The coffee on the island has come down from the altar and the franchisees have set up their own doors.

The original Shangdao Coffee Mei City outlet store quietly put up the sign of "accompanying Island Coffee", but still retained the order card of Shangdao Coffee Mei City outlet.

A month ago, the original Shangdao Coffee Mei City outlet store quietly put up the sign of "accompanying Island Coffee". Coffee shop staff said that the reason for changing the name is to withdraw from Shangdao Coffee and become self-employed. Not long ago, a Shangdao coffee shop located in Shenggu Home on the North third Ring Road also withdrew from joining and changed its name to "DEMETER Harvest Restaurant" after it became self-owned. The Shangdao Cafe on Heping Lane West Street has now changed its name. The withdrawal of these franchisees is by no means an exception. In recent years, Shangdao Coffee has been closed all over the country. According to public information, the number of Shangdao Coffee in Chengdu has dropped sharply from 20 at its peak to 12, and that in Tianjin has dropped from more than 70 at its peak to less than 40. Why is Shangdao Coffee, which used to be a trump card in the coffee chain, no longer beautiful?

Franchisees set up their own doors one after another.

On July 11, a reporter from Beijing Business Daily came to the original Shangdao Coffee Shop on Meishikou Road in Fengtai District and found that the sign of the coffee shop had been changed from "Shangdao Coffee" to "accompanying Island Coffee". Coffee shop staff said: "the sign that was changed a month ago is due to the withdrawal of Shangdao Coffee to join us."

In addition to the name change on the signboard, the decorative style and commodity prices of the coffee shop remain basically unchanged. At the cashier's front desk, there is still a reservation card from Shangdao Coffee Mei Shikou, as well as a room-free card for cooperation with Beijing Uranus volume seller KTV Millennium flagship store.

Unlike "accompanying Island Coffee", another company that withdrew from the "DDEMETER Harvest Restaurant" that Shangdao Coffee joined, the current sign is still "Shangdao Coffee", but the drinks and facilities in the store have all been updated. The staff of the coffee shop said that after the coffee shop became self-owned, the owner introduced the "coffee state" service platform and re-polished the price of drinks and hardware facilities in the shop, and the new signboard is now in the process of being made.

On the withdrawal of the franchisee, the Beijing Business Daily reporter called the Shangdao Coffee headquarters to contact the interview, the other side said that he only sells coffee beans, there is no department to connect with the media. Subsequently, the reporter contacted Mr. Gan, the franchise manager of Shangdao Coffee Beijing Branch, on the grounds of consulting and joining. According to him, the company's current joining policy is to charge a franchise fee of 490000 yuan in four years; if the contract is renewed four years later, the franchise fee will be reduced to 160000 yuan in three years. He revealed that at present, a franchisee, which has been in operation for ten years, is trying to transfer to the franchise store. As the previous franchise fee has not yet expired, if you take over the franchise store now, you can waive the franchise fee of 490000 yuan for four years.

Founded in 1968, Shangdao Coffee was originally just a corner shop in Taiwan. Thirty years later, in 1998, founder Chen Wenmin took him to the mainland and opened his first store in Hainan. In order to expand the mainland market, the eight shareholders of Shangdao Coffee have adopted regional operation. Driven by the benefits of franchise fees, Shangdao Coffee has been extended to all parts of the country by the major shareholders. However, because of the simple joining model, each branch can only get the initial franchise fee and late renewal fee, but can not share its daily operating income, so the major shareholders have created new brands and upgraded the joining model on the basis of using Shangdao coffee brand. Among them, Chen Wenmin founded Cross-Strait Coffee, and Wang Yangfa, one of the shareholders, founded Diou Coffee. Shareholders focus on building a new brand that competes directly with Shangdao Coffee, and franchisees have become the real support of Shangdao Coffee.

Loose cooperative relationship has been criticized

Customers who often patronize Shangdao coffee may know that although more than 3000 stores across the country hang the same signs, the services they enjoy in each store are different, and it all depends on the franchisee's own martial arts. Even the purchase channels of coffee beans can make their own decisions. It is this loose joining mode of heavy charging and light management that leads to the withdrawal of franchisees one after another.

