Lihua Fast Food Business Model

Lihua Fast Food Co., Ltd (LFF), founded in 1993, as one of the largestfood-delivery industries with annual sales volume is up to RMB300million, has2600 employees, and more than 80 branches located in eleven cities such asBeijing, Shanghai, Shenzhen and so on, which has been one of the top tenfamous brand in the line.Lihua adopted one unique development model----direct sales, frommanufacturer to end-users. In order to achieve standardization andindustrialization in fast food, Lihua has passed the ISO9001, ISO14001, andHACCP certification, famed as King of Chinese Food. Now Lihua takesCollective Food-supply and Individual Food-supply as its main business. Thesuccess of Lihua business lies in its proper market positioning, new businessmodel, smart operation system and strong execution. In the early stage, Lihuapositioned itself as one provider for the Collective Food-supply and specialoccasion, which is a huge potential market under satisfied, and adopted newmodel—B2C,from manufacture to end-user without stores, booked by call andinternet. In the development, Lihua sticks to the principle of First Survived,Then Developed, and develops by low cost. At the same time, Lihua raises theentry level in nutrition, food safety, and environment sanity as a leader in theniche market. Detailed operation in food standardization, servicestandardization and management standardization facilitates Lihua to speed up.At current, Lihua has steered its operation from production to brand. Besides,in the Chinese fast food market, there is no leading brands and no advertising,which is an absolutely good opportunity for Lihua to establish its brand. So theadvice is that Lihua can create Aunt Lihua as its agent, adding feelingcommunication to the brand, which can make it much better differentiated.