Adi Adi has been repeatedly embroiled in food safety issues. What are the hidden concerns behind its franchise expansion?

Food is the most important thing for people. In the past two years, the snack economy has been pushed to the forefront, and casual snacks outside of regular meals have attracted much attention. Sweeping the streets and alleys, the snack shop real economy trend is optimistic, and brand merchants in the track have opened franchises one after another, achieving fission-style franchise expansion.

Adi Adi is a localized snack chain brand in Jiangxi. It started in Nanchang and radiated Jiangxi. It has now opened in Jiujiang, Fuzhou, Shangrao, Yingtan, Jingdezhen and other places. Through fission-style franchising and high-quality product supply chain, it has created exclusive standardized specialty snack stores in Jiangxi Province. Can the local brand Adi Adi seize the initiative in its own base camp?

Trapped in food "safety gate" and repeatedly complained about

In the snack race, food safety is the foundation. If snacks are no longer safe, there will be no possibility of development. Adi Adi is a local brand in Jiangxi and is open to franchising in Jiangxi. Localized brands are relatively easier to break through in their own base camp, but Adi Adi has repeatedly fallen into food "safety gates".

On February 4, 2022, a consumer bought a product called "Spicy Anchovies" at the "Adi Adi Wholesale Snacks" store on Chenghu West Road, Nanchang County, and found a cigarette butt in the dried fish, and there were unknown foreign objects in the snacks. In August 2022, a 4-year-old child ate moldy jelly purchased from the Adi Adi Wholesale Snacks store, and the Nanchang "Adi Adi" store did not remove it from the shelves in time! In September 2022, the 3-year-old son of a consumer in Nanchang City felt unwell because he drank spoiled soy milk purchased from Adi Adi, and later compensated the consumer.

In Jianghu Lao Liu's opinion, the safety of snacks is a fundamental problem. Most snack lovers are children, and children of this age group do not even have the ability to distinguish food safety. Once something goes wrong, it will lead to a "tragedy." From the perspective of repeated complaints about food safety, Adi Adi is still lacking in the selection of supply chains. It has repeatedly made mistakes but still has not made corrections. There may be problems with its attitude. In any case, from a safety perspective, there are huge concerns behind the Adi Adi brand.

New concept of mass merchandising: franchise expansion and land grabbing

"Invest with your mouth" is a wise saying. Nowadays, the online economy and community economy have emerged, and the real economy is struggling. The new concept of mass-market snack stores has been derived, mainly targeting the sinking market, and the benchmark is the offline version of "Pinduoduo". Mass-market snack stores mainly use the banner of high cost-effectiveness to weaken consumers' sensitivity to price.

In mass-market snack shops such as Adi Adi, mineral water, cola, potato chips and other products that are common in the market and have uniform prices are all lower than the market price, leaving consumers with a sense of high cost-effectiveness. But in fact, some miscellaneous brand products are also sold at high prices, which is the key to mass-market snack shops to increase their product gross profit margins.

In Jianghu Lao Liu's opinion, Adi Adi has a clear cost-effective positioning, has found a mature product supply chain, and has implemented a supply-to-retail model. For Adi Adi, what it needs to do is to speed up the copy-and-paste speed of single stores, build brand awareness through land grabbing, and attract more franchisees to join the brand to achieve both fame and fortune.

Competition in the track is fierce, and joining is complicated and full of tricks

The snack food industry has entered a fierce competition. In many counties in Jiangxi, there is a trend of being surrounded by a number of snack food brands. Adi Adi, Busy Snacks, Zhao Yiming's mass-market snack stores, etc. have blossomed in many places in Jiangxi. Zhao Yiming Snack Store seized the opportunity to focus on Jiangxi, Busy Snacks quickly expanded and made a name for itself in the market with its brand awareness, and Adi Adi only has a brand effect in Nanchang. The industry is accelerating its race to grab land. Does Adi Adi have a chance of winning?

Competition in the market is fierce. As a franchisee, is it profitable to join Adi Adi? Jianghu Lao Liu found its franchise standards on the official website of Adi Adi. According to the minimum 130 square meters (30 square meters for warehouse), the door head is not less than 8 meters, the franchise fee is 38,000 yuan, the deposit is 20,000 yuan, the brand management fee is 1,000 yuan/month (operation guidance), the decoration is 100,000 yuan (ceiling, floor, background wall, etc.), the equipment is 120,000 yuan (shelves, monitoring, air conditioning, a full set of cash register equipment, door head advertising soft decoration design, etc.), the first batch of purchases is 180,000-200,000 yuan, the working capital is 30,000-50,000 yuan, and the comprehensive investment is about 500,000 yuan (excluding rent + transfer fee).

In Jianghu Lao Liu's opinion, the total investment to join an Adi Adi franchise is about 500,000, which does not include rent and expensive labor costs. The gross profit margin of a snack shop is 20%. In the long run, this is a project with a large investment and a long payback period. If the brand effect collapses during the period, the loss will be borne by the franchisee himself. The emerging snack food market is in fierce competition. Is it too early to choose to join the franchise camp at this time? Franchisees need to look at the long term to avoid becoming "leeks". Will Adi Adi continue to be "fragrant"?

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.