Global Lords: I Have Information System

Chapter 379: Chapter 302: Purchasing Supplies, Raven Puppet [Anti-Theft Chapter]

On July 17, according to data from the food and beverage data platform Narrow Gate Restaurant Eye, Miyue Ice City has opened 13,528 stores nationwide. Among them, only 465 stores are located in first-tier cities, accounting for 3.44% of the total number of stores. Over 30% of the stores are located in new first-tier cities and second-tier cities, while almost 60% of the stores are in third, fourth, and fifth-tier cities, accounting for 24.87%, 22.72%, and 11.69% respectively.

Specifically in Shanghai, Miyue Ice City was still a specialty of urban-rural junctions. As of February 2021, Miyue Ice City had only about 66 stores in Shanghai, most of which were located in Shanghai’s suburbs or around schools, primarily targeting student groups whose consumption power was not very high.

By July 2021, this number had risen to 81. With Miyue Ice City’s rapid popularity on platforms like Douyin, Bilibili, and Xiaohongshu, it successfully ”entered” the core business districts of Modu.

Franchise Concerns

However, the cost of opening stores in first-tier cities remains high, coupled with a highly competitive tea beverage market. Can Miyue Ice City survive with such a low average transaction price?

On July 14, an investor familiar with the domestic tea beverage market told the Times Weekly reporter that Miyue Ice City appears to be a milk tea shop, but in essence, it is a supplier that charges franchise fees and provides tea beverage raw materials for franchisees. According to multiple media reports, in 2019, Miyue Ice City’s operating income was 6-6.5 billion yuan, and the net profit was about 800 million yuan. Most of the revenue was composed of franchise fees plus the goods payment from selling raw materials.

In other words, consumers paying for milk tea and ice cream are not Miyue Ice City’s main customers. Franchisees are the real ”patrons” of Miyue Ice City.

According to Miyue Ice City’s official website, the franchise fee for provincial capital cities is 11,000 yuan/year, 9,000 yuan/year for prefecture-level cities, and 7,000 yuan/year for county-level cities.

To quickly respond to franchisees’ demand for raw materials, Miyue Ice City has built an automated production workshop of over 50,000 square meters, allowing it to produce core raw materials by itself, significantly reducing extra expenses and intermediary price differences. Furthermore, Miyue Ice City has established five warehousing and logistics centers. The main warehouse is set up in home base Zhengzhou, and the other four warehouses are located in Foshan, Shenyang, Chengdu, and Xinjiang Urumqi.

Meanwhile, as long as franchisees make a single purchase exceeding a certain amount, Miyue Ice City will not charge additional logistics fees.

A clear ”franchise + goods sale” business model allows Miyue Ice City to dare to announce revenue before listing. Moreover, Miyue Ice City has gained the favor of capital entities like Dragon Ball Capital and Gao Ling Capital, successfully completing the first round of financing of 2 billion yuan, with a valuation even trending on par with Xicha, with multiple reports of listing rumors.

On July 15, Chinese food industry analyst Zhu Danpeng told the Times Weekly reporter that the reason Miyue Ice City has gained favor from capital entities is primarily because compared to some high-end market tea beverage brands, Miyue Ice City has already formed a significant scale effect nationwide, completing the layout of 13,000 stores. In contrast, Xicha currently has about 800 directly operated stores nationwide, and Nai Xue’s Tea has about 600 directly operated stores.

Zhu Danpeng further pointed out that in terms of customer group and audience, being positioned at the base of the tea beverage price tower means there is considerable demographic dividend behind it. However, currently, Miyue Ice City faces the problem that most stores are franchise stores, making it unable to directly and effectively supervise the food quality and safety of the stores. If the food safety issues cannot be properly resolved, its path to listing may be indefinitely delayed.

