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    Home > Biochemistry News > Biotechnology News > Master Kong's brother wants to raise more than 5 billion yuan?

    Master Kong's brother wants to raise more than 5 billion yuan?

    • Last Update: 2021-04-16
    • Source: Internet
    • Author: User
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    Another well-known chain restaurant company may go to Hong Kong for IPO.



    Xiaoshidai noted that on March 2, Bloomberg quoted people familiar with the matter as saying that Ting Hsin International Group, a Taiwanese food company that owns Tingyi and other brands, is considering an initial public offering (IPO) for its mainland catering business in Hong Kong.


    People familiar with the matter said the company is inviting banks to compete to provide services for its listing.




    According to people familiar with the matter, the mainland catering business that the Taiwan-funded company may list in Hong Kong includes the well-known fried chicken chain restaurant Dicos, and the Taiwanese-style beef noodle chain restaurant Master Kong's private beef noodles.


    The IPO may raise approximately US$800 million (approximately RMB 5.
    169 billion).






    Bloomberg quoted people familiar with the matter as saying that the review is still at an early stage and the company may decide not to conduct an IPO.


    Ting Hsin Group has not yet commented on the above news.
    As of press time, Dicos has not responded to the inquiries of the snack representative.




    Public information shows that Ting Hsin International Group is a large-scale food distribution group.


    After more than ten years of development, the total investment in the mainland has reached 1.
    2 billion US dollars.
    It has nearly 24,000 employees and has well-known companies such as Master Kong, Dicos, Weiquan, FamilyMart, etc.




    Let's take a look together.



    Dicos Super 2,600 stores

    Dicos Super 2,600 stores



    Let's first pay attention to KFC's "fried chicken opponent" Dicos.



    According to official information, Dicos is a subsidiary of Dingqiao Catering Group and was formally established in 1996.


    Today, there are more than 2,600 stores in 32 provinces, municipalities and autonomous regions across the country.
    According to official website data, about 85% of them are franchised stores.
    Dicos has various ways to join, including franchise franchise, cooperative franchise, and employee entrepreneurship.




    The iconic products of this western-style restaurant chain that are popular with consumers include the “crispy fried chicken” that has been in existence since the day the brand was born, the innovative “crispy pistol leg” launched in 2009, and the freshly launched in 2016.


    Extract lemon drink.
    According to the official website, Dicos sold more than 100 million pieces of crispy fried chicken a year.






    A Mintel report issued by Snacks in 2019 shows that based on a survey of 3,000 Internet users aged 20-49, the Western-style fast food restaurants with the highest brand penetration are KFC, McDonald's, Dicos, and Wallace.


    , Burger King and Subway.




    "At present, about half of Western-style fast food consumers frequent KFC, and a quarter of consumers frequent McDonald's.


    " The report said.




    Interestingly, the above report pointed out that according to demographic characteristics and analysis, the proportions of consumers aged 20-29, 30-39 and 40-49 at KFC and McDonald’s are roughly the same, both being 1/3.
    Wallace and Subway have a higher percentage of consumers aged 20-29, while Burger King and Dicos have more consumers aged 40-49.





    Judging from the current scale, Dicos still has a large gap with its biggest competitor, KFC, and the growth rate of stores is also slower.
    Snacks introduced that as of the end of 2020, Yum China has 7,166 KFC restaurants, and 840 stores were added throughout the year last year.
    This year, Yum China will also plan to open about 1,000 new stores.
    It is foreseeable that the KFC brand will still be the main force in new stores.



    In addition, in the Western-style fast food market, Dicos also faces another strong competitor McDonald's.
    As mentioned by Snacks, as of November 2020, McDonald's has opened more than 3,700 restaurants across the country.
    After McDonald's and CITIC and The Carlyle Group announced their cooperation in 2017, the fast-food giant's expansion speed has further increased, and the store layout in the Midwest has been accelerated last year.



    From low-tier to first- and second-tier cities

    From low-tier to first- and second-tier cities



    It is worth noting that although both are Western-style chain restaurants, the current key markets of Dicos, KFC and McDonald's are not consistent.



    Among Dicos stores, the proportion of those located in first- and second-tier cities is relatively small.
    According to the data disclosed in 2019, of Dicos' 2500 stores nationwide at that time, about 200 were in Beijing, Shanghai, Guangzhou and Shenzhen.
    Shao Xinmou, CEO of Dingqiao Catering Group, previously stated that Dicos is currently relying on its headquarters to invest in direct-sale stores in the “difficult” markets such as Beijing, Shanghai and Guangzhou to build its brand.





