A shares on the tip of the tongue: how are Guangzhou restaurants, Xian restaurants and Quanjude old brands doing?

category:Finance
 A shares on the tip of the tongue: how are Guangzhou restaurants, Xian restaurants and Quanjude old brands doing?


Haidilao caused a public outcry because of the price increase, because it hurt the feelings of diners, and finally Haidilao had to apologize for the price reduction. After the Spring Festival, Jia Guolong, chairman of Xibei, said, Xibei cant live for three months, attracting many banks to help.

Someone wrote you cant learn from Haidilao before, and then someone wrote why do Xibeis waiters always laugh. Haidilao and Xibei have become representatives of the Chinese catering industry.

But do you know where Chinese people went to eat a hundred years ago? For Guangzhou people, they can go to Guangzhou restaurant to have breakfast; for Xian people, they can go to Xian restaurant to have a bowl of mutton and steamed bun; for Beijing people, they can go to Quanjude to have roast duck, which is all a matter of face.

Xian restaurant was listed as early as 1997, but now it is renamed Xian Catering. Ten years later, Quanjude successfully landed in the capital market. In 2017, Guangzhou Restaurant successfully listed on the Shanghai Stock Exchange after several years of business.

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Xian catering industry is the old tree of catering industry, performance pressure needs to be transformed

Baomo with mutton is a delicious food in Shaanxi, especially in Xian. If you go to Xian for a visit, you are embarrassed to say that you have been there without a bowl of steamed mutton.

Tongshengxiang, a subsidiary of Xian diet, is a time-honored brand selling mutton and steamed bun, and its production technology has also been listed in the national intangible cultural heritage list.

In addition to tongshengxiang, the most famous catering brand of Xian Catering is Xian restaurant. Xian restaurant was built in 1929 by Feng Kechang and some celebrities in Xian at that time. It is famous for authentic Shaanxi cuisine and Shaanxi flavor Daquan.

As early as during the Xian Incident in 1936, Zhou Enlai set up a peace banquet in Xian restaurant to promote a peaceful settlement. He entertained the patriotic generals of the Northeast Army and the northwest army, Zhang Xueliang, Yang Hucheng and anti Japanese Democrats with special dishes and Huanggui thick wine, and finally reached a peaceful settlement of the Xian Incident.

In 1938, after a long journey and breaking through many obstacles, the Indian medical team came to Xian. Zhou Enlai once again held a banquet in Xian restaurant, entertaining Dr. Ke Dihua and other international friends and anti Japanese Democrats who helped China resist Japan.

It can be said that Xian restaurant is not only a landmark building in the hearts of Xian people, but also has made outstanding contributions to the Chinese revolution.

Although there are many time-honored brands in Xian, Xian diet has continued to swing on and off the profit and loss line in recent years. In order to activate the brand, Xian Catering has made great efforts in the innovation of time-honored brand characteristic products and the expansion of delivery channels, but the effect is not obvious.

From the perspective of operation, Xians catering business revenue has been declining year by year since it broke the 600 million yuan mark in 2011. From 2011 to 2014, the company achieved operating revenues of 672 million yuan, 659 million yuan, 586 million yuan and 546 million yuan respectively; during the same period, the net profits were 36 million yuan, 16 million yuan, 15 million yuan and 11 million yuan respectively, all of which remained profitable.

From 2015 to 2019, the revenue of Xians catering industry was basically maintained at about 500 million yuan. However, in 2015, Xian diet suffered a loss, and since then, the companys performance has started a loss profit model. In 2016, if it wasnt for the demolition of one of its restaurants that more than 40 million compensation was received, Xian diet would have worn a hat in 2017. In 2018, it turned loss into profit again by relocation compensation, realizing a net profit of RMB 09 million.

(data source: tonghuashun mapping: Heichi finance and Economics)

A time-honored restaurant enterprise with unique brand advantages is now in the aging crisis. In recent years, influenced by the downturn in the consumer market, Xian Caterings main business development space has encountered bottlenecks, and it is difficult to have strong performance support in the short term.

In this context, Xian diet also tries to transform. In December 2019, Xian Catering Co., Ltd. issued two consecutive announcements, saying that according to the needs of business development, the company will jointly invest 3 million yuan with Deli to establish a brand operation company.

For the establishment of a brand operation subsidiary, Xian Catering explained that in order to actively implement the development strategy of coordinated development of brand operation and capital expansion, the historical responsibility of burnishing the gold brand and revitalizing the old brand, introducing social capital and leveraging professional teams to further revitalize the old brand.

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No food is more representative of Beijing than Beijing roast duck, and no roast duck shop is more representative of Beijing roast duck than Quanjude.

