Why did Jing Ya Hotel go bankrupt?

The collapse of Jingya shocked the whole catering industry. Why on earth did it go bankrupt?

I have always believed that Jingya Group is the benchmark of China catering industry, and its president Zhang Yongduo is the hero of catering entrepreneurs. How to say collapse is collapse? Recently, many people asked me about the collapse of Jing Ya, and I said, "Elegance is worthy of respect."

First, in the past, the benchmark of the industry provoked countless people to steal teachers' dishes, with an average of 1000 yuan. In addition, the consumption of drinks directly doubles, and the consumption of a single table is 10,000 yuan. With such a high consumption, there are still many card members in Jing Ya.

More than ten years ago, Jing Ya's every move began to be a specimen of my concern and research on high-end catering. In my impression, Jing Ya's style is conservative, and he doesn't like others to imitate him. Its business philosophy and operation methods are confidential. Even a few notes of the team need to be checked and strictly audited by relevant leaders.

I have been to Jingya several times as a customer, and I want to try to find out several reasons for Chu Jingya from some details.

What is the profitability of Jing Ya? Why can vegetables be sold so expensive? How is the product line designed? What the hell are you selling? Who is the client?

Why is a clean and elegant environment always kept as clean as new? Why can the service details be done so well? Why is the management system effectively implemented?

How does Jing Ya change employees' working attitudes? Why are employees paid so much? Why is the employee's welfare so good?

Why doesn't Jing Ya like brand communication? Why is Chairman Zhang Yongduo so low-key? Can it become a century-old shop? ...

Unfortunately, when many people didn't know Jing Ya, they received the news that the last store was about to close.

Second, there are hidden dangers in pursuing the "Great Leap Forward" for the dream of listing.

Jingya, which officially opened in Weihai, Shandong Province from 65438 to 0988, mainly engaged in beef steamed buns and later turned to live seafood. From 65438 to 0998, Jing Ya entered Jinan. The product is a little expensive, but it seems affordable for family consumption. After entering Beijing, Jingya began to pursue heights, and middle-class consumers gradually moved away from Jingya.

Perhaps the first bucket of gold in life has been excavated, and Zhang Yongduo is willing to invest in strategic consulting. Under the influence of those consulting think tanks, Jingya's strategy has changed and "international thinking" has begun. How many stores to open a year has become the main line of planning.

But I have always been puzzled by this practice, and on August 5, 2009, I published the article "Great Leap Forward of Jingya Group" to remind Jingya. Unfortunately, Zhang Yongduo probably won't see such words.

In 2009, Jingya Group plans to open 65,438+07 branches in first-,second-and third-tier cities within half a year to expand the scale of the enterprise and lay the foundation for the upcoming listing of the enterprise. But I think it will be extremely difficult for a large-scale Chinese food business model to do chain operation.

Question 1: Is it realistic for China food enterprises to carry out chain operation on a large scale? How to completely unify the chain operation of Chinese food in terms of quality, price, management and service? At present, domestic enterprises that do well in chain operation are either fast food or hot pot restaurants. What kind of Chinese food really holds the chain?

Question 2: Can a business model like Jingya be integrated into second-and third-tier cities?

If Jing Ya opens stores in second-and third-tier cities, how should it live in harmony with some local catering enterprises?

Third, how to deal with the purchase of fixed assets?

Opening a new 17 branch within half a year requires some work, such as shop search, decoration, equipment purchase, training, opening promotion and so on. , we need to open 3? Four stores, is this realistic?

Question 4: How to solve the problem of seafood logistics?

The reason why Jing Ya has such a great influence depends on whether its service is moderate on the one hand and its quality on the other. When Jing Ya opens a branch, there is no doubt that it is a seafood shop. And how to keep seafood fresh? In terms of supply, there will be merchants who come to the door on their own initiative, but the biggest problem is the original of each hotel.

How to ensure the quality of materials?

Later, I learned that while trying to standardize Chinese food, Zhang Yongduo was constantly recruiting and strengthening training, creating many legends that the catering industry could not understand in the past with many innovations that the industry could not understand.

It is said that in Jingya Beijing Huangsi Store, the per capita consumption exceeds that of 700 yuan, and the business area of 10000 square meters has created a miracle of daily sales of 6.5438+0 million yuan. The sales revenue per square meter reaches 100 yuan! You know, for ordinary restaurants, it is rare to sell for 30 yuan per square meter a day.

But judging from the current situation in Jing Ya, the hidden trouble I am worried about has really happened. On the way to listing, Jingya hid many crises.

Third, dreaming of encountering policy restrictions, rushing to the hospital and rushing to transform, is the fatal reason for the bankruptcy of Jing Ya Hotel?

Jingya's dream of listing is still brewing, but never expected that the policy of restricting luxury consumption came, high-end catering was greatly affected, and many brands fell to the ground one after another. Jing Ya is no exception.

