After CCTV exposed the inside story of Aunt Qian’s franchisees’ losses, how did Aunt Qian respond?

Faced with CCTV’s exposure, Aunt Qian responded in the media: First: the “discount every night” marketing model is not a gimmick; second: poor management by franchisees is not a common phenomenon. Aunt Qian's marketing model is responsible for quality

For consumers, Aunt Qian's marketing model of "not selling overnight meat" does ensure the freshness of the ingredients. Many consumers reported that Aunt Qian in the community downstairs in her neighborhood would clear out the meat of the day every night, so that when she went to see it the next day, it would be fresh ingredients. This is indeed a good phenomenon for consumers. Why is it that even though all the meat is sold out, there is still no profit?

You think Aunt Qian sells meat, but in fact it sells brands. Aunt Qian's business model is to make the brand bigger, attract others to join, and collect franchise fees from merchants.

It is understood that the minimum franchise fee for Aunt Qian is 236,800 yuan, and the franchise fee is 70,000 yuan. At least 306,800 yuan must be invested in the early stage, not counting 13 paid service fees.

Moreover, Aunt Qian requires franchisees not to adjust prices at will, otherwise they will stop supply or be fined. In the context of high costs and low profits, although the stores seem busy, in fact the store owners are not making a profit, and many franchisees are even losing money and closing stores to stop losses. How far can Aunt Qian’s business model go?

Aunt Qian's business chain has three important components, Aunt Qian - franchisees - consumers.

In the short term, Aunt Qian has indeed attracted a large number of bosses to join. As of February 2021, the total number of Aunt Qian stores nationwide has exceeded 3,000.

However, according to CCTV reports, while Aunt Qian was rapidly expanding, a large number of franchisees were closing their stores because the business was unsustainable. Simply put, the franchisees were not making any money.

The original intention of franchisees is to make money, but in the end they find themselves doing charity. The collapse of a large number of franchisees will inevitably affect the rise of a new batch of franchisees. If Aunt Qian cannot make franchisees make money, she will inevitably disconnect herself from consumers, and eventually the brand will completely disappear from the market.

So the most important thing for Aunt Qian now is to improve the management system for franchisees, and make concessions when necessary, so that franchisees can taste the sweetness, so that more people will join the game.

If it were you, would you like to join Aunt Qian? Feel free to tell me in the comment area.