The founder of Quanjude is Yang Quanren. In the third year of Tongzhis reign (1864), he traded raw chickens and ducks in the meat market street outside Qianmen, Beijing. See the name dejuquan dry fruit shop business is on the verge of collapse. Smart Yang Quanren seized the opportunity, took out his savings for many years, and bought the store of dejuquan. With its own shop, what size should it be?

Yang Quanren invited a Fengshui gentleman to discuss. The geomantic gentleman said, ah, this is really a geomantic treasure land! However, in the past, the shop was so unlucky that it was hard to get rid of the bad luck. Unless the old name of dejuquan is reversed, that is to say, Quanjude, we can make good luck and embark on a smooth road.

Mr. Feng Shui said something, which made Yang Quanren smile. The name Quanjude is exactly what he wants. First, his name has a word Quanjude. Second, it is to gather virtue and conduct, which can be advertised as doing business and talking about virtue. So he named the store Quanjude.

Under the careful management of Yang Quanren, Quanjudes business is booming. After hundreds of years of painstaking efforts, Quanjude cuisine has been continuously innovated and developed, forming a Quanjude cuisine with unique Quanjude roast duck as the leader, integrating quanyashi and more than 400 characteristic dishes, which is popular with heads of state, government officials, people from all walks of life and domestic and foreign tourists.

In 1993, Beijing Quanjude Group was founded; in 1994, Beijing Quanjude roast duck Co., Ltd. was founded by 6 companies including Quanjude Group; in 2003 and 2004, China Quanjude Co., Ltd. was founded through two reorganizations; in 2007, Quanjude was listed on Shenzhen Stock Exchange.

With the help of the track of capital market, Quanjude continues to develop rapidly. From 2007 to 2012, the companys revenue has increased from 917 million yuan in the year of listing to 1.944 billion yuan, and its net profit has also increased from 64.32 million yuan to 152 million yuan in the same period.

From 2013 to 2016, the net profit of Quanjude also continued to rise under the condition of constantly fluctuating revenue. However, in 2017, the good performance development trend was broken, and the companys net profit decreased from 140 million yuan in 2016 to 136 million yuan. In 2018 and 2019, Quanjudes revenue and net profit continued to decline.

(data source: tonghuashun mapping: Heichi finance and Economics)

With the decline of business performance, the turnover of Quanjude executives frequently occurs. Since the second half of 2019, the new board of directors has undergone a major change. First, ye Fei, the director, submitted his resignation report; then in November, general manager Zhang Zhang Zhang submitted his resignation report; in March this year, Han Xuesong, the director, also submitted his resignation report.

On December 4, 2019, Quanjude hired Zhou Yanlong as the general manager of the company and added him as the director of the eighth board of directors of the company. Zhou Yanlong previously served as secretary of the Party committee, director and general manager of Beijing DongLaiShun Group Co., Ltd.

However, on April 8, 2020, Bao min, who has been chairman of the board for one year, submitted his resignation report. Bao min hereby applies to the board of directors to resign from the position of director and chairman of the board of directors because he has reached the legal retirement age. After resigning, he will no longer hold any position in the company. Lu Changcai, the director, acted as the chairman of the board of directors and presided over the work of the board of directors.

Cantonese restaurant and food

Food is the first in Guangzhou. Guangzhou Restaurant, a popular enterprise for decades, slogan, is known by almost every local people in Guangzhou. As the leading leader in the local catering industry, Guangzhou Restaurant has created a series of well-known Cantonese food brands.

Guangzhou restaurant was founded in 1935 by businessman Chen Xinghai and Yu hanmou, the former commander-in-chief of the Kuomintang army. There are many famous chefs in the restaurant, including Liang Xian, the world chef king and Zhong Quan, as well as Liang Rui, Luo Quan, Liang Di, Chen Lu, Hu Pei and Li long. The pastry division, known as the Four Heavenly Kings of the province, Hong Kong and Macao, once occupied the third place.

Guangzhou Wenchang Chicken and Paris duck are the first dishes of the restaurant. In addition, famous dishes such as crab yellow, big wings, fried duck feet with hundreds of flowers and glass shrimp are also attractive.

Guangzhou Restaurant Group Co., Ltd. was restructured into Guangzhou Restaurant Group Co., Ltd. in 2009. It was listed on Shanghai Stock Exchange on June 27, 2017, becoming the first food group listed in Guangdong Province.