At that time, the top management of Jingya did not make timely adjustments, but held a wait-and-see attitude towards the policy. Zhang Guijin, the person in charge, once said in an interview with the media that "after the introduction of relevant national policies, the senior management of the group mistakenly thought that the high-end catering market would not be killed with one blow, and the brand accumulation and business philosophy of Jing Ya hotels for many years could not be easily denied, and government entertainment and business entertainment would be the main revenue points of Jing Ya hotels in the future".

By the time I realized that I had to transform, it was obviously too late. Then, Jing Ya went to the hospital in a hurry and made a hasty transition. She developed a new brand, "Mo Dou Lao", and also bought an economical hot pot brand and subway catering company, and bought group meals, low-end Chinese food, airport catering and other catering enterprises, becoming a subway dining car that meets every day.

It should be said that the transformation of Jingya at that time became the driving force for the fall of Jingya dominoes. Jing Ya began to formulate corresponding strategies at this time, which can be roughly summarized as the following points.

1. Strategically "turn to the public" from high-end consumption.

2. Use 020 to promote online transactions and offline consumption.

3. Cook a business lunch.

4. Responsible for food delivery.

5. Transfer from seafood transportation to hot pot management.

6. Focus on the wedding banquet market.

These strategies seem feasible, but there are still many problems that are difficult to implement.

1. Rent, decoration, facilities, equipment, salary and storefront are all planned according to high-end catering standards. Can mass catering, box lunch and wedding banquet bring enough gross profit margin to pay for the expenses?

2. Are the management, technology and service personnel of high-end catering willing to tide over the difficulties with the enterprise? What about the marketing staff specially set up for high-end catering? Are the benefits and accommodation standards of employees reduced?

3. What should I do if I buy low-grade raw materials and sell low-priced products and damage the original high-end brand image? Even in the low-end consumer market, what should customers do if they dare not enter?

4. Low-end market pays attention to consumption frequency, while high-end catering pays attention to consumption experience. The whole pattern has changed. Has the huge logistics system of high-end catering been abandoned?

Fourth, if I can do it all over again, I would like to prescribe three medicines for Jing Ya.

Too ambitious, wrong positioning, dare not face it! I think these are the three biggest mistakes made by Jing Ya. If Zhang Yongduo starts to adjust from these three aspects, Jing Ya may have a turn for the better.

1. limit ambition, narrow the front, and concentrate superior forces to fight annihilation. Jing Ya fell at a speed that no one could imagine. In my opinion, even if Jing Ya waved goodbye to the restaurant in despair, she should be elegant and graceful, but it was the employees who jumped off the building and "petitioned for a strike". At the key node of the original transformation, Jingya should make a fuss about adjusting the hotel's own business model, recognize that the service target has been completely changed, and systematically change the service mode, product composition, pricing mode and sales form to achieve peace and profitability, and then seek long-term development. Jingya's attack on all sides led to the dispersion of power, and the increasingly tight capital stock was invested in unpredictable box lunch, hot pot and subway take-out, and there was no effective capital return, which made Jingya's overall operation enter a vicious circle.

2 focus on expertise, accurate positioning, and enhance the core competitiveness of enterprises. The mistake of Jing Ya's positioning lies in its inability to recognize its core products. In the face of the same transformation, Quanjude quickly stabilized its mentality after experiencing the initial difficulties, changed its business strategy again, and still lived happily. Quanjude's positioning is roast duck. It took 100 years to tell customers all over the world that its best product is roast duck. And what is Jing Ya? Is it an upscale seafood restaurant or an upscale hotel? We can't draw an accurate conclusion. Another restaurant brand, South Beauty, which is gradually drifting away, has used the results to illustrate the fact that it is difficult to go far if you can't tell what restaurant you are. Jing Ya's specialty should be seafood. If we focus on the big category of seafood and then choose a small category, it may be a good way out.

3. Dig the connotation, refine the brand, and actively spread the positive energy of the enterprise. Does anyone know what Jing Ya's brand proposition is? How to interpret Jing Ya's brand proposition? At present, negative news is everywhere in Jing Ya. Why can't the top management of Jingya come out and give you an objective explanation? Failure is not terrible. No one in this world can succeed forever. The public doesn't want what Jingya is, but just wants it to give you a statement. Perhaps a strong Zhang Yongduo will stand up and leave courage and encouragement to more entrepreneurs.

All walks of life are scrambling to enter the catering industry, and various intentions have gradually surfaced. With the tightening of the control of the primary industry, real estate, steel, coal, internet and other industries have turned to the catering industry, hoping to make a breakthrough from the unbeaten catering business. After repeated research on the catering business model, the catering chain operation has become one of their preferred strategies. These "barbarians", who are mainly characterized by large-scale investment, use unreasonable methods to break the original business balance and raise the rent standard, wage level, expenses and raw material prices, which leads to obvious intensification of industry competition, decline in profit level and accelerated employee turnover, making catering operations in a state of meager profit loss in a large area and increasing the difficulty of cost recovery. Even the time-honored brands that have been deeply cultivated in the catering industry for many years are now treading on thin ice, and they have increased their management efforts to reduce the operating burden.