Chapter 19 Franchise Expansion, Pork Prices Rise

Wu Siyuan is worried about whether the franchise model of "Little Fresh Meats" will be accepted by the market!

The market gave him feedback that his worries were too unnecessary.

In society, there are a lot of idle funds looking for stable opportunities to increase wealth.

They didn't have many options before.

Now, [Xiao Xianrou] gives them one more choice.

Su Shixian went back and asked people from the planning department of the business department to work out a [franchise plan]. Because he did not dare to promote it to the whole country, he first conducted a pilot project in cities around Yangcheng.

Because I don’t want to ruin the sign, the franchise conditions given by [Xiao Xianrou] are quite strict, including:

1. Basic capital cost conditions - investors need to have a minimum capital condition of 500,000 yuan or more;

2. The agency franchise fee is about 200,000-300,000 yuan, and the minimum contract is 5 years;

3. Minimum trademark license fee of 8,000 yuan/year and technical service fee of 2,000 yuan/month.

4. Decoration fee of about 800 yuan/square meter;

5. Equipment fee of 25,000 yuan or higher;

6. A deposit of 50,000 yuan;

7. All products in the store are provided by [Xiao Xianrou] headquarters. Stores are not allowed to purchase goods from outside parties for sale in the store. Expired or spoiled goods must be disposed of in a timely manner;

8. All employees in the store are recruited by [Xiao Xian Rou] headquarters. No employees are allowed to be hired without the consent of [Xiao Xian Rou] headquarters. Employees’ wages and social security are guaranteed by the store investors;

9. Store investors have the right to financial supervision;

10. All interpretation rights belong to [Xiao Xianrou] Company.

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Are the franchise conditions set by the planning department of Su Shixian's business unit harsh?

harsh!

But when [Xiao Xianrou] announced its franchise plan, [Xiao Xianrou]’s company’s phone calls were immediately buzzed with calls from these enthusiastic investors.

When Wu Siyuan learned about this, he was surprised. He didn't know whether to say whether he should talk about the high enthusiasm for investment among the people or the sheer amount of money.

But no matter what, it is a good thing that investors have confidence in [Xiao Xianrou] and [Chaoqun Group].

Wu Siyuan emphatically gave Su Shixian instructions not to catch all the losses. Investors believe in our group so much that we must be responsible for them.

Su Shixian naturally said yes loudly.

Half a month later, the list of the first batch of franchise stores was confirmed, with a total of 125 stores located in Yangcheng and surrounding cities with high consumption power.

These 125 stores alone have earned the [Xiao Xianrou] company at least 25 million yuan, in addition to a stable technical service fee of 250,000 yuan every month.

As for product supply prices, franchise stores charge an additional ten points.

In terms of decoration and equipment, there can be another income.

Su Shixian looked at the data every day and almost lost weight with laughter. He instructed the relevant departments of the business unit to go all out to complete this franchise matter.

One month later.

125 franchised [Xiao Xianrou] stores have been renovated and officially opened for business.

Because [Xiao Xianrou] has long been famous and has a good reputation among consumers.

Therefore, after the opening of [Xiao Xianrou], except for a few stores whose business is slightly worse, the other franchise stores are doing brisk business every day.

On the first day of opening, with the support of activities, the average turnover of franchise stores on that day could reach 22,000 yuan.

The next day, 25,000 yuan.

On the third day, 23,000 yuan.

On the fourth day, 19,000 yuan.

On the fifth day, 20,100 yuan.

On the sixth day, 18,800 yuan.

On the seventh day, 14,300 yuan.

On the eighth day, 15,200 yuan.

On the ninth day, 15,500 yuan.

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The store's business has stabilized, with daily turnover reaching 14,000 yuan.

After the first month, the average store turnover of franchise stores reached 495,900 yuan. Some stores with good locations can have a turnover of more than 600,000 yuan, but the worst franchise store's turnover will not be less than 300,000 yuan.

Because during the operation process, [Chaoqun Group]'s internal intelligent software controls quality and supply well, and there are very few scrapped products in the store, which reduces a large part of the store's operating expenses.

Although [Xiao Xianrou] has high operating expenses in other aspects, after deducting all costs and expenses, an average store can bring investors a net profit income of 40,000 to 50,000 yuan per month.

