Chapter 1868 Crazy Hint

Panda can achieve its current scale by relying solely on so-called product research and development. In the information age, the smell of wine is also afraid of deep alleys. If you open a store within the control of gangsters, who will have no time to challenge violent neighborhoods?

Therefore, location selection is also very important, and this is also one of the important factors that makes Yang Cheng feel that the cooperation between the two parties is feasible. The location of the Panda Restaurant happens to be the consumer group needed for fast-selling red wine.

Of course, this is also an evolutionary process, and it is not achieved overnight. At the beginning, Panda's location selection criteria were mainly commercial centers with dense crowds, with the purpose of establishing category brand recognition as soon as possible.

Panda Express's first chain store was located in a shopping mall in California. In the first phase of location selection, the store location strategy focused on shopping malls, university campuses, theme parks, and airports.

What these locations have in common is that they have a large flow of people. As long as you are there, you can capture a stable flow of passengers.

Consumers who come to these stores are often not attracted by products or brands, or conversely, they are not influenced by products and brands.

The reason for their consumption is simple: we want to eat now, and you just appear in front of me.

This is especially important for a new Chinese food brand like Panda Express at the beginning. In the early days when the public was not familiar with Chinese food products and did not know the Panda brand, Cheng Zhengchang was very keen to take advantage of the stable flow of people in the mall to complete the early education market and establish Brand recognition tasks.

By successfully penetrating into the student market, it captured the hearts of airport passengers and became the choice of shopping malls. It successfully introduced the concept of Chinese food into the American market, laying a solid foundation for its subsequent comprehensive expansion and becoming a mainstream cognitive brand.

After the popularity expanded, Cheng Zhengchang began to turn his attention to street stores and try to develop in multiple directions.

Around 2000, when the company's annual revenue exceeded the US$200 million mark, Cheng Zhengchang had enough time to run his own street store and truly bring the restaurant to your doorstep.

On the one hand, this is also because the demographic dividend of shopping malls is gradually disappearing, and some traditional department stores are gradually losing their former glory, which has caused a huge impact on catering stores.

Cheng Zhengchang's foresight was later proven. Fortunately, Panda Express expanded its new business in a timely manner, otherwise it might have been dragged down by the shopping mall.

Jamba, a juice brand that also uses shopping malls as its main location, decided to close 22 stores in shopping malls in New York and Chicago in 2015 due to several consecutive years of operating losses.

Similarly, there are several catering brands that use shopping malls as their main source of customer flow.

In the end, they all went to the edge of bankruptcy, or even went bankrupt, but Panda persisted and achieved success.

As Panda Express opened new stores from shopping malls to streets, the store area increased from 80 square meters to 400 square meters or even larger, and the annual revenue of a single store gradually increased from a mere US$500,000 to more than US$1.5 million.

It can be said that only when Panda Express successfully established a foothold in the street store did it get a ticket to truly become a catering giant, otherwise it will always be just a passer-by in the eyes of customers.

After Panda Express completed its layout and built its infrastructure, it began a phase of comprehensive expansion.

Previously, Panda had opened stores from the west, along the central part, all the way to the eastern coast, establishing bases in major states.

In the stage of comprehensive expansion, the main store opening strategy is to focus on the base area and quickly penetrate the city where the base area is located.

Just like siege a city in ancient times, you occupy an important city and conquer the county town attached to it, gradually expanding your territory to the whole country.

It is said that ten years ago, Panda Express' store opening speed reached a record high, with an average of three new stores opened per week.

Burger King, which was also expanding crazily during the same period, was only expanding at the rate of one new store every week.

With the rapid expansion and intensive store opening of Panda Express, their competitors have changed from other Asian fast food to giants such as M Ji and K Ji. This also proves that Panda has successfully entered the first echelon of the fast food field.

Now, it’s time for another transformation, which is to add the element of drinks to enrich its product line while dining.

Pairing red wine with restaurants is nothing new, but the problem lies in how to combine fast food brands with red wine, a drink that should be savored slowly in an elegant environment.

Of course, this issue requires professionals like married couples to think about it, and Yang Cheng is only responsible for providing one direction.

However, he still conscientiously talked about the prospects of the fast-selling wine industry. It is a fact that wine sells better than beer in the United States. The new generation of consumers seems to prefer wine to beer, and Panda’s mainstream consumers are precisely young people.

Yang Cheng proposed that he could make a special small bottle of red wine specifically for sale in fast food restaurants. Just like beer, it could be drank in one go without worrying about it going bad.

Small bottles of red wine can also reduce production costs, and the selling price will also be reduced to a point that most people can afford. This is very attractive. There must be many people drinking red wine at a price not much more expensive than beer. I'm willing to spend a little more money.

Everything that needs to be said has been said, and the only thing left is the problem of married couples. If they think there is a prospect, they can cooperate, and vice versa. Yang Cheng just gives it a try. After all, his wine group has not been registered yet.

“I just came back from South America, and I may buy a group of wineries in Chile next. As you know, as the main red wine producing area in the New World, Chile has many advantages, both in terms of output and quality, which are enough to ensure the supply of wine. "Yang Cheng finally said.

"I'll go back and ask the team to do a feasibility study, and we'll talk about it later?" Cheng Zhengchang said.

Seeing that Jiang Peiqi seemed to have no objection, Yang Cheng shrugged, "Of course, I'll wait for your good news~"

Yang Sen suddenly asked, "Panda Express is still in your hands?"

Cheng Zhengchang didn't know why and nodded, "Most of the shares are in our hands, a small part is given to the children, and two others encountered resistance when they were expanding and couldn't part with some."

Yang Sen asked again, "No one has forced you to raise funds and go public these years?"

Cheng Zhengchang smiled bitterly, "How could it not be? It's not easy for us Chinese in the United States. We are bullied if we don't do well, and we are bullied if we do well. But even if they beat me to death, they won't go public, and they can't do anything to me. "

Yang Sen took a sip of wine and said quietly, "I'm not as lucky as you. Holding on to death is not an option~"

Jiang Peiqi suddenly said, "It has something to do with the size. Judging from the current assets of Panda, it will not reach the height of McDonald's even if it is exhausted. Wall Street also knows that there is no need to hold on to it. Anyway, once we are ready to go public, They improvised and even had time to take a bite.”

Yang Sen shook his head, "This cannot be so absolute. The main reason is that Panda has not shown the level of profitability that makes them crazy. Otherwise, you will not be able to sustain it. Wall Street has 10,000 ways to force you to nod. This is how I was forced to open a business." Of course I have figured it out, finding two strong partners can at least avoid a lot of trouble."

What he said seemed to be a crazy hint. . .

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