Companion Island Coffee told Beijing Business Daily that the previous relationship with Shangdao Coffee was as long as it paid 50,000-60,000 yuan a year, and the rest, including staff training and technical support, did not care. The boss felt that the money was being spent unjustly, so he quit and joined. "the initial joining fee is 200000-300000 yuan. In addition, 50, 000-60, 000 yuan of management fees are also paid every year. At the time of the initial preparation, all the goods purchased had to use island coffee, and the goods he gave were all very expensive, at least 50% more expensive than outside. "

There is no training for franchisees, and Shangdao Coffee admits: "staff training has not been done for a long time." However, Mr. Gan explained that after officially joining, the company will send managers and cooks to the franchisee, and the manager will recruit service staff. Of course, the wages of these personnel should be paid by the franchisee. If you encounter business problems in the later stage, the company can assist you and replace the relevant technical personnel.

For the franchisee accused of the purchase price from the company is higher than the market price, Mr. Gan admitted that the price of coffee beans provided by Shangdao Coffee is indeed slightly higher than the market. However, he said that Shangdao coffee beans are purchased centrally abroad and then baked in the food factory of the Shanghai head office, so the quality is more guaranteed. Mr. Gan also said that as the agreement stipulates that the franchisee is independent, the company will not interfere. Some franchisees will buy from companies, but some franchisees will also buy coffee beans from other sources in order to reduce costs. As for the food procurement of franchisees, the company is not too strict. "it was in this way that I joined in Beijing from the beginning. There is a general unity in the overall style, and each region has different needs in operation. "

In addition, it is worth mentioning that the stored value card issued in the Shangdao coffee shop is not universal. Before, some consumers had a dispute with the Shangdao company because the runaway stored value card of the franchise store could not be used. In this regard, Mr. Gan explained: "the contract stipulates that the company does not restrict the operation of the franchise store, the stored value card can only be run by a single store, the company turns a blind eye to this, other stores can not be used." However, many consumers said that Shangdao Coffee did not remind consumers that it could not be used between stores before issuing a card.

The situation at the end of the road highlights the management deficiency

Zhu Danpeng, a researcher at the China Food Business Research Institute, said in an interview with the Beijing Business Daily that there are two channels to make a profit: one is the franchise fee, and the other is the purchase of food materials. If the franchisee of Shangdao Coffee has the right to purchase coffee on its own instead of being collected by the headquarters, it means that its franchise system is out of control.

In recent years, Starbucks, COSTA and other foreign coffee brands have entered the Chinese market on a large scale, and the quantity of Red Sea raises the problems of price, operation and store management. In Zhu Danpeng's view, Shangdao Coffee has always been eating the old foundation of the brand in recent years, without clear brand planning and repositioning. In addition, the consumers of Shangdao Coffee overlap with Starbucks and Pacific Coffee. When other brands continue to improve their services and store management, it highlights the shortcomings of Shangdao Coffee Management. "the era of rapid expansion of the coffee industry has passed, and there are many substitutes for the industry. Today, Shangdao Coffee has come to an end in the Chinese market, "says Zhu Danpeng." franchising is a way for the market to expand rapidly, but the question now is how to control this degree. Corporate governance, organizational structure and hardware, and fine management of stores should all keep up. "

Earlier, at the special event to celebrate the 20th anniversary of CEIBS, Liu Qiangdong, CEO of JD.com Group, also questioned the joining model of the service industry as an example. "within five years, the boss has been waiting for thousands of Shangdao coffee houses across the country to collect the franchise fee, but so far it has not become a Starbucks in China. To join, you don't have to choose a store, you don't have to go to training, you just have to charge a franchise fee, and it's the easiest to count the money, but this business model in China is against the interests of consumers. " Qi Ming, a coffee industry researcher and founder of Platinum Coffee Institute, believes that the early joining model is so successful that Shangdao Coffee relies too much on the brand to join this model, thus falling into the dilemma of "making a U-turn."

"Shangdao Coffee is not without the opportunity to save itself." Li Wei, founder of Coffee time, said earlier that first of all, the positioning of the business model or leisure model needs to be clear. Secondly, domestic coffee consumption has continued to rise in recent years, and the focus of joining can gradually shift to third-and fourth-tier cities.

Beijing Business Daily reporter Xu Hui trainee reporter Zhang Zhining