Sell second-hand recycling equipment as scrap iron! Well-known milk tea brands have been exposed to be significantly closed!

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On Sept. 9, the topic of too many unsalable second-hand equipment in stores that also burned immortal grass rushed to the top of Weibo, attracting the attention of netizens.

According to Phoenix New Media, due to the accelerated closure of several tea brand stores, recyclers of second-hand equipment have become popular. Among them, books also burn fairy grass due to too many closed stores, and the second-hand equipment in the warehouse was once unsalable. Some recyclers revealed that more than a dozen sets of machines that once spent 60, 000 or 70, 000 yuan for recycling are now sold as scrap iron for 2000 yuan. As for the shopkeeper who specializes in the recycling business of tea brand equipment, he said bluntly: "We will not accept the equipment for burning fairy grass as well."

The combination of milk tea and roasted immortal grass makes it active in the eyes of consumers since 2019, and has once become the forefront representative of the industry. Compared with other peers' main products, the book also burns fairy grass milk tea is mainly "half a cup of ingredients", so that milk tea officially entered the "eight treasures porridge" era, but also led many brands to roll up all kinds of "small materials".

According to the official website, the book also burns fairy grass opened its first store in 2007, and the brand name changed from the initial 85 °Tea to the book also burning fairy grass. In 2021, the brand opened 7000 stores, ranking second in the industry after Snow and Ice City. But two years later, as the number of stores of other brands soared, the number of Shuyi stores fell by more than 1, 000 compared with 2021, and there are now fewer than 6000.

And now the brand has a large number of shop closures, obviously related to the price reduction decision in the first half of the year. In April this year, the book also officially entered the price war by burning immortal grass, replacing the product line originally focused on around 15 yuan into a new menu focusing on "less than 10 yuan." this also made franchisees who were forced to join the war suffer.

"the price of the product has become lower, but the purchase of finished products has not changed, so that the already small profit margins have been compressed again and again." A franchisee once said in an interview that the turnover of the stores in which books have been burning immortal grass has dropped significantly in the past two years, with a daily turnover of only more than NT $1,000, which is nearly half that of when it first opened, and more and more people want to change hands and close the shop. Some people in the equipment recycling industry said that one day they received 13 consecutive calls from franchisees who also burned fairy grass.

In order to compete for franchisees, the book has also lowered the threshold for brand membership. In February 2022, if you want to open a book, you will also burn immortal grass, and the initial investment and the first batch of materials will cost at least 310000 yuan. Now, if you want to join the book, the upfront cost is estimated to be less than 180000 yuan, reducing the cost by nearly half.

On the other hand, from the daily point of view of second-hand equipment companies operating self-media accounts, the closure of books and burning fairy grass may only be the "tip of the iceberg" in the industry. Because in their warehouse, in addition to hot books and burning immortal grass, equipment recovered from chain stores familiar to consumers, such as Tea Bai Dao, Gu Ming, Shanghai Auntie, can also be found everywhere, and the equipment received is getting newer and newer. However, unlike books, these brands still have franchisees willing to join the board, so there is still a market demand for their second-hand equipment.

Since the beginning of this year, the rapidly expanding tea track has also entered a bubble period. According to the August data of narrow-door Dining Eye, the number of new tea stores opened in the past year was 165000, with a net increase of 46000, which means that 120000 tea shops have disappeared in a year. In addition, the number of new stores opened in the past year was 167000, and the net growth shrank to 35000. In other words, another 10,000 stores disappeared in just two months.

On whether there are major store closures and franchisees' equipment handling this year, a reporter called the book and burned immortal grass, but the customer service staff said it was related to the company's privacy and could not be informed.

Picture from: network screenshot

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