Yu Huiyong's trick was screwed up

Yu Huiyong's trick was screwed up. Yu Huiyong made speeches everywhere in order to make money on the market. The essence of business is to build trust, build trust with employees, shareholders and partners internally, and build trust with customers and clients externally. The essence of business is business trust.

The problem is, it's useless to speak better than sing. On the eve of entering the market, Baiguoyuan severely hit his face with practical actions, and completely lost the trust of consumers. Baiguoyuan boarded a hot search for selling spoiled fruits.

For a reason, the staff of Baiguoyuan Store cut spoiled fruits into fruits and sold moldy fruits. Pears that have been stored for one and a half months still appear on the shelves. The clerk said that other stores have been stored for a long time, and some places even sell fruits that have been stored for two or three months.

Wow! It turns out that Baiguoyuan's fruit cutting is a pit, so don't buy it. Baiguoyuan said that the stores involved had problems related to grading fruits in violation of regulations, selling overnight fruits, and deliberately avoiding the inspection by the headquarters. It has closed down and rectified the stores involved, suspended the employees involved, and inspected the stores nationwide.

Yu Huiyong's trick was screwed up. Baiguoyuan, which is of high quality and inferior price, submitted a prospectus to HKEx many times in order to tell stories and collect money. The Baiguoyuan, which leaned over to pick up steel, earned 10 billion yuan in 2021. The problem is that the gross profit margin and net profit margin of Baiguoyuan, which is so expensive but still rotten, are not good.

Xin Chen said that she bought a coconut, a box of freshly cut unicorn melons and an imported banana in Baiguoyuan. Unexpectedly, she vomited violently on the night when the three kinds of fruits were eaten. The taste of these fruits was not obviously abnormal, and their appearance was not moldy. After eating, she vomited so badly that she almost choked.

Compared with food markets and fruit stalls, Baiguoyuan Fruit Shop is more expensive. Xin Chen doesn't often spend money in Baiguoyuan. Occasionally, it is convenient to take out food, but he has spent money and suffered a crime. Being a fool and chain fruit shop will give people the impression of safety. On the contrary, consumers can't know whether the fruit is safe or not.

Qi Wang's boyfriend bought some rake-rake oranges in Baiguoyuan, which looked intact on the outside. After opening, the inside was full of rotten mold. After eating, he became bloated and nauseous, and immediately responded to Baiguoyuan, but the other party said that only the hospital proved that it was a problem caused by bad fruit, and he would pay compensation.

After many complaints, Baiguoyuan finally promised to compensate Wang Qi 100 yuan and return the principal. As of May 7th, they still hadn't received a refund. Baiguoyuan's attitude and plan to deal with the problem were unsatisfactory, and they would never buy from his house again.

Yu Huiyong's trick was screwed up. In order to fool people, Baiguoyuan positioned itself as a high-end fruit chain. People who don't know the truth would rather spend more money to buy it. I didn't expect Baiguoyuan to like bad fruit and turn it into fruit, so I would like to pay a high premium to buy fruit. If this can't be done, why not go to a small fruit stall?

In order to fool more people, Baiguoyuan focuses on high-end fruits, an apple is 23.5 yuan, and a watermelon 90 yuan. Huangyuanyuan in Shanghai spent 88 yuan to buy 3 Jin of lychees in Baiguoyuan. These lychees are small, sour and have many bad fruits.

Searching for apples in Baiguoyuan APP, there are high-end fruits such as Leqi apples, imported green apples, and imported Jiali fruits, but there is no trace of local apples such as Luochuan Fuji and Yantai Fuji. The price of five Leqi apples is 58.9 yuan, and the average one is close to 12 yuan. However, Luochuan Fuji sells two apples a day to 9.9 yuan.

A-grade Kirin melons weighing about 3kg cost 64.9 yuan, while Kirin melons with the same weight only cost 59.9 yuan and 55.9 yuan at Youxian and Dingdong daily, while Thai coconut green sells for 22 yuan, 19.9 yuan and 12.9 yuan at Baiguoyuan and Dingdong daily respectively.

Yu Huiyong's trick was played, and the deceived consumers said that the fruit in Baiguoyuan was expensive and poor, and it was so expensive to sell rotten fruit that they would never buy it again in the future. It's not nice to sell it so expensive, so don't get used to this kind of business.

Baiguoyuan threw the pot to the franchisee, saying that the stores involved were Jianhe Road Store in chenghua district, Chengdu and Jianghan North Road Store in Wuhan. There were related problems such as grading fruits illegally, selling overnight fruits, and deliberately avoiding the inspection by the headquarters.

A store opened by a franchisee who pays a certain brand franchise fee. This type of store has nothing to do with the brand. The cost of opening a store is borne by the franchisee himself. In the past development, many chain stores had problems with joining.

Yu Huiyong's trick was screwed up. There are 5,351 stores in Baiguoyuan, of which only 15 are self-operated stores, and about 99.72% are franchised stores. Among the franchised stores, 4,382 are self-managed, and only 954 are entrusted.

In order to cheat the initial fee, Yu Huiyong started to cultivate the platform. Baiguoyuan adopted the franchise mode, adopting the platform+partner mode. The company was the platform, the employees were the makers, and the store manager was the investment subject, responsible for the store operation.

1. Under the store manager partnership, the store manager's investment accounts for 80% of the shares and is mainly responsible for the operation of the store;

2. Area managers invest and account for 17% of the shares, mainly responsible for the management of area stores;

3. Regional franchisees invest and account for 3% of the shares, mainly responsible for the location of stores;

4. Baiguoyuan doesn't contribute, hold shares, and collect initial fees, but it collects 30% of the store's profits as income, and 70% of the store's profits are distributed to store managers, district managers and regional franchisees according to the corresponding equity ratio.

Yu Huiyong intends to combine the income of the store manager with the cultivation of talents, and requires each store to export a new store manager, that is, a partner, for the company every year. Similar to the mentoring system of Haidilao, the loss cost is shared with the store manager.

In that year, the number of return orders and the amount involved accounted for 0.5%, which was borne by Baiguoyuan and franchise stores respectively by 50%. In that year, the single-store turnover of Baiguoyuan was only 8,219 yuan, and the total profit rate was lower than 5%, which was a big profit.

Yu Huiyong's trick was screwed up. Nissin mode made Baiguoyuan earn face and passed the loss cost on to franchisees. Baiguoyuan has a small retail store, high labor and rent level per unit area, and a single category. In order to reduce costs, rotten fruits and expired fruits are cut and sold at high prices.