If you say it's a highly profitable industry, that's fine.
But in the overall environment, the catering industry has nothing to do with the word "huge profits".
Even a strong company like Haidilao, which is currently at the upstream of the catering industry, only had a net profit of a little over 10% at its peak.
This is based on the fact that Haidilao stores have an average daily turnover of 5+.
According to Liu Xi's idea, with the profit performance delivered by Haidilao, the leading brand, and based on the current market situation where many competitors are emerging, even the leading overlord Haidilao has been caught in a multi-pronged competition. Haidilao, whose net profit fell below 10% last year, is likely to have a hard time in the future.
Due to the overall environment of the industry, Liu Xi's ultimate net profit outlook for Jianghu Hotpot is 8%. As for 10%, that is something he dare not even think about.
After all, the investment cost of Jianghu Hotpot is too high, high enough to compete with Haidilao!
On the basis of such huge investment, Jianghu Hotpot, as a grassroots brand that just came out of the Pearl River Delta, did not explore the way forward or take steady steps, but rushed to achieve success in one step and directly expanded 60 stores in 19 first-tier cities. To be honest... in order to achieve an 8% net profit, at least the number of table turnovers per store per day must reach 5+...
But how easy is it to achieve 5+? The three words Haidilao have long been embedded in people's minds. Despite the strong and crazy brand effect, the average turnover rate of Haidilao stores is only 5+.
But Jianghu Hotpot can only be regarded as a "new brand" to some extent. Apart from its unique high-end decoration, its only popularity is due to the two words "Ye Chen".
Therefore, an 8% net profit is the best scenario that Liu Xi could think of, and it is also the profit figure that can only be derived when seats at Jianghu Hotpot are in high demand.
But now Ye Chen proposed to use 1% of the revenue as employee commission and 1% of the revenue as an injection into the charity fund?
In other words.
That is, even if Jianghu Hotpot replicates the popularity of Haidilao, even if Jianghu Hotpot dethrones Haidilao.
At best the net profit is only 6%!
However, how much risk resistance can a net profit margin of 6% compared to total revenue provide?
"Mr. Ye, I don't know how much you know about the current catering industry. Take Haidilao for example. Their peak net profit is only 10% of the annual total revenue, and our investment in stores is no less than Haidilao's. In addition, given the current state of the industry, even if our Jianghu Hotpot can always maintain its popularity, even if it is not the case with Haidilao, an 8% net profit margin is already very high and peak. If you take out another 2%, then there will be 6% left, and this net profit margin is extremely insufficient for the company itself to resist risks! After being dumbfounded, Liu Xi frowned.
"Not to mention that in my opinion, once Jianghu Hotpot opens for business, the net profit margin will not be lower than 8%, or even lower than 10%. Even if it is lower than 8%, even if it is only 6%, it doesn't matter! As far as the catering industry is concerned, in terms of risk resistance, net profit is certainly important, but it is not the most important thing. The most important thing is the reputation that complements the net profit margin. As long as the reputation does not collapse, the net profit margin will not collapse, and then there will be no risk! Also, the reason why I said that Jianghu Hotpot's net profit margin will not be lower than 10% is that you need to regulate the price of the dishes. While we haven't opened yet and the pricing has not been announced to the public, we don't need to maintain the same price positioning as Haidilao, so there is definitely room for appropriate increases, and it is absolutely necessary. This part is enough to support our profit margin!" Ye Chen said in a resounding voice.
"Huh? Using consumer pricing to raise the net profit margin? It's going to be higher than Haidilao's pricing?" This time, Chen Yihao raised his eyebrows and asked back first.
Ye Chen nodded, "Yes, you have a thorough understanding of Haidilao, right? Then let me ask you, what is the per capita consumption of Haidilao?"
"About 110!" Chen Yihao blurted out.
"Okay, about 110! On the basis of about 110, if the sanitary environment, service attitude, dishes, and other aspects are better than Haidilao, will the average consumption of 120 or even 130 be exaggerated? No, the consumer group that can accept the average consumption of 110 will not mind spending an extra 20 yuan to choose a brand that is better than Haidilao in all aspects!
After a pause, Ye Chen continued, "Of course, all this must be based on the fact that the sanitary environment, service attitude, dishes and other related aspects are better than Haidilao, and this is what you promised me at the beginning, Mr. Liu. So in the end, the net profit margin of Jianghu Hotpot depends on you, Mr. Liu! In the aspects I just mentioned, we must not only be better than Haidilao, but also the best in the industry!
The confusion, astonishment and doubt just now were transformed by Liu Xi and Chen Yihao into thoughtfulness at this moment.
Ye Chen's voice continued to ring, "Also, the reason why I want to use 1% of the turnover as a charity fund, apart from my own desire to do my best for this society, isn't this also the establishment of word-of-mouth? The consumption price is higher than Haidilao, which will not cause too much controversy, but using 1% of the revenue as a charity fund will cause a response from the whole society, because no brand in the industry has dared to do this in the past. Even in the future, I think few will dare to follow suit easily. This is enough for us to establish a commanding height in word-of-mouth!
"Mr. Ye, what you said makes sense, but the premise of all this is that our Jianghu Hotpot must be successful and maintain its stability!" Liu Xi thought about it and said.
Little did he know that Ye Chen just smiled calmly.
"Just treat it as a big bet. If we win, we will be the best in the world!"
"What if I lose the bet?" Chen Yihao said.
But this time Ye Chen didn't answer him.
Turning to look at Liu Xi, "Do you believe me?"
"Mr. Ye, I believe you!" Liu Xi gritted his teeth and his eyes suddenly became firm.
After that, he continued, "But I need some time. I originally thought that I could open the business in half a month, but now, I need a month!"
In response to this, Ye Chen said without hesitation, "Then I'll give you a month! After a month, Jianghu Hotpot will open on time!"
"good!!!"
As Liu Xi's voice fell.
Ye Chen took out a piece of material from the briefcase he brought with him.
"This is the development plan I drew up for Jianghu Hotpot. Take a look at it!"
After saying that, Ye Chen pushed the materials in front of Chen Yinuo and Liu Xi. They immediately started reading.
This look.
The look of surprise on his face kept coming back.
It's not that they haven't made plans for the subsequent development of Jianghu Hotpot.
However, compared with the development path and strategy proposed by Ye Chen, it was simply shameful!
It is said that the development of an enterprise grows in the process of continuous trial and error, including Haidilao, the current leader in the industry. After all, every advanced node on the development path has relative risks and loopholes.
However, Ye Chen could not find any risks or loopholes in the development plan of Jianghu Hotpot, because while listing the risks and loopholes, he also listed how to resolve the risks and plug the loopholes.
Therefore, this is simply a business development plan without any risk, an impeccable and perfect development plan!
As long as Jianghu Hotpot can get off to a good start, then it will be a natural thing for it to reach the top of the industry and create an industry myth!
-The shock is over.
See the final listing schedule.
Liu Xi and Chen Hao could no longer suppress their thirst and became restless...