Calculated, that’s an income of 480,000-600,000 yuan a year.

Some stores can make back their investment within a year.

Some stores invest heavily and can recover their capital in a little more than a year.

Investors can calculate their own accounts. When they calculate this data, their faces smile like chrysanthemums.

There are some active investors who have taken the initiative to find people from the relevant departments of the [Xiao Xian Rou] company, hoping to invest in one or more [Xiao Xian Rou] franchise stores.

This request was, of course, rejected mercilessly by the people from [Little Fresh Meat] Company.

On the one hand, [Chaoqun Group] does not want franchise stores to be monopolized by a certain group, which will be detrimental to the management of the group.

On the other hand, it is Wu Siyuan’s request. Since [Little Fresh Meat] has proven its ability to make wealth, Wu Siyuan hopes to benefit more people.

Therefore, after a simple discussion, the group made a decision - one person can only apply to join one [Little Fresh Meat] store.

Other brands are eager for investors to invest in more stores. Only Xiaoxianrou, a community fresh food brand, goes in the opposite direction and restricts investors' investment behavior.

But just like that, there is an endless stream of investors who want to join [Xiao Xianrou], and the franchise hotline is often overwhelmed.

This is really a happy trouble.

Other community fresh food brands were extremely jealous when they saw it.

The senior executives of more than one community fresh food brand have announced at the management meeting that they will learn from the business strategy of [Xiao Xianrou] and provide consumers with convenient and preferential services in a down-to-earth manner.

But this is all just baby steps in Handan. Not only did he not truly learn the essence of [Little Fresh Pork], but his own advantages were almost gone, and his turnover declined instead of increasing.

But these community fresh food brands also have difficulties that cannot be explained.

In the past, [Xiao Xianrou] insisted on direct sales and its expansion rate was not fast, but that didn’t matter!

After all, the entire Chinese market is huge.

But now that [Xiao Xianrou] has opened direct sales, this means that [Xiao Xianrou]'s market share will experience great growth in a short period of time.

The market waxes and wanes.

If [Xiao Xianrou]’s market share increases, their market share will decrease.

Under the Matthew Effect, these community fresh food brands will face increasing pressure.

These community fresh food brands also have unspeakable difficulties. They will die if they put in effort, but they will die faster if they don’t put in effort.

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There are many investors who want to join [Xiao Xianrou], but [Xiao Xianrou] company does not expand blindly and does not act shamelessly like some community fresh food brands.

A certain community fresh food brand - [Aunt Q], became popular through the slogan "No overnight meat sold" and social media promotion, and it also ushered in a period of great development.

There are also many investors who have joined [Aunt Q].

It was barely profitable at first, but two months later, another [Aunt Q] appeared within 500 meters. After a while, there may be several [Aunt Q] in one community.

For example, in Yangcheng and Pengcheng, two first-tier cities across the province, there are more than 1,000 [Aunt Q] stores, and some stores are no more than 250 meters apart in a straight line.

You know, the combined number of [Xiao Xian Rou] stores in these two first-tier cities is only about 500.

[Aunt Q] It’s crazy to cram it into so many stores.

Although in this way, [Aunt Q]'s market share has increased and competition barriers have been established. However, the profitability of franchise stores has also declined: obviously, the amount of cake in the mouth is different if one person eats it and if ten people eat it!

[Xiao Xianrou] certainly won’t do this.

A business that no one can make money from will not survive in the long run.

The top management of [Aunt Q] may have the mentality of making a quick buck and leaving, but [Little Fresh Meat], under the guidance of Wu Siyuan, still has a very high sense of social responsibility.

Besides, Su Shixian has not forgotten that the reason why Xiaoxianrou opened the franchise is to expand the coverage area as much as possible and assist Guan Xuelie's Agriculture and Animal Husbandry Development Division in fighting the upcoming pig price war!

Therefore, the second phase of [Little Fresh Meat] franchise open areas are all second- and third-tier cities, and even fourth- and fifth-tier cities.

Of course, according to the different consumption power of the city, the franchise conditions of [Little Fresh Meat] have also changed, and the franchise fee and other related expenses will be reduced accordingly. Anyway, the ultimate goal is to control the profitability of investors and achieve a balance.

