Always imitated, never surpassed.
This article was originally published by Red Meal Network (ID: hongcan18), author: Ruigong, editor: Fang Yuan.
Which category is strong in catering innovation? The hot pot track is definitely the number one.
From the new Chinese decoration to the market ragged style;
From digging deep into the essence of Sichuan-style hot pot to tasting the sour flavor;
Jump from "hot pot + snacks" to "hot pot + dessert" combination.
The hot pot track has never lacked innovative genes, and its huge scale and rapid growth rate also provide a broad space for the development of the brand.
According to the "Hot Pot Category Development Report 2023" of the Red Meal Industry Research Institute, the scale of the hot pot category has exceeded 520 billion yuan, becoming the largest category in the catering market, accounting for more than 10%. The number of stores has increased year after year, and in 2023, hot pot-related enterprises will increase by more than 30% year-on-year.
The increasingly mature chain model is the main driving force for the continuous expansion of the hot pot track. The chaining rate increased from 16.3% in 2019 to 23.6% in 2023, during this period, many cutting-edge brands stood out in the fierce competition through accurate market positioning and differentiated brand strategies, and continuously enriched the diversity of the hot pot market.
When it comes to the exploration of chain franchising, the old hot pot brand has made great contributions, one of which is Xiaolongkan.
Since its establishment in 2014, Xiaolongkan has continued to innovate and try, constantly exploring various ways to play the franchise model, and opened 800+ stores.
Xiaolongkan is not the initiator of hot pot franchise, nor is it the first brand to run out of scale with the franchise model, but it is one of the few hot pot chain franchise brands that has both scale and store health.
Even when it comes to catering franchises, the bias of "franchise equals harvest" still exists, not to mention the complex and changeable challenges in the market a decade ago. Out of this difficult but correct road, Xiaolongkan has not only set a model in hot pot franchise and even the entire restaurant chain industry, but also promoted and led a wave of transformation to a healthy and sustainable development model.
From operation to marketing to multi-dimensional play, Xiaolongkan also continues to inject new views, new models and new strength into the franchise model of the hot pot industry.
New marketing campaigns, new operational actions, new store models
"When the Year of Fighting" Meets "Just the Right Time"
Dragon is not only a brand element of Xiaolongkan, but also a totem of the Chinese. The Year of the Dragon coincides with the 10th anniversary of the Xiaolongkan brand, which can be described as the "year of fighting" and "the right time".
When the Spring Festival was approaching, Xiaolongkan launched a series of marketing activities nationwide called "Eat Xiaolongkan in the First Meal of the Year of the Dragon". Joined hands with the "Forbidden City Guantang", co-branded with top IP, and also issued a hot pot fund of 100 million yuan.
Looking back on the "First Meal of the Year of the Dragon" project, Xiaolongkan has implemented the "four unifications" strategy for nearly a year, and has achieved remarkable results. According to Xiaolongkan, during the Spring Festival, the brand exposure exceeded 2 billion, and the GMV exceeded 40 million yuan, of which the large market rose by 54% year-on-year, the cost-effectiveness ratio decreased by 31%, and the rate of attracting new users in the main battlefield of promotion such as Douyin increased by more than 600%.
At the operational level, Xiaolongkan has a keen insight into the actual needs of catering stores in the economic environment, and in 2024, it will take a new action of "one city, one battle", and the team members of the headquarters will fly more than 30,000 kilometers per capita within 2 months, bringing a new model of "one store, one policy" to regional partners.
While focusing on operational efficiency, Xiaolongkan has not relaxed the research and development update of the strategic model. It is reported that the Xiaolongkan version 3.0 store will be built and tested for shopping mall scenes and young consumer groups, and will be launched in October.
In the past, Xiaolongkan only opened commercial stores in the neighborhood and did not set foot in shopping malls and shopping centers, but the 3.0 version of the store will further broaden the consumption scene of Xiaolongkan, fill the gap market and people from another level, and conform to the current brand road of "good taste + high quality".
The store is back to 800+
From exploring innovation to continuing to lead
In the past 10 years, Xiaolongkan has grown from scratch, from small to large, among the top of the industry, and continues to maintain a high degree of brand potential, which is inseparable from the word "innovation".
Whether it is a flexible response in adversity or an all-out run in good times, Xiaolongkan is taking the lead in exploring. "In the era of rolls, we have to make our own rolls, so our seemingly 'stupid' actions are necessary." The relevant person in charge of Xiaolongkan told the red food network.
From exploration and innovation to continuous leadership, Xiaolongkan has summed up a set of methodologies:
Continue to polish the store model
Ten years after its establishment, Xiaolongkan has continued to upgrade its store model, flexibly updated and iterated to meet the development needs of different stages, and has successively created three models: joint operation trusteeship, standard store 2.0 and community store.
In 2023, Xiaolongkan will make all-round efforts to develop the community store model and seize the broad space of the community economy.
It is understood that the Xiaolongkan community store takes the urban community as the main scene to create a market cultural hot pot atmosphere of fireworks in the world, and has more than 100 community stores across the country.
