What Does This Appointment Say About Coffee Beverage Development?
Haidilao named Zhang Junjie, founder of tea brand Chagee, as an independent non-executive director on August 27, 2024, alongside its interim results report. The three-year term carries an annual salary of 1.2 million yuan. Zhang, 29, founded Chagee in June 2017 and serves as chairman and CEO of Chagee Holdings Limited, with more than 13 years of experience in the catering industry.
The move is read as a step in Haidilao's product diversification, particularly in handcrafted drinks, where coffee beverage development keeps drawing restaurant chains. Chagee grew store count 233 percent in 2023 with sales above 10.8 billion yuan, and first-quarter 2024 sales passed 5.8 billion yuan. The two companies were already linked through Shuhai Supply Chain, and Zhang's role is to supervise the board and give independent judgment.
On August 27, while Haidilao released its 2024 interim results report, it announced a striking appointment: Zhang Junjie, founder of Chagee, will join the board of directors as an independent non-executive director for a three-year term with an annual salary of 1.2 million yuan. This cross-industry collaboration quickly sparked heated discussions among netizens. Some speculated whether the two companies would merge, while others pointed out that the two had already collaborated through Shuhai Supply Chain. Zhang Junjie is only 29 years old but has over 13 years of experience in the catering industry. The Chagee brand he founded achieved a store growth rate of 233% in 2023, with total sales exceeding 10.8 billion yuan. Haidilao's move is interpreted as an important step in its product diversification strategy, especially in exploring the handcrafted tea beverage sector. This article will analyze in detail the background of this appointment, the cooperative history between the two parties, and Haidilao's ambitions in the beverage market.
On August 27, Haidilao released its 2024 interim results report. At the same time, the board of directors also announced a rather surprising appointment: effective immediately, Zhang Junjie, founder of Chagee, was appointed as an independent non-executive director for a three-year term. It is understood that as an independent non-executive director, Zhang Junjie's main responsibilities are to supervise the company's board of directors and provide independent judgment, and he will receive an annual salary of 1.2 million yuan. After this appointment was announced, it quickly triggered widespread discussion among netizens.
The announcement shows that Zhang Junjie (formerly known as Zhang Jun), now 29 years old, founded the Chagee brand in June 2017 and currently serves as Chairman and CEO of Chagee Holdings Limited, with over 13 years of operational and management experience in the catering industry. According to public information, Chagee had strong momentum in 2023, with a store growth rate of 233% and total sales of 10.8 billion yuan; total sales in the first quarter of 2024 exceeded 5.8 billion yuan. Based on this sales figure, Chagee, as a newcomer, has already entered the top tier of tea beverage brands.
Overnight, the rising star of the tea beverage industry and the top player in the hot pot industry announced a cross-industry collaboration! Netizens exclaimed one after another: Is this a sign that the two companies are going to merge? If they merge, they might as well call it "Bawang Laodi"; if they merge, remember to offer a "Bawang Meal" discount. Some observant netizens also pointed out that Chagee and Haidilao had actually already been cooperating. Previously, Chagee's delivery had always been handled by Shuhai Supply Chain. Now it seems the two will engage in deeper cooperation.
It is understood that Shuhai Supply Chain's predecessor was precisely Haidilao's catering supply chain subsidiary, which began independent operations in 2007 and provided Haidilao with overall supply chain hosting services. Its services for Haidilao included centralized procurement, centralized central kitchen processing, unified quality control, and logistics system interconnection, among other supply chain systems. In 2014, Shuhai Supply Chain officially became independent and turned into a third-party fully hosted food ingredient supply chain service provider, offering catering chain enterprises and retail enterprises complete food ingredient supply chain solutions such as ingredient procurement, warehousing hosting, financial services, customized dish research and development, and information services. According to public information, the related-party transaction amount between Shuhai and Haidilao reached 2.6 billion yuan in 2017; the 2021 financial report shows that Shuhai was Haidilao's largest supplier.
Regarding Zhang Junjie's appointment as an independent director of Haidilao, Haidilao responded to media reporters that the board of directors has always pursued diversity in its composition. In addition to company management, it hopes to attract members from different fields who can provide observational and constructive supervisory opinions for the company's business, and Mr. Zhang Junjie's joining will further enrich the diversity of the company's board of directors. Another analysis suggests that Haidilao's choice to have Zhang Junjie join the board at this time is probably due to its recognition of his successful experience in the handcrafted tea beverage sector.
In recent years, consumer demand has become increasingly diverse, and Haidilao has also been continuously exploring new options. In 2021, Haidilao launched its own tea beverage products and specially set aside independent space areas within its stores, transforming the traditional hot pot beverage bar into an experience space similar to a small tea beverage stall. According to netizens' reviews, among the several tea beverages launched by Haidilao, one called "Triple Grapefruit Iced Drink" has a good taste, and its combination of sparkling water plus less sugar is suitable for summer drinking. In addition, this iced drink has frequently been shared by netizens on social media for its high aesthetic appeal, contributing a new wave of traffic for Haidilao.
Currently, on the Haidilao mini-program, beverages are divided into two different sections: bottled beverages and handcrafted drinks. In the handcrafted drinks section, in addition to "Triple Grapefruit Iced Drink," there are four other tea beverages available for ordering, such as "Matcha Coconut." The variety to choose from is actually not many. This time, Haidilao appointed the founder of Chagee to a board position with an annual salary of one million yuan, hoping he will provide independent judgment. This shows Haidilao's determination in product diversification and its ambition to enter the beverage industry.
Image source: Internet
The above content is compiled by CoffeeHunters, a coffee news website.
