The same is milk tea, more than 20 pieces of hi tea and Naixue, and the most expensive ice city is only 10 yuan; KFC and McDonald's both started in 20 yuan for the same hamburger package, but Wallace's three hamburgers can achieve the ultimate price/performance ratio of 10 yuan, and become the favorite of young people in small towns because of their low prices.
These seemingly unremarkable stores, opened in the most unremarkable places in China, have cultivated amazing scale and considerable profits.
As a "country KFC" and price killer in the fast food industry, Wallace has quietly opened 1.8 million stores. You are right, more than KFC and McDonald's combined. People who love him regard him as the glory of domestic products and the terminator of foreign fast food, and those who scold him say that he is a "jet fighter" Transformers. Don't think they have no brains. If you search, you can see hundreds of complaints about Wallace on the black cat complaint platform.
Today, Brother You will talk to you about how Wallace opened tens of thousands of stores. The product price is almost half that of KFC, but he can make money. In the face of public concern about food safety, what has Wallace not done enough?
First, low price, sinking, Wallace's first bucket of gold.
The story begins at 200 1. Hua Huaiqing, the founder of Wallace, and Hua Huaiyu, his brother, raised 80,000 yuan to sell foreign fast food at the gate of Fuzhou Normal University, named "Wallace".
In the early days, Wallace did not have any wild ways. He completely copied the model of KFC and McDonald's, with a storefront area of more than 300 square meters and a large children's playground. At that time, Wallace's price was also compared with the first two, from Hamburg to 8 yuan, a cup of coke to 4 yuan.
However, Hua Huaiqing soon discovered that it was impossible to completely copy others. Since it's all the same, why not just eat KFC? Seeing the serious losses, Hua Huaiqing, who burned his bridges, made a vicious move-reducing prices!
Then there was a sensational "special offer 123" package: coke 1 yuan, chicken leg 2 yuan, Hamburg 3 yuan, and the total price of a package was only 6 yuan. Then something unexpected happened. Hua Huaiqing found this trick really useful. He immediately realized that people just thought things were expensive and didn't want to eat them. Since then, Wallace has drifted away from the "cheap" road.
Make the store smaller, from more than 300 square meters to 50 or 60 square meters, and the position should be biased. First-and second-tier cities where KFC and McDonald's gather are basically not considered, and small towns in third-and fourth-tier cities are Wallace's first choice.
Half the staff, and don't look for any little brother or sister to be a waiter, let the aunt go, the salary is cheap, you can break up and do the work of three people by yourself.
Yes, it may be the same person who ordered your food, checked in, fried chicken, made hamburgers and even cleaned the shop in Wallace. KFC uses chicken leg meat and Wallace uses chicken breast meat; KFC uses Heinz, and Wallace is delicious. In short, we must prevent death and do everything possible to reduce costs.
With the two magic weapons of low price and sinking, Wallace expanded rapidly, opening three stores every day at the craziest time.
Second, if it can be saved, how did Wallace, the king of stingy, practice?
Today, more than 43% of Wallace's more than 65,438+08,000 stores are located in third-and fourth-tier cities. In 2065,438+06, Wallace listed the New Third Board in the name of Fahrenheit Food and became an invisible giant in the sinking market.
The question is, can you really make money by selling it so cheaply? Judging from the financial report, Wallace seems to be doing well.
From 20 16 to 2020, the revenue of Fahrenheit food increased from 1 1 100 million to 3.5 billion, and the five-year net profit increased from 2 1.54 million to 92.09 million, but the gross profit was really low. Last year, Wallace's gross profit was only 4.7%, while the industry average should be around 20%. From the cost point of view, operating costs account for the bulk, reaching more than 90%.
A friend asked me before, can Wallace eat at such a low price? What you want to say about this is that the raw materials of fried chicken burgers are not as high as you think.
Brother You found that many catering brands use imported white feather broilers. Li Jinghui, president of China Baiyu Broiler Alliance, had previously calculated the cost of Baiyu Broiler. The growth stage of broilers is calculated according to a chick in 2.5 yuan, plus feed, medicine, personnel, water and electricity, depreciation, etc. The cost at the time of listing is 7.5 yuan per kilogram, plus the deep processing of slaughterhouses and the management cost of the company, the cost of farmers should be around 8.75 yuan per kilogram. A 2.5-kg white feather chicken, to turn around, neck, claws and internal organs is almost 1.75 kg, and the cost is about 15.3 yuan.
The price of a braised chicken in Wallace is 26.8 yuan, and there is still room for profit with the large-scale purchase of large enterprises to further reduce costs.
Moreover, as we said before, Wallace has made "stingy" to the extreme. From the financial report, we can see that Wallace's sales cost is only 0.54%, there is almost no promotion cost, and the management cost is very low, only 0.43%. To put it bluntly, they saved everything except the fried chicken burger they sold you.
Third, there are hidden concerns behind the expansion.
Although Wallace has frequent food safety problems, it is by no means a pot of low prices and raw materials. What is the reason?
On the one hand, because of the rapid expansion in the early stage, Wallace's store broke through the road of joining, not letting go, but through the mode of employee partnership. Only headquarters employees, store employees, people with store resources and business contacts can become partners, so if you want to join Wallace, you must first join Wallace.
After the site selection is determined, each company will contribute 50% and the share distribution will not exceed 40%. In addition to the shares held by companies and individuals, the remaining shares will be distributed to shop assistants. Everyone has shares and decision-making power, which greatly stimulates the initiative of employees, and multiple shareholders can also spread risks and increase their ability to confront.
However, this method also makes management and quality control difficult. The partner is the boss himself, and the control of the headquarters is limited.
According to the financial report, Wallace has two sources of income.
One is that the product income mainly provides sales of raw and auxiliary materials, packaging materials and equipment for western-style fast food terminals, which is a B-end business, and its18,000 partner stores are his customers.
The second is consulting service income, which mainly provides decoration scheme, operation scheme and shop counseling. Every time Wallace opens a store, he will charge a consulting fee of 1 1,000 yuan. In other words, Wallace actually earned money from his partners, so they didn't care much about the consumer experience at first. There are a large number of stores and they are all partnerships, and the management of the stores by the headquarters is also very loose.
In addition, Youge also found from public information that Wallace's unreasonable organizational structure has also become one of the reasons for Wallace's frequent food safety problems.
Wallace has 438 employees, including 6/kloc-0 administrative staff, 334 sales staff and 43 financial staff. No employee disclosure related to food safety. On the other hand, the food safety and quality assurance department of Parkson China, the parent company of KFC, has 304 employees. In contrast, Wallace has completely fallen behind, so it is difficult for Wallace to think of any problems.
To sum up, Wallace's worries are mainly caused by management. If you are lucky enough to meet a conscience shop, you will have no problem eating and drinking. If you are unlucky, you can only ask for it.