Korea's first coffee brand caffebene coffee to accompany you to join the model analysis of coffee to accompany you to join the fee

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I believe that people who have read the above introduction will be shocked by the rapid development of the "Korea first Coffee Brand". You will also wonder what kind of business model coffee has with you. What is the current situation of operation today? Here is a comprehensive in-depth analysis of coffee accompany you (China):

The main mode of opening a coffee shop with you is what it calls the "franchise model of entrusted entrepreneurship", which in short is joining. With the exception of a few directly operated stores, more than 95% of the stores are franchisees. Among them, the franchise store takes 50% franchise (half of the company and half of the franchisee) as the main mode. Although now KFC, McDonald's, Dex and other foreign fast food have gradually begun to open up to join, but the conditions for joining are still very harsh. In the catering industry, where joining is always the worst policy, why does coffee accompany you to open the joining window so quickly and take it as the main development model as soon as you enter the Chinese market? Can this unique joining model create a brand miracle again in China?

First, the high cost of opening a shop

Let's first take a look at the fee for coffee to accompany you to join and open a store. Taking 50% as an example, it costs about 1.5 million yuan to open a store of about 200 yuan (including 350000 for entrusted operation and management, 100000 for education and training, 600000 for interior design and decoration, 100000 for on-site supervision, 800000 for equipment and furniture, 100000 for signage and image, 100000 for MD goods and consumables, 100000 for POP advertising and event planning). The logistics deposit is 100000, the initial material cost is 90,000, the license processing is 100000 and the entrusted business deposit is 350000, the total cost is about 3 million). In addition to decoration, equipment, furniture and initial materials, these fee items are basically the money earned by the coffee company, and the prices are obviously too high. In addition, let's take a look at the expenses that must be spent to open a store: first, look at the design and decoration fee. The image of each store has been designed and basically unified. It is only a simple copy. 3000 yuan per kilogram is obviously too high. There are also equipment, for example: Kimberly-Clark M39 double-headed semi-automatic coffee machine, Taobao list price of about 70, 000 yuan, but need 120000 to accompany you in coffee! Not to mention the equipment imported from South Korea, it costs tens of thousands of yuan casually. The initial material cost is 90,000. According to the cost ratio of coffee to your product, 90,000 raw materials can be sold in a medium-level store for two months, which is obviously a water-rich price! From this summary and calculation, the price of opening a coffee store with you should actually be between 500000 and 800000, while the franchisee spent 1.5 million and only got 50% of the shares! If there are a lot of figures listed above and some people don't understand, let's take the simplest example: the cost of opening a Starbucks in Europe is $260000 (about 1.6 million yuan), while in China, the same amount of money is only enough to open half a coffee to accompany you!

Second, the mature development model of joining

It costs so much to open a coffee to accompany you, how can you open so many stores in a short time? First of all, let's take a brief look at the entrepreneurial history of Coffee with your founder Jin Shanquan: "Jin Shanquan came to Seoul at the age of 27 (around 1995) with the dream of making a lot of money and honoring his mother. Instead of choosing employment, he chose to start a business. The first time he chose to start a business was the game hall. This is an industry with less investment and a good income. In order to do market research, he went to Japan, where the game hall industry is the most developed. Japan's game hall culture has a great impact on Jin Shanquan, especially in South Korea, which is self-employed and is a chain enterprise in Japan. After returning to Korea, he opened a chain game hall, and there were as many as 300 franchise stores 2 years after starting his business. But he found that the chain game hall has a problem, that is, in addition to the initial franchise fee, can not charge follow-up management fees. In 2000, he turned to the catering industry and opened a popular meat shop. Two years later, the number of franchisees reached 300. He is also called "entrepreneurial genius" by the South Korean media. He became proud and complacent when he owned 300 game halls at the age of 29 and 300 restaurants in his early 30s. After that, he entered the stock market, but this time he lost all his money. In less than a year, he failed so badly in the stock market that he sold 300 restaurants.

Over the next few months, he traveled the country in search of entrepreneurial projects and finally chose potato soup. This time he succeeded again, opening his 300th store in June 2006. He has been running potato soup for the next few years. Once he went on a trip to Europe and found that the coffee shops in Europe were very good. After returning home, he instinctively went to do market research and finally opened coffee to accompany you. " From Jin Shanquan's entrepreneurial experience, we can see that you already have a very mature joining system and experience; Jin Shanquan is an out-and-out businessman who knows very well what to do and how to take all the benefits into his own hands. The China Enterprise Investment Group has taken a fancy to the advantages of the mature joining model of coffee with you, which can circle money quickly and have no risk, coupled with the general trend of the development of China's coffee industry and the jealousy of Starbucks by countless people. it has started the trend of rapid replication of stores in China. This kind of joining not only has a high opening fee, 50% joining, but also has to be divided into half of the profit of the store; at the same time, coffee companion you have to charge 4% of the total turnover each month as the entrusted operation and management fee (350000 of the entrusted operation and management fee is already included in the opening of the shop. You also have to collect it after opening the shop. Coffee companion you have done the best to join the operation.) In addition, coffee accompanies you to set up your own logistics company to control the supply of raw materials in all stores in your own hands, ostensibly to control the unity of raw materials, but actually to control the profits of raw materials in your own hands. The common raw materials in the market can take advantage of group procurement to supply stores at a slightly lower price than the market. But other unique raw materials (such as raw materials imported from South Korea, home-made products, etc.), not only the price is higher, coffee with you and even reduce the quality of raw materials to achieve the purpose of making money. For example: nowadays, the quality of coffee beans, ice cream, bread and other raw materials with you has declined in varying degrees, but the supply price has increased. Such a mature and perfect joining model has basically controlled the profits of a store in its own hands, and the upfront fees have also earned the profits of the next 5 to 10 years ahead of time. How can franchisees generate profits? We can only rely on late sales. But unfortunately, few of the coffee companies in China are making money with you. Even if you are making money, it is even more difficult to make up for the money earned by coffee.

