Based on the 19 years of business development practice of Juewei Food, combined with the excellent experience of other consumer and retail head chain brands, the underlying logic of franchise chain management is divided into "core elements", "acceleration engine" and "strategic guarantee", which correspond to the capacity building of the front, middle and back office of enterprise development, and form a "nine-square grid" methodology.
With consumers as the core and franchisees as important partners, we will reconstruct the underlying logic of the franchise chain, and comprehensively and clearly explain the underlying logic of the alliance chain management and the realization path of the 10,000-store chain.
In the "nine-square grid model", product portfolio and single-store model are the core elements, which are the two pillars of the success of the franchise chain model brand.
The product portfolio not only defines the brand's core values and market positioning, but is also the key to attracting and satisfying consumer needs. A well-planned product portfolio ensures that a brand remains competitive and attractive in a volatile market.
Similarly, the single-store model is the basis for achieving brand expansion and profitability, which covers every detail from space layout to operation management, which directly affects the efficiency and profitability of the brand.
A strong product portfolio and an optimized single-store model together form the cornerstone of the success of the franchise chain brand, providing a solid support for the brand in the fierce market competition.
01■
Product portfolio: the source of consumer value appeal
1. Business management is a game, and products are the chess pieces of the game
Product portfolio is the core of the interaction between the brand and consumers, it is not only the embodiment of brand value, but also the basis for the survival and development of enterprises. If business management is a game, then the product is the flag of the game, and how to effectively arrange troops is the key to the success of the product strategy.
- General Shuai (popular products): As the core of the brand, popular products need to have strong market appeal and recognition, and become the brand representative in the minds of consumers.
- Shixiang (popular style assistance): Focusing on the core popular models, auxiliary products should meet the diverse needs of consumers and enhance brand competitiveness.
- Chema (offensive and offensive and defensive products): cost-effective offensive products and mainstream offensive and defensive products in the market, jointly build the brand's market offensive and defensive system.
- Cannon (seasonal product): Take advantage of seasonal characteristics to launch innovative products to attract consumers with novelty and achieve market breakthroughs.
- Bing (normal products): As the basis of daily sales, normal products need to be continuously optimized to meet the continuous needs of consumers.
2. The three-dimensional perspective of product portfolio combing
Consumer perspective
The construction of product portfolio needs to start from the perspective of consumers, focusing on their needs, scenarios, payment capabilities, selection factors, changing trends, consumer feedback, etc.
From a full stomach to a business banquet to a family dinner or a gathering of friends, the product portfolio should cover a wide range of consumption scenarios and meet the dietary preferences and price ranges of different people. At the same time, the product portfolio needs to be flexible in response to consumer choice factors, such as taste, price, service and features, to adapt to changing market trends.
To improve customer satisfaction, companies should actively collect and respond to consumer feedback, optimize their product portfolio, and make it easier for customers to find their favorite food, while maintaining appreciation for good reviews and follow-up on bad reviews to increase brand image and customer loyalty.
For example, based on the in-depth insight into consumer needs, Juewei Duck Neck launched the "Jue Bang Shrimp Tail", which not only satisfies consumers' love for crayfish, but also hints at the Q bomb and deliciousness of its taste through the product name of "Jue Dan", catering to consumers' pursuit of food taste and experience; In terms of product portfolio strategy, Juewei Duck Neck positions the lobster tail as a "hot style" or "offensive product".
The product is innovative and topical in terms of taste, packaging and marketing, and can generate widespread discussion on social media, thus attracting more consumers to try it.
At the same time, it can also be used as a "seasonal product" or "cannon" to attract customers at specific times of year, such as summer, to increase brand exposure and sales. On the supply side, Juewei's modern supply chain system with a nationwide layout can safely, effectively and stably guarantee supply and support front-end market demand.