Guangzhou Restaurant focuses on the food + catering business model. The companys food business segment is mainly moon cake series products, frozen food and spicy products; the catering business segment is mainly self-supporting Cantonese Chinese food Guangzhou Restaurant and tianjipin, in addition, it has cultivated and developed many food and beverage brands such as xixidi, haotangi and Xingyue City.

According to Heichi financial statistics, the revenue of Guangzhou restaurant food business and catering business has been rising in recent years. From 2014 to 2018, the revenue of food business has increased from 569 million yuan to 1.892 billion yuan, while the catering business in the same period has also increased from 155 million yuan to 601 million yuan. As the annual report of Guangzhou Restaurant has not been disclosed yet, the specific revenue situation of the two main businesses in 2019 is not known.

(data source: company annual report drawing: Heichi finance and Economics)

Looking back at the operation of Guangzhou Restaurant in recent years, both the operating revenue and the net profit are increasing year by year. Financial data shows that in 2011, the companys revenue was only 1.166 billion yuan, but by 2019, the companys operating revenue has exceeded the 3 billion mark. Meanwhile, from 2011 to 2019, the net profit also climbed from 148 million yuan to 396 million yuan.

Zhao Liping, deputy general manager of Guangzhou Restaurant, once said, old brands should not rely on the old to sell the old, but should keep pace with the times to maintain vitality. Guangzhou Restaurant is still exploring new development models.

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The break and establishment of the old restaurant brands

After combing the performance profile of A-share listed catering enterprises, you may find that catering enterprises, such as Quanjude and Xian Catering, which hold time-honored brands, are gradually entering a bottleneck period of development and their business performance continues to be low. The only Guangzhou Restaurant with stable growth, its performance is more driven by the food sector.

Now heichijun may wish to compare the operation of three companies in recent ten years, which may help readers to see who is the black horse of the industry more intuitively. (Note: the operation of Guangzhou Restaurant in 2010 is not disclosed)

From the perspective of revenue, from 2010 to 2019, Xian Catering has maintained a revenue scale of 400-700 million yuan; Quanjude has basically maintained a revenue range of 1.3-2 billion yuan, which has continued to decline in the past four years; Guangzhou restaurants revenue has increased year by year, which has exceeded Quanjudes revenue model in 2016, becoming the company with the highest revenue among the three.

(data source: tonghuashun mapping: Heichi finance and Economics)

In terms of net profit, comparing the financial data of the three enterprises over the years, we can see at a glance that Xian Catering and Quanjude are facing the bottleneck of performance growth, while Guangzhou restaurants have maintained a rapid growth trend.

(data source: tonghuashun mapping: Heichi finance and Economics)

In 2020, the catering industry encountered the black swan event. Chinas China novel coronavirus pneumonia epidemic report on the impact of the new crown pneumonia epidemic on the Chinese catering industry released in February 12th showed that the catering industry suffered serious losses during the Spring Festival this year. Compared with the Spring Festival last year, 78% of the catering enterprises lost more than 100% of their business revenue, 9% of the business revenue loss reached 90%, 7% of the enterprises lost 70% to 90% of their revenues, and the loss of revenue was 9%. Less than 70% are only 5%. Taking Quanjude as an example, under the influence of the epidemic, the number of new years meals returned from Quanjudes Direct stores reached 4000, and more than two thirds of the stores in the country were closed. The first quarter performance data shows that from January to March this year, Quanjudes net profit is expected to lose 90 million yuan to 100 million yuan, a year-on-year decline of 945.75% to 1039.72%. Catering time-honored brands represent not only the craftsmanship of food, but also the inheritance and development of Chinese traditional culture. In the face of complex and changeable market environment and fierce competition, it is worth pondering in the industry how to activate the old brands and walk out of the road of transformation. Source: Heichi finance and economics author: Tang Guoguo editor in charge: Zhong Qiming ufe56 nf5619

In 2020, the catering industry encountered the black swan event. Chinas China novel coronavirus pneumonia epidemic report on the impact of the new crown pneumonia epidemic on the Chinese catering industry released in February 12th showed that the catering industry suffered serious losses during the Spring Festival this year. Compared with the Spring Festival last year, 78% of the catering enterprises lost more than 100% of their business revenue, 9% of the business revenue loss reached 90%, 7% of the enterprises lost 70% to 90% of their revenues, and the loss of revenue was 9%. Less than 70% are only 5%.

Taking Quanjude as an example, under the influence of the epidemic, the number of new years meals returned from Quanjudes Direct stores reached 4000, and more than two thirds of the stores in the country were closed. The first quarter performance data shows that from January to March this year, Quanjudes net profit is expected to lose 90 million yuan to 100 million yuan, a year-on-year decline of 945.75% to 1039.72%.