Some time ago, Haidilao released its 2019 annual report. The data show that in 2019, Haidilao achieved an operating revenue of 26.556 billion yuan, a year-on-year increase of 56.5%; The net profit was 2.345 billion yuan, a year-on-year increase of 42.44%.
Compared with the financial report of 2018, the 2019 annual report has made great achievements in new technologies: in 2019, Haidilao opened three new technology restaurants, including the first overseas new technology restaurant; Robot arm automatic serving, central kitchen, intelligent pot dispenser = small-scale application in many stores; More than 1000 dish delivery robots have been deployed to greatly enrich customers’ dining experience; More than 500 kitchen cleaning equipment are deployed worldwide, making it easier for kitchen staff.
In 2019, high-tech equipment such as manipulator, vegetable delivery robot and automatic cleaning equipment are rapidly put into use in undersea fishing. Why is undersea fishing eager to promote the application of new technologies?
Economies of scale are reduced, and the first and second tier restaurants touch the ceiling
In 2019, Haidilao added 308 stores and the total number of global stores reached 768. Under such rapid expansion, labor costs also increased. The financial report shows that the total employee costs (including salaries, wages, allowances and benefits) of Haidilao in 2019 were RMB 7992.6 billion, a year-on-year increase of 58% compared with RMB 5 billion in 2018.
Haidilao also affirmed that the rise in labor costs was mainly due to the expansion of business and the improvement of employee salary level.
In the Haidilao plan, it is expected to reach 1000 stores by the end of 2020, which will not slow down the scale of expansion. For the catering group with a valuation of 64 times PE, expanding store coverage is a necessary choice.
According to the analysis of some people in the industry, when the restaurant is completed and put into operation, the basic growth has become a set. If the same store revenue continues to rise, it needs to be realized by improving the customer unit price or operating efficiency. However, in the highly competitive catering industry, there is little room for price increase. Most of the Haidilao stores have been operating for more than 19 hours, the takeout business has been relatively perfect, and the value-added space of the same store is not large.
From the financial report, the same store growth performance of Haidilao is indeed unsatisfactory. In 2019, the same store sales increased by 1.6%, with a small range. The same store sales of Haidilao in the first and second tier cities showed negative growth. As for another key indicator of restaurants – turnover rate, Haidilao’s performance is also worrying. The turnover rate of restaurants in Haidilao’s first tier cities is 4.7 times / day, compared with 5.1 times / day in the same period last year; The turnover rate of restaurants in second tier cities was 4.9 times / day, compared with 5.3 times / day in the same period last year, both of which decreased partially.
The slow growth of the same store and the decline of turnover rate once again prove the fact that Haidilao can only stimulate further growth by constantly opening stores.
However, the rise of raw materials and labor costs is beyond the control of an enterprise. In terms of raw materials, Haidilao has built its own subsidiaries such as Yihai, Shuhai supply chain and Haidilao in zarut banner to reduce the cost of raw materials; In terms of labor cost, new technology is the key.
Low cost and high efficiency, highlighting the value of vegetable delivery robot
The financial report emphasizes that new technologies, including dish delivery robots and kitchen cleaning equipment, have the value of “enriching customers’ dining experience” and “making employees work easier so that they can better serve customers”.
According to the data of Pudu technology, the R & D company of “happy delivery” adopted by Haidilao, the delivery quantity of “happy delivery” is more than 300 dishes a day, and it can reach 400 dishes at the peak, which is equivalent to the efficiency of 1.5 ~ 2 ordinary food delivery workers.
In terms of cost, the per capita cost of Haidilao employees in 2019 calculated from the financial report is about 78000 yuan, while the cost of Haidilao purchasing vegetable delivery robot is only half of the per capita cost.
Of course, undersea fishing with service as the core will not abandon manual services, but shift the focus of employees’ work to better provide high-quality services with undersea fishing characteristics.
After using robots, Haidilao mainly optimizes the human structure by optimizing shift scheduling, which not only greatly reduces the work intensity of employees in the peak period, but also achieves complete “unmanned distribution” in the night shift period.
The restaurant manager said: “in the past, during the night shift, there were usually several tables of guests at a time. If we let the cleaning staff serve, it would also make the customers unhappy. Now we don’t need to arrange a waiter at all. It’s enough to have a robot.”
At present, the dish delivery robot used in Haidilao has reached the level of higher efficiency and lower cost than people in the task of mechanized and highly repetitive dish delivery. In addition, the upsurge of “contactless distribution” caused by the epidemic at the beginning of the year. It is not difficult to imagine that Haidilao in 2020 will pay more attention to the large-scale promotion of vegetable transfer robots.
Can the successful experience of new technology be replicated when entering the sinking market?
When Haidilao’s new stores in the first and second tier cities showed weak performance, the third and fourth tier markets showed strong performance. The same store sales increased by 8.3%, the turnover rate of the same store increased by 0.4, the overall revenue increased by 71% to 5.779 billion yuan, and the proportion in the total restaurant revenue increased by 2.1%, which means that Haidilao’s sinking market in the low tier cities has more room for growth and has achieved good results.
Compared with robots, which can not only save costs in the first and second tier markets, but also meet the characteristics of first and second tier young people chasing freshness and realize the role of attracting customers, can the new technology with “high technology” also have a bright performance in the sinking market?
On the one hand, the ability of robot to reduce cost and increase efficiency is also applicable in the sinking market. For low-level urban customers with high price sensitivity and relatively insensitive to service quality requirements, the value of using robot distribution to save labor cost will be more prominent; On the other hand, the construction of intelligent restaurants can help Haidilao highlight brand differentiation in third – and fourth tier cities, so as to seek higher room for price increase.
In fact, Purdue technology also said that among the undersea fishing stores actively promoting the use of robots, the proportion of low-level cities is not low, and the willingness to use is also very high. This also reflects the importance of low line city operation in new technology to a certain extent.
From the overall financial report, Haidilao has slightly decreased in key data such as the same store sales growth rate and turnover rate in the first and second tier cities, showing great potential in the third and fourth tier cities. However, the decline of some data is only the result of comparison with itself. Even with the reduced turnover rate of 4.7, under the turnover rate of 2 ~ 3 for most restaurants of the same type, Haidilao’s turnover rate can be described as the leader, and its passenger unit price in first tier cities has exceeded 100 yuan, which makes it difficult for other catering brands to catch up with it.
However, the pursuit of growth space is the inevitable mission of high valuation enterprises. Can the new technology proposed by Haidilao help them break through the bottleneck and even create further growth after the epidemic? The industry is waiting for Haidilao to give this answer.
Responsible editor; zl