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49: Chapter 49 The Industrialization Path of Catering
The two clinked glasses and finished their drinks in one gulp.
Chen Hao set down his glass, wiped the corners of his mouth with a napkin, and said slowly, "Chairman Huang, you must have heard of my base on University Road."
"Thousands of people go in and out every day, most of them university students. These kids are so engrossed in surfing the internet that they forget to eat or sleep, and they can't keep their mouths still either."
Huang Yongfa nodded, "That's true. Young people have strong spending power."
"I plan to set up a water bar in the first-floor lobby," Chen Hao said, looking at Huang Yongfa.
"I've had authentic Taiwan milk tea in the south before, and the taste is truly excellent. I want to introduce this to our base so that everyone who comes to surf the internet can have a taste of authentic Taiwan-style drinks."
The smile on Huang Yongfa's face stiffened. He twirled his glass, his eyes flickering slightly, "President Chen wants to open a milk tea shop? That's a good idea." Although he said it was good, he didn't follow up on the topic.
Everyone present was a shrewd person; who couldn't see Huang Yongfa's concerns? Recipes are the core secret of the catering industry. The reason Huang Yongfa's tea restaurant was so popular was because of his authentic silk-stocking milk tea and bubble tea.
Now that Chen Hao was asking to introduce it, wasn't that the same as cultivating a competitor? Moreover, once you teach the apprentice, the master starves. This kind of thing is a major taboo in the business world.
The atmosphere in the private room cooled slightly. Director Zhao felt a bit awkward and was about to speak up to smooth things over, but Chen Hao laughed first. He picked up the decanter and personally filled Huang Yongfa's glass.
"Chairman Huang, I know your concerns," Chen Hao said without any displeasure. "Are you worried that I'll open a restaurant too and steal your business?"
Having his thoughts exposed, Huang Yongfa laughed dryly, "President Chen is joking. Beijing is so big, there's endless business to be done. It's just that this recipe is indeed our family's secret craft, and some of the ingredients are hard to buy around here."
"Old Huang, you're being petty," Director Wu chimed in from the side. "President Chen is a man doing big business; would he really care about your small-time kitchenware business?"
Huang Yongfa nodded repeatedly, "Yes, yes, yes, Director Wu's reprimand is correct."
Chen Hao waved his hand, signaling Director Wu not to apply pressure. "Chairman Huang, let's talk business." Chen Hao stared at Huang Yongfa and said with a smile, "That place of mine is an internet cafe, not a restaurant. I don't sell beef noodles, nor do I sell braised pork rice. I only sell milk tea."
"Moreover, our positioning is completely different. The milk tea in your shop is brewed with fresh milk and black tea; it emphasizes quality. You sell a cup for fifteen yuan, selling the environment, the style, and the service. Your customers are business people, couples, and people with money and leisure time."
Huang Yongfa nodded; these words sounded pleasant to his ears.
"But my place is different," Chen Hao continued to explain. "My customers are poor students playing games. They can't afford fifteen-yuan milk tea. What I want to sell are fast-moving consumer goods for two or three yuan a cup."
"Two or three yuan?" Huang Yongfa's eyes widened. "President Chen, that's not even enough for the cost! Just the fresh milk and tea leaves..."
"Who said I wanted to use fresh milk?" Chen Hao interrupted him. "I'm going to use non-dairy creamer, tea powder, and syrup. What I want is speed, sweetness, and the stimulating sensation brought by ice cubes. As long as it tastes good and is cheap, those boys won't care at all whether there's milk in it."
Huang Yongfa was stunned. He came from a traditional catering background and valued real ingredients. This "industrialized" approach of Chen Hao's was a bit shocking to him.
But immediately after, his instincts as a businessman made him quickly calculate the numbers. Not using fresh milk, but using non-dairy creamer, the cost could indeed be kept very low.
"Chairman Huang, just think about it," Chen Hao continued to up the ante. "The daily foot traffic at my place is nearly a thousand people. If one-tenth of them buy milk tea, that's over a hundred cups. That's several thousand cups a month."
"And this is just for now; in the future, I plan to open branches and create a chain. With such a large volume, the consumption of non-dairy creamer, tapioca pearls, and tea powder alone will be an astronomical figure."
Chen Hao picked up his glass and lightly tapped the side of Huang Yongfa's glass, making a crisp sound. "I don't intend to buy these ingredients from anyone else. As long as Chairman Huang is willing to teach me the techniques and help me sort out the equipment and processes, I will purchase all my raw materials from you in the future."
