Before and after the Qingming Festival, the new green branches, the tea mountain near the West Lake Longjing is the most lively. The innovative restaurants on the West Lake scenic spot in the late spring attract many tourists with their high cost performance.
Nowadays, the temptation of bread and crispy roast chicken with green tea are still the top two dishes recommended by netizens of the head office of green tea restaurant. In 2008, green tea group walked out from the Bank of Xizi lake. At present, there are 236 restaurants in the country and are seeking Hong Kong stock IPO In October 2021, green tea group again submitted its listing application to the Hong Kong stock exchange. In early March 2022, it passed the listing hearing and disclosed the prospectus after the hearing. However, the listing application materials are “invalid” again. On April 8, the green tea restaurant updated its listing materials again.
In the past two years, intermittent outbreaks have had a great impact on the catering industry. 140, 47 and 80 green tea restaurants have been closed in the first quarter of 2020, 2021 and 2022 respectively. What impact has the epidemic brought? Can the green tea group, which seeks to expand the store and sink the prefabricated vegetable track, realize the “dilemma reversal”?
customer unit price is 50 ~ 80 yuan, and the compound annual growth rate of the restaurant is 29.7%
As early as 2004, Wang qinsong and Lu Changmei, founders of green tea group, founded a youth hostel near the West Lake. However, they soon found that young tourists from all over the country had a demand for fusion dishes when visiting the West Lake. In 2008, the first green tea restaurant was born on the Bank of Xizi lake.
Before that, in 2006, Wu Guoping’s grandmother’s home had entered Hangzhou building, a high-end consumer mall in Hangzhou. In the following period of time, green tea, grandma’s home, alley and other restaurants gradually developed in Hangzhou, becoming a well-known leisure Chinese restaurant in China.
According to the prospectus of green tea group, the per capita consumption of green tea restaurants is about 50 ~ 80 yuan, and each restaurant provides 80 ~ 100 dishes. The total number of restaurants increased from 163 as of December 31, 2019 to 236 as of December 31, 2021. In terms of industry share, in 2020, green tea group accounted for 0.5% of the market share of leisure Chinese catering market, and it is the fourth largest leisure Chinese restaurant operator in China.
According to the latest data in the prospectus, as of the last practical date, the restaurant network of green tea group includes 240 restaurants, covering 18 provinces, four municipalities directly under the central government and three autonomous regions.
In terms of revenue, before the epidemic, green tea restaurants still maintained a high growth rate, with the company’s revenue of 1.736 billion yuan in 2019; Affected by the epidemic, the income in 2020 decreased to 1.57 billion yuan year-on-year. In 2021, the performance of green tea group increased significantly year-on-year to RMB 2.293 billion.
From 2019 to 2021, the adjusted net profit of green tea group was 106 million yuan, – 55 million yuan and 114 million yuan respectively; The adjusted net profit margin is 6.1%, – 0.7% and 6.0% respectively
From the perspective of regional distribution, the current layout of green tea restaurants is mainly concentrated in East China, Guangdong Province and North China. In 2021, the revenue of these three regions accounted for 27.0%, 28.3% and 26.4% respectively.
under the epidemic, the average cash investment payback period of restaurants is prolonged
It should be noted that from the financial data of 2021, the performance of green tea group has rebounded, but the impact of the epidemic on the catering industry still exists for a long time. From 2019 to 2021, the number of new restaurants added by green tea is 60, 23 and 59 respectively.
According to the original plan, green tea group plans to open 60 restaurants nationwide in 2020. Obviously, after the covid-19 epidemic in 2020, the pace of the number of new catering stores of green tea group slowed down. Green tea group said in the risk warning that the company may not be able to quickly open new restaurants at the same speed as in the past or as planned. The delay or failure to open a new restaurant will have a significant adverse impact on the company’s growth strategy and expected financial and operating results.
At present, the epidemic is spreading all over the country, consumers’ willingness to spend in stores is declining, and the catering industry in some areas is facing a severe test Sinolink Securities Co.Ltd(600109) recently, according to the analysis of the research report, the epidemic situation was repeated in the first quarter of 2022, and the offline consumption scene was under pressure. All catering enterprises made positive adjustments in terms of store layout, brand sorting, organization optimization and supply chain improvement.
According to the prospectus data of green tea group, the total number of receptions in the three regions recorded a year-on-year increase in 2021. However, due to the continuous impact of the epidemic and regional outbreaks from time to time, the average daily reception number of each restaurant has not yet returned to the level before the epidemic.
Under the cloud of the epidemic, it is not easy to earn money for catering.
According to a set of data disclosed by green tea group, the average cash investment payback period of restaurants opened in 2018 and in operation as of the last practicable date is 17.5 months. The average cash investment payback period of Chinese restaurants that have opened in 2019, 2020 and 2021 and operated as of the last practicable date is 29.1 months. The average cash investment payback period of the latter is longer, mainly due to the negative impact of the epidemic on business operations in the same period.
can Tuodian sink and layout prefabricated dishes reverse the dilemma
In the next few years, green tea group expects to open 75 to 100 new restaurants every year from 2022 to 2024. How to break down the number of these new stores in the region? According to the plan, it is estimated that by 2024, the number of green tea group’s stores in East China, Guangdong Province, North China and other regions will be 37, 11, 3 and 49 respectively. Among them, 84 new stores will be distributed in second tier, third tier and below cities.
Green tea group has adopted the strategy of expanding more small restaurants in first tier and new first tier cities, and focusing on becoming bigger restaurants in second tier and third tier cities and below. As big cities become smaller and small cities become larger, green tea group is flexibly adjusting its own strategies. According to previous data, the number of small restaurants has increased from 61 by 2019 to 88 by 2021.
The green tea restaurant expects that the new restaurant will reach its first balance of payments within one to five months, with an average investment payback period of 18 months. The company has given an optimistic period in the prospectus and believes that the restaurants that have been opened or will be opened in 2022 will also achieve the first break even and investment recovery within that time. However, the national epidemic situation in 2022 is changeable. Can this expectation be realized?
In addition, the IPO project of green tea group includes the establishment of self operated central food processing facilities, which are designed to produce semi processed foods, including semi processed meat products, semi processed baked goods and washed and processed ingredients. The facility will reach the maximum annual capacity of about 170000 tons in 2028, and will be able to produce about 32000 tons of semi processed products and 138000 tons of washed and processed food materials.
From the perspective of terminal application, green tea group expects that about 90% of the semi processed food produced by the facility will be supplied to green tea restaurants across the country, and the remaining 10% will be sold to consumers as retail food. On the other hand, all the cleaned and processed ingredients produced by the facility will be supplied to all restaurants in green tea East China.
Green Tea Group believes that in the long run, the facility will explore new retail product categories, such as semi processed food of signature dishes, and is expected to start selling retail products after 2025. At present, the prefabricated vegetable track is hot. Can green tea group catch up with this tuyere?
