202: Chapter 202 Jin Meiting, speechless with astonishment

"Sugar levels are divided into five grades: full sugar, seventy percent, fifty percent, thirty percent, and sugar-free. Each grade has a precise amount of sugar measured to the gram."

"Temperature is divided into five levels: hot, room temperature, no ice, light ice, and extra ice. Each level has precise requirements for water temperature and ice volume."

"The tea base, brewing time, water temperature, and the weight of the tea leaves are all fixed."

"Every single drink has a fixed SOP (Standard Operating Procedure)."

"Even a complete novice who has never made milk tea before can start working after three days of training. The drinks they make will taste exactly the same as those from the headquarters, without the slightest difference."

Jin Meiting's breathing quickened slightly, and she was so surprised that her mouth hung open.

She understood the value of this standardization system all too well.

Once this system was successfully implemented...

The speed at which stores could be replicated would be exponential.

There would be no need to worry about the taste changing just because a new branch was opened.

Jiang Feng watched her reaction.

He continued speaking.

"Third, the supply chain."

"Why can I keep prices so low and still make a profit?"

"The core lies in the supply chain."

"Current milk tea brands source their raw materials from distributors."

"The distributors take a cut, the general agents take a cut, and the manufacturers take a cut."

"With price increases at every level, the costs naturally become high."

"My approach is to build my own supply chain."

"For tea leaves, I go directly to the tea gardens, sign exclusive supply agreements, and build my own processing plants."

"For fruit, I go directly to the source, buy in bulk, and build my own cold-chain storage."

"Non-dairy creamer, sugar, cups, straws—all raw materials are sourced directly from the original manufacturers in bulk. There are no middlemen to drive up the price."

"This way, my raw material costs can be at least thirty percent lower than my competitors'."

"This is my core moat."

Jin Meiting could no longer sit still.

She looked at Jiang Feng.

Her eyes were full of shock.

She had originally thought Jiang Feng was just a young man with a few ideas.

She hadn't expected...

That he was thinking so far ahead and so deeply.

From Traffic-Driving Products to a standardization system, and then to a supply chain moat.

This combination of moves...

Was practically a Dimensional Reduction Strike against the entire milk tea industry.

The milk tea brands currently on the market would have no way to fight back against this system.

Jiang Feng paused.

He spoke the final and most crucial point.

"Fourth, the franchise system."

"If I want to cover the whole country within three years, it's impossible to rely solely on opening direct-sale stores myself."

"The only way is through franchising."

When Jin Meiting heard the word "franchise,"

Her brows furrowed slightly.

"The current franchise market is too chaotic."

"Many brands just rely on collecting franchise fees to 'harvest leeks,' showing no concern for the survival of the franchisees."

"In the end, the brand's reputation collapses, and it doesn't last long."

Jiang Feng nodded.

"You're right."

"But my franchise system is completely different from theirs."

"Others do franchising to earn franchise fees and make a profit on the price difference of raw materials."

"In my franchise model, I only charge a small franchise fee, just enough to cover the costs of training, interior design, and decoration."

"As for raw materials, the price I give to franchisees is exactly the same as the price for my direct-sale stores. I don't make a single cent from the price difference."

Jin Meiting was stunned.

No profit from franchise fees?

No profit from raw material price differences?

Then what does the brand owner earn?

She subconsciously followed up with a question:

"Then what do you rely on for profit?"

Jiang Feng smiled.

...