Wen/Zhou Qiren, member of China Economic 50 Forum
The characteristics of China's catering industry formed in its development, such as large market capacity, excellent system and mechanism, and great responsibility, will not disappear in the long run. It is still a good business worth fighting for.
Jia Guolong asked Zhou Qiren:
Should Xibei be listed or not?
Hello, everyone. I'm Jia Guolong from Xibei Restaurant. I want to re order with you today.
On January 23, I got the news that Wuhan was closed. It was my mother's birthday. Many relatives came home to celebrate my mother's birthday. At that time, it was a very warm New Year atmosphere. However, the news came the next day that the shopping malls would be closed, and by the New Year's Day, the shopping malls and stores across the country were basically closed.
From the news of COVID-19 to the closure of Wuhan, and to the notice of closing our business, everything came too suddenly.
Normally, the business during the Spring Festival is better than usual. This Spring Festival Xibei estimated to complete more than 700 million sales. Before the year, we were prepared to make a big effort during the Spring Festival according to the full allocation of materials. Suddenly, we heard that we would stop. It was really anxious.
We pay more than 150 million yuan a month, and the Spring Festival is three salaries, so we need more funds. At that time, it was said that the epidemic would take three months. I quickly asked the financial department to make statistics on how much we owe suppliers, how long the salary can be paid, and how much other just needs to be paid.
After finishing the accounts, I was in a panic. The bank's credit and existing funds could not last for three months.
What to do? Later, the crisis was solved mainly through the following ways:
1. Accepting media interviews and speaking on behalf of the industry
After I accepted the interview, the manuscript was sent out the next day, and the screen was brushed instantly, which caused quite a stir.
The Ministry of Human Resources and Social Security soon issued new guidelines after the investigation, which can be discussed with the staff, and can be paid according to the local minimum wage during the period of suspension and non work. This has largely alleviated the problem of wage payment.
2. The bank provides timely financial assistance
The banking industry has given timely help, and the Beijing Financial Bureau has joined several banks to give us support.
I was interviewed on January 31 and received it on February 3 Shanghai Pudong Development Bank The online approval was completed on the 6th, and a credit of 430 million yuan was granted. It was agreed to pay 120 million yuan before the salary was paid on the 10th, and the payment of 8 was in place.
Other banks, including Agricultural Bank of China Industrial Bank 、 China Merchants Bank , and Bank of Communications , gave some support. Thus, the problem of cash flow has been alleviated.
3. Self rescue
On the one hand, help from others is more important than self rescue.
Since the beginning of February, we have started intensive online meetings to discuss what to do.
The first priority is to cooperate with the country to do well in epidemic prevention. We reassure employees that they must protect themselves, not run around, not be infected, and not become the source of infection of diseases. In addition to food, shelter, and epidemic prevention, we should also pay attention to their mental health.
Minimize expenses. According to the salary guidance issued by the Ministry of Human Resources and Social Security, the salary of employees in February and March was paid according to the local minimum standards, and negotiations were held with suppliers. Those who can postpone payment, those who can unsubscribe, and those who can convert saved a lot of money to a certain extent.
Third, maintain takeout and actively generate income. Take away can maintain 10-15% of the normal main business revenue, and some cash can also come in.
In addition, during this time, I have also done two particularly meaningful work: 1、 Reorganize standards and systems; 2、 We have a new vision for the next decade.
It turns out that things are pushing us forward, But after we calmed down this time, we began to think about big things, "look at ten years, set three years, and work for one year".
After many rounds of discussions and collisions with cadres at all levels, ten years later, that is, by 2030, we will be making 100 billion Xibei, not a Xibei with a market value of 100 billion, but a Xibei with a sales value of 100 billion. We will add two new businesses, one is fast food, the other is online food retail. We will create an online food plate, not in the form of factory instant noodles, convenient food, nor in the present form of take away food, but in another form that Xibei can hold.
Churchill said, "Don't waste any crisis."
Although the epidemic has indeed given us great challenges and tests, I was also very anxious at the beginning, but anxiety is to stay at home, not anxiety is to stay at home, calm down but can think deeply.
Xibei has been an enterprise for 32 years. It has never combed its own past so carefully, combed and optimized the system one by one. After combed one by one, word by word, or even one by punctuation mark, the value is too great, which will make our work more precise from the extensive past.