    However, with continuous expansion, it can be foreseen that the three Western-style fast food brands will meet on more and more battlefields.



    On the one hand, KFC and McDonald's are fast "sinking.
    " For example, Yum China CEO Qu Cuirong mentioned in February this year that in order to enter new markets, KFC is piloting a "small town model" customized for Tier 6 and below cities.
    This model provides localized menus, store layout and operation model, and the capital investment for opening a store will be less.



    On the other hand, Dicos is also increasing its size in first- and second-tier cities.
    For example, Xiaoshidai introduced that at the beginning of last year, Dicos proposed a new strategy of "one city, one store", which was to open one or more theme stores in the provincial capitals and above cities across the country.
    In the same city, only one store is opened for a theme.





    New book-themed store in Texas



    Late last year, Dicos opened two new themed stores one after another, namely the Northwest Book City theme restaurant in Lanzhou and the basketball vitality theme restaurant in Jinan.
    This is the first landing of the new strategy.
    Dicos previously told Xiaoshidai that compared with ordinary stores, the theme store area will be larger, and interactive areas, display areas, theme walls, etc.
    will be added, and theme seating areas and ordering tables will also be set up.



    It can be seen that Dicos hopes to bring freshness to consumers through the "one city, one store" strategy, and provide a differentiated experience from the store environment to the menu.
    More importantly, this is also a signal that Dicos, which has been deeply involved in third- and fourth-tier cities, has accelerated its penetration into upper-tier cities.



    "In 2021, there will be more theme stores in more cities.
    In the future, Dicos will also consider continuously launching new store types with different themes in the same city to continue to enrich the consumer experience.
    " The company previously told Xiaoshidai.



    Rejuvenation and digitalization

    Rejuvenation and digitalization



    From data such as third-party surveys, we can see that, compared with competitors, Dicos still has a lot of room for improvement in the young customer base.
    In order to attract more young consumers, this western-style restaurant chain has tried many creative ideas in recent years.





    Dicos "Eating Chicken Brothers" Theme Store



    For example, Snacks introduced that Dicos launched an NBA-themed store in 2019 to attract sports crowds and young consumers; in 2018, it cooperated with Ele.
    me, and customers who ordered Dicos World of Warcraft new product packages have the opportunity to encounter cosplay success.
    The courier of the characters of "Heroes of Warcraft" came to deliver meals; he also teamed up with the popular mobile game "PUBG Mobile: Stimulating the Battlefield", which is also famous for "eating chicken".
    It is reported that the game players are concentrated in the first and second tier markets.
    Mostly.



    In terms of product innovation, Dicos, who is not satisfied with being only a "fried chicken expert" and hoping to attract more young customers, has been trying to launch more new products in recent years.



    For example, Snacks introduced that Dicos launched the "Sea Season Theme Series" limited-time new products in 2019, focusing on "high value, high value", targeting young customers aged 25-29, and returning to the menu in 2020.
    Last year, Dicos also launched a new product series in stores across the country, including Black Pepper Angus Niu Ba Bao and Battered Cheese Chicken Huang Bao.





    Dicos officially announced Jia Ling as its member's annual spokesperson in May last year



    Among them, the popcorn cheese chicken king fort was also a limited item of Dicos for two consecutive years.
    Due to its good sales, it became a fixed dish that was sold on the market after this time.
    This is also a common practice of Dicos "Shangxin".
    The test is limited, and the test conditions will be adjusted, upgraded and promoted.



    When talking about the idea of ​​creating "the next explosive product with memory points" in the exchange last year, Dicos Chief Marketing Officer Xie Yahui once told Xiaoshidai that in the fast-paced Western-style fast food industry, the "popular formula" Contains four factors: meeting consumer needs, having a peculiar new experience, high value and delicious.



    In addition, Dicos is also catering to emerging trends, such as testing the current highly discussed plant-based meat products.
    Snacks introduced that in October 2020, Dicos launched plant-based burgers for dinner during a limited time in 2,600 restaurants across the country.
    In January of this year, Dicos launched 7 types of plant-based eggs for breakfast in more than 500 restaurants.
    Dishes.





    Digital innovation is also one of Dicos' key strategies to attract young customers, improve store efficiency and consumer insights.



    Shao Xinmou, CEO of Dingqiao Catering Group, revealed in August last year that Dicos already has 50 million VIP members and 5 million paid VIP members.
    Judging from the data in 2019, the average consumption frequency and customer unit price of paying members are 20% higher than those of ordinary members.
    At the same time, Dicos continues to expand the digital scene, including opening stores on Tmall, live delivery and so on.



    "Master Kong" who opened a store

    "Master Kong" who opened a store



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