On April 16, Quanjude's 2023 performance report has been released, and "turning losses into profits" has become the key word, especially in the case of losses for three consecutive years, these four words are particularly rare, and the company also said in the financial report that "profits turned around and won the battle of business turnaround".
Combing through the financial reports of previous years, it can be seen that in 2023, Quanjude's revenue scale will not be as high as the same period in 2019, but its net profit attributable to shareholders of listed companies has exceeded the level of the same period in 2019. Quanjude said that in 2023, with the recovery of passenger flow, the consumption of the catering market has been significantly released, and various favorable factors will be superimposed, and the catering market will usher in a strong recovery.
After three years of losses, it finally made a profit
Net profit in 2023 has exceeded the level of the same period in 2019
In 2023, Quanjude will achieve an operating income of about 1.432 billion yuan, a year-on-year increase of 99.27%, and a net profit attributable to shareholders of listed companies of about 60.0395 million yuan, a year-on-year successful turnaround.
Quanjude's performance from 2019 to 2023. Drawing by the Beijing News Shell Financial Reporter
On the whole, Quanjude has lost money for three consecutive years (2020 to 2022), but it will turn around in the first quarter of 2023, and it will be profitable in the second and third quarters. In 2023, Quanjude's revenue scale will not be as high as the same period in 2019, but its net profit attributable to shareholders of listed companies will have exceeded the level of the same period in 2019.
As for the reason for the sharp increase in revenue in 2023, Quanjude attributed it to the recovery of the catering market. According to the National Bureau of Statistics, in 2023, the national catering revenue will be 5,289 billion yuan, up 20.4% year-on-year, and the catering revenue of units above designated size will be 1,335.6 billion yuan, up 20.9% year-on-year.
Seizing the new opportunity of the strong recovery of the catering market, Quanjude carefully studied and judged the market, refined various work measures, on the one hand, organized existing stores to seize income, on the other hand, actively carried out new projects, and actively cultivated the minds of private domain users.
Quanjude has brands such as "Quanjude", "Fangshan", "Fengzeyuan" and "Sichuan Hotel". The company's catering business mainly adopts a chain operation model, including directly operated stores and franchised stores. At the end of the reporting period, the company opened a total of 101 catering stores in Beijing, Shanghai, Hangzhou, Changchun and other places and overseas, including 87 Quanjude brand stores (38 directly operated stores and 49 franchised stores), 6 Fengzeyuan brand stores (2 directly operated stores and 4 franchised stores), 7 Sichuan hotel brand stores (all directly operated stores) and 1 Fangshan brand store (directly operated stores).
The situation of the four major brand stores of Quanjude. Drawing by the Beijing News Shell Financial Reporter
In addition to Chinese dinner, Quanjude is vigorously expanding its group catering business and currently operates 6 projects. In 2023, Quanjude will pay attention to the accumulation of mall exposure, form a regular and stable exposure frequency in the promotion channels of the company's official account and food company's official account, and gradually cultivate the mind of brand private domain users, and expand the scale of mall members by building a hierarchical system of online mall members, cooperating with member rights and activities, and by the end of 2023, member consumption accounts for 40% of the mall's overall sales revenue. In 2023, Quanji stores will achieve a total revenue of 25.229 million yuan, a year-on-year increase of 163%.
Catering + food two-wheel drive
Time-honored enterprises actively reach out to young people
In recent years, Quanjude has continued to promote the time-honored brand "integrity and innovation" strategy, focusing on the digital consumption demand preferences of young people, further embracing new retail from the three basic elements and dimensions of people, goods and venues, actively communicating and interacting with young consumers, and striving to embrace young people online and offline.
The reporter noticed that in addition to the catering industry, Quanjude also has commodity sales and a small amount of leasing business. In 2023, Quanjude's catering industry, commodity sales, and leasing will achieve operating income of about 1.107 billion yuan, 300 million yuan, and 25 million yuan respectively, up 111%, 70.89%, and 35.33% year-on-year, respectively.
The proportion of Quanjude's three business revenues in 2023. Drawing by the Beijing News Shell Financial Reporter
In 2023, Quanjude will launch the sub-brand "Zero Research Institute" and enter the snack food track, and the first batch of 7 products that have been launched are being sold in offline supermarkets, convenience stores and online platform channels.
To this end, the company will adhere to the menu management mechanism of quarterly innovation and annual update, increase the research and development of innovative dishes, and form a strong support for the brand of innovative dishes;
The catering market is embracing recovery opportunities
The performance of A-share listed restaurant companies last year was mixed
According to the China Cuisine Association, China's catering market will show six significant characteristics in 2023: first, rapid recovery, second, prefabricated dishes have become the industry's outlet, third, the concept of nutrition and health is deeply rooted in the hearts of the people, fourth, the catering consumer market pays more attention to the "quality-price ratio", fifth, the digital trend is fully revealed, and sixth, the online and offline "dual home" to tap the potential of catering consumption.
In this context, the operating performance of catering companies is different. At present, the three listed companies in the catering industry in the A-share market have all disclosed their 2023 annual reports, and Guangzhou Restaurant ranks first in terms of revenue and net profit, followed by Quanjude, and Xi'an Catering is still in the red.
The 2023 performance of three A-share listed companies in the catering industry. Drawing by the Beijing News Shell Financial Reporter
According to the financial reports of listed companies, for the reasons for the growth of performance in 2023, Guangzhou Restaurant said: "On the one hand, seize the opportunity of the recovery of the catering market and promote the substantial growth of catering performance compared with the same period in 2022. On the other hand, under the influence of multiple factors such as insufficient effective market demand and weak social expectations, the food business continued to consolidate its advantageous markets, vigorously deployed the East China market, and actively explored new supermarket channels, and its overall performance continued to grow. ”
Xi'an Catering, which has suffered losses for three consecutive years (2021 to 2023), is still struggling in the quagmire of performance, saying: "In 2023, the company's net profit loss attributable to shareholders of listed companies will decrease significantly compared with the same period in 2022, mainly due to the effectiveness of market development, a significant year-on-year increase in operating income, and continuous improvement in operation. ”
In addition, when introducing the risks faced by the company, all three companies mentioned food safety risks, market operation risks, and talent shortage risks. At present, the catering industry is generally faced with the phenomenon of insufficient labor and high brain drain rate, which brings risks to the formation of the store team. The fierce competition in the domestic catering market has made senior technical personnel and management personnel become the object of high salary competition for many businesses, and if it cannot attract or train enough technical personnel and management personnel, the company's development will face the risk of personnel shortage.
In order to deal with the risk of talent shortage, Guangzhou Restaurant, Quanjude, and Xi'an Catering all said that they would reform and improve the salary management and incentive mechanism of employees, and Quanjude and Xi'an Catering all said that they would implement a market-oriented mechanism to introduce talents, and Guangzhou Restaurant said that they would increase investment in research and development, and after repeated trials and trials, they would standardize the dishes as much as possible, accelerate technological innovation, and enhance their independent innovation capabilities.
Beijing News Shell Financial Reporter Yan Xia
Edited by Zhu Yueyi
Proofreading by Zhai Yongjun