiencing various setbacks, Shu Congxuan began to feel confused in his heart, and he repeatedly asked himself: "Do I have to live a life of raising chickens to make a living all my life?" He felt confused about the future, and in order to find new ideas to improve the situation, Shu Congxuan made many attempts without any fear. He tries to air dry the chicken to improve the ageing and taste of the product. In addition, he thought of making chicken into bagged foods to make it easier for consumers to buy and eat.
However, none of these attempts had the desired effect. Shu Congxuan realized that these changes alone would not solve the fundamental problem, and he needed to think and explore more deeply to find better solutions.
3
In 1990, by chance, he attended a training in franchising in the restaurant industry, and although he had no knowledge of the restaurant industry, he actively visited countless companies. After careful consideration, Shu Congxuan finally made up his mind to open a Chinese-style fast food chain and was determined to create a complete industry chain of chicken products.
The research and development of dishes has become the top priority of Shu Congxuan's work, especially the signature old hen chicken soup. He spent more than two years on a relentless exploration. During this time, he and his team slaughtered one or two chickens a day for experimentation. After countless attempts, after making about a thousand chickens, Shu Congxuan's intuition told him that he had finally found a satisfactory taste.
In order to verify his research and development results, Shu Congxuan asked the kitchen to take the remaining chicken soup home for his two children to taste. Although the children's diet has long been filled with various chicken dishes, under the guidance of Shu Congxuan, they only tasted a small spoonful of chicken soup, but accidentally drank three bowls.
This gave him a boost of confidence, so Shu Congxuan organized an emergency meeting of the team members to discuss the promotion strategy and plan. In the end, a publicity plan was launched, including advertising through social media platforms, inviting big V cooperation promotion, and launching offline activities to attract more target consumers.
After several months of hard work, this chicken soup caused a sensation in the market, and the sales volume also climbed rapidly, and it became a hit with the brand "Laoxiang Chicken".
4
At present, Laoxiang Chicken has successfully opened more than 1,000 branches nationwide. However, with the gradual expansion of the scale, the challenges faced by the Chinese fast food chain industry are becoming more and more obvious, and the cost of dishes alone accounts for 70% of the entire store in terms of the proportion of operating costs per store. Although it is difficult to achieve large-scale development and there is uncertainty about the profitability of each single store, this does not stop the determination of the hometown chicken to enter the national market.
Laoxiang Chicken made full use of the power of the capital market to launch an IPO in 2020, planning to raise a total of 1.2 billion yuan to expand the market and gain a firm foothold in the industry competition at a steady pace. How to achieve profitability improvement and continuous growth is an important issue for them. Through scientific management and innovative marketing strategies, Laoxiang Chicken continuously improves product quality and service level and enhances consumer satisfaction.
The annual sales of Laoxiang Chicken from 2019 to 2021, as well as the sales in the first half of 2022, were perfectly delivered with 2.959 billion, 3.454 billion, 4.393 billion yuan and 2.011 billion yuan in half a year. With investment support and resource integration, we can further improve operational efficiency and competitiveness. At the same time, they will also increase brand publicity and marketing efforts, dig deep into consumer needs, and actively develop new products and innovative business models. Through nationwide expansion, Laoxiang Chicken is expected to become a leading brand in China's fast food industry.
In the face of the unpredictable market environment, the hometown chicken is destined to face many challenges and risks. However, they firmly believe in their strength and potential, and will continue to explore innovations, adapt to changes in market needs, and achieve greater success. In this process, we are full of expectations for the future prospects of Laoxiang Chicken, and look forward to witnessing its courageous steps to gain a foothold in the capital market and expand nationwide.
(End)
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