(Original title: Laiyifen: Nearly a thousand franchise stores have yet to open 383 stores at the end of August)
On the afternoon of September 6, Laiyifen held a 2021 semi-annual performance briefing. The activity was carried out in the form of network communication. The company provided online answers to investors’ concerns about performance, franchise stores, and business development.
Regarding the number of franchise stores that investors are concerned about, the company replied that as of June 30, the number of franchise stores reached 863, an increase of 492 from the same period last year. And in the last two months, the number of franchise stores has continued to rise. As of the end of August, the number of franchise stores that the company has opened has reached 999, an increase of 136 from the end of June, and the number of franchise stores that have been signed and not yet opened is 383. This shows that franchise stores are one of the company’s key development directions.
In addition, in the first half of 2021, the company’s community business (group-to-store + 30-minute food delivery) increased by 80% year-on-year, achieving a performance of more than 160 million yuan. The proportion of on-site merchandise purchased by store customers in association with the store exceeded 34%.
Industry insiders believe that the benefits of the restructuring of stores in Iraq are manifested in two points. The first is that compared with directly operated stores, using the resources of franchisees to promote the brand and promote the company’s own development can quickly achieve an increase in the number of stores. Secondly, in terms of operating quality, the franchise model is asset-light and manpower-light, which helps reduce costs and protects net profits. According to the data of the semi-annual report, the company’s sales expenses dropped by 6.79% compared with the same period last year, and the management expenses dropped by 3.38%. These two items alone saved 53.93 million yuan in expenses.
Laiyi’s semi-annual report shows that thanks to optimizing business layout, adjusting store structure, increasing franchise business and community group business development, Laiyifen achieved a net profit of 108 million in the first half of the year, a year-on-year increase of 777.59%.
Laiyifen said that in the future, the company will steadily advance the Wanjia Denghuo plan, adhere to the parallel development of the two major networks of direct and franchise, become more refined and direct, expand franchise, and constantly adjust the store structure, focusing on promoting franchise business, from the regional The sex market has gradually developed into a national market.