What Is an Internet Cafe Franchise?

In 2003, the Ministry of Culture issued a policy for the chain operation of Internet cafes, which encouraged chain Internet cafes and banned the approval of individual Internet cafes. At that time, the Ministry of Culture identified 10 national Internet cafe chain companies. As of the end of last year, 6 of these 10 national Internet cafe chain companies have ceased operations. In September 2009, the Ministry of Culture issued a notice requesting that companies applying for national Internet cafe chain enterprises must meet the conditions of registered capital of not less than 50 million yuan.

Internet cafes

As of August 28, 2010, the first batch of 4 national Internet cafe chain operating companies have passed the certification and obtained the National Internet Cafe Chain Enterprise Certification Certificate. The first four recognized companies have all been recognized before the new regulations were issued, this time is equivalent to a new license. The four Internet cafe chain companies are Beijing Zhonglu Space-Time Cultural Development Co., Ltd., Zero Degrees Juzhen Culture Co., Ltd., Beijing Ruide Online Information Technology Co., Ltd. and China Power Huatong Communication Co., Ltd.

It is reported that the national Internet cafe chain licenses will be gradually released. In the future, more Internet cafe chain operating companies that meet relevant requirements are expected to be recognized.

Internet cafes have license speculation.

Direct chain

First, develop direct-operated stores through capital means in existing Internet cafes. This is the basis for the survival of Internet cafe chain enterprises and the basis for their development.

General

The company complies with the chain operation specifications, and customizes the operation specifications, business processes, job responsibilities, and service models of each chain Internet cafe. All chain Internet cafes are implemented uniformly according to various operating projects, price strategies, market strategies, and marketing activities planned by the company. The company implements daily management of the operation of each Internet cafe.

Staff Management Code

1. Employees of all functional departments agree and implement the following system requirements;

2. Strictly abide by the attendance system of Internet cafes, and strictly rest, string posts or go out without instructions;

3. During the work period, each employee shall bear his own responsibilities, conscientiously and successfully do his job, and obey the manager's arrangements, and actively complete other tasks assigned by the manager;

4. The staff will arrive at the post 15 minutes in advance to change their work uniforms and organize their clothes. No matter what the reason, they must face every customer with full spirit. Each employee is required to maintain personal hygiene, no sweat odor, and must not drink alcohol, garlic, leek and other odorous foods before work. Female employees should apply light makeup and dress appropriately;

5. Each employee must follow the company etiquette training: pay attention to the standing, sitting, etc. meet the company's unified requirements; take the initiative to give up when meeting with guests; let the guests go first when walking with the guests; do not lean forward or lean on other things, do not intervene Pockets, akimbos, and shoulders, must not be crossed front and back or single leg, do not look away, shake your head, do not smoke, chew gum, eat popsicles in the work area, do not look in the mirror, comb your hair, make up, or make fun of it;

6. Take the initiative to greet guests, smile when receiving guests, stand upright when talking with guests, listen attentively, do not snatch, interrupt, or argue, the speech is moderate and modest, not loud, use honorific service, hear Opinions are not excused and reported in a timely manner. When you are asked by the guest, you must answer the question, and you must not make any joke with any guest, such as money, physical defects, customs, or derogation from the guest;

7. All employees must be thoroughly cleaned on time and by department

General

1. The chain Internet cafe finance is under the unified supervision and management of the company;

2. Networked management of various business income, cash purchases and consumption of cards for network users; other incomes must be accounted for in a timely manner;

3. The company conducts online real-time monitoring of the income of each outlet;

4. Each branch regularly uploads business data daily;

Financial management of directly operated stores

1. The unified accounting system is adopted for the financial management of direct-operating chains. Implement the "Headquarters-Stores" management model. All accounts of the store must be merged into the headquarters. At the same time, the store should set up necessary auxiliary accounts according to management needs and regularly reconcile with the headquarters. All assets, liabilities, profit and loss of the store are under the unified accounting of the headquarters.

