Wen | Caijing New Media Ouyang Yeping
Edit | Jiang Shizhou
With the disclosure of annual reports and quarterly reports, the survival picture of listed catering brands has also surfaced: some people operate dismally, some people are creeping forward, and some people are growing against the trend. In the face of the sudden attack of the epidemic, who is more "resistant to beating" means that who has stronger combat effectiveness.
Quanjude, a century-old brand that once encountered a crusade from netizens, canceled service fees, lowered the price of dishes, and took the fashion route and failed to get rid of the situation of declining performance. Quanjude's recent annual report shows that the company's revenue last year was 783 million yuan, a year-on-year decrease of 49.99%, and the net profit attributable to the mother was -262 million yuan, down 686.77% year-on-year. This is quanjude's first loss since its listing in 2007.
In the epidemic examination, Guangzhou restaurants are obviously the exceptions in the old camp, and last year's revenue and profits maintained growth. In 2020, guangzhou restaurant revenue was 3.287 billion yuan, an increase of 8.54% year-on-year, and net profit attributable to the mother was 451 million yuan, an increase of 20.99% year-on-year.
It can also be seen from the quarterly report recently disclosed by Quanjude and Guangzhou Restaurant that the differentiation of the catering industry continues. In the first quarter of this year, Quanjude's revenue increased by 14% year-on-year, and the loss margin narrowed, while Guangzhou Restaurant's revenue increased by nearly 30% and net profit increased by nearly 300%.
Quanjude and Guangzhou restaurants, one north and one south, have their own advantages in brand voice and core competitiveness, but the operating conditions under the epidemic are very different. Next, Caijing New Media will look through the annual reports of these two famous long-established brands to see what they are going through and how to break the situation.
<h1 class="pgc-h-arrow-right" data-track="6" > profitability:</h1>
<h1 class="pgc-h-arrow-right" data-track="7" > Quanjude's net profit plummeted by more than 600%.</h1>
<h1 class="pgc-h-arrow-right" data-track="8" > Guangzhou restaurants increased by more than 20% year-on-year</h1>
Judging from the financial reports released by the two, in 2020, Quanjude handed over the worst annual report card in history, with both revenue and net profit falling, and the net loss was as high as 262 million yuan, down more than 600% year-on-year.
What is this concept? Combing through the data of Quanjude's annual reports from 2017 to 2019, the net profit was 136 million yuan, 73.0422 million yuan and 44.6279 million yuan, respectively, which is equivalent to the total net profit of Quanjude in the previous 3 years in 2020.
Quanjude's main financial indicators from 2018 to 2020 Data source: 2020 annual report
Quanjude's annual report attributed the loss mainly to the impact of the new crown epidemic, but its revenue decline was significantly higher than the industry decline. According to the data provided by the China Cuisine Association, in 2020, the growth rate of national catering revenue and the growth rate of catering revenue of units above designated size decreased by 26% and 21.1% respectively compared with the same period last year, of which the catering revenue in Beijing fell by 29.9% year-on-year. Quanjude's catering business contributed 530 million yuan in revenue, down 53.58% year-on-year.
From the perspective of gross profit margin, the product competitiveness of Quanjude's catering business has declined, coupled with the high costs of labor costs, property rents, food costs, energy resource prices, etc., squeezing the profit margins of enterprises. According to the annual report, the gross profit margin of Quanjude in 2020 was -20.32%, a year-on-year decrease of 87.92%, and the gross profit margin of the commodity sales business was 10.76%, down 22.17% year-on-year.
Quanjude operating income composition Data source: 2020 annual report
Under the overall depression of the catering industry under the epidemic, the Guangzhou restaurant catering sector is also inevitably affected, and last year's revenue fell by 26.70% year-on-year to 489 million yuan, with a gross profit margin of 5.44%. However, the gross profit margin of Guangzhou restaurant food manufacturing industry is as high as 45.35%, of which the fist product mooncake is a money-making tool, with a gross profit margin of 58.37%, and the revenue increased by 15.59% year-on-year; quick-frozen food followed closely behind, with a gross profit margin of 35.44%, and the revenue increased by 40% year-on-year.
It is precisely because of the continuous growth of the food manufacturing business that the overall revenue and profit of Guangzhou restaurants have continued to grow in the face of adversity. In 2020, Guangzhou Restaurant achieved a net profit attributable to the mother of 451 million yuan, an increase of more than 20% year-on-year.
<h1 class="pgc-h-arrow-right" data-track="17" > main business:</h1>
<h1 class="pgc-h-arrow-right" data-track="18" > quanjude catering sector fell by more than 50%.</h1>
<h1 class="pgc-h-arrow-right" data-track="19" > Guangzhou restaurant food manufacturing to support the profit "umbrella"</h1>
Quanjude in the storm is facing a dilemma that is not only revenue slashing, net profit plummeting, but also facing the embarrassment of "losing" the base camp under the continuous encroachment of many catering brands on the market share of segmentation.
