Xi'an's "Defa Chang" has not paid rent for more than 20 years and has accumulated tens of millions of dollars and has been sued to the court

The long hair of The Bell and Drum Tower Square in Xi'an is familiar to the people of Xi'an. Who would have guessed that this haircut had not paid rent for more than 20 years. The Huashang Daily reporter found that Xi'an Catering announced on the evening of March 11 that its long-established brand Defa Chang was involved in a lease lawsuit, mainly due to years of rent accounting and non-payment of the operating site. Xi'an Diet said that this will have a certain impact on the company's profit in the current period and after the period.

Indyfa has not paid the rent for more than 20 years

The plaintiff went to the Lianhu District Court

Xi'an Catering announced on the evening of March 11 that on March 8, it received the "Notice of Response to litigation" from the People's Court of Lianhu District of Xi'an City, and the plaintiff, Xi'an Industrial and Commercial Real Estate Management Company (hereinafter referred to as "Industrial and Commercial Real Estate Company") sued Xi'an Catering Branch Defa Chang Hotel Lease Lawsuit, involving an amount of 11.9013 million yuan, according to relevant regulations, this lawsuit constitutes a major lawsuit.

Defa Chang's 997.46㎡ business premises in Zhonggulou Square, that is, the Bell Tower Branch of Defa Chang Hotel (formerly "Defa Chang Dumpling Restaurant") is a public house rented from the Second Branch of Xi'an Real Estate (now "Xi'an Industrial and Commercial Real Estate Management Company").

As for the cause of the dispute, Xi'an Diet said that in July 1986, the second branch of xi'an real estate signed an agreement with Defa Chang Dumpling Restaurant, and the public housing of the second branch of the real estate bureau was handed over to Defa Chang for reconstruction, and the reconstructed house was re-approved for area and rent from August 1, 1996. In October 1995, the Xi'an Municipal Government carried out the expansion and transformation of Zhonggulou Square, and defa signed the "Demolition and Resettlement Agreement" with the Demolition and Resettlement Office of the Xi'an Zhonggulou Square Construction Headquarters, and signed the "Supplementary Agreement" in October 1997 to explain the demolition and resettlement of public housing.

Around 2008, due to the cancellation of the Xi'an Bell and Drum Tower Square Construction Headquarters for any reason, and the change of the person in charge of the project and related personnel, there were many remaining problems. The project takeover unit, Xi'an Real Estate Development Corporation, was unable to improve the relevant procedures due to incomplete information. In recent years, Defa Chang Hotel has coordinated with the Municipal Real Estate Development Company for many times due to the land certificate, real estate certificate and public housing matters of its Bell Tower Store, but it has not been resolved so far.

In June 1997, the Shaanxi Provincial Government issued the "Decision on Deepening the Reform of the Circulation System and Accelerating the Development of the Circulation Industry", in accordance with the provisions of which "by the end of 1997, enterprises will no longer pay lease fees to the housing management department", defa chang hotel has not paid public housing rent to the relevant housing management department since January 1998 (nor has it signed the public housing lease agreement).

11.9 million yuan in rent and late fees for public housing

Tak Fat Chang does not recognize the rent calculation standard

According to last year's semi-annual report, Xi'an's catering and catering revenue was 167 million yuan, accounting for 73.69% of the total revenue. Defa Chang is a branch of Xi'an Catering, and the storefront located in Xi'an Bell and Drum Tower Square is well-known. The lawsuit was mainly due to the failure of the parties to reach an agreement on rent accounting.

For the business site of defa chang hotel bell tower branch, the rent standard proposed by Xi'an Real Estate Management Company is divided into two calculation stages: from January 1, 1998 to December 31, 2004, according to the provisions of Municipal Government Fa [1991] No. 277 document, according to 25.6 yuan / ㎡. Standard monthly payment; From January 1, 2005 to August 31, 2018, with reference to the market rent around Bell and Drum Tower Square, it will be 50 yuan / ㎡. Monthly standard payment. According to the relevant management measures of state-owned public housing, late payment fees are paid according to 5‰ of the monthly rent amount. According to the calculation standards of Xi'an Real Estate Management Company, Defa Chang owes a total of 11.9013 million yuan in rent and late fees for public housing.

However, Defa Chang believes that according to the provisions of Municipal Fa (1991) No. 277, according to the geographical location and housing structure of the Bell Tower Branch of Defa Chang Hotel, and it is a house with a structural change after the new construction, the standard for paying the unit area of public housing should be 25.6 yuan / ㎡. month. Based on the fact that the rent standard of the same kind of public housing is still implemented, and the Xi'an Real Estate Operation Company did not propose to defa Chang Hotel during the period to increase the rent standard with reference to the rent in the surrounding market, therefore, it does not recognize the rent exceeding the standard stipulated in the document and the liquidated damages agreed upon without agreement. The rent recognized by Defa Chang is: 25.6 yuan / ㎡ according to the unit area. From January 1998 to August 2018, a total of 248 months of arrears were owed, with a total of 6,332,675.04 yuan.

Xi'an Diet has many long-established brands

It is more important to innovate with consumer trends

At present, the lawsuit is still in the pre-litigation mediation stage, and Xi'an Diet said that it will have a certain impact on the company's previous year, current profit and post-period profit.

According to a financial person in Shaanxi, most of the impact of such litigation on enterprises is at the level of financial provisions, and if there are relevant financial preparations in the early stage, the impact on performance will not be too large. The main influence on the development of the company is the fundamental situation such as operation and internal control.

Huashang Daily reporter noted that in recent years, the net profit of Xi'an Catering is hovering between profit and loss, from 2015 to 2017, the net profit was -31.6476 million yuan, 12.3512 million yuan and -11.2529 million yuan. In the first three quarters of last year, the net profit of Xi'an Catering was -4.17 million yuan, down 4.74% year-on-year. Due to the completion of the demolition compensation for the House of Taoli Village Hotel, the net profit in 2018 is expected to be -11.2529 million yuan to 11.5 million yuan, and the loss may be turned into a profit with the demolition compensation.

Xi'an Catering has 11 "Chinese Time-honored Brands" recognized by the Ministry of Commerce. Among them, Defachang's cooking skills have also been included in the list of intangible cultural heritage of Shaanxi Province.

A local industry insider, who did not want to be named, pointed out that long-established catering is not only a brand phenomenon, but also represents a cultural heritage and tradition. However, under the continuous changes in consumption upgrading and market situation, many long-established brands are also facing new problems in operation. At the end of January this year, Quanjude's performance report, which is famous for Beijing roast duck, showed that last year's net profit fell by 34.8% year-on-year.

"The advantage of time-honored catering is that it adheres to traditional craftsmanship and sincerity, and has accumulated a large amount of brand equity." Lei Hongzhen, dean of the International Business School of Shaanxi Normal University, said that the old concept of the brand cannot be old. Especially in the context of the growth of young consumer demand, the continuous influx of innovative brands in the catering industry, and the changes in industry thresholds and technical barriers, it is necessary to take the initiative to open up new markets, explore new customers, and actively adapt to new consumption and logistics formats. Huashang Daily reporter Li Cheng

Editor: Qiang Xin