2. Monetary fund management. The funds required for the operation and renovation of each store shall be uniformly raised and arranged by the headquarters. The money deposited into the bank in each store should be transferred to the designated account of the headquarters through bank settlement in a timely manner, and the headquarters will plan the transfer. Headquarters may establish a reserve fund system for stores, and stores may not spend money on sales. In order to strengthen the headquarters' financial financing and scheduling efforts, the headquarters should implement unified fund opening, unified settlement, unified management, and unified scheduling for stores by establishing an internal fund transfer center.

3. Inventory management. The headquarters conducts unified procurement, unified distribution, and unified accounting for the commodities it manages. The goods delivered by the headquarters to each store are treated as internal relocation. The valuation can be based on the cost plus a certain cost method, the cost plus a certain percentage of the gross profit method, the market price method and the agreement method. The specific method of valuation shall mainly follow the requirements of easy management, easy assessment and mobilization of the polarity of the area of all parties. total

The department implements the calculation of the sales price amount and the purchase price control in the stores. The stores carry out inventory checks every month and establish a physical responsibility system. The head office shall verify the rate of consumption of goods, and the excess part shall be deducted from the total salary or bonus of the store. The store should promptly make suggestions for adjusting the product structure according to the sales situation and market demand.

For low-value consumables, etc.

Administrative Measures for the Identification of Internet Cafe Chain Enterprises

Chapter I General Provisions

Article 1 These Measures are formulated to strengthen the management of Internet service business premises (hereinafter referred to as "Internet cafes") and promote the healthy development of Internet cafe chain enterprises.

Article 2 The Internet cafe chain enterprises referred to in the present Measures refer to enterprises under the unified management of the corporate headquarters, in accordance with the organizational specifications of chain operations, in the form of unified service standards, unified financial management, unified image identification, and unified computer remote management. An investment management company with headquarters or its branches and subsidiaries investing in or holding directly-operated stores for Internet access services.

The franchise or franchise chain Internet cafe operating units are not included in the scope of adjustment of these measures.

Article 3 The state supports and encourages the chaining, large-scale, specialization, and branding of Internet cafes, and supports and guides the development of non-chain Internet cafes in a chain business format.

Article 4 Internet cafe chain enterprises shall strengthen management, strictly enforce self-discipline, strive to improve the level of operation and management, improve the service management system, and contribute to the standardized development of the Internet cafe industry and the improvement of China's social informatization service level.

Chapter II Organization and Implementation

Article 5 The cultural administration department of the State Council is responsible for organizing, guiding, coordinating, managing and supervising the identification of Internet cafe chain enterprises. The main duties are:

(1) Responsible for the identification, publication and annual review of national Internet cafe chain enterprises;

(2) Guiding the identification of Internet cafe chain enterprises in various places and accepting the filing of Internet cafe chain enterprises;

(3) Accepting relevant reports and accepting applications for review of the determination results or annual review results;

(4) According to the development status of Internet cafe chain enterprises and

As far as the franchise model of the Internet cafe industry is concerned, it can be divided into four models, namely single store authorization, regional franchise, cooperative participation, and free chain.

Single store authorization: that is, the franchise headquarters will grant its brand to the franchisee, ie the owner of the Internet cafe, in the form of a franchise contract, and use the franchise system under its brand for a certain time and in a certain area. Its advantages: greater headquarters management, easy support; disadvantages: higher management costs and average development speed.

Regional authorization: that is, the franchise headquarters grants its brand to franchisees, i.e., the owners of Internet cafes, in the form of franchise contracts, and uses a franchise system under its brand within a certain period of time, within a certain region, exclusively or at a secondary level. Its advantages: faster development of the headquarters and lower management costs; disadvantages: support is not easy to get in place, and it is more difficult to operate under existing policies.

Cooperative participation: The franchisor and the franchisee jointly contribute capital, and the franchisee contributes more than 51% of the equity. Its advantages: strong support and easy operation; disadvantages: slow development and average management.

