Continued chaos in mainland milk tea shops, with operators joining in and losing 1.4 million in half a year | Shanzhai | Losing money

[The Epoch Times, February 25, 2022]Mainland Chinamilk teaThe store has developed rapidly in recent years, but some milk tea stores only focus on rapid development, lag in management, and poor supervision by the authorities.Copycat, Cheat money and run away from time to time. Some franchisees said that they lost 1.4 million (RMB, the same below) in half a year.

According to a report by Times Online on February 24, since 2015, capital and entrepreneurs have begun to pursue the tea industry. Until 2021, the tea industry will gradually change from hot to cold, and many leading tea brands have been exposed to existential crisis.

On February 20, Zhang Chao (pseudonym), a franchisee of a well-known tea shop brand, said: “Open twomilk teaThe franchise store lost 1.4 million in half a year. “

He said that there are many reasons for the continuous loss of the store. First of all, it has to bear the high costs of franchise fees, stores, materials, logistics, etc. At the same time, in the case of fierce market competition, the brand has neither a professional operation model nor a product research and development plan. There is no complete supply chain system.

Zhang Chao said that he will open a milk tea shop in 2020, and the overall cost of opening a shop such as franchise fees and free orders is about 500,000. “The initial investment is much higher than the overall quotation given by the brand in advance.”

Liu Li (pseudonym), a franchisee in Huzhou, Zhejiang, said that after he paid the franchise fee, the brand operator became a hands-off shopkeeper, and there was no formal online operation team. The measure is price reductions.

A person in the chain industry, the brands that make tea across the border basically choose the franchise model, and even some time-honored enterprises are handed over to a third company for operation through brand authorization. Third-party companies can use the influence of time-honored brands to quickly attract franchisees and obtain benefits such as franchise fees, material fees, and service fees in a short period of time, but they cannot empower franchisees.

“Actually, this is using the brand value to realize the value, obviously transferring the risk to the franchisee, and ‘making quick money’ by charging the franchise fee.” The chain industry source said.

Wu Daiqi, CEO of Shenzhen Siqisheng Co., Ltd., said that if brand owners only collect franchise fees to realize quick and risk-free realization and harvest consumers and franchisees, they will inevitably be spurned by the industry.

In addition to management problems, the milk tea industryCopycatThe chaos is also serious. On February 16, the news that the Internet celebrity milk tea brand “Lujiaoxiang” spent 100 million to crack down on 7,000 counterfeit stores” once rushed to the top of the hot search. Zhao Yuechao, CEO of the brand, said: “At the most exaggerated time, we have There are 114 directly-operated stores and more than 7,000 fake stores. “

“Tea Yanyuese” was plagiarized by “Tea Yanguanse” before and was infringed by “reverse bite”. In June last year, news of Shanghai’s investigation and punishment of 21 “fake CoCos” was trending on Weibo.

There are also endless tea franchise scams. In September last year, franchisees were deceived when a tea company suspected of endorsement by Hunan Satellite TV host Li Weijia ran away. The “routine franchise” contract fraud case was investigated, involving more than 700 million yuan.

Recently, Lujiaoxiang, an online red tea shop, has been a crazy copycat. Hey Tea has been on the hot search list due to 30% layoffs. Nai Xue’s tea announced a loss of 135 million yuan.

Chinese food industry analyst Zhu Danpeng believes: “China’s tea market has entered the second half of competition. Tea brands and consumer demand in first-tier cities are becoming saturated, and industry dividends are gradually fading.”

Responsible editor: Liu Yi

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