Tujiashaobing is a kind of pastry snack from central China's Hubei Province. On its debut in Shanghai last October it became an immediate hit. However, several months later the craze just as quickly faded away. Our correspondent Chen Simeng talks with an economic analyst to find out the reasons behind such phenomena.
On its appearance in Shanghai last October, the round crispy pastry won the heart of consumers with its distinctive spicy flavor from Hubei. Within two months, hundreds of franchising stalls selling the Tujiashaobing could be seen all along the streets of the eastern coastal city.
A survey at the height of the craze showed that one stall could sell thousands of the pastry on a good day. However, it would now be a good result for the same stall to sell hundreds in a day, a decline of about 90 percent in sales over several months. Tujiashaobing now join the ranks of other forgotten crazes like the duck necks sold by the Jiujiu chain stores, which used to be a hit with office girls in the city one year ago. Both are examples of snacks that achieved quick popularity only to be just as quickly forgotten.
Zhang Jun is an economist with Shanghai's Fudan University. He says the sales mode adopted by the purveyors of the snack decided how long it would be popular.
"I think its popularity is down to rapid franchising, which boosted its rapid development. But its popularity will not last long, because it is based solely on its very rapid franchising expansion around the city not that the market has really known the product."
Same products, same packaging and same decoration of stores make publicizing chain stores easier, and this is the advantage of franchising. But Zhang Jun says, for a food business, too much franchising without limitation will slow and even negatively affect the business.
Simply by paying 2,500 US dollars, anyone can set up his own Tujiashaobing stall. Today there are about five such stalls set up in the city everyday.
This analyst says that when compared with some successful foreign franchising food businesses like KFC and McDonalds, Chinese food business owners are too concerned with profits, which is short-sighted.
"Everybody can participate in franchising and make the products. But to make a franchising business successful, excellent management and selection systems are two important elements."
Professor Zhang Jun explains that a franchiser's job is not simply granting franchisees operating licenses, instead providing professional training and strict regulation of how the overall business is conducted are also crucial.
In addition, he says a franchiser should select franchisees based on their qualifications, rather than allowing anyone to take on the business so long as they have enough money.
For China Drive, I'm Chen Simeng, CRI News, Shanghai
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