With the rapid development of the times and the acceleration of people's life rhythm, the institutional catering industry is gradually becoming an important part of the catering service market.
A few days ago, Chenzhi Big Data released the "2024 Interpretation of China's Institutional Catering Industry Trends", showing that in the past 5 years, the market size and proportion of institutional catering in the overall catering have shown a steady development trend, with the market size increasing from 1.5 trillion in 2019 to 2.1 trillion in 2023, and the proportion has also increased from 32.1% to 40.5%, and institutional catering has become the backbone of the catering market.
Source: National Bureau of Statistics & Chenrui Capital
However, we have to face up to the fact that the fierce competition in the industry, the phenomenon of uneven quality still exists, and the management is not perfect and the standards are uneven, which not only affects the benign and healthy development of the industry, but also poses a threat to the food safety and tongue rights and interests of the majority of group catering customers, especially schools and unit canteens.
In this issue, Xiaowang will discuss with you the breakthrough of the industry and the practical experience of Wangjiahuan......
1. Our audience: to meet complex needs and ensure food safety
According to the data of "Interpretation", the main consumer groups in the institutional catering industry are school students and personnel of enterprises and institutions, accounting for nearly 98% of the total, and the demand for institutional meals by these two groups is complex and strict.
Source: National Bureau of Statistics, Ministry of Human Resources and Social Security of the People's Republic of China, Ministry of Education of the People's Republic of China, the number of urban employed persons, teachers and students is 2022 data
As the main consumer group of institutional meals, school students account for 77% of the customer groups in the mainland institutional meal market, and they not only pursue a balance of taste and nutrition, but also have extremely high requirements for food safety. The personnel of enterprises and institutions pay more attention to the quality and service of group meals, and pursue an efficient and convenient dining experience.
Ensuring food safety is the lifeline of industry enterprises. This not only tests the conscience of practitioners, but also tests the whole process management ability of enterprises. Ensuring stable supply is a test of the operational ability of collaborative deployment.
However, due to the large differences in demand between different regions and different groups, and the large differences in supply between different production areas, it is particularly important for institutional catering enterprises to establish a global supply chain layout and refined management system on the basis of ensuring the lifeline of food safety, so as to realize the coordinated deployment between regions and ensure timely supply and stable quality.
Take, for example, the regional synergy of potatoes, a common ingredient in student cafeterias. In Lanping County, Yunnan Province, potatoes are a common ingredient in local student meals, but due to their high altitude, potatoes are not available until late September, while in nearby Xundian County, they are available earlier and are abundant. In order to ensure the balanced allocation of ingredients, Wangjiahuan reasonably allocated Xundian potatoes to the group meal market in Lanping in the process of operating separately in the two places to achieve food material security.
At the same time, with the scale advantage of centralized procurement, rich experience in government, enterprise and school services and the layout of subsidiaries all over the country, it flexibly responds to complex market demand.
2. Our partners: The industry is fiercely competitive, and we are exploring new growth momentum
Although there are many players in the group meal market, the overall concentration is low. According to the "Interpretation", the fastest growth in the number of enterprises is the group catering enterprises with revenue of 500 million to 1 billion yuan; The fastest growth in revenue is the group catering enterprises with revenue of 2 billion to 5 billion yuan. On the whole, the structural distribution of the top 100 institutional catering enterprises has gradually developed from a pyramid type to an olive shape.
Source: China Cuisine Association
Because the entry threshold of the industry is not high, the market is flooded with a large number of peer competitors, resulting in serious homogeneous competition in the market, and it is difficult for enterprises to form a unique competitive advantage. The price war and other low-quality competition caused by homogenization, the uneven quality of industry enterprises, etc., not only reduce the profit margin of enterprises, but also damage the interests of customers, but also restrict the development of the industry. As an industry enterprise, it is particularly important to explore new momentum for sustainable development, enhance the competitive advantage barriers of the whole chain, and avoid falling into a vicious circle of low-quality competition.
As a national key leading enterprise and high-tech enterprise, Wangjiahuan is constantly iteratively upgrading and exploring new growth forces.
Wangjiahuan organic vegetable cooperative planting base in Junan County, Shandong
In the source of origin, we expand order agriculture in the country, establish a cooperative breeding base for advantageous single products, and develop BS system to pre-process customer order data in the circulation link, so that the inventory efficiency and quotation efficiency are increased by 80%.
Through the trading platform, collection and distribution management platform, traceability system and other information platforms, the whole process of food procurement, distribution, processing and other links is monitored and traced...... A sustainable path for family happiness has been formed. (Further reading: "High efficiency, high quality, and high technology" provide new momentum for the sustainable development of the food distribution industry)
3. Wangjiahuan: collection and distribution, resource sharing, and win-win collaboration
With the continuous development of the institutional catering market, diversified operation and sharing and win-win have become a new trend in the industry.
On the one hand, the diversified development of industry enterprises needs to be shared. For enterprises that need to expand new sectors, cooperate with relevant practitioners, share their advantageous resources, and achieve win-win cooperation.
On the other hand, the cost reduction and efficiency increase of industry enterprises need to be shared.
The chain of the food supply chain is lengthy, involving from field planting and breeding, to harvesting and processing, to storage, transportation and testing, etc., and finally to the table, involving a large number of facilities and equipment investment, labor cost investment, cooperation with industry advantage enterprises, sharing resources and personnel, there is a lot of room for cost reduction and efficiency increase.
Junan School Food Collection and Distribution Center operated by Wangjiahuan
As a food supply chain enterprise that has been deeply involved in the industry for 29 years, we are willing to share a win-win situation with industry enterprises.
In the Southwest Centralized Procurement Center, the dry warehouse and cold warehouse that can accommodate hundreds of thousands of tons of cargo storage capacity have become a shared warehouse for upstream and downstream enterprises;
In the school's food collection and distribution center, the food demand of hundreds of thousands of local terminal diners in the downstream and the supply of all categories from dozens of upstream suppliers have been summarized to form a shared collection and distribution transaction volume of nearly 10 million per month;
In the shared distribution center, professional personnel, warehousing, logistics, and information systems have become the shared advantageous resources of upstream and downstream enterprises and peer enterprises......
epilogue
The institutional catering industry is ushering in new development opportunities and challenges. As an enterprise, we need to keep up with industry trends, explore the road of innovation, and work together to create a better future.
In the future, we will continue to work closely with partners inside and outside the industry to jointly promote the innovation and development of the institutional catering industry, and contribute more to school canteens, government units and agricultural and rural revitalization.