At the same time, at the operational level, we deeply implement the idea of "please come back and go out": invite franchisees to Chengdu, visit new stores, new models and new products in batches, and output new management and operation methods; Going out, the headquarters staff organized offline exchange and study tours in many cities across the country, effectively empowering stores around the country and helping partners solve operation and management problems.
With the determination to buck the trend, Xiaolongkan resumed growth, and the brand also returned to 800 stores.
Insist on "good taste" of products
Xiaolongkan continues to explore in the direction of "good products" and "good taste", and gradually forms its own unique taste style.
In addition to dishes such as "Ice Hockey Goose Intestines", "Rose Balls" and "Overlord Beef" in the first few years, Xiaolongkan will also create the "Fermented Pot Bottom" in 2021-2023, develop the "Ingredients" series of flavored pot bottoms, and launch themed items such as seasonal cuisine and black gold series.
The first-of-its-kind "Nine Sons Series" has become a must-order signature dish, and the dragon-shaped base co-branded "Forbidden City Guantang" customized at the beginning of this year is an industry original.
Brand marketing is far ahead
In terms of brand marketing, Xiaolongkan's innovation is a generation ahead.
In 2016, the "Sichuan Jinqiang men's basketball team won the championship, hot pot was eaten for free" activity; In 2017, FMCG products landed at the "Taobao Double Eleven" party; In 2018, it took advantage of the marketing of the World Cup in Russia; In the future, we will continue to carry out annual strategic cooperation with first-line brands at home and abroad, such as China Resources Snowflake and Coca-Cola, open up marketing rights, achieve 1+1>2 exposure, and at the same time take advantage of the situation to promote sales, and effectively achieve annual increment.
These actions have evolved to this day and are still the mainstream marketing initiatives in the hot pot industry.
From Internet celebrity to long-term red
Xiaolongkan wants to become the world's No. 1 brand of spicy butter hot pot
The layman looks at the bustle, and the insider looks at the doorway. Behind the popularity of the brand is Xiaolongkan's clear understanding of its own development rhythm.
In 2022, Xiaolongkan will launch a new 10-year strategic plan, dividing the next 10 years into 4 stages according to the rhythm of 1+3+3+3. 2022 is the third year of the epidemic, and it is undeniable that Xiaolongkan was also under great pressure at that time, and "surviving" was the internal slogan of that year.
Xiaolongkan told Red Meal Network that objectively speaking, it is precisely in the most difficult time that the company's strategic determination is truly tested. "Focus on the main business and seek growth while maintaining stability, these eight words have become the consensus of our management."
Entering 2023, when social and economic activities return to normal, Xiaolongkan immediately took "working hard" as its annual slogan, and through professionalism and efficiency, it will sink its business, reshape its scale, and resume comprehensive growth. In 2023, the number of stores in Xiaolongkan will basically remain the same as in 2019.
This year, Xiaolongkan set the tone of "all-out sprint", focusing on high-quality stores and double growth of talents. "All-out sprint", where does the power come from? "The company will be driven by strategy as the engine of development, and the company's mission, vision, values and other core concepts have been updated." The relevant person in charge of Xiaolongkan emphasized.
Xiaolongkan was born as Sichuan-Chongqing hot pot, and always put "delicious" in the first place, and should use "good taste" to satisfy consumers.
In the years of development, Xiaolongkan has continuously improved the oil, formula, and process, and insisted on using high-quality butter, which has become the head brand of spicy butter hot pot in 2023. The latest brand vision of "becoming the world's No. 1 brand of spicy butter hot pot" further highlights the place-occupying orientation of the hot pot segment.
The segmentation track is not only helpful for consumers to recognize the brand, but also allows franchisees and other partners to have a more accurate understanding of the company's development plan.
Ten years since its establishment, Xiaolongkan's corporate values have always guided the development of the brand on the right path: "customer first, continuous innovation, pragmatic responsibility, altruism and win-win." ”
This kind of value based on long-termism also guides the brand and franchisees to work together and seek long-term development. This is also a new exploration of the franchise model of the hot pot industry: the pursuit of long-lasting brand foundation, rather than seizing the time window to realize.
It is thanks to such values that Xiaolongkan can formulate a long-term strategy and continue to implement it, and in this process, gradually complete the management, promotion and empowerment of franchisees to achieve common growth.
The brand has entered its 10th year, and from the perspective of the median life cycle of the catering industry, Xiaolongkan is already considered an "old brand". From "Internet celebrity" to long-term popularity, brand popularity has long become a long-distance race.
In this regard, Xiaolongkan believes that the enterprise value orientation determines the pace and strategy of enterprise development, and the strategy is externalized into brands and products, which is very difficult to explore, but fortunately, Xiaolongkan is very firm. "We're like Columbus, hoping to explore the New World more. Hopefully, when we look back on the next 10 years, we will see that we haven't taken many detours. ”
Looking forward to Xiaolongkan's answer sheet for the next ten years.
The pictures in this article are provided by Xiaolongkan and are used with permission by Red Meal.