Old oil ills, environmental problems, cost troubles

It is described as a hot pot that originated in the Warring States Period, but the industry itself still stays in the era of the Spring and Autumn Period - the hegemonic replacement, the small country.

In 2017, Haidilao, which is going to Hong Kong for IPO, has become the owner of the rivers and lakes, occupying 2.2% of the hot pot market. Among the top five companies, one accounted for 0.9%, and the other four accounted for 0.8%. The rest are countless small brands and small chains. Under the favorable situation of the rapid development of the hot pot industry, such a decentralized pattern naturally cannot avoid the problems in the industry.

The long-standing "salt oil" problem in the hot pot industry is only the most boiling part, just like the last ring of hot pot. Now let us pass through the gradually cooled oil and water, and use the colander to find out how many other residues that plague the industry.

Food safety problem has not healed for a long time

At the end of May, Xiaolongkan hot pot was in the three franchise stores in Changchun, Nanchang, Harbin and other places. This once again caused the society to pay attention to the hot pot industry. The food and drug supervision bureaus across the country conducted a surprise inspection of the local Xiaolong Kanmen store.

The reporter noted that over the years, in the Bashu-style hot pot industry, the problem of recycling “old oil” has been frequently exposed, and the industry has been working to eradicate such problems.


As early as August 2011, there were 5,000 hot pot restaurants, which initiated the industry rectification of “taking the disposable pot bottom to the end” in response to the problem of hot pot recycling.

In January this year, the Chongqing hot pot industry began a new round of rectification. The Chongqing Food and Drug Administration announced at the time that it had investigated the investigation of five hot pot restaurants suspected of recycling “hot pot old oil”.

The Food Safety Law clearly prohibits the use of recycled food as a raw material to produce food. Why is there still a hot pot restaurant that recycles "hot pot old oil"? The cost is the reason behind the risk of driving the business behind it.

In Xiaolongkan’s “Use Old Oil” incident exposure video, there is a related hot pot restaurant staff who said that this is because the cost is too high.

So, what is the cost of a one-time hot pot bottom material, is it much higher than the bottom pot fee that consumers can accept?

An industry insider who has been engaged in hot pot business for more than 10 years told the reporter of "Daily Economic News" that the cost of the standard pot of one pot in the industry is 50~70 yuan. The pot bottom fee is not a loss in this range. If the pot bottom fee is lost, the hot pot restaurant can only reduce the cost of the dish, or take the route of small profits but quick turnover.

Xinhua News Agency also reported in January this year that an industry insider who has been engaged in Chongqing hot pot business for more than 20 years has calculated an account: the cost of 1 kg hot pot bottom material is 15~20 yuan, and the general situation requires 2~3 kg hot pot bottom. Material, 4 to 5 kg of cauldron, but most of the hot pot shop's pot bottom fee is only 30 to 50 yuan (including large and small pots), not enough cost. The use of "water oil", the cauldron consumes about 1.2 kg of oil, the small pot consumes about 0.8 kg of oil, and the remaining six or seven percent of the oil can be recycled, and the cost of saving more than half of the cost is the net profit of the merchant. A hot pot restaurant receives 30 tables per day, and the use of “shui water oil” can save costs by more than 1,000 yuan, and can increase tens of thousands of yuan in revenue in one month.

Under the temptation of high profits, how to intercept old oil? Associate professors such as the School of Politics and Public Administration of Southwest University of Political Science and Law and Jing Hao and other experts believe that it is necessary to seek countermeasures from the root causes, install monitoring systems, create bright kitchen stoves, and achieve full coverage of the recycling process. Coincidentally, Xiaolongkan has said that as of June 1, all its stores have installed a kitchen monitoring system.

More painful points to be solved under high growth in the industry

Although there have been food safety problems, the hot pot industry has maintained high growth in recent years. According to data from Frost & Sullivan Consulting, the number of Chinese hot pot restaurants increased from about 406,000 in 2013 to about 601,000 in 2017, and is forecast to increase to about 896,000 in 2022.

How can the 896,000 hot pot restaurants share the benefits from the restaurant industry? According to Frost & Sullivan analysis, the total revenue of China's catering service market in 2017 was 39,644 million yuan, of which Chinese cuisine accounted for 80.5% of the market share in 2017. The hot pot has the largest market share in the Chinese Chinese food and beverage market, at 13.7%, of which the Bashu-style hot pot accounts for 64.2% of the Chinese hot pot restaurant market.

While the number of industry participants has grown rapidly, the hot pot market has also been highly fragmented. According to the data, in 2017, Haidilao occupied 2.2% of the hot pot market. Among the top five companies, one accounted for 0.9%, and the other four accounted for 0.8%.

In a fragmented market, nature is more intense competition. The above-mentioned people in the hot pot business told the reporter of "Daily Economic News": "In recent years, the competition in the catering industry has become increasingly fierce, and the number of hot pot restaurants has increased substantially. In addition to the expansion of the market, it may also be due to the operation of hot pot restaurants relative to other real economy. The entry barrier is low, and hundreds of thousands to one million can be opened."

Under the fierce competition of many participants, it is the environment where “old oil” breeds. Moreover, "the problem of this format of hot pot is not only 'old oil'". A long-time observer of the hot pot industry told the reporter of "Daily Economic News" that there are public concerns such as kitchen waste disposal, environmental protection, and food safety behind the hot pot industry, as well as changes in consumer taste habits, industrial production additives, etc. professional concern. For example, the food safety problem of the dishes is more serious in non-chain small hot pot restaurants, because the supply of dishes involves a complex supply chain system.

In addition, the amount of oil that needs to be recycled is very large, but the current recycling oil industry chain cannot support such a large recycling demand of the entire industry, and the recovery of oil is not in place and it is easy to cause a certain degree of environmental pollution, which is not desirable in the long run.

The above-mentioned practitioners mentioned some more practical problems. He believes that for chain hot pot enterprises, the increase in labor costs, raw material costs, and rental costs also pose challenges for business operations.

As for the solution, the industry said: “Enterprises can only strengthen their own supply chain construction, increase cooperation between enterprises and enterprises, and reduce some of the costs at the source through intensive production.” For example, Haidilao is in the process of offering shares. The manual states that it has its own base processing plant and a relatively mature supply chain system. According to the staff of Xiaolongkan responsible for investment promotion, the company also has its own base processing plant and matching center.

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