Who has Xianhezhuang's withdrawal from the first-tier cities warned?

Recently, the news that Xianhezhuang hot pot, a catering brand blessed by celebrities, has withdrawn from first-tier cities has sparked heated discussions. According to media reports, the Beijing stores of Xianhezhuang hot pot founded by artist Chen He and others have all been closed. In addition, if you check the Dianping page, you can find that there are no Xianhezhuang hot pot restaurants in Shanghai and Guangzhou. At present, the brand has only 212 stores left, mainly distributed in third-, fourth-, and fifth-tier cities. Compared with the more than 800 stores in the peak period, it has been reduced by nearly three-quarters.

What has Xianhe Village experienced in just a few years from being famous and having many stores to withdrawing from the first-tier cities? According to public information, Xianhezhuang was established in 2015. In 2019, Chen He and Zhou Yang, owner of Sichuan Zhishan, the parent company of Tan Yaxue, an online celebrity hot pot brand, jointly established Chengdu Xianhezhuang Brand Management Co., Ltd., and the development of Xianhezhuang officially ushered in a turning point.

With the blessing of celebrities and experience in operating Internet celebrity brands, Xianhezhuang has been "going all the way" since 2019, and by 2021, the number of stores nationwide will exceed 800 during the peak period. However, while the market is expanding rapidly and the franchising business is booming, Xianhezhuang is also frequently on the hot searches due to negative public opinion.

Some people in the industry pointed out that Xianhe and Zhuang Cheng also joined, and so did defeat. Due to the adoption of the franchise model, Xianhezhuang has been able to expand rapidly, and it can easily make money only by relying on the franchise fee. But the problem is that some franchisees said that they were operating at a loss, and did not pay back within 10 to 15 months as promised by the investment promotion staff.

For catering brands, with more and more franchised stores, the supervision of the internal quality control system is becoming more and more difficult. If they do not rely on a sound system to strengthen the management of franchised stores, strengthen food safety guidance, supervision, inspection and management , there may be food safety issues. Xianhezhuang is no exception. In recent years, the brand has been repeatedly exposed by the media to have problems in food safety and service quality.

There are complaints and rights protection from franchisees inside, and consumers who have "passed the freshness" outside. In addition, there have been many food safety issues, and Xianhezhuang finally has no place to stay in the first-tier cities. Today, Xianhezhuang has withdrawn from the first-tier cities, which once again sparked people's discussion on the topic of star dining. In recent years, many celebrities have taken a fancy to the catering business, aiming to use their own traffic and influence to build catering brands, but many celebrity catering seems to be unable to escape the curse of "short life".

In the eyes of industry insiders, celebrity catering brands can indeed expand rapidly with the help of the aura of stars in the early stage, but the problem is that catering is a business that needs to be managed carefully, and celebrities may not have the ability to manage restaurants and maintain brands. And it does not have the energy to participate in management and operation. In addition, the types of celebrity catering are relatively homogeneous, and the products lack innovation, which cannot meet the diverse needs of consumers.

To do a good job in catering, enterprises need to work hard on product quality, service level and dining environment. If you only think about expanding stores and monetizing traffic, and don't think about improving quality, innovating dishes, and improving services, even with the blessing of celebrities, it will be difficult to gain a place in the fierce competition in the catering market. Celebrities must understand that their own "soft power" cannot replace consumers' requirements for "hard power" in catering. Consumers may come to eat because of "chasing stars", or they may "lose fans" because of bad experience. Therefore, if celebrities want to do catering business, they must go all out to do it well, so as to be worthy of consumers and franchisees.

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