Chapter 107, Ye Zi Delivers Meals

The structure of the pyramid determines that there are fewer people as you go up.

The same is true for the mid- to high-end catering circles in Shanghai, especially near several university towns, which are even smaller.

After a few bosses shared their information with each other and passed the news on, more and more people knew about it.

When I went back and did the statistics, I was stunned.

This group of bosses, without any prior arrangement, scolded their subordinates harshly, and then made appointments with each other.

They gathered in a teahouse, smoking and looking worried.

As the big boss with four or five branches, Shi Jueming was naturally elected as the leader.

He just slowly drank some tea to moisten his throat, and everyone stared at him, hoping that he could come up with a solution.

"Since you guys are giving me face, I won't hide it."

Shi Jueming simply explained the matter and then gave his own opinion.

"Business is all about making money, not anger. I have asked someone to contact me to see if we can reach a cooperation and make up for the losses."

Don't expect everyone to come up with a better solution together, after all, we are just a group of small bosses.

Although there are a few people with a net worth of over 10 million, their total assets are definitely much more than Li Zehua's.

But the resources are unequal!

Money is a good thing!

But at the critical moment, what matters is the resources that can be mobilized.

Chi Mo holds the key resources that determine the fate of these bosses!
A decrease in passenger flow means lower revenue and profits, but their costs will not be reduced!

If they were determined to see it through to the end, Li Zehua might be afraid, but they all had their own ideas and there was no way they could work together.

So when Shi Jueming put forward this idea, everyone basically agreed.

There are only a few people who run chain stores who are stubborn and refuse to suffer losses in silence.

One of them even shouted, "Boss Shi, all the bosses, are you sure it will work if we give in?"

He took out a contract and showed it to everyone, "This is the latest cooperation agreement with Chimo. Not only is the delivery fee as high as 13%, but there are also promotion fees, brand service fees, quality guarantee fees and other miscellaneous items!
I calculated that this part will eat up at least 20% of the store’s profits!
Are we cooperating or being exploited unilaterally?"

As soon as these words came out, the audience was shocked.

In fact, at the beginning, the delivery fee of Chizume was maintained at around 8%, with a minimum of 2 yuan per delivery.

However, the company developed too quickly, the organizational structure including logistics became increasingly perfect, the operating costs increased sharply, and the service fees had to be increased.

In May, Chichume was still able to maintain its business, with monthly revenue of around 620 million, i.e. the amount of cash on delivery, totaling about 36 orders.

The gross profit is about 12%, which is around 75 yuan (minimum 2 yuan per order).

Referring to YeZi which developed in the same period, for Fanjisong, the gross profit of ChiMei and the average number of delivery orders per capita are very low, but there is no other way to do so in order to train the team and train new people.

This is because Li Zehua resisted the pressure and pushed everything forward.

For example, after Fanjisong’s website was launched, it completed an average of over 10,000 orders per day with more than one hundred people, and after deducting various expenses, it made a net profit of tens of thousands of yuan in a single month.

In May, the company paid out 72 yuan in commission alone, and there were also staff bonuses of about 25 yuan!
In addition, there are large expenses such as no-responsibility basic salary, logistics staff expenses, fixed office equipment, office space rental, and electric vehicle purchases.

The acquisition of the company, development of the website and other expenses amounted to approximately $60.

Other accounts payable, such as electric vehicles purchased under agreement, are approximately 20.

In other words, Li Zehua did not make a penny in the first month, but instead lost millions.

If it were someone else, they would have packed up their bags and run away. But Li Zehua not only didn't care, but continued to increase his investment.

According to the estimates of the group's human resources and financial departments, in order to support the expansion beyond campus, the company will develop a two-pronged approach of food delivery and express delivery, as well as expansion plans in key regions across the country.

By the end of June, the company's full-time employees will exceed two thousand!
Among them, there are about 1,600 employees in the front-line promotion, distribution, and marketing departments, and about 400 other staff.

This does not include part-time jobs on campus, which are expanding every day.

By then, Chizuome will launch a big satellite, a startup company that was established only two months ago and has a total employee size of over 4,000 people.

If I tell this to others, I guess no one will believe it.

But all of this is an unhealthy development based on the company's loss-making status.

Judging from the current estimated order revenue, after acquiring Fanjisong’s original customers, it took advantage of the heavy rain to expand its scope of influence.

In the whole month of June, the company may complete an unprecedented 150 to 160 million orders, with operating revenue exceeding 2600 million yuan, serving four to five thousand restaurants.

The gross profit is estimated to be around 350 million yuan, with a gross profit margin of about 13.5%. This is because the website is online, which has some bidding and traffic exposure income.

But at the same time, personnel expenses continue to account for the majority, and it is estimated that all labor expenses will exceed 550 million yuan, in addition to fixed asset investment and accounts payable of more than 100 million yuan.

Adding the 50 donated by Li Zehua and the loss of orders, although the company received 72 in compensation, it paid 2 yuan to compensate the injured employees, and the actual non-operating income was less than 20 yuan.

The case of fake orders and extortion losses is still under trial.

But this is not enough to compensate at all. As a result, the loss in June will further expand to more than 2 million yuan.

Even if they can make some money from the price difference of employees buying electric cars, it is still a drop in the bucket.

To this end, Wu Wenhui plans to use merchant advance payments to make the rounds, which will take 7-15 days.

As soon as the idea was proposed, Li Zehua flatly rejected it, because the market value of his holdings in the stock market was skyrocketing every day, giving him enough confidence to face losses.

The original plan to lose 10 million yuan a year could not be sustained for even half a year.

The company's senior executives could not sit still and made a collective decision to introduce a policy to increase the service fee from 8% to 13%, and also included some other fees.

Although merchants who have tasted the sweetness of delivery are not happy, most of them have to accept it with a wry smile.

Those merchants who have not yet entered the market are not buying it.

After discussion, Shi Jueming also felt that it was too much, "How about we find another group to discuss it?"

When doing business in a friendly way, no one wants to make enemies if they can make money in a harmonious way.

However, some merchants have high operating costs and are only concerned about the 20% profit cut, which makes them anxious.

"Boss Shi, you don't care because you have a big family, but we can't afford to gamble. This 20% commission is simply a death sentence for us!"

"That's right. If we compromise this time, there will be no way for us to survive in the future. We will never give in!"

"Yes, we have to find a way to resist Chimo's expansion, otherwise no one will make any money in the future, and it would be like working for them for nothing."

The restaurant chain owner who first posted the contract took the opportunity to say, "In fact, Chimei is not the only delivery company in the market.

I also know a delivery company called Leaf Meals. I heard that their delivery service fee is only 10%, and they also give customers drinks with every order. Isn’t this more advantageous than eating in? "

"Is it true? Why haven't I heard of it?"

Seeing someone questioning, the man took out a contract and a promotional brochure, obviously he came prepared.

"Everyone look, Ye Zi's delivery is much better than eating it!
They are the leading company in Shanghai's commercial district distribution, with a large number of employees and strong strength. Those who are interested can learn more about them. "

(End of this chapter)