The number of stores brought about by franchise expansion has increased exponentially.

[Xiao Xianrou] It took four or five years to go from the first store to 100 stores, to 1,000 stores, and even to 3,200 stores.

But after opening the franchise, it only took more than seven months for the number of Xiaoxianrou stores to increase from 3,200 to 8,500.

And [Shen Nong Orchard], which operated earlier than [Xiao Xian Rou], currently has more than 3,000 stores.

On average, 800 [Little Fresh Meat] stores are opened a month, and more than 20 stores are opened a day, of which more than 80% are franchise stores.

Among franchise stores, more than 95% of the stores can meet the profit standard. Investors in the store with the worst business can make a profit of 10,000 to 20,000 yuan a month. Investors in the store with the best business can make a profit of more than 10,000 yuan in a month. Eighty thousand.

If you earn 80,000 yuan a month, you can earn close to 1 million yuan in a year.

As for his investment in [Little Fresh Pork], he only spent 7 to 8 million, which means that he had fully recovered his capital in less than a year, and the rest was pure profit.

It is said that if you have breasts, you are a mother.

This return on investment is already quite high.

Therefore, the franchisees of [Xiao Xianrou] all agree with the management of [Xiao Xianrou] company with both hands and feet.

Even if the management requirements of Xiaoxianrou Company are much stricter than those in the same industry, I can still accept it.

After all, there is money to be made!

At this time, it is already September 2019.

After a brief shock in January and February, the national pork price began to rise in March.

In March, the price of pork was still 5.89 yuan/jin. By the end of July, it had reached 9.43 yuan/jin, an increase of more than 60%, reaching 63.9%!

This increase is exaggerated enough.

But the next increase is disappointing.

At the end of July, the price of pigs was 9.43 yuan/catty. By September, the price of pigs had reached 13.81 yuan/catty!

The price doesn't seem very high.

But this is the wholesale price!

The retail price of pork will be higher.

The price of live pigs is related to the retail price of pork. According to the slaughter loss rate of live pigs, which is generally between 1.6 and 1.8, it is calculated as 1.7. When the price of live pigs is 12 yuan per pound, the retail price of pork The price is around 21 yuan per pound.

The price of live pigs in September is 13.81 yuan/jin. According to the coefficient ratio of 1.7, the retail price of pork will reach 23.47 yuan/jin. If it is exaggerated, it may reach 24.85 yuan/jin, or even higher.

If it's pork ribs or pork belly, the price of pork is much higher.

With such a high price, ordinary citizens really can’t afford it!

I can’t even afford pig’s feet and rice.

The impact of rising pork prices has spread to society.

You must know that pork has an unusual status in our country. It occupies a very important position in the household consumption index, that is, CPI.

CPI data increased by 2.9% year-on-year, which has reached a new high in eight years.

The CPI has been raised, and people's happiness has naturally been lowered.

This is no longer a social issue, but has risen to a political perspective.

How to suppress the price of pork has become the main task of the top management recently, and multiple meetings were held around this matter.

Relevant departments took action 14 times in more than 20 days and took multiple measures to stabilize pig prices.

For example, on September 19, the Ministry of Commerce, together with the Reform and Development Commission and other departments, released 10,000 tons of central pork reserves, 2,400 tons of beef reserves, and 1,900 tons of mutton reserves onto the market.

But this amount is just a drop in the bucket for the market's hog gap.

The price of live pigs only fluctuated slightly, then sharply rose again without stopping for a moment.

Relevant departments have introduced a series of preferential policies related to the pig industry, involving a number of supports and subsidies.

But water far away cannot save the fire near!

Even if a closed pig farm is opened, it cannot produce commercial pigs for sale in a short period of time.

The laws of nature cannot be violated.

The choice to increase the import of pork is like a small splash for the huge domestic pork gap, which is still not enough.

The price of pork is still rising, and the leaders of relevant departments at the top level are already anxious.

At this moment, a piece of news reached the ears of some senior officials.

This news is like rain, moistening my heart.

Not long after, a very high-level high-level inspection team departed from the Imperial Capital and finally arrived at the largest cold storage of [Chaoqun Group] in Yangcheng.