2024-08-03
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As a celebrity catering brand, the last time Huo Feng Xiang caused a large-scale discussion seemed to be Zheng Kai's withdrawal.Now, with all its stores in Beijing closed, Huo Fengxiang has once again appeared in the public eye.Why did Huo Fengxiang, which was once very popular, gradually fall into obscurity?
Recently, some netizens discovered that Huo Feng Xiang's Beijing headquarters has closed down, with a sign outside the store saying "Prime shop for rent"; Dianping.com also showed that the store was "closed."It is worth mentioning that this store is not only the Beijing headquarters of Huo Feng Xiang, but also the only operating store of Huo Feng Xiang in Beijing. The closure of this store means that the number of Huo Feng Xiang stores in Beijing is zero.
Image source: Weibo screenshot
In 2021, Huo Feng Xiang had more than 200 stores, while data from Zhaimen Canyan showed that as of July 5, 2024, Huo Feng Xiang had 65 stores in operation.Huofengxiang's WeChat public account has not been updated since it released a message last year about the upcoming trial operation of a new store. Huofengxiang used to be a celebrity restaurant and invited many celebrities to attend its opening, which attracted much discussion. However, its scale has been shrinking now. The turning point of Huofengxiang's fate may have a lot to do with shareholder Zheng Kai's decision to withdraw.
Tianyancha shows that Zheng Kai holds a stake in Huofengxiang through Shanghai Huanshuo Enterprise Management Center (Limited Partnership), in which he holds a 70% stake. It is reported that previously, Shanghai Huanshuo Enterprise Management Center (Limited Partnership) held a 18.5% stake.However, in November 2021, Shanghai Huanshuo Enterprise Management Center (Limited Partnership), which was actually controlled by Zheng Kai, withdrew from Huofengxiang. Since then, Zheng Kai has disappeared from Huofengxiang's shareholder information.
Image source: Tianyancha
Today, Huofengxiang has only three shareholders, namely Huhushengwei (Ningbo) Brand Management Co., Ltd., Zhejiang Gongxi Gongxi Catering Group Co., Ltd., and Shanghai Golden Mandarin Brand Management Co., Ltd., with shareholding ratios of 51%, 43%, and 6%, respectively.Among them, Zheng Jianbo, the actual controller of the controlling shareholder Huhushengwei (Ningbo) Brand Management Co., Ltd., is also the actual controller of Huofengxiang.
Regarding the decline of Huo Feng Xiang, some people believe that the withdrawal of celebrity shareholders is one reason, and another reason is that Huo Feng Xiang, as a catering company, has its own management problems.
In the year it was founded, Huo Feng Xiang was exposed for plagiarism.In July 2020, Houtang Old Hotpot, a hotpot brand that specializes in the style of the old Chengdu market in the Republic of China in the 1930s and 1940s, accused Huofengxiang of plagiarizing its store decoration and using real pictures of Houtang Old Hotpot in its investment promotion brochure. In the end, the matter ended with Huofengxiang's apology. Despite this, the incident still had an impact on Huofengxiang, which was established not long ago.
Image source: Canned Food Library
Afterwards, Huofengxiang had food safety issues many times.In August 2021, a blogger secretly visited the kitchen of the Huofengxiang store and found that the Huofengxiang store recycled and reused the lettuce used as padding, the soup base claimed to be freshly cooked was actually the seasoning bag with water added, dishes such as white jade mushrooms were not washed, spoiled yellow throat was rinsed and continued to be sold, and there was residual excrement in goose intestines.After the incident was exposed, the Zhejiang Provincial Market Supervision Bureau conducted a comprehensive inspection of 29 Huofengxiang stores in the province, ordered rectification of the problems found on site, and interviewed the head of the headquarters and relevant management personnel. However, the Black Cat Complaint Platform shows that in 2022, there are still consumers complaining about food safety issues at Huofengxiang, such as stale meat, spoiled yogurt, moldy and rusty tableware, plastic bags in hot pot, and diarrhea caused by stale dishes.
Image source: Weibo screenshot
In addition to food safety issues, the closure of many Huofengxiang stores left members with no way to get refunds, which also caused dissatisfaction among some consumers.On the Black Cat complaint platform, many consumers reported that the Huo Feng Xiang store was closed without prior notice, the balance on their membership cards could not be used, could not be refunded, and the person in charge could not be contacted.
These days, celebrity investments are nothing new, and the catering industry has become the choice of many celebrities. However, there are many companies that have gone downhill like Huo Fengxiang.
Xianhezhuang, founded by Chen He and Ye Yiqian, was once the most popular hot pot restaurant. In order to expand its popularity, it invited celebrities such as Xu Zheng, Huang Bo, and Gao Yuanyuan to promote it. Xianhezhuang lived up to expectations and had nearly 800 stores across the country at its peak. However, Xianhezhuang later faced a wave of store closures, with the number of stores sharply reduced. Many franchisees went to the headquarters to defend their rights, and Fujian Xianhezhuang Brand Management Partnership (Limited Partnership), in which Chen He holds shares, also withdrew from the ranks of Xianhezhuang shareholders.According to Zhaimen Canyan, there are only 72 Xianhezhuang stores left today.
Image source: Zhaimen Canyan
Xue Zhiqian founded Shanghai Shangqian Catering Management Co., Ltd. in 2012, and then opened Shangshangqian Chuanchuanxiang Hotpot with his friends. However, after being tested positive for E. coli twice,At the end of last year, it was discovered that Shang Shang Qian Chuan Chuan Xiang Hotpot had only two stores left, and Shanghai Shang Qian Catering Management Co., Ltd. was deregistered as early as 2021.
In addition, Han Han's investment in "Nice to Meet You" was reported to have lost tens of millions of yuan.; Shaobenshao, a barbecue brand that Zhang Han once managed, had a new bankruptcy review case some time ago; Tianrandai, a milk tea brand endorsed by Guan Xiaotong and whose father once indirectly held shares, has been restricted from consumption...There are many celebrities who have entered the catering industry, but it is difficult for "stars" to emerge among celebrity restaurants.
Image source: Weibo screenshot
The failure of many celebrity restaurants has also made consumers “demystified” by celebrity restaurants.In the comment section of the related event, one netizen complained that some celebrity restaurants were expensive and unpalatable; some netizens believed that celebrity restaurants were just “scamming”; and some netizens said that celebrity restaurants were franchised “seemingly just to earn franchise fees.”A media outlet once launched a poll on the topic “Have you ever been to a restaurant opened by a celebrity?” The results showed that over 60% of netizens chose “never”.
Celebrities can bring popularity to catering brands, save promotion costs, and with celebrity endorsements, it is easier to gain favor from franchisees and consumers. However, relying solely on the halo of celebrities will not last long, and catering companies will eventually have to return to catering itself.What do you think of celebrity restaurant brands? Feel free to leave a comment in the comment section to discuss.
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