Start-up capital of less than 500,000 yuan can open a store in non-first-tier cities

　　Our reporter Liu Xiaoyan

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　　Recently, HEYTEA, a tea brand that has been showing off its high-end image and sticking to the pure direct sales route, has also changed to the franchising route.

HEYTEA has announced the opening of a business partnership authorization model, and business partners can open stores in non-first-tier cities with a start-up capital of 500,000 yuan.

However, industry insiders pointed out that the chain industry can achieve rapid expansion by adopting the franchise method, but it will also bring "sequelae".

The headquarters should strengthen the management of franchise stores in order to ensure product quality and food safety.

　　Recently, Heytea, a well-known tea brand, announced the opening of a business partnership authorization model. The business partners selected by the company will independently complete site selection, store building, personnel management and continuous operation under the unified management system of Heytea.

This move means that HEYTEA has given up the long-standing direct sales model and started the store franchise business.

　　Heytea confirmed to the reporter of Workers' Daily that on the basis of the full implementation of the store partner mechanism in stores across the country, Heytea will rely on the experience, capabilities and resources accumulated over the past 10 years to develop in non-first-tier cities with suitable store types. Business partnership business.

　　In fact, well-known tea brands such as Michelle Bingcheng and Guming mainly adopted the franchise model before, but HEYTEA has always shown itself with a high-end image and insisted on a pure direct sales route.

So, why did HEYTEA choose the franchise model?

How to ensure product quality and food safety by taking the franchise route?

Heytea’s entry into non-first-tier cities will have an impact on other tea brands?

Recently, a reporter from "Workers' Daily" conducted an in-depth interview.

　　You can join with a start-up capital of less than 500,000 yuan

　　After Heytea, Naixue’s Tea and other tea drink brands took the lead in reducing prices and successively launched a variety of products below 30 yuan, leading tea drink brands began to target franchise business again.

　　According to the announcement of HEYTEA, business partners must work in the store for more than 3 months, pass the promotion assessment for 4 positions in the store, and pass the food safety and quality control supervision and inspection of the existing store standards for more than 3 times in a row. Long term ability.

After becoming a business partner, you must also devote yourself to the daily operation of the store.

　　As for the start-up capital-related expenses, it is within 500,000 yuan, including 50,000 yuan for single-store cooperation service fees (paid every three years according to the contract cycle), 40,000 yuan for the first training fee for a single store, 10,000 yuan for design fees, commissioned surveying and mapping fees RMB 5,000, project supervision fee of RMB 8,000, security deposit of RMB 30,000, system operation fee of RMB 20,000 per year, equipment fee starting from RMB 150,000, decoration fee starting from RMB 100,000, etc., totaling at least RMB 413,000.

At the same time, the operation and management fee will be charged a 1% commission when the total monthly paid-in amount exceeds 60,000 yuan.

　　According to public information, at present, Naixue’s tea and Lele tea, a tea drink brand with the same price as Xicha, are not yet open for franchise.

Among the milk tea brands that are open to franchising, the franchise fees of Michelle Ice City’s provincial capital, prefecture-level and county-level cities are 11,000 yuan, 9,000 yuan, and 7,000 yuan respectively, with an estimated total cost of 370,000 yuan; Guming does not include store rent The pre-budget for transfer and transfer fees starts at 280,000 yuan; the estimated total cost of Chabaidao excluding the comprehensive operation service fee is nearly 300,000 yuan.

　　The start-up capital announced by HEYTEA this time is less than 500,000 yuan, which is slightly higher than that of the brands that have opened to franchise.

It should be noted that HEYTEA also requires business partners to provide proof of more than 1 million legal cash or equivalent realizable assets, and independently invest in the store, and can provide reasonable asset flow to prove that the funds come from personal accumulation rather than others invest.

　　Store expansion under market changes

　　The reporter noticed that the franchise store type reference provided by HEYTEA is the stores it has opened in Zhongshan, Jingjiang, Yichang and other non-first-tier cities this year, and the store area is basically within 50 square meters.

Compared with the nearly 200 square meters of directly-operated stores, the reference area is obviously adjusted for the business partnership model, and it also tends to choose locations in non-first-tier cities.

　　Industry insiders pointed out that compared with the direct sales model, after the opening of the franchise, tea companies can mobilize social resources more quickly to achieve scale, thereby helping the company gain a higher market share in the same period of competition and further enhance the brand's valuation. value.

And this time, Heytea’s open franchise is aimed at the layout of non-first-tier cities, and it also takes a fancy to the strong consumption potential of non-first-tier cities, especially the sinking market.

　　Guming, a tea drink brand that has operated and developed under the franchise model since its inception, currently has nearly 7,000 stores across the country, mainly distributed in more than 160 prefecture-level cities in 18 provinces including Zhejiang, Fujian, Jiangxi, and Hubei.

　　"In terms of franchise location layout, Guming considers the area that can be covered by the self-built supply chain system, so as to ensure the freshness and timely supply of beverage raw materials, and ensure the quality of drinks to the greatest extent." Guming revealed that the later franchise Site selection will continue to develop steadily in accordance with previously established plans.

　　Analysys analysis of Li Xinyi, a consultant in the brand retail industry, believes that Heytea insisted on direct sales in the early stage mainly to strictly control product quality and store services, and complete the shaping of a high-end brand image.

However, opening a directly-operated store requires a large investment in assets and manpower, and a slow scale, which is more suitable for the early stage of chain operation.

Under the normalization of epidemic prevention and control, it is more difficult for HEYTEA to insist on direct sales.

　　Management Game under Franchise Mode

　　"Currently, the tea drinking market in non-first-tier cities is mainly occupied by mid- and low-end brands, and their consumers are relatively more concerned about cost performance. High-end brands sinking may consider developing new products for the needs and consumption capabilities of non-first-tier markets." Li Xinyi believes that the head tea Beverage brands are open to non-first-tier cities to join, which can not only meet the needs of consumers in non-first-tier cities with the help of head brand effects, but also help malls effectively attract customer traffic, but business adjustments that conform to market characteristics should also be made.

　　"Whether a drink can become popular and whether it can be repurchased depends on the product itself." The relevant person in charge of Guming said that the new product involves R&D team, raw material procurement, logistics supply chain, store training and supervision, and after-sales service. With the cooperation of each link, only by doing a good job in each link can we effectively protect the legitimate rights and interests of consumers.

　　Although the chain industry can achieve rapid expansion by adopting the franchise method, the "sequelae" brought about by it are often criticized by consumers.

China food industry analyst Zhu Danpeng said in an interview with reporters that from the perspective of food safety, the more franchise stores there are, the more difficult it is to supervise the internal quality control system.

Therefore, the headquarters should strengthen the management of franchise stores in order to ensure product quality and food safety.

　　Li Xinyi analyzed: "Franchise model problems occur frequently, one of the important reasons is that there is a certain game relationship between the franchisee and the headquarters, and whether the headquarters can empower and protect the interests of the franchisees." Therefore, the headquarters First of all, in terms of management, it is necessary to make franchisees realize that taking risks for short-term interests is not worth the loss. At the same time, protect the interests of franchisees, reduce the cost of franchisees as much as possible, and help franchisees to operate well.

　　The reporter noticed that HEYTEA is also relatively cautious in this franchise opening operation.

In addition to the basic financial requirements, HEYTEA proposes that business partners must have received higher education, have their own core team, and have more than 5 years of corporate management experience. "Training and Examination Process".