"I won't steal your retail business; I'll be your wholesale downstream client. You'll not only have one less competitor but also one more stable, big customer. And..."
Chen Hao glanced at Director Wu and said meaningfully, "This is also a concrete action to respond to the district's call to support the development of Taiwan-invested businesses. Chairman Huang should be able to calculate this, right?"
The abacus beads in Huang Yongfa's mind were clattering away. Working in catering was exhausting, selling cup by cup, and having to serve customers. Doing wholesale? That was sitting back and collecting money!
And Chen Hao was right; the low-end market of two or three yuan didn't conflict with his high-end tea restaurant. Those who were used to drinking fifteen-yuan milk tea wouldn't go to an internet cafe to drink that watered-down stuff.
More importantly, Chen Hao had elevated this matter to a political level. Director Wu was right there watching. If he refused today, it would mean not giving face to President Chen, and even more so, not giving face to the United Front Work Department. Did he want to survive in Haidian District or not?
Having figured this out, a smile appeared on Huang Yongfa's face. "Oh! President Chen's words have truly enlightened me!" Huang Yongfa stood up with his glass.
"Although I, Old Huang, am a businessman, I know what's right and wrong. Since President Chen has put it this way, if I were to hide things, I would be a terrible person!"
He slapped his chest with a thud, "President Chen, rest assured! Leave this to me! Whether it's the recipe or the equipment, I'll get you the best!"
"I have a master craftsman in my shop who has been with me for ten years; I'll have him report to your place tomorrow to teach you hands-on! If he doesn't teach you until you learn, he won't leave!"
"As for the ingredients, I'll give them to you at the cost price plus one percentage point for shipping; it's absolutely the lowest price in all of Beijing! Since we are our own people, let's not talk about two different families!"
"Good!" Chen Hao also stood up and laughed heartily. "Chairman Huang is straightforward! Come, this drink is a toast to you!" "Bottoms up!"
The two glasses clinked heavily together, and a few drops of liquor spilled out. Director Wu and Director Zhao looked at each other, both seeing satisfaction in the other's eyes.
This matter was handled beautifully. It facilitated business, completed the task, and didn't require them to pay a single cent.
Putting down his glass, Huang Yongfa grabbed Chen Hao's hand and began to impart his experience. "President Chen, since you want to do low-end, you have to increase the sweetness. Young people like it sweet, so add more syrup. Also, for the pearls, you must add brown sugar when boiling them, and the simmering time must be sufficient, otherwise they won't be chewy..."
Chen Hao listened very carefully, nodding from time to time. Although he had seen countless business cases in his past life, every trade has its own secrets, and for details at this practical level, he still had to listen to the experts.
The meal lasted until after nine o'clock, and both the host and guests were happy. After seeing off the slightly tipsy Director Wu and Director Zhao, Chen Hao and Huang Yongfa stood at the hotel entrance waiting for their cars.
"Brother Chen," Huang Yongfa had already changed his form of address, wrapping his arm around Chen Hao's shoulder with a mouth full of alcohol. "Brother wants to say something from the bottom of his heart. This model of yours has potential! If you make it big in the future, don't forget your brother."
"Don't worry, Brother Huang," Chen Hao said, supporting him calmly. "From now on, we're in the same boat. Wherever my internet cafe opens, your ingredients will be supplied."
"It's a deal!"
After seeing off Huang Yongfa, Chen Hao stood by the roadside and let out a long sigh. The night breeze was cool, blowing away the alcohol on his body. Zhao Gang drove the car over and stopped in front of Chen Hao.
"Boss, is it settled?" Zhao Gang got out of the car and opened the door.
"It's settled," Chen Hao said, climbing into the back seat and rubbing his slightly throbbing temples. "Prepare to receive the equipment and ingredients tomorrow. Also, tell Lei Hu to expand the water bar on the first floor a bit more."
"Expand it even more?" Zhao Gang was stunned.
"Yes," Chen Hao leaned back against the seat, looking at the colorful street scene outside the car window. "Because soon, that place will become our money-printing machine."
Once the milk tea category was running successfully in the internet cafe, that terrifying profit margin and repurchase rate would provide him with a continuous stream of cash flow. And this was just the beginning.
With this set of standardized SOPs and supply chains, he could completely spin off this water bar and replicate it around universities all over Beijing. In an era when "Snow King" hadn't been born yet, he wanted to be the first to plant this flag across all the streets and alleys.
"Back to Huaqing Jiayuan," Chen Hao closed his eyes. The audi drove towards Wudaokou.