Shangdao Coffee encounters a pinch attack on shareholders, innovative Brands compete with each other for the Market-Shangdao Coffee enters the Brand consumption level

According to the internal staff of Shangdao Coffee, Shangdao Coffee is still managed by eight shareholders divided into eight regions, but the branches owned by each shareholder are free to set up branches in their respective regions. "these branches are also accepted as headquarters branches, so there are 13 branches". The staff member said that Shangdao headquarters and Shanghai Pudong Branch belong to the same company, while Shanghai Shangdao Catering chain Management Co., Ltd., which can be directly searched on the website, belongs to Shangdao Puxi Branch. Responsible for Shanghai Puxi area and Hunan, Hubei, Jiangxi and other places Shangdao coffee management.

In addition to Dior Coffee and Osomilo Coffee, the official website of the Shangdao headquarters also shows two new brands, French Shepherd Steak Coffee and UBC Coffee. According to the staff of Shangdao Coffee Fujian Branch, these two brands also belong to the personal behavior of the shareholders of the branch, and do not belong to the sub-brands of Shangdao head office. "as Shangdao adopts regional management, regional shareholders want to set foot in markets outside their own regions, so they launch new brands." However, for the new brand, Shangdao Coffee headquarters refused to be interviewed by a reporter from the Beijing Business Daily.

As we all know, cross-strait coffee, which is already well-known throughout the country, was renamed by Shangdao Coffee in the first batch of stores. In response to the name change, a head of a cross-strait coffee shop once said, "the two sides of the strait have become famous throughout the country, far beyond the Shangdao, and the next focus of development is on the two sides of the strait, and Shangdao will be a secondary brand."

Xu Meng, secretary-general of the International Food Committee of the China Cuisine Association and secretary-general of the Beijing Western Food Industry Association, said that shareholders have set up new brands for national expansion, which can be understood as: the founding shareholders are no longer optimistic about the Shangdao coffee brand.

Franchisees give up their brands to fend for themselves

After a reporter from Beijing Business Daily reported that Shangdao Coffee franchisee withdrew from joining and changed its brand name (see "Shangdao Coffee off the altar" on July 15 for details), Shangdao Coffee in Changchun, Jinan and other places have also been exposed to join commercial stores and withdraw from joining.

Statistics show that, coupled with the opening of a new Shangdao coffee store, Shangdao coffee in Changchun has changed from 5 to 2. Prior to this, media statistics showed that the number of Shangdao Coffee in Chengdu dropped sharply from 20 at its peak to 12, and that in Tianjin from more than 70 at its peak to less than 40.

According to the official website of Shangdao headquarters, so far, Shangdao Coffee has more than 1300 stores in the country. According to an industry source, Shangdao Coffee in its heyday in the country a total of about 3000 stores, so far, "at least half of the stores have been closed."

In the view of most franchisees who withdraw from Shangdao Coffee, the brand franchise fee of more than 100,000 yuan a year, without management guidance and training, the attractiveness of the brand is declining day by day, and the business situation is also declining. A head of the development department of Shangdao Coffee said, "the stores that opened in the early days now either set up their own brand after the expiration of the contract or close the shop on their own."

Xu Meng says that it is no longer surprising that Shangdao Coffee is closed. "it can be said that Shangdao Coffee's closure is the inevitable result of its own writing and self-guidance." Xu Meng believes that Shangdao Coffee's almost zero management franchise system determines its chaotic development. with the gradual loss of brand value, closing the door is inevitable.