Zoo Zoo Coffee update: give up the franchise model, denying that it will be acquired by Kopi Luwak
One after another broke out the "franchisee run" of the zoo coffee, the brand image seems to be tied up with the Korean coffee representative "coffee accompany you".
This is probably the most anxious thing for Chairman Jin Jianyou.
He said Zoo Coffee is seeking "broken arm survival":
1. Give up the much-criticized "joining" model
two。 Introduce capital and turn it into a directly operated store
3. Deny Kopi Luwak as an investment acquirer
.
It seems that everything is to draw a clear line with "Korean coffee".
First, break the arm to survive and give up joining
The zoo coffee on the cusp of the storm is ready to operate on its own "stubborn disease".
The operation plan is: give up joining, change to direct camp, remove the brand of "Korean coffee" and realize local operation.
Jin Jianyou said at the Zoo Coffee New year's Resolution meeting that from 2016, Zoo Coffee will abandon the much-criticized "franchise model" and open a restaurant in "direct operation mode".
After the expiration of the existing franchise contract, the stores with better location and performance will be retained and will continue to operate in the franchise mode.
As a result, the original plan to have 1000 stores in China in 2020 has also been significantly adjusted to open 70-80 new stores a year.
According to this calculation, the total number of stores has shrunk by more than 30%.
It is understood that zoo coffee currently has more than 200 stores in China, of which franchisees account for 90%.
However, under the rapid expansion, loose joining has led to the running away of zoo coffee franchisees in Zhengzhou, Beijing and other places, which has also pushed zoo coffee to the forefront of public opinion.
Jin Jianyou, chairman of Zoo Coffee, admitted that the runaway incident was true.
"at present, the headquarters of Zoo Coffee is communicating with consumers who buy stored value cards to discuss the settlement of claims."
Second, the investment has been finalized, but not Kopi Luwak
Whether it is product quality control or brand, direct marketing has unparalleled advantages over joining.
The price, of course, is financial pressure.
The rapid expansion of Zoo Coffee in China is based on the cash flow benefits brought by the franchise model.
Give up joining, not only lose the income of the franchise fee, but also own blood transfusion to open a shop.
At the same time, like many domestic chain brands, the layout of "sprinkling pepper noodles" makes the logistics cost of zoo coffee extremely high. If you give up joining, the cost will be transferred to the zoo coffee itself.
One positive and one negative, the financial pressure is very different. This is also the direct reason why the zoo is slowing down the pace of opening stores.
The reason why Zoo Coffee has the courage to "break its arm to survive" and give up the franchise model is because the investor has been identified in early 2016.
But investors are not always interested in Kopi Luwak. Jin Jianyou explicitly denied Kopi Luwak's acquisition intention.
Third, remove the Korean style and localize
After the franchisee's flight incident broke out, because of the similarity of "loose franchise", zoo coffee and "coffee accompany you", which has lost the market, inevitably become "brothers" tied together.
This is probably what Jin Jianyou is most anxious about.
He made it clear that he wanted to break away from the setting of "Korean coffee" and hoped to make a sharp contrast with the "coffee accompany you" by changing to a direct marketing model.
Coffee accompanies you with the large-scale expansion of the joining model in China. Since May last year, the capital chain has broken, evacuated the headquarters in China, owed nearly 10 million yuan in wages for more than 160 employees in your headquarters for several months, and has been exposed that the debt is more than 1 billion yuan.
As a result, the joining mode of Korean coffee has been questioned by the market.
However, according to industry insiders, in view of the precedent of coffee accompanying you and this run-away incident, zoo coffee needs more efforts to win back its reputation through "de-Hanhua".
After switching to a directly operated store, the zoo coffee will open more stores around the north, Shanghai and wide self-owned logistics systems.
However, this is also the most competitive market, and it is not easy for zoo coffee, which is already under pressure.
Source | Comprehensive Zoo Coffee, Beijing Business Daily, Ka Men, etc.
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