Franchisee "uprising"? Mixue Bingcheng was complained that it was "too rolled"

Recently, some netizens broke the news that "it was no one else who killed Mixue Bingcheng, but Mixue Bingcheng 100 meters next to him." After watching it, many netizens sighed, "It's too rolly!" As a result, the franchisee 'revolted'."

Source: Social Breaking News

On social platforms, some netizens said, "I heard that Mixue Bingcheng is like this." If your newly opened store is doing very well, then the headquarters of Mixue Bingcheng will choose a location nearby, and ask you if you can continue to open the store, and if you don't continue to open it, you will let others open the store. ”

According to what Secret Agent Finance and Economics recently saw, in an old town of a prefecture-level city in Sichuan, at an intersection near the location of important government agencies, two doors were opened diagonally. At that time, I was also very curious, the store was not big, and the exterior decoration was also plain, why did two of them open so closely.

From the perspective of urban layout, the store network of Mixue Bingcheng accounts for 4.5% in first-tier cities, 20.9% in new first-tier cities, 17.7% in second-tier cities, and 56.9% in third-tier cities and below.

According to Mixue Bingcheng, the price of its core products is usually between 2 yuan and August, and the vast majority of terminal retail sales come from its stores. In addition to the freshly made tea brand "Honey Snow Bingcheng", there is also a freshly ground coffee brand "Lucky Coffee", which is priced at 5 yuan to 10 yuan.

At the beginning of the year, Mixue Bingcheng switched from A-share to H-share to prepare for sprint listing, and the prospectus described its own business model very well, saying that it mainly conducts business through franchises, and most of its income comes from selling goods and equipment to franchised stores.

"Under the franchise model, we authorize franchisees to use our brand to open franchise stores and sell ready-made beverages, and franchisees purchase store materials and equipment from the company for their daily operations. As the owner of the franchised store, the franchisee is responsible for the operating performance of the store. ”

As of the end of September 2023, more than 99.8% of the stores are franchised stores, and the rest are self-operated stores. With a store network of more than 36,000 stores developed through the franchise model, covering 11 countries in China and overseas, it is the only enterprise in the domestic ready-made beverage industry with a scale of 30,000 stores.

The official website of Mixue Bingcheng also disclosed that there are 8 conditions that need to be met for the store to join:

1. Recognize the company's brand culture and operation and development concept.

2. Agree with the brand and corporate culture of Mixue Bingcheng, agree with the brand operation concept and management mode, and obey the unified management of the headquarters.

3. It can provide a suitable operation place for Mixue Bingcheng, and has legal operation qualifications.

4. Recognize the company's policy and be willing to work with the company for a long time to develop.

5. The franchisee's diplomatic skills must be good, and there must be good contacts in the local area.

6. It has the corresponding investment strength and can meet the minimum investment requirements of Mixue Bingcheng to join.

7. A natural person or enterprise legal person who has the ability to independently bear civil liability.

8. Willing to accept the guidance and supervision of the headquarters, and cooperate with the operation and management of the headquarters.

However, the franchise fee varies from city to city. He explained that the cost required in different cities is also different, and the general franchise fee is between 3-50,000 yuan, and tens of thousands of yuan can be handled by opening a store in the early stage.

"Obviously, its franchise fee is really very small, only about 100,000 yuan a year, but the franchise profit has indeed increased exponentially. The official website of Mixue Bingcheng said.

Source: Secret Agent Finance

Mixue Bingcheng also stressed that the initial investment and franchise fees of stores are lower than the average charge level of China's ready-made beverage industry. In terms of revenue model, the company does not take franchise fees and related service fees as its main income. During the track record period, only 2% of revenue was generated from franchise fees and related service fees.

In 2022 and the first nine months of 2023, the store network of Mixue Bingcheng achieved terminal retail sales of about 30 billion yuan and 37 billion yuan respectively, and achieved revenue of 13.6 billion yuan and 15.4 billion yuan respectively, a year-on-year increase of 31.2% and 46%, respectively, and net profit reached 2 billion yuan and 2.5 billion yuan respectively, a year-on-year increase of 5.3% and 51.1% respectively.

In the first nine months of 2023, Mixue Bingcheng has achieved a total of about 5.8 billion cups. According to a report by CIC Consulting, in terms of the number of stores and the number of cups produced, Mixue Bingcheng is the No. 1 ready-made beverage company in China and the No. 2 in the world.

According to the disclosure, Mixue Bingcheng has five production bases in Henan, Hainan, Guangxi, Chongqing and Anhui, with an annual comprehensive production capacity of about 1.43 million tons, and has become the most complete and largest enterprise in the ready-made beverage supply chain market.

It declared, "We share the interests with franchisees through a series of system designs." Our large-scale, ultra-efficient supply chain system provides franchisees with a competitive one-stop solution to improve their profit margins and enhance the consumer experience.

Mixue Bingcheng also revealed that in fact, it is the only enterprise in the industry that implements free logistics fees, free design space fees, and free publicity materials for franchisees at the same time. Through the highly digital operation system, the franchisees are managed in a standardized manner and continuously supported and empowered, so as to improve the operational efficiency of the franchisees and make their franchise model sustainable and healthy development.