Quanjudes recovery is hard to find

 Quanjudes recovery is hard to find

Zhou Yanlong appeared in Hepingmens 100 year old store and held a new food conference when he became the general manager of Quanjude (002186. SZ) for one year.

Zhou Yanlong is no stranger to Beijing culture, time-honored brand or catering industry. Zhou Yanlong, an old Beijinger who has been in DongLaiShun for many years, is no stranger. But for him, the transfer to Quanjude in December 2019 still has a different significance. This is a public company, and its performance and every move will be exposed under the attention of the market.

For Quanjude, it is equally important to welcome a new helmsman. Since 2013, the income of this time-honored brand has been stagnant, and its net profit has declined sharply in the last three years. Word of mouth has been questioned as much as its performance.

From the outside world, Zhou Yanlongs appearance is a reformer. In the face of the impact of the epidemic on the catering market and the loss of more than 200 million yuan in Quanjude in the first three quarters, he proposed a series of measures, such as canceling service fees, reducing per capita consumption and promoting youth, in an attempt to bring the time-honored brand, which highly relies on tourism, back to the local consumption scene.

On the first floor of the century old Hepingmen store in Quanjude, although the overall style is still Antique Chinese style, the hall where the press conference was held was just renovated and adopted the modern and simple style. This is a new attempt of Quanjude.

Some of the new dishes, some of which used molecular cuisine, and some of the improved Beijing traditional snacks. After adjustment, the taste was slightly sweet and more suitable for young peoples taste. It is reported that the new dishes will be officially launched in December.

Behind seeking change, Zhou Yanlong once told reporters that Quanjude did not do a good job in attracting local tourists and young tourists. With the impact of the epidemic gradually faded, now Quanjude began to promote a series of established reform measures, trying to recover the consumers who had been lost.

DongLaiShun, a time-honored brand, was not conservative when Zhou Yanlong was at the helm. In recent years, it has launched a small single hot pot, and its sub brands have entered the fresh meat market of HEMA. It attaches great importance to the sinking of the local consumption scene. This is the grounding that Quanjude lacks. Can Zhou Yanlong bring this change to Quanjude?

Zhu danpeng, an analyst of Chinas food industry, told reporters that Quanjudes change has been obvious in the last half of the year. This time, we can see its consumption scene change, quality improvement and cost performance improvement. However, it should not be so fast to rely on a single change to restore the market and consumers immediately. We can see that the concept of Quanjude is relatively fixed, so it needs more time.

As a listed company, Quanjudes three quarterly reports are still weak, which is an unavoidable problem at present.

In terms of single quarter, Quanjude achieved operating revenue of 180 million yuan, 132 million yuan and 203 million yuan respectively in the first three quarters, with a year-on-year growth of - 55.03%, - 62.98%, - 53.08%; the net profit was - 88.50100 yuan, - 59.9257 million yuan and - 53.7829 million yuan, with a year-on-year decrease of 931.66%, 376.96% and 364.60%.

Even though the domestic epidemic situation has been controlled for a long time, the operating income of Quanjude in the third quarter is still lower than that of the same period last year. In addition, when the operating income increased by 70 million yuan compared with that of the second quarter, the net profit loss margin is similar, which can be said that the increase of income does not increase the profit.

In response to this, Zhou Yanlong told reporters at the event site that Quanjude needed to provide some welfare subsidies to employees in the middle of the year, so the expenses increased, which had a certain impact on profits. At present, compared with the previous three quarters, the companys operating conditions have been greatly improved, but the situation of the National Day golden week is not optimistic compared with previous years.

Source: interface news Author: reachable editor: Wang Xiaowu_ NF