Third, the Chinese coffee market is still at a low level.

Seeing here, someone may have to ask, why did coffee accompany you develop so well in Korea? First of all, South Koreans are very national cohesion, the choice of cafes is of course to choose South Korea's own brand (regardless of joining or consumption), surpassing Starbucks will happen sooner or later. The same thing is true in China, where some of the best stores for coffee are also located in the city's Korean gathering places, such as Wangjing in Beijing and Hongqiao in Shanghai. Second, China's coffee consumption market is still at a relatively low level. Let's do a simple calculation: South Korea has a population of 50 million, per capita annual coffee consumption is 300 cups, the total annual consumption is 15 billion cups; China's population is 1.4 billion, per capita annual coffee consumption is less than 3 cups, and the total annual consumption is 4.2 billion cups, less than 1/3 of South Korea's. There are nearly a thousand coffee shops with you in South Korea, and now there are more than 400 in China, which has completely exceeded the consumption of coffee in China, so it is reasonable for Chinese coffee to accompany you in bad business. In addition, coffee accompanies you to devote almost all your energies to opening a store, while its store operation and management ability is only at the primary level.

Fourth, the ability of store management and operation is basically equal to zero

The most difficult thing for a chain franchise is how to implement the standard process management of the store. If there is no standardization, then the significance of the chain is not great. Imagine that in different stores of the same chain, customers will eat different products and receive different services. Can this still be regarded as the same brand? And coffee accompanies you in such a situation in China, even if you go to the same store at different times and choose the same product, you will have different tastes. Coffee accompanies you in addition to the unified store image, other items in different franchise stores will reflect different standards. Customers who have been to different coffee stores to accompany you will have this experience: different stores will have products that other stores do not have, and products in other stores (including coffee) sometimes have slight differences (appearance, taste, etc.). The waiting time for the same product is not the same, anyway, it is relatively slow. Because there is no uniform standardization, let alone process, the natural waiting time is long (of course, there are other reasons, which will be mentioned later). How can a first-class Korean brand face the situation that it is difficult to unify even the basic standards? I think this is also one of the main reasons why many large restaurant chains are reluctant to join.

Although 50% of the franchisee pays half of the money, the actual result is that the coffee company accounts for 51% of the shares, and the franchisee accounts for 49% of the shares. The original purpose of this approach is to prevent franchisees or more from participating in store management. However, there is always a big gap between reality and ideal, coffee accompany your company is basically equal to zero store operation and management ability, or let most franchisees become the main store managers. The main reason is that the rapid opening of stores makes it difficult for companies to find a qualified manager quickly, while franchisees can take advantage of local resources to find their own managers. Coupled with the franchisee (especially the local), basically every day to the store "guidance", and the company's regional general manager or counselor, like an imperial minister to inspect the store every month and always maintain a "harmonious" attitude (mentioned in detail later), franchisees naturally become real managers. Unfortunately, the most difficult thing for a chain franchise is how to implement the standard process management of the store. If there is no standardization, then the significance of the chain is not great. Imagine that in different stores of the same chain, customers will eat different products and receive different services. Can this still be regarded as the same brand? And the franchisee-led coffee accompanies you in such a situation in China.

