County catering brands such as Micun Bibimbap and Tastin are quietly spreading in "Beijing, Shanghai, Guangzhou and Shenzhen"——
Why have county brands become the “new favorites” of big cities?
Xu Peiyu Tang Minan
Many young people have discovered that restaurant chain brands from their hometown have quietly appeared in big cities such as Beijing, Shanghai, Guangzhou and Shenzhen. From 4 yuan per cup of lemonade to 29.9 yuan for a three-piece lunch set, county catering brands such as Mixue Bingcheng, Micun Bibimbap, and Tustin have become the "new favorites" of consumers in big cities.
Behind this, it not only reflects the narrowing gap between urban and rural consumption in China, the digital transformation and supply chain upgrade of the catering industry, but also reflects the current consumers' pursuit of high cost performance.
High cost performance is the key, and featured products are the highlights
According to the definition of Meituan New Catering Research Institute, chain brands whose stores are mainly located in counties in the early stages of their business are called county catering brands. Meituan data shows that in 2023, the average store growth rates of major county catering brands in Beijing and Shanghai will reach 148% and 225% respectively; medium-sized county catering brands with a number of stores at the national average level (about 1,000) will be in the first and second tiers. The average order growth rate in the city is as high as 94.3%, and the average user growth rate is 84.5%.
How do consumers in big cities view these county brands?
High cost performance is a key factor for consumers to choose county brands.
"Internet celebrity milk tea often costs 20 or 30 yuan a cup, but most of the drinks in Mixue Bingcheng do not exceed 10 yuan, which is the 'heavenly dish' of the student party." Lin Xu is a student at Beijing Foreign Studies University. In 2023, he worked at Mixue Bingcheng Cheng has consumed more than 500 drinks, and the high cost performance is the reason why he loves Mixue Bingcheng.
Compared with similar fast food brands, Tustin, which specializes in freshly grilled burgers, has an advantage in terms of price and taste. Relevant platform data shows that the per customer price per customer in Tustin is 18.97 yuan, which is about 40% lower than the per customer price per customer at KFC and McDonald's. On the review software, the rating of Tustin in Shanghai is basically above 4.0, with “affordable price” and “high quality and low price” becoming key words in consumer reviews.
Unique products and marketing strategies are also the highlights of this type of brand attracting consumers.
"The hamburger buns in Tustin are different from other fast food restaurants. They taste like sesame pancakes. They are chewy and oily, which is more in line with Chinese people's eating habits." Yin Fulin, who is from Shandong, came to Beijing to study not long ago. "It's something we often eat in my hometown. Tustin drove to Beijing and felt very pleasantly surprised." Micun Bibimbap has created an "Internet celebrity temperament" in terms of environment, product selection and promotion, and has become a "canteen" for "workers" in first-tier cities. Wang Yiran, who just graduated from university and works in Beijing, likes to try new things based on the bibimbap tutorials prepared by different consumers online. "A fast food restaurant with an average cost of 30 yuan per person is not inconsistent at all in a large shopping mall. The decoration and dishes in the store are The service and service are not inferior to those of big brands.”
Shops can be found everywhere, and eating out is convenient and fast, so consumers no longer have “difficulty in choosing”.
During the visit, it was found that many consumers believe that stores of such county catering brands can be found everywhere in big cities, which greatly saves the time of finding restaurants, especially when they are in a hurry and spend casually. "We just want to eat somewhere near the high-speed rail station. We are worried that the hygiene of small shops is not up to standard and the food service of large shops is slow. This kind of chain store has stable quality control and fast food delivery." Liu Ling and her family, who are traveling to Beijing, are about to take a 40-minute ride. After taking the high-speed train back to their hometown, they chose to have a simple meal at Lanzhou Ramen, 200 meters away from Beijing West Railway Station. Liu Ling believes that being “available everywhere” also makes these catering brands leave a subtle impression on them. “I’ve seen it often before, and I happened to come in and try it when I had the opportunity today,” she said.
Reduce costs and increase efficiency through multiple ways to turn traffic into sales
How can county brands achieve both price and quality while continuing to expand in first-tier cities?