Finally, I would like to ask Professor Zhou a question: I used to insist that Xibei would never go public. When it went public, I always felt that the capital would influence you and interfere with you, so that your development rhythm could not be controlled by yourself. But the epidemic has taught me a great lesson. It seems that there is a real problem to rely solely on my own cash flow when encountering disasters and disasters. So I changed my mind and considered listing. I asked Professor Zhou if my decision was reliable?
Zhou Qiren answers Jia Guolong: Capital is a sharp sword
Zhou Qiren: Mr. Jia, you must first make a judgment. What is the difference between bank loans and equity financing for enterprises? The bank will repay the principal and interest after borrowing the money. Whether private equity financing or public listing, the "capital" will be controlled by the enterprise once it enters the enterprise door. It seems that there is no pressure to repay the principal and interest.
However, equity investment requires a valuation of the enterprise, and the valuation or share price will continue to change with the change of the enterprise and market situation in the future. Of course, it is pleasant to have a high valuation or a high share price, but it is based on investors' expectations of how high the enterprise's profitability will reach. If the enterprise can continue to meet these expectations, everyone will be happy. There will always be more investors willing to give a higher valuation or valuation, and the enterprise will get more capital to do what you want to do.
The problem is that there is another side to it. If the profitability of an enterprise fails to meet the expectations of investors, whether because you are not doing well enough or because his expectations are not reliable, then equity capital will shine. It cannot take away the money already invested, but it can immediately adjust the undervalue or immediately let the company's market value disappear.
The sharp sword in the capital hand is "anonymous exit". Without your knowledge, the valuation will disappear, and the market value will fly, which is much more powerful than the withdrawal of bank loans.
Therefore, considering comprehensively, no matter the debt and equity, for entrepreneurs, financing is owed to others, but the method of repayment is different. One is to repay the principal and interest when due, and the other is to give a satisfactory return on investment. Otherwise, the valuation will plunge. If an enterprise wants to play a part in the market, it should make use of debt financing and equity financing, but what is the difference in the end, it should be thorough.
Shu Congxuan: Rural chickens respond to the epidemic crisis,
The truth behind it is 8 o'clock
1. Three self-help groups and "addition, subtraction, multiplication and division" self-help method
First of all, I would like to share the work of our local chickens at each stage of the epidemic response process.
In January 2020, Wuhan suffered from pneumonia of unknown cause. Since we have hundreds of stores in Wuhan, we carried out early response actions, set up a prevention and control team on January 20, and formulated a three-level plan.
On January 23, Wuhan was closed, and more than 100 stores in Wuhan were closed, followed by a precipitous decline in the turnover of more than 800 stores in the whole company.
In addition, Chinese people have a tradition of returning home for the Spring Festival. Two days before the closure of the city, it was the day when some employees returned to Anhui for the Spring Festival. So we told the employees of Wuhan Company not to return. Half of the employees also stayed in Wuhan later.
The employees who came back were in great trouble. They could not enter their homes, the community was not allowed to enter, and Wuhan could not go back, so they had to stay in the hotel. So this time, the turnover declined, and we were still under great pressure.
At this time, we realized that in the face of the epidemic, we must "not be afraid, not panic, not out of a coma", and we must sit down and think calmly about this problem.
Then, we formulated requirements for the store. Employees should wash their hands every hour, disinfect once every two hours, and change masks every four hours. In addition, they were required to "put four in place", defense materials in place, prevention and control personnel in place, prevention and control mechanism in place, and epidemic situation screening in place.
On February 1, our headquarters held a meeting and divided the work into three groups: strategic group, innovation group and leading group.
The strategy group, mainly in this period, must think clearly about this strategy. At that time, we proposed "Work at home, work in groups, online training".
The innovation group began to study our transformation, including delivery and online sales.
The operation team is responsible for directing and responding to more than 800 stores, calculating accounts, budgeting and orderly self-help.
At that time, we adopted a better method, namely, "addition, subtraction, multiplication and division", to increase our confidence and reduce all unnecessary expenses. Multiplication is innovation, in addition to removing secondary disasters and this fear, which is very effective.
2. 8 facts behind the success of fellow villagers' chicken self rescue
Here, I will report the truth behind this. The truth behind it is as follows:
First, the bank is really powerful this time, but it is actually because of our credit. For more than 30 years, we have always valued credit more than anything else. Otherwise, you can't tear up ten letters and hold many meetings.
Second, so far, none of us has been infected. In fact, we rely on our previous clean and sanitary work, which has become the standard of daily operation.
Third, this time, the whole staff were united to deal with the epidemic. In fact, our organizational construction and organizational culture were relatively solid at ordinary times.