5. Serious internal friction

To join a chain, you often have to face the problem of internal struggle between the company and the franchisee. Therefore, almost all large chain franchises will restrict franchisees to participate in the operation and management of stores. But when you are accompanied by coffee, you have to face not only the infighting between the company and the franchisee, but also the internal struggle within the company. When Coffee accompanied you into China, you joined up with the China Enterprise Investment Group. The mode of their cooperation is like 50% joining, half and half of the two families. The Koreans provide coffee to accompany you in everything in Korea. In order to make the coffee accompany you to better adapt to the Chinese market (in fact, in order to compete for dominance), the Chinese begin to change the standards and systems established by the Koreans. Koreans must protect their rights and interests and image, so the infighting begins. After all, this is the territory of the Chinese, coupled with the fact that the number of Koreans is not dominant, the Chinese began to occupy the dominant position. Koreans have no choice but to invite Taiwanese who are very successful in the catering industry to weigh their power. As we all know, the characteristic of Taiwanese catering is that they can make more delicious products at lower prices. The Taiwanese who accompany you have also made several new products to enter the product system of coffee accompany you. Unfortunately, this is completely inconsistent with the original product system of coffee with you. As a result, the arrival of the Taiwanese does not weigh the Chinese and the Koreans, but only makes the coffee accompany you more chaotic. This is also one of the reasons for the confusion in the standard of coffee with you. Another important reason is the infighting between the company and the franchisee. The infighting between the two sides is also different: the company basically does not directly object to the franchisee's failure to abide by the company's standards, but always treats the franchisee like a customer, first persuading the franchisee to give up and inform the strong relationship; the franchisee insists repeatedly or acts in private, the company will turn a blind eye, and then think of other ways to solve the problem. In short, they will never fall out with franchisees, and always maintain a consultative attitude (just like the current neighborhood committees and police stations, which is a typical Chinese practice). The end result is that the service standards have changed, the raw materials have changed, even the product formulations as the lifeline of chain stores have been changed, and even the price has been changed, entering the vicious competition with other chain stores of the same brand. The franchisee is addicted to the boss, but this kind of management will only lead to a road of no return. Basically join coffee to accompany your franchisee, are not from the catering industry, so the layman to guide the situation, I believe that will not go too far. How long can I accompany you with the coffee that is constantly in the midst of internal friction?

Coffee with you, how much longer can I stay with you?

Coffee accompanies your entrusted entrepreneurial promotion in China. At different times, there is an interesting change at the end: at first, "by 2015, the number of chain stores in China will reach 5000, and then go to Hong Kong to list"; then: "by 2015, the number of chain stores in China will reach 1500, and then go to Hong Kong to list"; then: "by 2015, the number of chain stores in China will reach 1000." The most recent is: "by 2015, become a world-famous coffee chain brand." It is obvious that the goal of coffee accompany you is gradually decreasing. Coffee accompanies you with the following publicity: "I invest, you become the boss, you make money, and I bear the risk." in fact, the previous analysis of who invests is very clear; and in the case of 50% franchise stores, the risk of coffee with your company is basically zero. A 50% franchise store, the coffee company has made at least 700000 yuan with you. Even if a store loses 50, 000 yuan a month, 700000 yuan is enough to last for more than two years (the company only bears half of the loss). Coupled with the initial opening stores, because the relative position is better, the operation and management is also better, will not reach a loss of 50, 000 a month at all, only the stores opened in the middle and later stages are likely to achieve that kind of loss, and when they need to close after a loss of 700000, it is almost 2015 that has been repeatedly mentioned above (the key points of change listed above are not where they have changed, but where they have not changed). Seeing here, someone may finally understand why coffee accompanies you to open a shop so quickly before 2015. Why does coffee accompany you to open a foot shop to be listed in Hong Kong? Why is there such a lack of management after coffee accompanies you to help franchisees open their stores? Why do coffee companions always treat franchisees like customers? "Starbucks teaches Chinese to drink coffee, coffee accompanies you to teach Chinese to open a coffee shop." this is what Lu Changqing, chairman of China Coffee Co., Ltd., said. And this is a big mistake. Starbucks didn't teach the Chinese what the real coffee is, and the coffee didn't really help the Chinese open a coffee shop, but just "sold" a coffee shop to the Chinese. How long can you stay with us with this kind of coffee? I believe that 2015 will be the key. Nowadays, some franchisees have felt the obvious change in attitude before and after opening a coffee shop with you. After opening the store, there are only some new products and the planning of preferential activities in the operation and management, and there is also the competition with the franchisee for the control of the store management personnel. The rest is basically blank. Isolated and helpless franchisees, strong ability to choose to completely break with the coffee company, continue to operate independently, and the company has no way, they will not buy back that 50% of the shares, because they know better than anyone how much the price can not be drawn. Franchisees with poor ability can only continue to cooperate with the company on the surface. Privately, by reporting false accounts, falsely reporting the number of employees, privately making group purchases, reducing the quality of raw materials (such as milk used most in coffee shops), and reducing the quality of service (not turning on air conditioning, reducing the number of employees, etc.), privately share the profits of the stores. Either way, it is not a way for a store to develop healthily. Eventually, with the advent of 2015, the company will start dealing with stores that need to be closed. I think no matter what kind of treatment your company uses, the efficiency of opening 400 stores in 3 years, the speed of closing shop will certainly be much faster than this, after all, closing shop is much easier.

China's coffee market is developing at a high speed, which is the conclusion drawn by almost all the media. Coupled with Starbucks' booming business in recent years, countless people want to take advantage of this spring breeze to get a piece of the coffee industry. The timely arrival of coffee with you, let countless people see the arrival of dawn. And when coffee accompanies you to leave ruins in China's coffee history, please don't laugh at or hate Koreans, because it's all done by the Chinese themselves. Nowadays, when countless second-generation or upstart households in China can fill their own blank spiritual world with the mood of "going to Starbucks for a cup of coffee and so on, and having to open their own fashionable coffee shop", I believe that coffee will be a pretty good choice for you.