As the most successful restaurant chain in China, KFC currently has more than 65,438+0,700 stores in China. KFC is famous for its strict site selection, so are its 28 stores in Hangzhou: nearly 20% of its stores are located along Yan 'an Road from Chun Qing Road to Wu Shan Square. At present, except Xiasha and Binjiang, most urban areas basically have stores. Even along Yan 'an South Road, such as Jinyong Square, which is considered unpopular, KFC opened stores this year 1 month. We seem to see something from the location of KFC stores.

A shop can't be profitable without rent and location. From entering Hangzhou to quitting two years later, Shanghai Liangyou Jinban Convenience Store is a good example, and the growth of rent has exceeded the growth of turnover. The number of goods in convenience stores is limited, ranging from 2,000 to 2,500 pieces, and the daily turnover is more than 5,000 yuan. Excluding labor, utilities and other expenses, there is basically no money, while the gross profit of supermarkets is only about 25%. The location chosen by KFC is ideal, and the turnover is fixed and guaranteed. Promotion season can increase turnover, and gross profit is much higher than that of supermarkets and convenience stores. In addition, a certain number of stores can reduce the input cost, so it is not surprising that KFC makes money. Good brands can also offset some rents, and brand awareness is valued by more and more developers and small business owners. Therefore, some people joked that it makes sense to follow KFC and eat it all year round.

Judging from the current supply of shops in the market, shops on the second floor of Jinyong Square on Yan 'an South Road are transferred or leased more (the transfer fee is between 20,000 yuan and 30,000 yuan, and the rent is between1000-3,000 yuan /m2/ year, which is far lower than the market rent), the clothing market in the north of the city and some professional wholesale markets such as Sijiqing, etc., while renters still use Wulin Square on Yan 'an Road to reach Chun Qing Road and Fengqi Road. There is still a gap between supply and demand. The problem is how to solve the contradiction between them. In addition to developers and owners adjusting their business formats (such as Jinyong Plaza), owners should also adjust their mentality and choose a format with stable returns, depending on brand awareness.

For renters, choosing the right business format is also a very realistic problem. Due to the high level of Mao Lijiao, the gross profit of glasses, jewelry and clothing can reach more than 30% in some formats, which can bear higher rents. The ideal and reasonable area of 50- 150 square meters is also one of the factors to ensure the ideal return on investment. Therefore, this format can choose the ideal area of the lot. However, restaurants, supermarkets and convenience stores have low gross profit margin (between 20% and 25%) and low rent tolerance due to large upfront investment. Without good brand support, the selected area can only be in the second-and third-class lots or around the professional market, and the turnover can be driven by a certain amount of passenger flow, plus the long-term lease term (generally more than 5 years), and it can still be profitable after several years of operation.