Fourth, it is true that the medical staff in this epidemic are the most respected group, whether they tear it or not.
Fifthly, our national development strategy actually existed before, but this time ahead of schedule.
Sixthly, our current turnover has risen. In fact, it benefits from the popularity, our brand, our precise positioning, and our solid management ability.
Seventh, due to the wide support and recognition of netizens, everyone inside was very excited, which further promoted the cohesion of the group.
Eighth, thanks to the focus, the truth behind the focus is that it makes us more powerful in dealing with the epidemic. We have always focused on one industry and a certain area. If we have multiple brands, we may have a greater vision in the process of dealing with the epidemic.
3. Under the epidemic situation, my nine thoughts
Finally, I would like to talk about my thoughts:
First, thousands of defense projects have been resumed, Article 1 of health and safety of customers and employees. Now we all know that the epidemic situation abroad is still serious, and we can't relax, especially we can't have secondary disasters again.
Second, we have not yet succeeded in reaching the production capacity. Our turnover has increased. There is still a long way to go before reaching the production capacity. I think we still need to work hard to reach the production capacity. Our "addition, subtraction, multiplication and division" should be done more carefully, and epidemic prevention should not stop at all.
Third, the important thing is to say three times that cleanliness is the top priority of our catering.
Fourth, in the process of the epidemic, I think the industry can work together to warm up and support each other. Many entrepreneurs and friends encourage each other. They think of ways to help each other. Our experts are also actively thinking of ways for us. Various platforms have opened live broadcasts to empower us, and the banks are also very powerful, In this very difficult time, the government has also introduced a lot of policy support to show solidarity in all aspects of society. We feel very proud to be born in this country.
Fifthly, I will not let the employees suffer. I will pay the salary according to the situation of the enterprise. It depends on the situation. After I "tear the joint letter", some entrepreneurs think you can afford to pay me. What should I do? This is a matter of fact. The situation of enterprises is different.
Sixth, do not forget the original intention. We have seen that some enterprises that sell steak are also following us to deliver, which may affect their enterprise positioning. Steak baked and delivered to customers will affect the taste and do some business. Will this strategic positioning be damaged after the epidemic?
Seventh, in the face of any emergency, we should keep calm and calm, make scientific analysis, grasp the rules, make accurate scheduling, seek opportunities in danger, and not panic.
Eighth, at the critical moment, the boss should speak out, and the team should make efforts to overcome difficulties. It is impossible to rely solely on the boss and senior managers. During this period, I also thank Mr. Zhou Qiren, who said at the beginning that you should rely on the team, not a few people.
Ninth, we should carefully summarize the experience of this epidemic response to prepare for future crisis prevention, and we do not know what kind of crisis will be in the future.
My summary is: To ensure safety, stable operation and find opportunities, white cats and black cats are good cats alive.
Let me say two words to encourage entrepreneurs: Self respect leads to self-reliance, self-reliance leads to self-reliance , Oligai.
Finally, I asked Mr. Zhou Qiren, what can be improved in the whole industry chain?
Zhou Qiren answered Shucongxuan:
Reach out to your upstream suppliers
Zhou Qiren: I'm interested in local chickens. That's the question you asked. Because food and beverage are connected with planting, agriculture and consumers.
Agriculture has many characteristics. In this crisis, it is difficult to store the products of planting and breeding industry for a long time! Why did you kill so many chickens? How could you afford to feed them when you couldn't sell them? The Netherlands supplies flowers to the world, and 90% of the flowers there are crushed into fertilizer. agriculture products Vitality, very high storage costs, strict preservation requirements, once the market suddenly occurs major twists and turns, life and death. Until the epidemic is over, the catering industry can not do without the supply of agricultural products.
How are each link of the whole industry chain connected to each other? How should they be connected under normal circumstances? How should they be connected during the crisis? I heard from Laoshu that when the villagers get a bank loan, they should quickly extend their hand to your upstream suppliers to help them take a breath. If they can take a little pressure off, they should take a little pressure off. Don't let the industry chain fall apart. The most important experience I heard from Lao Shu just now is that when we stand at the juncture of impending disaster and crisis, we should quickly pull the suppliers. To pull others' hands is to help others, but also to help ourselves.
The biggest problem in this crisis is the supply chain, because the only effective way to deal with this highly infectious disease that affects the world is isolation before the vaccine is developed.
So now the world is in disorder. People flow and logistics, including various supply chains, have been cut off and need to be rebuilt and reconnected. This is the biggest challenge for the next economic recovery.