According to the annual report, the North China market is the main position of Quanjude, accounting for nearly 90% of the annual revenue, achieving revenue of 700 million yuan, down more than 50% year-on-year. The East China market achieved revenue of 190 million yuan, accounting for 23.81% of the annual revenue, a year-on-year decrease of more than 20%. The central, northwest, northeast and southwest markets are in the state of "single digits". This reflects from the side that Quanjude, which relies on tourism and catering, has not met expectations in cross-market development, and the North China base camp is also facing the dilemma of "not being able to sell".
Quanjude's main business by region Data source: 2020 annual report
Like Quanjude, which is "a corner of the security", guangzhou restaurants' catering business and food manufacturing business are still mainly concentrated in Guangdong, and its annual report also said that "the main business is concentrated in the regional market operation characteristics are more obvious".
Specifically, the domestic market in Guangdong Province contributed 2.44 billion yuan in revenue, a year-on-year decrease of 0.73%. Revenue outside Guangdong Province increased by more than 50% year-on-year to 770 million yuan, and overseas market revenue increased by nearly 20% to 0.4 billion yuan year-on-year, which shows that the proportion of sales in Guangzhou's restaurant market outside the province is gradually increasing.
At present, quanjude's main business is mainly catering services, food processing and sales business, and it has restaurant brands such as "Quanjude", "Fangshan", "Fortress Garden" and "Sichuan Hotel". The food business is mainly for the research and development, production and sales of duck blanks and other foods, and the current products mainly include duck packaging products, special leisure foods, seasonal foods such as mooncakes and tangyuan and daily staple foods.
During the reporting period, Quanjude's three major businesses of catering, commodity sales and leasing achieved revenue of about 530 million yuan, 238 million yuan and 0.16 billion yuan respectively, accounting for 67.58%, 30.36% and 2.06% of the revenue in 2020, respectively. The revenue of the catering sector that sang the protagonist decreased by more than 50% year-on-year.
In terms of restaurants, Quanjude opened a total of 8 new direct stores and franchise stores last year, and a total of 117 catering stores by the end of 2020. Guangzhou Restaurant disclosed in its annual report that the number of catering stores has expanded to 26, and 1-2 new directly operated stores will be opened every year in the future, with a performance growth of about 10%.
Unlike Quanjude, Guangzhou restaurants no longer rely solely on the catering sector under the epidemic, but shift their focus to food manufacturing business.
At present, the main business of Guangzhou Restaurant includes food manufacturing, catering and other businesses, of which the catering business contributes about 489 million yuan to revenue, accounting for about 15% of revenue, and the food manufacturing industry contributes 2.696 billion yuan to revenue, accounting for more than 80% of the total revenue in the whole year.
Revenue composition of Guangzhou restaurant products Data source: 2020 annual report
Quick-frozen food is regarded as the main focus of Guangzhou Restaurant's future performance growth, and it is also the business segment with the largest sales growth last year, creating revenue of 780 million yuan, an increase of 40% year-on-year. Combing the annual report, it can be seen that Guangzhou restaurants are through the production and sales of quick-frozen food, on the one hand, the consumption of raw materials for the off-season of mooncakes, making full use of the site and production manpower, to achieve a balance between production and marketing; on the other hand, to provide differentiated quick-frozen foods that are different from traditional dumplings and lanterns, and to lay out the national market.
In summary, Guangzhou restaurants that use "food + catering" two-wheel drive have relied on food manufacturing business to support the profit "umbrella" under the sweep of the epidemic and share the risk. Quanjude, whose food retail layout is lagging behind, is expected to suffer a heavy blow when the dine-in passenger flow is "frozen". Today, Quanjude, aware of "having to operate", has clarified the two-wheel drive strategy of "catering + food" and expressed its determination to "open up the territory and expand the food sector" in the annual report.
<h1 class="pgc-h-arrow-right" data-track="33" how to break the game >:</h1>
<h1 class="pgc-h-arrow-right" data-track="34" > explores the retailing of food and beverage</h1>
<h1 class="pgc-h-arrow-right" data-track="35" > online and offline collaborative linkage</h1>
With the continuous intensification of competition in the catering market, the epidemic situation is even worse, under the multiple pressures of rent, raw materials, labor costs, etc., the capital chain of some small catering enterprises is broken, and many long-established brands have fallen into the dilemma of "the front wave is photographed on the beach". In the face of adversity, we have also seen some catering enterprises respond quickly and actively cater to the new consumption trend spawned by the "home economy".
