Chinanews client, Beijing, August 5 (Reporter Xie Yiguan) Recently, the news of "Yoshinoya will close 150 stores in the Chinese market" appeared on the hot search.
Under the influence of the spread of the global new crown pneumonia epidemic, not only Yoshinoya closed its stores to help itself, but also closed 200 McDonald's stores and 400 Starbucks stores...The well-known international catering brands that once "opened up their territory" closed stores to deal with the business crisis.
After losing 5 profits in 3 months, Yoshinoya closed the store for emergency
In the gap of one person shopping, order a signature beef rice, or order a Yoshinoya double meal during countless busy noons... In the global fast food chain, Yoshinoya has captured many people with its oriental rice culture. The heart of diners.
Therefore, when the media reported that Yoshinoya will close 150 stores around the world by February 2021, 100 of which are local stores in Japan and 50 are overseas stores, many netizens’ first reaction was whether they could still eat delicious food. The beef rice.
The picture comes from Yoshinoya's official Weibo.
Currently, Yoshinoya has more than 3,300 stores worldwide. Among them, there are more than 1,000 overseas stores, and the Chinese market accounts for more than 60%. It is reported that the planned closure of overseas stores involves the Chinese market, but Yoshinoya has not disclosed the specific number of closed stores and location information.
According to Yoshinoya's announcement, Yoshinoya chose to close stores on a large scale, or its business conditions may deteriorate sharply due to the epidemic. From March to May 2020, Yoshinoya’s accumulated losses amounted to 4 billion yen (approximately RMB 267 million), and it is expected to lose at least 9 billion yen (approximately RMB 600 million) in fiscal year 2020, and its surplus in fiscal year 2019 is not enough. Only 700 million yen (about 46.63 million yuan).
According to reports, the "Yoshinoya" brand in the Chinese market is operated by the Hong Kong-based Hexing Group and the Japanese Yoshinoya headquarters. Hexing Group mainly operates Yoshinoya stores in Beijing-Tianjin-Hebei, Northeast China and Hong Kong under a franchise model. In addition, stores in other regions are managed by the branches of Yoshinoya headquartered in Shanghai, Shenzhen and Taiwan.
In addition to the stores managed by the Yoshinoya branch, will the stores operated by Hexing Group be affected?
The reporter asked Beijing Yoshinoya Catering Co., Ltd. about this, and its customer service stated that all stores in Beijing are operating normally and no news of the closure of the store has been received.
A staff member of a Yoshinoya store in Fengtai District, Beijing also told reporters that the store is currently operating normally, and the takeaway can be delivered normally.
Hong Mingji, chief executive of Hexing Group, also responded to Yoshinoya’s closing news via Weibo, saying that due to the impact of the epidemic, the flow of people in front of the store has plummeted, and the consumer demand of customers has fundamentally changed. As an investor and operator of Yoshinoya, it is necessary to Find a business model suitable for the times and in line with the trend.
On July 28, Hexing Group issued a mid-term profit warning. Affected by the epidemic, the net profit loss attributable to shareholders of listed companies did not exceed 70 million yuan. Hexing Group's net profit attributable to shareholders of listed companies in the same period in 2019 was 57 million yuan.
"Better than miserable"! "Big brands" such as McDonald's and Starbucks have closed stores
Not only Yoshinoya, but also fast food chain brands such as McDonald's, Starbucks, Burger King, etc. have a hard time under the epidemic.
McDonald's latest financial report shows that in the first half of the year, revenue was 8.476 billion US dollars, down 18.77% year-on-year; net profit was 1.591 billion US dollars, down 44.09% year-on-year. Among them, the revenue in the second quarter was US$3.762 billion, a year-on-year decrease of 29.58%; the net profit was US$484 million, a year-on-year decrease of 68.11%, and the performance decline was even greater than the first quarter.
On March 16, the only McDonald's opened in Greenbelt1-5, a top business district in Manila, the capital of the Philippines. Photo by China News Agency reporter Guan Xiangdong
McDonald’s CEO Chris Kempczinski said on the earnings call that in order to improve profitability, it plans to close about 200 US stores this year.
"Fried chicken" is not fragrant, and "coffee" is cold.
On July 29, Starbucks released its third-quarter financial report, with revenue of US$4.222 billion, a decrease of 38.12% from the same period last year; a net profit loss of US$678 million, and a net profit of US$1.373 billion in the same period last year. Compared with the company's expectations before the outbreak, it lost approximately $3.1 billion in sales.
With store sales falling, Starbucks can only close stores to stop losses. Starbucks recently announced that it plans to permanently close about 400 stores in the Americas in the next 18 months and halve the number of new stores it plans to open this fiscal year to about 300. In the next two years, it will also reorganize its operations in Canada, including closing 200 stores.
