In recent years, with the rise of the tea industry, the increasing demand of the market and the expansion of users, more and more brands have come into the public's view. The words "you love me, I love you, and honey in the Snow City" have attracted countless investors. However, some people say that there are nine losses in the Snow City? What's going on here?
Ten and nine losses in joining the Snow City?
It comes from the current situation of the milk tea industry. Under the fierce competition, if the selected project has no strength, it will indeed face losses. Therefore, the current basic situation of the milk tea industry is not optimistic. But it is believed that everyone can see that there are more than 10000 successful stores in the Snow City, and this strength level will know that the brand will not lose, but will be profitable.
The real experience of the loss of the franchise store in the snow city
Feng Ting told Caijing Tianxia Weekly that, regardless of the region and location, the answer from the vertical time axis is that they have not made money before and are on the decline. A franchisee complained on the Internet that the business of the Snow City was booming during the day, and the turnover was only 3000 yuan at night, because the customer price was too low.
According to the data of Jihai brand monitoring, the price of 20000 stores in Meixue Ice City is only 6 yuan, although they cover 31 provinces and 360 cities in China. In the Meituan, the Waffle Ice Cream in the Meixue Ice City is 2 yuan, the brand lemonade is 3.5 yuan, the pearl milk tea is 5.99 yuan, and the strawberry sundae is 6 yuan. The extremely low price of the product makes the Meixue Ice City gain many consumers' favor and praise, but it is not a good thing for the franchisees. If others sell one cup, they need to sell three cups to balance the revenue.
It should be known that under the strict control of the sales price of Xicha, 21% of the products sold for more than 19 yuan in the store menu still accounted for, and 58% of the products sold for 15 to 19 yuan.
The above-mentioned franchisee complaining online revealed that the gross profit margin of normal store business is 50%, which is very low in the beverage industry. After 20% of the online takeaway platform is taken, the gross profit margin is less than 20%, and after deducting the labor and water fees, it is basically in the state of "not losing money is good".
There are many complaints on the Internet from franchisees of the Snow City: some people say that the gross profit is too low to make a profit, and they are often fined by the regional manager; Others said that every year, the company has various reasons for franchisees to buy materials. If the sales volume is not good, it can only fall on its own hands.
In this regard, Zhu Dongsheng told Caijing Tianxia Weekly that if enterprises regard their franchisees as a community of destiny, they will find ways to let them survive, give them operational guidance, research and develop differentiated products and improve services. If you just join the brand, maybe one day the heat will come down and the life of the enterprise will be shortened.
At present, some unprofitable franchisees have decided to close their stores and stop losing. According to the data of Jihai brand monitoring, although in the last 90 days, Mixue Ice City has opened stores on a large scale, the number of closed stores is not low, with a total of 368 stores closed. In terms of the total number, the number of closed stores reached 2215.
There is a saying spread on the Internet that nine out of ten people who join the Snow City will suffer losses. It is the difficulty of franchisees. A franchisee who joined in 2019 and finally decided to quit said that after three years of joining the city, he could not make money at all, and the cost of early investment was too high. The total cost of his 28 square meter store was up to 400000 yuan based on the 11000 yuan joining fee, 4800 yuan management fee, 60000 yuan equipment purchase fee, 70000 yuan decoration fee, rent, water and electricity paid last year, "I thought that the Snow City was famous and could return to Beijing soon, but finally I was slapped.".
"How many cups of ice-cream worth 3 yuan, lemonade worth 4 yuan, and milk tea worth 6 yuan can you sell to get back the cost?" The franchisee said that his monthly costs include raw material purchase, rent, employee wages, utilities, management fees, franchise fees, fines and other miscellaneous fees. The hard cost is 70000 yuan, most of which spend on raw material purchase. If the monthly revenue is lower than this, It is equivalent to working for nothing.
According to this calculation, the daily revenue of a franchisee's single store must exceed 2400 yuan in order to maintain its capital. Based on the unit price of 6 yuan per customer, it is equivalent to selling 400 drinks. If you want to make money, you must sell more drinks. "My hands are numb all day long. I have to go home every day until half past ten. I found myself lonely after accounting."
In fact, it is normal for all walks of life to have profits and losses. It is true that there are profits and losses. But it is undeniable that the business model of the Snow City is worth learning. In just a few years, it has become a hot brand, which also proves that its development is successful.