Supply chain perspective
The supply chain perspective emphasizes security, stability, closed loop, standardized replication, supply chain efficiency, and thresholds, and it is the support system behind the product portfolio. Every step of the supply chain, from the source of ingredients to in-store processing, ensures food safety, supply stability and cost control.
The supply chain process is different under different business models, but its core essence needs to be based on product presentation, find reasonable solutions for the supply chain, and form a competitive advantage. The improvement of supply chain capabilities can help quickly replicate product portfolios and expand market share.
Financial perspective
The financial perspective is a measure of portfolio design, which involves revenue composition, hours and energy consumption, pricing guidance, cost optimization space, portfolio design simulation, and more. Companies should analyze the revenue share of key products and packages, evaluate the contribution of online and offline sales, and the impact of promotional activities on revenue.
In terms of cost control, it is necessary to finely manage the working hours and energy consumption of stores, as well as the production efficiency of central kitchens. Profit composition analysis can help companies understand the gross profit of single products, packages and online sales, and guide pricing strategy and cost optimization.
Pricing strategies need to take into account market acceptance, cost structure, and the competitive environment to ensure that they are both attractive to customers and profitable. Companies should regularly conduct financial simulations of their product portfolios to evaluate the effectiveness of different options to optimize their product mix and improve overall profitability.
02■
Create a more flexible and inclusive environment
Single-store model: The secret to building a successful template
The single-store model is the lifeblood of a franchise chain, and it is about transactions, profits, scale and brand value.
1. Three core perspectives of single-store model construction
When building a single-store model, enterprises need to think deeply around three core perspectives.
First of all, from a strategic perspective, review the market size, market segmentation, competitive situation and future trends, and formulate a clear development path to ensure that it resonates with the market at the same frequency.
Secondly, the user's perspective emphasizes consumer-centricity, understanding their evaluation criteria, purchase motivation, return on investment expectations, and expectations for future brand development, so as to ensure that consumers become the cornerstone of brand development.
Finally, the business perspective focuses on safe and stable operations, optimization of profit structure, improvement of operational efficiency and construction of competitive advantages, taking into account the balance between short-term speed, medium-term scale and long-term efficiency.
In April this year, the 2024 China Catering and Food Entrepreneur High-level Japan Research Institute, co-sponsored by Wangju Capital and AFC, conducted a field visit and in-depth exchange on 7-Eleven.
Strategically, 7-Eleven has always kept abreast of market trends, focusing on convenience and immediacy, and is located in neighborhoods, business districts and transportation hubs to ensure a large potential customer base.
7-Eleven is also actively introducing smart technologies, such as self-service cash registers and mobile payments, to improve operational efficiency, while using big data to analyze customer shopping habits and optimize merchandising and inventory management.
From the user's perspective, 7-Eleven puts consumer reviews and expectations first, ensuring that the product is rich and reliable, and meets the needs of different customer groups.
At the same time, 7-Eleven has also set up a membership system to provide point rewards and exclusive offers to encourage repeat purchases and improve customer stickiness. From a business perspective, 7-Eleven focuses on safe and stable delivery of goods, and has established close cooperation with multiple suppliers to ensure the stability of the supply chain.
It also uses refined management, such as real-time inventory monitoring and automatic ordering systems, to reduce wastage and control costs. Its supervision system helps franchisees quickly master business skills by providing comprehensive operational support and training, while setting strict SOP standards to ensure consistency of service across the globe.
2. Four elements to create a winning single store model
Spatial layout model
Reasonable space layout is the cornerstone of efficient store operation. The functional layout should include a clear division of functional areas to ensure the efficient operation and comfort of the food preparation area, while the practicality of the common areas should not be overlooked.
The flow line design needs to take into account the flow path of customers, service personnel and goods, and optimize the flow line to reduce waiting time and improve service efficiency. Equipment suitability involves the rational selection and arrangement of equipment to improve the operational efficiency of kitchens and restaurants.