On May 19 this year, due to food safety issues such as some stores altering the expiration labels of opened ingredients, using overnight ingredients in violation, and not washing lemon peels, Miyue Ice City received its first ticket from the relevant regulatory department. The Zhengzhou City Market Supervision Bureau interviewed Miyue Ice City, ordering 35 stores to rectify within a deadline, 3 stores to immediately suspend operations for rectification, and issued administrative penalty decision documents to 9 stores under its name.

”Additionally, due to the relatively limited business districts in first-tier cities, new Chinese milk tea brand layouts are also relatively stable. If the original franchise model is continued without innovation, in the future, it may not necessarily continue to be favored by primary and secondary market investors, and the pressure for listing will become greater,” Zhu Danpeng analyzed.

China Weather Network News Central Meteorological Observatory continued to issue a blue typhoon warning at 10:00 on July 19: The South Sea tropical depression intensified into this year’s 7th typhoon (tropical storm level; Chinese name: Chapaka; English name: Cempaka; name source: Malaysia; name meaning: a plant known for its fragrant flowers). At 10:00 in the morning, its center was located on the sea surface about 160 kilometers southeast of Yangjiang, Guangdong, which is north latitude 20.9 degrees, east longitude 113.1 degrees. The maximum wind force near the center is level 8 (18 m/s), the minimum central pressure is 998 hPa, and the seventh-level wind circle radius is 80-120 kilometers.

It is expected that the center of ”Chapaka” will swirl or move slowly, gradually intensify, and land on the coast between Shenzhen to Maoming in Guangdong from the night of the 20th to the early morning of the 21st (tropical storm level or strong tropical storm level, level 8-10, 20-25 m/s). It may also hover off the coast of western and central Guangdong, with little movement, and then move northeastward.

Wind forecast: From 14:00 on the 19th to 14:00 on the 20th, there will be 6-8 level winds in the northern South Sea area and the central and western coastal areas of Guangdong, with wind force reaching level 9-10 in the sea areas near the typhoon center, and gusts up to level 11-12.

Rainfall forecast: From 14:00 on the 19th to 14:00 on the 20th, there will be heavy rain to rainstorm in coastal areas of Guangdong, with local torrential rains (100-150 mm).

China Weather Network News Central Meteorological Observatory continued to issue a blue typhoon warning at 10:00 on July 19: The South Sea tropical depression intensified into this year’s 7th typhoon (tropical storm level; Chinese name: Chapaka; English name: Cempaka; name source: Malaysia; name meaning: a plant known for its fragrant flowers). At 10:00 in the morning, its center was located on the sea surface about 160 kilometers southeast of Yangjiang, Guangdong, which is north latitude 20.9 degrees, east longitude 113.1 degrees. The maximum wind force near the center is level 8 (18 m/s), the minimum central pressure is 998 hPa, and the seventh-level wind circle radius is 80-120 kilometers.

It is expected that the center of ”Chapaka” will swirl or move slowly, gradually intensify, and land on the coast between Shenzhen to Maoming in Guangdong from the night of the 20th to the early morning of the 21st (tropical storm level or strong tropical storm level, level 8-10, 20-25 m/s). It may also hover off the coast of western and central Guangdong, with little movement, and then move northeastward.

Rainfall forecast: From 14:00 on the 19th to 14:00 on the 20th, there will be heavy rain to rainstorm in coastal areas of Guangdong, with local torrential rains (100-150 mm).

China Weather Network News Central Meteorological Observatory continued to issue a blue typhoon warning at 10:00 on July 19: The South Sea tropical depression intensified into this year’s 7th typhoon (tropical storm level; Chinese name: Chapaka; English name: Cempaka; name source: Malaysia; name meaning: a plant known for its fragrant flowers). At 10:00 in the morning, its center was located on the sea surface about 160 kilometers southeast of Yangjiang, Guangdong, which is north latitude 20.9 degrees, east longitude 113.1 degrees. The maximum wind force near the center is level 8 (18 m/s), the minimum central pressure is 998 hPa, and the seventh-level wind circle radius is 80-120 kilometers.

It is expected that the center of ”Chapaka” will swirl or move slowly, gradually intensify, and on the 20th