From 10% in 2010 to 20% in 2023, the chaining rate of restaurants in China has doubled. The increase in the chain rate is the embodiment of the catering industry from recklessness to maturity, and with it, the supply chain of catering is becoming more and more developed.
In the final analysis, if the catering industry wants to become bigger and stronger and get rid of the fate of involution, its competition cannot only stay in stores, prices and menus, but also solve the problem of "standardization". Among many brands, Laoxiang Chicken stands out with its unique whole industry chain model, adheres to the persistent pursuit of standardization and the in-depth self-construction of the supply chain, and provides consumers with affordable and assured catering services.
Standardization - a problem and breakthrough in the Chinese food industry
In China, the road to chaining in the restaurant industry is full of challenges, especially for the complex Chinese food production process, how to achieve standardization has always been a problem for the industry. Taking Lao Xiang Chicken as an example, its founder Shu Congxuan has standardized every cooking detail by writing a detailed business manual, from the conversion of high heat to simmering, the cutting of ingredients to the proportion of seasonings, and every step is strictly controlled to ensure that every customer can taste the same standard of deliciousness no matter where they are. And in the recently released "Product Traceability Report", Lao Xiang Chicken even marked the recipes directly, and many consumers began to follow the report to learn to cook, no wonder some netizens lamented that not only the store is standardized, but also the taste of Lao Xiang Chicken is standardized to consumers' home cooking.
Holding the weapon of "standardization", the profitability of Laoxiang Chicken has been gradually rising in recent years: from 2019 to 2021, the net profit of Laoxiang Chicken was 159 million yuan, 105 million yuan and 134 million yuan respectively. According to Lao Xiang Chicken, their total output value will reach 8.5 billion yuan in 2023, and the tax payment will be as high as 110 million yuan.
Self-built supply chain - escort for quality
Faced with the pressure of rent, manpower, and raw material costs, many F&B companies choose to outsource their supply chains to reduce costs. However, the hometown chicken has chosen a different path - to build its own supply chain system. From the breeding base to the central kitchen, to the cold chain logistics and distribution, to the catering stores, every step is under the control of the brand itself. This not only ensures the quality and safety of the food, but also effectively balances the impact of fluctuations in raw material prices.
The power of the affordable chain - the reassuring choice of consumers
Although the per capita consumption level of the catering industry continues to rise, Lao Xiang Chicken has not lowered its own level because of the blind pursuit of "price war", and insists on providing cost-effective catering services. Compared with the anonymous small restaurants on the street, Lao Xiang Chicken provides consumers with a safe dining choice with a clean and tidy environment, standardized dishes and reasonable prices.
After Shu Xiaolong, chairman of Laoxiang Chicken, took over Laoxiang Chicken, he completed five iterations of the store, redefining the Chinese fast food consumption scene while firmly grasping the consumption preferences of the 90s and 00 generations. The fully transparent kitchen also allows customers to eat more confidently and healthily. According to Chairman Shu Xiaolong, the original intention of his design originated from the concept of family kitchen, hoping that Laoxiang Chicken will let customers feel the warmth and comfort of home while dining through the store and dining environment.
The success of Lao Xiang Chicken is not only reflected in its profit numbers, but more importantly, it has set a benchmark for the entire industry and provided consumers with a trustworthy choice. In the fiercely competitive Chinese catering market, whether it is for employees or partners in the entire industry chain, Lao Xiang Chicken shows the warmth and social responsibility of the enterprise, bringing the taste of home to more consumers.