And it was recently exposed by CCTV's 3.15 party that Burger King used expired bread to make burgers. As early as April, the holding parent company of its New Zealand company announced that it went into bankruptcy management.
Under the spread of the overseas epidemic, everything is unknown
The epidemic is spreading overseas, and multinational catering giants have widely distributed stores and are affected. They can only take measures such as temporary closure of restaurants and limited-time operations. They have become the "severely affected areas" of the epidemic, and they have rescued themselves through the development of food delivery and other methods.
For example, Yoshinoya stated that in the context of self-restraint requirements when going out and emergency situations, in order to quickly respond to changes in customer demand from in-store eating to takeout, it actively expanded the number of express delivery service stores to 546.
Yoshinoya President Yoshinoya Kawamura said at the press conference that he will reduce fixed expenses by reducing shareholder dividends and encouraging headquarters employees to work from home to increase revenue.
On May 30, on the second day of the countdown to the "unblocking" of Manila, the capital of the Philippines, KFC and Starbucks opened, but they only took takeout and did not do dine-in. Photo by China News Agency reporter Guan Xiangdong
Although the chain catering industry is actively overcoming the pressure of the epidemic, what will happen in the future is still unknown.
According to real-time statistics from Johns Hopkins University in the United States, as of 11:36 on August 4, Beijing time, the cumulative number of confirmed cases of new crowns worldwide exceeded 18.22 million, and the cumulative number of deaths exceeded 690,000.
In Japan, Japan’s Fuji TV reported that Tokyo, the worst-affected city, has decided to require some shops, including the catering industry, to shorten their business hours from August 3. The Japan Broadcasting Association (NHK) reported that a survey company counted that as of the 3rd, 406 companies in Japan had closed down due to the new crown pneumonia epidemic.
In the United States where McDonald's, Starbucks, and Burger King are headquartered, AFP quoted the National Restaurant Association of the United States on the 2nd and reported that the US catering industry is one of the most "hit" industries in the epidemic and will lose 240 billion US dollars by the end of this year. . Aaron Allen & Associates, a catering industry consulting firm, estimates that of the approximately 660,000 restaurants in the United States, as many as 231,000 will be closed this year.
Sean Kennedy, vice president of public relations for the National Restaurant Association of the United States, said, “We are the first industry to cease operations, and may be the last industry to recover from the epidemic.” “Returning the restaurant industry to its pre-epidemic state will It will take a few years.” University of Michigan economist Richard Curtin (Richard Curtin) said.
The Chinese market has not seen a wave of store closures, McDonald's wants to open 420 new stores in China
It is worth noting that in the Chinese market, thanks to China taking the lead in controlling the epidemic and resuming production and resumption of the market, although the revenue of the big catering brands in the Chinese market has also declined, there has been no trend of store closures.
For example, McDonald's China and Yum China, which owns fast food brands such as KFC and Pizza Hut, have not heard about Chinese stores so far.
Yum China’s latest financial report shows that Yum China’s revenue in the second quarter was US$1.9 billion, a year-on-year decrease of 11%. Among them, KFC dropped by 10% year-on-year, and Pizza Hut dropped by 17% year-on-year. Yum China opened 169 new stores in the second quarter. Yum China CEO Joey Wat said that despite the challenging external environment, in addition to Huang Jihuang, the company will open 800-850 new stores throughout the year in China.
Data map: People pass by a McDonald's store in China. Photo by China News Agency reporter Zhang Yun
McDonald's expects to open about 950 new restaurants worldwide this year. The relevant person in charge of McDonald's China told the media that about 420 new restaurants will open in the Chinese market. At present, McDonald's has more than 3,500 restaurants in China, and it is expected to exceed 4,000 by the end of the year.
Benefiting from China's well-developed food delivery market, Yum China's financial report showed that its food delivery business maintained a strong growth rate in the second quarter, up 36% year-on-year, contributing 29% of total sales. Digital orders, including takeaway orders, mobile phone orders, and ordering machine orders, accounted for 86% of KFC's sales and 61% of Pizza Hut's sales.
"The loss of chain catering companies in the first half of the year is directly related to the reduction in the flow of people under the influence of the epidemic." China Food Industry Analyst Zhu Danpeng told a reporter from Chinanews.com that in China, the entire industry will recover in the second half of the year, and catering should buck the trend. . For enterprises, it is more to do a good job of quality, a good service system, and strengthen customer stickiness to build core competitiveness.
Since this year, how many times have you eaten McDonald's, KFC, Yoshinoya, or Starbucks? (Finish)