Core Viewpoint - The article highlights the recent trend of store closures by the discount retail brand "好特卖" (Hao Te Mai) in major cities, attributing this to issues such as high rental costs, lease expirations, and poor performance of certain stores [2][5][9]. Expansion and Franchise Model - In April 2023, 好特卖 transitioned to a franchise model, aiming to open around 600 new stores within the year, but the actual number of new openings has significantly decreased to just a few dozen [3][10]. - The company had over 500 stores across 32 cities at the time of the franchise launch, with plans to double its store count and achieve a gross merchandise volume (GMV) exceeding 4 billion yuan [8][10]. - The franchise investment for opening a store is approximately 800,000 to 900,000 yuan, including various fees and costs [10][12]. Store Closures and Reasons - The closures are primarily due to three reasons: high rental costs, lease expirations, and underperforming stores [9][10]. - Many of the closed stores were early direct-operated outlets that could not meet current operational needs, leading to a systematic optimization and closure process [9][10]. Market Position and Consumer Base - 好特卖 has positioned itself as a low-cost retail option, attracting young consumers with competitive pricing on various products [14]. - Data indicates that 65.5% of the consumers of discount food products are aged 19-35, highlighting the brand's appeal to younger demographics [14]. Quality Control Issues - The brand faces significant quality control challenges, with numerous complaints regarding expired or substandard products, leading to administrative penalties for mislabeling and selling expired goods [15][19]. - The proportion of near-expiry products has decreased from nearly 100% at the start to between 5% and 30% currently, as the company seeks to diversify its product offerings [19].

Core Insights - The article highlights the comprehensive quality control measures implemented by Ziyan Food, which ensure food safety and product quality from raw material selection to consumer feedback [1][9][14] - Ziyan Food's successful product offerings, particularly the popular "Husband and Wife Lung Slices," contribute significantly to its revenue, showcasing the effectiveness of its quality management practices [7][14] Group 1: Quality Control Measures - Ziyan Food has established a closed-loop quality control system that encompasses raw material selection, production processes, cold chain logistics, and store management [1][9] - The company collaborates with major suppliers like Wens Foodstuffs Group and COFCO to secure high-quality raw materials through long-term agreements [7][9] - A rigorous three-party acceptance system is in place for raw materials, ensuring only those that meet strict quality standards enter the production phase [7][9] Group 2: Production and Innovation - Ziyan Food combines traditional techniques with modern technology to optimize its production processes, ensuring consistent taste and quality [8][10] - The company is expanding its product range beyond traditional flavors to cater to diverse regional preferences across China [8][14] - The establishment of high-standard production bases enhances operational efficiency and product consistency [10][11] Group 3: Logistics and Distribution - Ziyan Food employs a self-built cold chain logistics fleet to ensure efficient and safe delivery of products from factories to stores [10][11] - Advanced technologies such as IoT and GPS tracking are utilized to monitor product conditions during transportation, maintaining freshness and safety [10][12] - The company has developed a supply chain system that allows for rapid order fulfillment, enhancing customer satisfaction [11][12] Group 4: Consumer Engagement and Feedback - Ziyan Food has implemented a digital management ecosystem that integrates various systems for real-time data analysis and operational efficiency [12][14] - The company actively collects consumer feedback through in-store evaluation machines, allowing for quick responses to customer needs [14] - A comprehensive food safety training program has been initiated to reinforce safety standards across all operational levels [14]

Core Viewpoint - Recent food safety incident involving a consumer finding a suspected blood-stained band-aid in a product from Laiyifen has raised significant public concern about food safety and quality control within the company [1][2] Group 1: Incident and Response - Laiyifen has initiated a full investigation and has removed the affected batch of products from the market following the incident [1] - The company has stated that the involved products have been sealed and that they reached a settlement with the consumer, with no non-compliant products found by market supervision authorities [1] Group 2: Business Model and Challenges - Laiyifen's business model heavily relies on OEM (Original Equipment Manufacturer) production, with over 1,500 OEM products across 13 core categories, which can lead to challenges in food safety and quality control [1] - The company has faced over 400 consumer complaints related to food safety issues, indicating a significant erosion of consumer trust [2] - The rise of new retail formats and brands has intensified competition, leading to a 15.25% decline in revenue to 3.37 billion yuan and a net loss of 75.27 million yuan, a 231.94% increase in losses year-on-year [2] Group 3: Recommendations for Improvement - The company must prioritize strengthening food safety and quality control risk management to ensure product safety and quality [3] - There is a need for Laiyifen to reassess its quality control processes under the OEM model, enhancing the selection, supervision, and assessment of OEM factories [3] - The company should accelerate innovation and explore new business paths, focusing on diversification, product service innovation, and channel development [3]