The supply chain of agricultural products and food is more sensitive. We also care about the buyers of your company, who bought such good peppers from Baoshan, Yunnan, and rice from Heilongjiang. How reliable is the supply contract made in normal times after this impact? If it is unreliable, what can be substituted? I hope to hear your experience summary on how to maintain and rebuild the supply chain as much as possible in an emergency, so that the chain can be resilient when there are certain twists and turns, and have the ability to regenerate in case of interruption.
Although the supply chain of the catering industry is not so globalized and complex compared with the manufacturing industry, the agricultural products are vulnerable, with a large number of farmers in the upstream and poor risk resistance. The United States also recently reported the news of pouring milk during the Great Crisis. Their farms are much larger, and they can't carry it. The practical experience in this field is worth studying as a special topic.
Zhou Qiren: Under the impact of the epidemic,
Such catering enterprises can really survive
The capacity of China's catering market is very large, and among the various consumer expenditures of Chinese residents, food accounts for the largest proportion.
According to the Engel coefficient statistics, food alone accounted for 30% of China's per capita expenditure of 100 yuan in 2017, and about 28% in 2018, accounting for more than other expenditures such as clothing, housing, transportation, communications, and supplies in consumption.
Of course, food expenditure is not entirely commercial catering, but with the increase of income, urbanization, deepening of social division of labor, commercial catering is growing rapidly.
From the perspective of system and mechanism, if you ask which industry in China is closer to "the market plays a decisive role in resource allocation", the catering industry deserves to be the first.
From the perspective of price mechanism, access threshold, and exit freedom, the degree of marketization is very high. People rarely hear of zombie enterprises in catering, and change brands immediately when guests do not come. Since anti-corruption curbed the unhealthy practice of eating and drinking at public expense, "public catering" has become a common practice, and has become a hot spot for public entrepreneurship and technological progress in recent years.
Wu Xiaobo has written a best-selling book, "Water is the biggest fish", which records the story of how Chinese enterprises can become stronger and bigger in the global market.
Looking back at our catering industry, we have a good system and a large market capacity (annual turnover of 4.2 trillion yuan). The problem is that although there are large schools of fish, there are not many big fish enterprises. In recent years, local catering brands such as Haidilao, Xibei, and Laoxiangji are taking off and accelerating with ambition. They want to fly into the forefront and, if possible, into the global market.
Under the favorable situation that is ready to take off, a new coronal epidemic has suddenly come, which is unprecedented. How should the catering industry, especially its leading enterprises, deal with it?
Jia Guolong's first reaction was to stand up and shout. His voice is now of great significance in reminding the whole society to pay attention to the economy in the anti epidemic war, Especially for small and medium-sized private enterprises, when the business stops, there will be no income, and when there is no income, there will be no expenditure. Then enterprises in other industries will also have no income, turn round and round, and for a certain period of time, a large number of enterprises will go bankrupt, and the economy will stop completely, which is also a heavy burden that the whole society cannot bear.
He shouted in such a loud voice, which attracted the attention of the society. The competent department responded, and the bank responded, so that more institutions that can stand on their own can help others, especially small and medium-sized private enterprises, and played a good role in the overall fight against the epidemic.
However, President Jia also said that it is still a cost from the perspective of enterprises to repay the principal and interest of bank loans. If we do not recover the revenue, we will still be unable to stand. So, Self rescue is more important for enterprises to fight epidemic.
So just now, President Jia said that when the epidemic was at its peak, how Xibei managed to save himself was worthy of good communication in the industry. What I heard most interesting was that they used the "leisure" brought by the crisis impact to comb Xibei's business processes from the beginning, and re comb them from the root.
This reminds us of Huawei's "process reengineering" in history, because When an enterprise reaches a certain stage of development, it can only rely on the system to make continuous efforts, and the system construction is not a day's work. We can all share Xibei's crisis response.
Finally, when looking at the future in a highly uncertain period, it may be difficult to see clearly in the short term, but it is more clear to see clearly in the long term. Just listening to Jia Guolong's introduction, Xibei has set a 10-year development plan and long-term goals in the recent period.
I listened and thought, will the epidemic never pass in the long run?
The characteristics of China's catering industry formed in its development, such as large market capacity, excellent system and mechanism, and great responsibility, will not disappear in the long run. It is still a good business worth fighting for.
(The author of this article is a professor of the National Development Research Institute of Peking University.)