Comparing the two annual reports, it is found that the business strategies of Quanjude and Guangzhou restaurants have a lot in common, and online and offline linkage, research and development of characteristic new products, and exploration of catering retail are the rules for them to grasp the consumption dividend in the post-epidemic era.
In the catering sector, both upgrade and transform old catering stores to enhance consumer catering experience; both pay attention to the deep integration of food culture and service experience to polish long-established brands; and both focus on cultivating chefs to provide talent reserves for the development of catering business.
In the food sector, both actively embrace new retail and promote digital transformation; both empower brands by digging deep into culture; both increase channel development efforts to broaden new retail channels such as community micro-businesses and various platforms; and both focus on characteristic marketing to achieve revenue conversion to online.
In order to "save itself" under the epidemic, Quanjude, which has always been "high-profile", began to put down its body and launched a series of measures to reshape the brand image, such as canceling service fees, adjusting menu prices, transforming store scenes, exerting efforts to online takeaway and offline markets, creating community private domain traffic, etc.; As an old brand of Cantonese cuisine, Guangzhou Restaurant also took the initiative to find creative highlights, such as cross-border cooperation with well-known IP, exploring the "delicious and fun" path of traditional foods, such as holding related historical and cultural exhibitions, pop-up stores and other special activities.
"Heavy research and development" is the key word mentioned many times by these two long-established brands. When the catering consumer market fluctuates, both hope to promote product "breaking" through technological innovation. During the reporting period, Quanjude and Guangzhou restaurants greatly reduced sales expenses and increased research and development expenses, providing financial support for the layout of catering retail.
Specifically, Quanjude's R&D expenditure last year was about 1.52 million yuan, an increase of 40% year-on-year, and its R&D expenses from 2017 to 2019 were 565,000 yuan, 695,000 yuan and 1.083 million yuan, showing an upward trend year by year.
Guangzhou Restaurant's R&D expenditure last year was about 77.383 million yuan, equivalent to 51 times of Quanjude's R&D investment in the same year. In fact, Guangzhou restaurants maintain a trend of "high investment" and "steady growth" in research and development, with R&D expenses of 18.777 million yuan, 48.472 million yuan and 61.337 million yuan from 2017 to 2019, respectively.
Regarding the research and development of new products, Quanjude said in the annual report that with the "foodization of catering products" as the starting point, in 2020, it launched new products of sauce duck, smoked duck and sea duck eggs. For young consumer groups and e-commerce channels, 8 duck leisure snack products have been created. During the Mid-Autumn Festival, more than 60 flavors of mooncakes were launched, and sales increased by 22.13% year-on-year, of which online sales increased by 59.68% year-on-year.
With the gradual recovery of the catering industry, Quanjude achieved revenue of 206 million yuan in the first quarter of 2021, an increase of 14.09% year-on-year. Although it was still in a state of loss, the net loss narrowed by 46.80% to 47.0852 million yuan. Quanjude also mentioned in the annual report that in the future, it will focus on creating a new pattern of "product + service + scene", and use the advantages of catering brand resources to implement the "foodization of catering products".
When Quanjude first tasted the sweetness in the retailing of catering, Guangzhou Restaurant decided to speed up the road of "food expansion".
In order to increase the production capacity of core categories, Guangzhou Restaurant promotes the production and construction of various bases, and the production base is equipped with a moon cake production line, a quick-frozen food production line, a wax product production line, and a bread pastry production line. During the reporting period, the first phase of the Xiangtan base was officially put into operation to provide production capacity guarantee for the 2020 mooncake market, the Maoming Grain Fengyuan Base completed the upgrading and transformation at the beginning of last year, the meizhou base phase I is scheduled to be put into operation in the first half of 2021, and the second phase of Xiangtan construction plan is in planning.
In terms of product sales, Guangzhou Restaurant focuses on "online + offline" synergistic linkage, and its sales channels include supermarkets, food counters in catering stores, Likoufu food chain stores and stores on various e-commerce platforms. Online, the company relies on mainstream e-commerce platforms to increase the breadth of product radiation, online sales in 2020 contributed revenue of 587 million yuan, revenue accounted for nearly 20%, gross profit margin of up to 48.8%; offline, the establishment of chain companies to re-sort Out The Likoufu food chain stores, a total of 180 such stores (including franchises) during the reporting period.
Speaking of future development, Guangzhou Restaurant said in its annual report that the company will take catering service and food processing as the core in the future, take scientific and technological innovation as the driving force, adhere to the road of "strong catering brand", accelerate the refinement and chain development of the catering business, and accelerate the road of "food expansion" to promote the development of food marketing in the direction of nationalization.