Summary of Key Points
In the past six months, popular braised meat brands such as Juewei, Huangshanghuang, Ziyuan Baiweiji, and Zhouheiya have collectively crossed over from their traditional roles as snack providers to offer a wider range of products. They no longer sell merely duck wings and other snacks but have introduced braised meat rice, hot braised noodle dishes, full meal sets, and even collaborative fast-food options, aiming to cater to lunch and dinner scenarios. The goal is to extend business hours and increase revenue per store. This shift reflects a growth bottleneck in the braised meat industry: traditional braised meat businesses rely on fragmented consumption patterns (such as afternoon tea and late-night snacks), face high rental costs, underutilized labor, and volatile raw material prices. Consumers have also complained about the high cost of these products. At the same time, younger consumers are seeking one-stop dining solutions. The industry's focus has shifted from opening more stores to making existing outlets more profitable, but this transition comes with significant challenges.
Why Have Braised Meat Stores Suddenly Started Selling Meals? – A Shift from Snacks to Complete Meals
Previously, braised meat stores were seen as convenient stops for quick purchases: you might buy some duck wings for a late-night snack or something to eat in the afternoon. Now, they aim to provide a complete dining experience. For example, Juewei has launched the “Juewei Bao Bao” service with clay pot meals, Ziyuan has opened full-service restaurants offering braised meat and freshly cooked dishes, and Huangshanghuang offers combinations of hot braised meat, staple foods, and drinks.
Key Reasons for the Change:
- Extended Business Hours: Traditional braised meat stores are only busy in the afternoon and evening; they waste rent and labor during the morning and noon. By offering lunch and dinner services, they can make better use of their premises.
- Increased Consumption Frequency: Braised meat is often consumed occasionally, whereas meals are eaten daily. If customers can eat at a braised meat store three times a week, their spending frequency would triple.
- Higher Average Order Value: Customers used to spend 20 yuan on snacks; now, a meal set might cost 30 yuan, doubling the average order value.
Forced by Circumstances? – The Dual Pressures of Rising Costs and Changing Consumer Behavior
Braised meat brands are not entering this new market out of boredom but due to practical constraints:
- High Cost Pressures: Rent is expensive, and stores are often located in crowded areas with high foot traffic. However, they are only profitable in the afternoon and evening, leading to inefficient use of resources.
- Volatile Raw Material Prices: The prices of ingredients like duck wings fluctuate dramatically. Adding staple foods (rice, vegetables, noodles) helps diversify costs and stabilize expenses.
- Changing Consumer Preferences: Younger consumers prefer one-stop dining options, avoiding the need to buy braised meat and other items separately.
- Consumer Complaints: The high cost of braised meat products has led to dissatisfaction. Meal sets, such as Juewei’s 4.9 yuan rice noodles or Huangshanghuang’s 8.9 yuan mixed noodles, offer a better value for money.
Different Approaches Among Brands
Each brand is approaching the crossover in its own unique way:
- Juewei: Has experimented with various formats, from the “Juewei Bao Bao” service for office workers in Shenzhen to failed attempts at small taverns in Changsha, and now focusing on fresh snacks and combined hot braised meat services.
- Ziyuan Baiweiji: Took the biggest leap by opening full-service restaurants that serve both braised meat and freshly cooked dishes, targeting both local residents and office workers.
- Zhouheiya: Tried a strategic partnership with Mi Cun Banfan to launch the “Black Duck Bao” meal set, and later collaborated with Rosen to expand distribution channels.
- Huangshanghuang: Emphasizes a 24/7 service model with hot braised meat, staple foods, and drinks to cater to all meal times.
An Industry in Transition: From Expansion to Profitability per Store
The braised meat industry used to grow by opening more stores. Now, the focus is on increasing revenue per store. Juewei’s chairman has clearly stated that quality and profitability will be the key priorities for future development, with the number of stores even decreasing in recent years.
- Shift in Growth Strategy: The goal is no longer to open as many stores as possible but to make each existing outlet more profitable by offering a wider range of products and expanding service hours.
Are Cross-Over Attempts Likely to Succeed? – Opportunities and Challenges
Braised meat brands have some advantages:
- Established Supply Chains: Their production and delivery systems are well-established, making it easier to incorporate staple foods like rice and noodles.
- Location Advantages: Their stores are conveniently located in busy areas, making them ideal for dining on the go.
However, there are also significant challenges:
- Fierce Competition: Fast-food and full-service restaurants (like McDonald’s and Laoxiangji) are already dominant in this market, so braised meat stores must compete on taste, service, and efficiency.
- Changing Consumer Perceptions: Consumers are accustomed to considering braised meat as a snack, and the sudden shift to a full meal option may take time to gain acceptance.
Despite these challenges, these attempts open up new possibilities for the braised meat industry. It could evolve from being a casual snack to a regular part of people’s daily diets. The “revaluation” of braised meat as a food choice is just beginning.