A lot of people open chains and think they can open more storesChain operationIt didn't last half of three years. The problem was never enough in the store, but it was not clear how the bottom logic of standardization, specialization and standardization went。
What is a chain operation
Chaining is an area of commercial circulation in which a number of conglomerates combine to standardize services, professionalize operations, regularize management and organize modern ways of doing business, including through joint purchases or concessions. According to data from the china association of chained enterprises in 2023, there are more than 350,000 chained businesses nationwide, covering more than two dozen subdivisions such as retail, catering and convenience stores。
The essence of it is not to open a few more shops, but to replicate the successful models that one store has tested to more points. In 2024, the global door shop in honey ice city exceeded 40,000, not by a particular shop, but by a steady operation of the same supply chain, the same operating process at tens of thousands of points, which is the real threshold for chaining。
Do you know the three ways to connect
There are three main modes of chaining. The first is a direct battalion chain, with headquarters fully owned and operated, for example, most stores in china, such as the eureka store; the second is a franchising operation, with headquarters authorizing the use of branding systems and supply chains by allies, and the third is a free chain, where the stores retain independent ownership but share purchases, as in the case of some domestic agricultural cooperatives。
The core difference between these three models is control and the financier. Direct control is strongest, but expansion is slow, and financial pressure is high; union expansion is fast but product control is more difficult; and the freedom chain is most flexible and brand unity is weakest. With the amendment of the regulations relating to commercial concessions in china in 2025, compliance requirements for the disclosure of union information have been tightened, and the cost of non-compliance has risen significantly, and must be seen before selection。
Standardisation is not a uniform experience
Standardization of services is the first core feature of chain operations. It does not make each shop an identical iron box, but ensures that customers have the same core experience in any shop. In 2024, for example, there are clear criteria for bottom formulations, service jars and meal hours at the national door shop, but it is allowed to fine-tune music styles and pacings according to the business circle, and the bottom line is not the ceiling。
Standardized landing is based on the sop manual and regular inspections. Mcdonald's requested that the temperature of chicken fried at a global door be kept within two degrees plus or minus, and that the qsc inspection in the china region be conducted once a week. In 2023, a chain of coffee brands varied significantly from one brand to another in different cities due to a lack of standardization, with a closure rate of 15 per cent in three months and a doubling of the cost of repair once the reputation has collapsed。
Logic of division of labour between headquarters and the shop
The professionalization of operations requires that the headquarters and the shop do their own business. Headquarters is responsible for core aspects of brand management, supply chain development, product development, site selection and assessment; the shop is focused on two things: selling the goods and positioning the services. Data from the convenience store industry in 2025 show that the 7-11 china regional headquarters, with fewer than 2,000 employees, supports the day-to-day operation of more than 8,000 stores with a high leverage rate。
Once the division of labour is blurred, the chain collapse is the number one cause. Some brand headquarters manage both the supply chain and house-to-door pricing, with the result that neither is properly managed. In 2024, a chain of fast-food brands withdrew more than 300 in one year, in response to excessive interference by headquarters in the localization of prices at the door. The clearer the line is that the system is stable。
How do you manage to land
Regulatory management implies the use of uniform systems, processes and digitization tools to manage all outlets. In 2024, china's chain of enterprises had 72 per cent penetration of the it system, but less than 30 per cent of real-time data from the three levels of headquarters, regional and doorshop access. The normative starting point is a clear list of duties and responsibilities: who approves, who executes and who evaluates, cannot be verbally agreed in the twitter community。
The system is perfected and implementation is zero. At the beginning of 2025, a chain of pharmacies introduced a unified erp system, but more than 40 stores in east china were still accounting manually with excel, and the data was two weeks behind schedule and headquarters could not make a precise replenishment. Management standardization is not a one-time project and requires continuous training and quarterly audits to make the system work for each employee's muscle memory。
Scale benefitsWhere is it
The greatest benefit of the chain is economies of scale. The flat purchase rate was below the unit price, and the core sku procurement cost was 18 to 25 per cent lower than the cost of a single store when a single chain of zero plates was acquired nationally in 2024. In the case of brands, where advertising is concentrated, the cost-sharing of single stores decreases with the increase in the number of stores, the cost of single shops in 500 and 50 shops can be more than three times higher。
But not as big as possible. In 2023, the number of new tea brands expanded from 800 to 4,000 in a year, the supply chain failed to keep pace, the shortage rate rose to 12 per cent, and more than 500 were closed in a year after the reputation fell. The economies of scale are premised on the assumption that the management system can carry this volume and that the rhythm is much more important than the pace。
Are you going through a chain expansion or are you going to join a brand, the worst is standardized enforcement or supply chain control? The comment section talks about your real card points, and if it's useful, it'll send a compliment to the owner of the store, so that more people don't turn around。