The space design of the store should constantly listen to the opinions of front-line employees, summarize lessons and lessons, and seek the assistance of professional design companies to form a standardized layout model to adapt to different sizes of stores, and at the same time modularize the kitchen equipment and soft decoration props to improve space utilization and restaurant operation efficiency.
SI manual with POP presentation
The SI manual regulates the brand visual identity system, including brand positioning, logo design, color specifications and space design standards, to ensure the uniformity and recognition of brand information. POP presentation effectively conveys the brand story and concept through a well-designed concept, location and combination, and promotes the emotional connection between consumers and the brand.
The brand story should be vivid and authentic, and with the power of color, graphics and creativity, it can quickly win the favor of consumers. With the development of technology, the way brands are presented is constantly innovating, using new technologies such as AI, the metaverse, and VR to create a unique brand experience for consumers.
Store operation standards and SOPs
Store operation standards and SOPs ensure the standardization and standardization of daily store operations, and they are important tools for company and store management, helping to improve team capabilities, management efficiency and reduce risks. The formulation of store operation standards and SOPs should be detailed, covering all operational links, and clarifying job responsibilities.
Through training, assessment and incentive mechanisms, employees are proficient in mastering and implementing SOPs, and at the same time, a verification mechanism is set up to conduct regular inspections of store operations to ensure that standards are strictly implemented.
These measures are designed to increase employee reverence for standards, eliminate the luck mentality, and ensure the stability and quality of store operations.
The financial profitability model of the store
The creation of the financial model of the store needs to go through four steps: financial model assumptions, core indicator verification, core indicator adjustment, and financial model determination.
First of all, based on the in-depth understanding of the market, customers and operations, the business logic is clarified, the main channels, store types and normal locations are selected, and the model assumptions are established through basic data simulation, combined with policy requirements, actual conditions, strategic planning and management needs.
Then, three test stores in normal locations were selected, and each store selected a competitor in the same business district as a reference for detailed data collection, including customer flow, transaction status, online orders, reasons for non-deals, dish structure, wine matching, dish feedback, cost control, staff efficiency, promotion effect, etc.
Then, based on the collected data, we analyze the differences with the basic assumptions, find out the problem realistically, and formulate corresponding countermeasures.
Finally, the model design is adjusted based on financial indicators, keeping consumer positioning, brand positioning and main products unchanged, optimizing store entry rate, customer unit price, gross profit margin and cost control, ensuring that franchise fees, training service costs and return on investment cycle are better than industry standards, and at the same time measuring the number of stores required by the company to achieve breakeven, as well as the appropriate gross profit margin, so as to complete the construction of the store's financial profitability model and make it a strong support for the actual business logic.
This series of steps ensures the scientific and feasibility of the model, and provides a solid financial foundation for chain operation.
Product portfolios and single-store models play a crucial role in the development of franchise brands. They are the cornerstone of the brand's success and provide a solid support for the brand in the fierce market competition.
The product portfolio strengthens the brand's market appeal and customer loyalty by meeting the diverse needs of consumers. The single-store model ensures the efficiency and profitability of the brand's operations, laying the foundation for the expansion and growth of the brand.
As the market environment continues to change, brands need to constantly review and optimize these two core elements to adapt to new challenges and opportunities. Through continuous innovation and improvement, brands are able to stay ahead of the competition and achieve sustainable development.
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Source | Produced by Wangju Capital | Catering O2O
Further reading:
- The village base with more than 1,200 directly operated stores has also been put to join! Chinese fast food giants are also going to sprint to "10,000 stores"?
- The milestone of 10,000 stores, with 10,000 battles of efficiency, why can Ming Ming be the first to hand in the papers?
- The chain rate is increasing year by year, and the "10,000 store genes" in the catering industry mostly exist in "snacks and drinks"
- "The God of Management" Yu Donglai, the 10,000-store chain Mixue Bingcheng..., the system vision analyzes the business password of phenomenal enterprises!
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