Fat Donglai "caught fire in the backyard" and lost nearly 9 million yuan due to "a bowl of rolling dough".

Titanium Media APP

2024-06-27 18:12Titanium Media APP official account

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01 Henan Xinxiang Fat Donglai Joint Venture Catering lost nearly 9 million yuan due to the "One Bowl of Rolling Dough" incident, and decided to rectify the merchants involved.

In the early morning of June 27, Fat Donglai Trading Group issued a statement to give a cash reward of 100,000 yuan to customers who helped find major food safety hazards, and refunded and compensated customers who purchased rolling dough and spicy noodles.

03 Due to the serious phenomenon of purchasing agents, consumers complained that the shopping experience of Fat Donglai had deteriorated, and the purchasing agents sold Fat Donglai's goods to consumers outside the country through Taobao, Xianyu, Pinduoduo and other platforms.

04 Experts said that the success of Fat Donglai depends on the quality control ability and channel management ability, and it faces a large influx of people such as purchasing agents, which poses a great challenge to its volume control ability.

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Text | Daily Finance 116

Recently, some customers have reported that the sanitary environment of the "rolling dough" processing site of the joint venture catering in Xinxiang, Henan Province is poor. In the early morning of June 27, "Fat Donglai Trading Group" issued a document saying that a cash reward of 100,000 yuan would be given to customers who helped find major food safety hazards; From June 9 to June 19, 2024, all customers who purchased rolling dough and spicy noodles at the catering department of Xinxiang Fat Donglai two stores will be refunded and given a compensation of 1,000 yuan (a total of 8,833 copies).

Nearly 9 million was lost due to "a bowl of rolling dough".

On the evening of June 25, some customers reported that the sanitary environment of the "rolling dough" processing site of Fat Donglai Joint Venture in Xinxiang, Henan Province was poor. After receiving customer feedback, Fat Donglai attached great importance to it and immediately requested all the joint venture stalls of the catering department of the two stores in Xinxiang to be closed, and set up an investigation team to strictly investigate and implement the matter in combination with the director of the catering department.

According to the investigation report, at 11:00 a.m. on June 19, a customer went to the catering department of Fat Donglai Life Plaza in Xinxiang City to report that the merchant rolled dough in the middle of Yinhuang Road, and its environmental sanitation was poor, and provided video footage of the scene. After receiving customer feedback, combined with the previous visit records of the catering department, it was found that the processing point was inconsistent with the registered processing point (Baliying). At 13:00 in the afternoon of the same day, the catering department arranged personnel to confirm the route and location of the processing point according to the address provided by the customer.

At 6:00 a.m. on June 20, the catering department arranged quality control personnel to conduct an investigation, and at 9:30 a.m., it was confirmed that the delivery van departed from the processing point and delivered gluten, bean sprouts, and chili oil to the catering dough rolling stalls of the two stores in Xinxiang Fat Donglai. After the investigation confirmed that the customer feedback information was true, the catering department required the dough rolling stall to stop business on June 20 for rectification, and shut down the processing point on Yinhuang Road, and imposed a fine of 5,000 yuan in accordance with the contract commodity management standards.

After three days of suspension and rectification, the person in charge of rolling dough said on the afternoon of June 22 that its problems had been rectified, and the catering department arranged for quality control personnel and direct supervisors of the department to go to the processing point on Yinhuang Road to confirm that the processing point has been closed, and to investigate the newly registered processing point (Dazhuzhuang) to confirm that its processing environment meets the company's standards. Based on the above investigation, the Food and Beverage Department decided that the dough rolling stall would resume business on June 23.

Fat Donglai said that the emergence of this food safety incident reflects the lack of awareness of the management of the company's business philosophy, as well as the weak awareness of food safety, does not adhere to the bottom line of commodity quality, and does not supervise food safety risks in place, and at the same time reflects the imperfection of various management systems and process standards, which led to the occurrence of the food safety accident of the merchant, and the following rectifications were made in response to the incident:

1. Strengthen commodity quality control management

(1) Conduct a thorough investigation of the processing operations of all merchants in the catering department from the source of supply, raw material quality, processing environment, operation, logistics and distribution, etc., and simultaneously investigate other merchants in the whole format, and resolutely remove the merchants who do not meet the company's standards;

(2) According to the product quality standards, formulate a training plan for all employees, from the management to the staff to the merchants, improve the importance of food safety in an all-round way, strictly implement the control measures of commodity quality from the factory audit, ordering, acceptance, storage and turnover standards, and prevent unqualified goods from being sold on the shelves.

2. Improve various management systems and work standards

(1) Sort out and improve the "Fat Donglai Catering Factory Audit Standards", including raw material procurement management, commodity quality management, factory environmental management, warehouse management, production process management, equipment and facilities management, and transportation management to ensure food safety traceability;

(2) Improve the merchant's "Cooperation Contract", add corresponding terms, and without the review and approval of Fat Donglai Company, the procurement standards, transportation process, production location, production process, storage conditions and other standards for products and raw materials shall not be changed;

(3) Form a case book for food safety-related issues, combine food safety related laws and regulations, train management and employees, and improve the food safety awareness of personnel in all positions;

(4) Establish a reward mechanism for food safety supervision and reporting, and reward the parties who can provide effective clues related to the food safety problems of Fat Donglai once verified to be true, and we will keep the relevant information of the parties confidential.