Reduce costs and increase efficiency in store location and supply chain. The "2023 China Catering Industry Ecological White Paper" released by the Red Food Industry Research Institute shows that in addition to raw materials, rent and labor for catering companies are the two main costs. According to analysis by industry insiders, chain catering brands such as Mixue Bingcheng and Wallace are mostly located in locations with low rent premiums such as corner streets and community schools. At the same time, they further control costs through their own supply chains. Therefore, despite low terminal pricing, the company's gross profit margin and net profit margin are both at the middle level of the industry. Brands such as Micun Bibimbap that target shopping malls use pre-prepared dishes to reduce the cost of dish production, labor and water and electricity. “They generously admit that they are pre-prepared dishes and provide the quality of a full meal at the price of pre-prepared dishes” is what Micun Bibimbap says on Xiaohongshu. One of the factors that attracts consumers.
Digital marketing turns traffic into sales. Meituan data shows that users aged 20 to 35 in first-tier cities are the main growth force in county catering brand consumption. Young consumer groups such as student parties and office workers are proficient in consumption patterns such as group buying and coupon grabbing, and live broadcast coupon grabbing. Users also have long-term demand for online and offline catering consumption. Therefore, local digital life platforms such as takeaways, reviews, group purchases, and live broadcasts not only improve customer acquisition efficiency and expand retail scope for county brands, but also effectively reduce store operating costs and improve revenue structures, allowing county brands to further consolidate their low-price advantages. .
Will digital platforms continue to help county catering brands? Industry insiders analyze that the help of digital platforms to the catering industry is mainly reflected in improving the industrial structure. Digital development has caused the influx of more participants into market segments that were originally ignored by the industry but have consumer demand, creating the "long tail effect" of the industry. and differentiated competition have been significantly enhanced. This trend essentially represents that the industrial structure is becoming more balanced, and also reflects the role of the platform economic model in promoting full competition in the catering industry. Therefore, brands can make good use of the advantages of digital platforms in operating market segments and consolidating the "long tail effect" to promote high-quality development in the catering industry.
Consolidate the advantage of low prices and avoid “flash in the pan”
County brands have become “hot hits” in big cities. What kind of consumer psychology does it reflect?
Consumers pay more attention to consumer price and sense of gain. Hu Jiayin, a researcher at the Digital Finance Research Center of Peking University, believes that the reason why county brands are favored by consumers in big cities is not consumers’ understanding of the concept of county regions, but their understanding of catering brands. "In fact, when consumers buy county brand products, they may not realize that it is a county brand, nor do they deliberately choose such brands for consumption. More often than not, it is because consumers pay more attention to the price and sense of gain, and County catering brands just appear as representatives of high cost performance." Hu Jiayin said that this also reflects the change in the consumption pattern of urban residents. Paying more attention to cost performance means that the willingness to pay premiums is reduced, and consumers have increased their demand for their own consumption. Clearer understanding.
How can county brands maintain their advantages in fierce market competition and avoid "flash in the pan"?
Hu Jiayin suggested that county brands often use digital marketing to attract customers and retain consumers with high cost performance. This means that brands must first consolidate their low-price advantages and promote traditional catering by integrating supply chains and building their own digital systems. The business model has been transformed in all aspects of store opening, customer acquisition, and operation, reducing costs and increasing efficiency.
On this basis, brands also need to closely grasp consumer dynamics, such as continuing to attract consumers on the supply side through continuous iteration and innovative products; establishing a "cooperation card" with digital platforms and providing subsidies through low-price group purchases, red envelope discounts and other means Gain insights into users’ consumption psychology and consumption habits on the demand side. "Consumers' pursuit of cost-effectiveness is reflected in the fact that they can accept low-priced and ordinary-quality products, but they do not want to buy low-priced and inferior products. The most important thing is to provide products and services that make consumers feel at ease. Catering brands cannot ignore them. The red line of food safety." Hu Jiayin said.
Experts said that the influx of county brands into first-tier cities has become the new favorite of catering consumption, which is also a manifestation of the integration of China's urban and rural consumption structure. With the digital transformation and supply chain upgrade of the catering industry, the consumption gap between lower-tier markets and first- and second-tier cities will further narrow. More catering brands that are both cost-effective and able to attract consumers to stay for a long time will better meet the needs of Chinese consumers. consumer taste buds. (People's Daily Overseas Edition)