In 1997, Southeast Asia took the lead in the financial crisis, and then a large number of domestic and foreign enterprises went bankrupt or closed down. More famous bankruptcy cases, including South Korea ’s Daewoo Group and Japan ’s Yaohan Department Store, etc., have a common feature that they are implementing crazy expansion plans.
This year's "red sorghum" fell into a business crisis because it was just a small restaurant chain restaurant selling noodles in Zhengzhou.
Perhaps people have long forgotten it. But its founder, Qiao Ying, once had a grand slogan: challenge McDonald's and open 20,000 chain stores worldwide in five years.
Qiao Ying ’s ambitious dream eventually buried his business, and he himself was sentenced to three years in prison for illegal fundraising.
Ten years after the "Red Sorghum" collapsed, Qiao won many battles and lost many battles. In 2008, he again resisted the banner of entrepreneurship. "Red sorghum will open in September." Henan Red Sorghum Food Co., Ltd. staff recently said that the location of the store is still Zhengzhou.
This is the fourth time that Joe has won the "Red Sorghum".
Challenge McDonald's
Qiao Ying served as a soldier, worked as a university lecturer, and served as an executive in the Zhengzhou Asia Hotel. He went to sea in 1994 and founded the "Red Sorghum" fast food restaurant in Zhengzhou in 1995.
In fact, when Qiao Ying was a lecturer in colleges and universities, he opened a Chinese fast food restaurant and challenged McDonald's. At that time, the film "Red Sorghum" directed by Zhang Yimou became popular at home and abroad, and the three words "Red Sorghum" came from this.
In April 1995, Qiao Ying founded the first red sorghum fast food restaurant, which was unveiled at the prosperous Erqi Square in Zhengzhou. The product he operated was the lamb braised noodles that Zhongyuan people love to eat. At the time, it was the 40th anniversary of the establishment of McDonald's, and Western Fast Foods accelerated its entry into China. Joe won the opportunity to call out the slogan "Challenge McDonald's."
"I inspected almost all McDonald's in Beijing, especially the McDonald's on Wangfujing Street in Beijing. The crowded scene deeply attracted me. I also inspected the Asian Games Village, Dongdan, Xidan, Fuxingmen, Qianmen, Dongsi, McDonald's in East Bridge and other places. During those days, I inspected during the day and wrote a business plan for Red Sorghum at night. "Qiao Ying wrote in his book" Never Say Defeat: I Challenge McDonald's. "
Red Sorghum has opened 7 branches in Zhengzhou in less than a year, and quickly made money. The borrowed principal of less than 500,000 yuan earned nearly 5 million yuan in less than one year.
In May 1996, "Red Sorghum" entered Beijing. The opening location is Wangfujing Street, known as China's first street, next to McDonald's restaurant. Although it can occupy a place in the top domestic commercial districts, Red Sorghum did not have much capital strength.
Not only did he open a store with McDonald's, Qiao Ying also released the proverb that "where there is McDonald's, there is red sorghum." The move attracted continuous reports from more than 200 media nationwide, 70 foreign media have successively reprinted, and the three major cable television networks in the United States have reported in turn.
At a very small price, Qiao Ying made "Red Sorghum" quickly become a well-known brand.
After tasting the sweetness of Chinese fast food for the first time, Red Sorghum had the ambitious goal of "opening 20,000 stores in the world in three years", and it has a strong tendency to become the first Chinese fast food brand.
In 1997, red sorghum, which had an unstable foundation, was fully rolled out in more than 20 cities across the country. At the peak, red sorghum had more than 40 stores across the country.
In the case of rapid expansion, capital is most needed. In July 1996, a real estate company in Henan Province signed a letter of intent to establish a joint venture with Red Sorghum. It plans to increase its capital and become a shareholder. It pledged to raise 20 million yuan within 3 months.
After adding the idea of ​​capital operation, Qiao Ying has established more than 10 branches in Hainan, Tianjin and other places. But this 20 million did not arrive in the end. Red sorghum, which is in desperate need of funds, began to raise funds among internal employees and society in 1997.
Expansion funds were not raised properly, and the funds raised could not deliver the promised returns on time, resulting in a run-off, which finally led to a break in the capital chain and the closure of the Red Sorghum stores. By the end of 1998, all branches of Red Sorghum were closed, with total liabilities of up to 36 million yuan.
At the beginning of 1999, due to the promise of up to 25% in annual interest rates, investors went to the People's Bank of China, the Public Security Bureau and other departments to report Qiao Ying and others. He also changed from a business man to a "commercial liar".
In June 2002, the People ’s Court of Jinshui District of Zhengzhou City ruled that Qiao Ying and others had absorbed deposits in disguise from unspecified objects of society without the approval of the People ’s Bank of China. Sentenced to 3 years in prison.
Repeated defeats
Qiao Ying was not idle in the prison. After reflecting on the glory and destruction he experienced, he wrote "Never Say Failed: I Challenged McDonald's."
Qiao Ying, who was released from prison, made a comeback and continued to investigate. In addition to McDonald's, he also inspected a variety of fast food restaurants on the spot, including the other party's product characteristics and operating methods.
After repeated failures, in August 2008, Qiao Ying, together with Beijing Xinhua Investment Co., Ltd. and Henan Aqingsao Group, relaunched red sorghum braised noodles. The new Red Sorghum fast food restaurant will open in Zhengzhou in September.
Qiao Ying, who once fell on capital, this time introduced venture capital funds, Beijing Xinhua Investment Co., Ltd. and Henan Aqingsao Group, invested a total of 36 million yuan into Henan Red Sorghum Food Co., Ltd. Qiao Ying served as CEO. The goal of Red Sorghum this time is to open 10 chain stores in Zhengzhou this year.
This is the fourth time he has fought against Red Sorghum since he was released from prison.
In April 2004, he prepared the red sorghum fast-food chain stores in Zhengzhou and Beijing.
In January 2005, Qiao Ying set up a new red sorghum simulation store at Zhongzhou University; on March 6, red sorghum Chinese fast food Qiao Shi braised noodles appeared in Zhengzhou. Soon, all three franchise stores in Zhengzhou closed down due to poor operating results, and red sorghum was brought to court by franchisees.
On February 4, 2007, Qiao Ying entered the online fast food market, launched Kangkuo Fast Food, and withdrew in June of the same year.
In addition to red sorghum, the three famous Zengding plants and Qinchi also broke out in 1997. The famous case that fell down, and Shi Yuzhu's giant group. The giant was defeated because the capital chain of the giant building project in Zhuhai was broken. Shi Yuzhu was not knocked down. He moved to the Yangtze River Delta. Later, he made a fortune in the "Melaton" project and then moved to the field of online games. Now he has become a prominent wealth upstart.
How about Joe winning? The way forward is unknown.
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