For customers who help discover major food safety hazards, give the customer a cash reward of 100,000 yuan; From June 9, 2024 to June 19, 2024, all customers who purchased rolling dough and spicy noodles at the catering department of Xinxiang Fat Donglai two stores will be refunded and given a compensation of 1,000 yuan (a total of 8,833 copies); and dismissed, dismissed, and canceled year-end benefits for the relevant staff of Fat Donglai; Xinxiang Fat Donglai dough rolling merchants are required to stop business from now on, and terminate the contract to terminate the cooperation, and withdraw the cabinet within a time limit.

Fat Donglai Company emphasizes that commodity quality is the lifeline of an enterprise. The company will adhere to the original intention and belief of business in terms of ideology and management standards, and control every level from the source to ensure that customers are provided with safe, secure and high-quality goods.

Fat Donglai promised that after the investigation is clear, the investigation results of the incident will be publicized through the official platform as soon as possible, and the company's handling process and results will be shown to the public in a transparent way. The company said that it will resolutely remove the associated merchants that do not meet the company's standards. Fat Donglai will supervise all departments to improve product and brand management standards, and resolutely shut down and remove goods that do not meet quality standards.

The behind-the-scenes "promoter" of Fat Donglai's popularity

According to the data, Fat Donglai Trading Group Co., Ltd. was established in 1997 and is an enterprise mainly engaged in the retail industry. In recent years, Fat Donglai has become popular on the Internet because of its warm corporate culture and meticulous service.

Lei Jun once commented that Fat Donglai "is the god-like existence of China's retail industry", and Ma Yun said that Fat Donglai is a mirror that can reflect the shortcomings of other companies. And the "ghost talent" Yu Donglai is the "promoter" behind Fat Donglai's popularity.

Fat Donglai is the most praised by consumers, first of all, the service experience, so much so that it is called "Haidilao in the supermarket industry". For example, in the fruit area, the clerk will peel the fruit and cut it into a plate for customers to eat. At the entrance, customers will be provided with free hot water, warm water, and even a baler; After the purchase checkout, if a customer returns the item, even if the purchase receipt is lost, the store staff will help to refund the full amount; In Fat Donglai Cinema City, if customers are not satisfied with the film they watch, they can refund 50% of the ticket price with the movie ticket within 20 minutes after the end of the film.

For his employees, Fat Donglai is also a well-known "pet". In terms of salary, the salary that Fat Donglai gives to the front-line employees of the local supermarket in Xuchang is much higher than that of the local white-collar workers. Moreover, in order to allow employees to better serve customers, Fat Donglai even set up a "grievance award" ranging from 500 yuan to 5,000 yuan. When employees encounter some uncivilized and unfair treatment when serving customers, Fat Donglai will use this to comfort employees.

Fat Donglai not only rejects the overtime culture, but also encourages employees to maintain a sense of relaxation at work. Fat Donglai has a lot of choices for employees, such as fitness, reading, watching movies and even playing mahjong during lunch breaks, and it is difficult to equate this kind of welfare comparable to that of an Internet factory with a supermarket.

In addition, Fat Donglai's non-front-line employees only work 4 days a week (mandatory store closure on Tuesdays and weekends). Even, Yu Donglai publicly stated that he would strive to achieve annual leave for front-line employees to work only 5 hours a day and at least two months in the future.

According to other media statistics, among the more than 2,500 employees in the supermarket department of Fat Donglai, there are 17 people with an annual salary of more than 2 million yuan, 34 people with an annual salary of more than 1 million yuan, 83 people with more than 500,000 yuan, and the average salary of other employees (without dividends) also exceeds 6,000 yuan.

Yu Donglai often said that "the best marketing is sincerity, and the best service is goods." This is the meta-point of Fat Donglai's way of doing business, just like "first principles", a philosophical concept proposed by the ancient Greek philosopher Aristotle, which has become a business motto because of Musk's admiration, who often says, "According to first principles, there is no reason why this should not be successful"; If Yu Dong is asked, "As long as you are sincere, there is no reason not to succeed." ”

The success of Fat Donglai has attracted more and more retail companies to come to "learn from experience", and they all want to get a glimpse of Fat Donglai's business "Dafa".

At the beginning of April, Fat Donglai's 20-person support team came to Changsha, they had just withdrawn from the 9-month transformation front line of Jiabaile, and they were put into the adjustment of backgammon. And this is just the beginning, more and more companies have come to find it, both regional like Jiabaile, and there is no lack of scale like Yonghui, some of them are blocked to Xuchang, and some are chased all the way to Hunan.

