Village base started to Hong Kong listed, sprint Chinese fast food first!


As the chicken, Lao Niangjiu and some other fast food brands have been launched listed plan, “Chinese fast food first” began to enter the white-hot competition.According to related media reports, Village Base Fast food chain Holdings Co., Ltd. formally submitted its prospectus to the Hong Kong Stock Exchange on January 25, with Goldman Sachs and China Merchants International as co-sponsors.In fact, Grameen was listed on the New York Stock Exchange as early as September 2010 and delisted in April 2016 as part of a privatization drive.Sequoia China invested Rmb300m in Rural Base in June 2020, at a post-investment valuation of Rmb4.75bn.According to public information, Village Base is a leader in China’s rapidly growing restaurant industry, dedicated to providing consumers with high-quality, diverse and affordable cuisine with fast and thoughtful service.Today, the company has become one of the largest Chinese fast food groups in China.Founded in 1996, Village Base now owns two brands – Village Base and Mr. Rice.Among them, Xiangcun Cuisine was founded in 1996 and its main specialty is sichuan cuisine.Rice Man, founded in 2011, offers dishes from hunan, Jiangsu, Zhejiang and Guangdong provinces.The founder of Village Base once said, “Where KFC opens, village base also opens”, which must be said to contain a clear understanding of potential consumer groups.As of September 30, 2021, there were 1,145 directly operated restaurants under the two brands of Village Base.Among them, there are 602 village restaurants and 543 Mr. Rice restaurants.As of the last practical date, Village Base has more than 7 million registered members.The company plans to open about 90 to 110 restaurants in 2022 and 140 to 160 restaurants in 2023.Mr Rice, for his part, plans to open about 160 to 180 restaurants in 2022 and 200 to 240 in 2023, depending on market conditions.According to Frost Sullivan’s report, Village Base is the largest direct-operated Chinese fast food group in China, measured by the number of chain restaurants and revenue in 2020.In terms of the growth in the number of chain stores between January 2019 and September 2021, Rural Base is the fastest growing among the top five Chinese fast food groups with a growth rate of 79.5%.According to a consumer survey conducted by Frost Sullivan, about 99 percent and 98 percent of respondents who had visited Rustic and Rice-man respectively were satisfied with their dining experience, and about 99 percent and 96 percent of respondents who had visited Rustic and Rice-Man respectively were interested in returning.Financial data.In 2019 and 2020, the revenue of rural base was 3.257 billion yuan and 3.161 billion yuan respectively, which was inevitably affected by the epidemic to a large extent in 2020.In the first three quarters of 2021, the revenue of rural base increased 56.4% from 2.189 billion yuan in the same period of 2020 to 3.424 billion yuan, and has exceeded the annual revenue scale of 2019 and 2020, with a net increase of 176 restaurants.In terms of brand segmentation, in 2019 and 2020, rural brands accounted for 63.7% and 62.9% of the total revenue of restaurant operation, while Mr. Rice brands accounted for 36.3% and 37.1%.In the first three quarters of 2021, the proportion of rural base and rice gentleman is relatively close, accounting for 54.1% and 45.9% respectively.In 2019, 2020 and the first three quarters of 2021, the average daily sales of rural base restaurants were 13,711 yuan, 11,873 yuan and 12,116 yuan respectively.Customer unit price is 26.6 yuan, 25.6 yuan and 25.9 yuan respectively;The seat turnover rates were 2.8, 2.2 and 2.8, respectively.The average daily average average floor efficiency per store was 53.0 yuan, 49.7 yuan and 56.4 yuan, respectively.During the same period, the average daily sales of Mr. Rice restaurant were 10,207 yuan, 9,882 yuan and 12,268 yuan respectively.The unit price of customers is 22.7 yuan, 21.5 yuan and 22.0 yuan respectively.The seat turnover rates were 3.3, 3.4 and 4.2, respectively.The average daily average floor efficiency per store was 45.9 yuan, 49.0 yuan and 65.5 yuan, respectively.In 2019, 2020 and the first three quarters of 2021, Village Base’s operating margin was 10.7%, 9.2% and 12.6%, respectively;Mr. Rice’s operating margins were 6.5 percent, 3.3 percent and 10.4 percent, respectively.In the first three quarters of 2021, Rural Base posted a net profit of 163 million yuan, compared with a net loss of 13.81 million yuan in the same period in 2020.For a long time, Chinese fast food has been living in the “shadow” of Western fast food, subject to factors such as difficult standardization, uneven quality and poor brand image caused by various roadside stalls.In the past two years, the whole Chinese fast food industry has ushered in a great change, among which the most obvious perception is that it has moved from the industrialization to the modern stir-fry era, from simply imitating foreign fast food in the past to finding the road suitable for Chinese people’s appetite.Chinese fast food has become a veritable mainstay of the catering industry!Now, the good development momentum of rural base, coupled with the rapid development of Chinese fast food brands such as villager chicken and true kung fu, let the industry see the hope of The Chinese version of McCann.According to the Frost Sullivan Report, the Chinese fast food restaurant market is expected to grow at a compound annual growth rate of 14.2% from RMB 933.4 billion in 2020 to RMB 1,809.2 billion in 2025, and the proportion of Chinese fast food restaurants in the market is expected to exceed 70% each year during this period.In addition, according to the same report, chain restaurants accounted for only 44.4 percent of China’s fast food market in 2020, far lower than developed countries such as the United States (over 70 percent).According to the “White Paper on Chinese Fast food Chains in China” jointly released by Nestle Professional Catering and Ourui International, 44% of the audience of Chinese fast food is white-collar workers, while only 13% and 7% of the original main force are technical workers and students.In terms of income, the average monthly income of Chinese fast food consumers is mostly in the range of 5000-10,000 yuan, which is also in line with the situation of white-collar workers, the main consumer group.In other words, the audience of Chinese fast food is upgrading and bringing higher demand.Hotpot industry, because of the emergence of haidilao, so that all practitioners find a benchmark;Barbecue industry, because of the emergence of Fengmao barbecue skewers, let all practitioners understand the power of deep cultivation.To a certain extent, the category of the head of the enterprise every move to promote the development of the industry.In other words, for the village base and other head Chinese fast food group, the market still has considerable growth potential and development opportunities.And the village base to Hong Kong listing, with the previous listing in the United States is there any different changes?It remains to be seen.Disclaimer: the viewpoint of any article of EASeng securities is for study, exchange and discussion, not investment advice.

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