For those companies that want to make changes, Yu Donglai's first suggestion is, "The boss should wake up and think about it, and the things that are adjusted and changed are too simple, and it is too simple to do business." But he also understands everyone's "difficulty" - "the biggest obstacle is getting used to it." ”

Many of Fat Donglai's business ideas are iconoclastic. A colleague learned about the cooperation model between Fat Donglai and suppliers, and felt that it was incredible: general enterprises will carry out cost management of the supply chain, and the purchase volume will increase, so the purchase price will be lowered, but Fat Donglai is just the opposite, if the purchase volume is more, they will take the initiative to increase the price of the supplier, because according to their logic, after the production scale increases, the management difficulty will also increase, which will increase the production cost accordingly, erode the original profits, and in the long run, the supplier is likely to sacrifice quality to maintain profits, so" To make him first, not to manipulate him".

How long can the top-notch "myth" last?

According to the data released by the Xuchang Bureau of Culture and Tourism, the city's 11 4A scenic spots received a total of about 1.273 million tourists during the 8-day Spring Festival holiday this year, while the 3 supermarkets in Fat Donglai received 1.1633 million tourists in just 3 days. Fat Donglai opened the door at half past nine, but there would be a long queue at the door at six or seven o'clock every day.

The tea shop can't get in line for an hour, consumers don't have anything to buy, and the purchasing agent pulls the car into a ...... Compared with the previous flood of praise, now there are different voices. More and more consumers complain that Fat Donglai has a worse shopping experience because there are too many people.

According to Elephant News, because I always get videos about Fat Donglai on the Internet, before I really experience it, Fat Donglai seems to be a "myth" in the eyes of Ms. Zhou in Linyi, Shandong. It wasn't until she arrived in Xuchang that Ms. Zhou commented that "the supermarket is very good, but because there are too many people, the experience is not too good."

Ms. Zhou said that for this experience, she also made a strategy in advance, such as which products are worth buying. But what she didn't expect was that even on weekdays, people in the supermarket were still rubbing shoulders. Many Internet celebrity products have been sold out before she can figure out the location, "Internet celebrity mooncakes were sold out at more than ten o'clock in the morning, and their self-operated beer was also sold out, and the tea shop was because not only did it have to make an appointment in advance, but also required the appointment location to be within 50 kilometers, so I didn't have to go to the ......door at all."

In the end, Ms. Zhou had to find a purchasing agent on the spot, bought a few catties of tea and a few pieces of Internet celebrity moon cakes, and paid an additional purchasing fee of more than 100 yuan.

In fact, not only outsiders like Ms. Zhou who come from afar, but even locals may not be able to grab these Internet celebrity goods. Mr. Chen, a citizen of Xuchang, revealed, "Some people come to line up at three or four o'clock in the morning, all of them are purchasing agents, and some rely on live broadcasts to sell more than 10,000 yuan a day." "According to reports, there are purchasing agents who can get 200,000 yuan of goods at one time, and the purchase profit for two days and one night is about 20,000 yuan.

The emergence of daigou has seriously affected the shopping experience of local residents and tourists. Some consumers complained on Douyin that the purchasing experience is extremely poor everywhere.

The daigou business is not only for local consumers, they will also sell Fat Donglai's products to foreign consumers through Taobao, Xianyu, Pinduoduo and other platforms, and these customers bring them considerable profits. Search for "Fat Donglai" as a keyword on Taobao, and there will be many stores with "Fat Donglai" in their names, such as: Fat Donglai Selection, Fat Donglai Strict Selection, Xuchang Fat Donglai from the main brand integrity purchasing, etc.

Under the disruption of purchasing agents, Fat Donglai seems to be evolving into a wholesale manufacturer. What's even more terrifying is that the daigou are ruining the brand image that Fat Donglai has worked so hard to establish. On the Internet, the call for cracking down on Fat Donglai's purchasing agent is getting higher and higher, and even the comment area of Fat Donglai's official account has been covered by this call.

Obviously, Fat Donglai has realized the problems caused by daigou. In a letter of apology, Fat Donglai mentioned that the traffic of each store has increased several times, and it has also exceeded the normal operation of the store, and in order to ensure safety, we have adopted flow restriction management...... Because there are too many people, everyone needs to queue up for parking, entering, shopping, and dining, and there are also problems such as insufficient supply of goods, inadequate staff services, and high hotel prices, which bring a bad experience to everyone.

Fat Donglai, who has always been known for his service, has been complained about the deterioration of the shopping experience, how long can the "myth" of Fat Donglai last?

Professor Zhou Yangmin of the Business School of Zhengzhou University said bluntly, "It depends on Fat Donglai's control ability, mainly quality control ability and channel management ability." Zhou Yangmin analyzed, in fact, for many netizens to pay attention to why Fat Donglai did not open stores in first- and second-tier cities, such as Beijing, Shanghai, etc., the main reason is that the volume control ability is limited.

In Zhou Yangmin's view, "One of the most significant features of Fat Donglai is the expansion of the social order of a small urban population. "And now, with the influx of foreign consumers, Internet celebrity live broadcasts and purchasing agents, it has become a first-tier city, which poses a great challenge to Fat Donglai's volume control ability." If Fat Donglai can expand his culture to a larger scale, then this popularity may continue. ”

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