Free chain: It is an alliance formed by individual Internet cafes to resist market competition pressure. Its advantages: faster formation of alliances, which can reduce some operating costs; disadvantages: lack of core competitiveness, short life. As far as the model is concerned, no matter what model the chain Internet bar franchise uses, most of them have more concepts than profit models.

More operations than operations. Confusions faced by Internet cafe companies in achieving franchise:

1. The pressure of competition The operating cost is higher than that of individual Internet cafes and black Internet cafes. This is mainly due to differences in business hours, consumer groups, stand-alone grades and utilization rates, monitoring systems, venue environment, pirated software, and management services.

2. Development pressure The limitations of the existing policy management, the advantages of franchising are difficult to reflect, and the qualifications of licenses, taxation policies, locations of operations, and scale of operations are constrained.

3. The high pressure of capital on transportation and management costs has made chain Internet cafes stretch their markets, lacked core competitiveness, failed to gain the trust of franchisees, and fell into a vicious circle.

1. Market demand According to the investigation, it is found that the market consumer demand for Internet cafes can be divided into actual demand and potential demand, and can be further divided into traditional, entry-type, practical and commercial. "Traditional" demand: Most consumers' demand for Internet cafes is mainly focused on entertainment and information browsing and inquiry, and mainly games and chat. "Entry-type" demand: People who lack knowledge of computers and the Internet and want to learn the basics and basic operations are potential consumers of Internet cafes. Such groups are numerous and widely distributed. "Practical" demand: The main consumer groups of Internet cafes are young people under the age of 30, and they have huge potential needs in terms of schooling, job hunting, making friends, and choosing a spouse. The commercial value of this kind of demand is higher than the traditional demand of Internet cafes, especially the education and training industry. It has the characteristics of large market capacity, long industry life cycle, fast development speed, and leading enterprises have been generally profitable. It was formed long before the popularity of the Internet. The scale of the industry and its mature business model are particularly suitable for the combination with chain cafes with many outlets. It should become the focus of the chain cafes to provide value-added services and implement diversified operations. "Business-type" demand: With the increase of chain Internet cafe operating outlets, chain Internet cafes can gradually carry out related product sales and other value-added services, including: sales of books, audio, software, communications, digital and other products, ticket agents, hotel reservations, Water, electricity, gas, telephone fee collection and other services, some potential consumers mainly come to Internet cafes to shop and receive other value-added services. Such demand has certain commercial value and can be used as a supplement to the main business of chain Internet cafes. At a stage when the number of chain Internet cafes is small and the brand effect has not yet formed, most of the projects in this type of business are not suitable as the focus of the expansion of chain Internet cafes. After the chain of Internet cafes has a certain scale of operation, it is recommended that chain internet cafes should focus on derivative products of the Internet cafe industry when developing commodity projects, and avoid irregular diversified operations.

2. Policies and regulations : The main management idea of the government department for the Internet cafe industry is to change the Internet cafe to a healthier, safer and more standardized direction through various policies, regulations and regulatory measures, and to eliminate the negative impact of the Internet cafe industry as much as possible. Therefore, chain operation is the model that the government hopes to introduce in the Internet cafe industry. However, as related policies and regulations need to be improved, Internet cafe franchise companies should always pay attention to changes in policy and make early preparations for the standardized operation of franchise. Will be the leading business model of the Internet cafe industry in the future.

3. Constructing a successful franchise system Internet cafe companies need to build a successful franchise system if they want to carry out franchise business. If the system is not perfect, it will be difficult to ensure the healthy development of the franchise business. Franchise generally consists of seven major systems, namely: franchise recruitment system , Management system, training system, supervision system, support system, VI system, franchise promotion system.

1. The main advantage of franchising is that it can occupy a large market share through large-scale operations and achieve rapid expansion at low cost, thereby forming the economies of scale of intensive operations. However, compared with franchised enterprises in other industries, the biggest problem that chain Internet cafes face is that the scale advantages of franchise chains are difficult to reflect. Not only do they not show the advantages of economies of scale, but they also show the characteristics of diseconomies of scale in many aspects.

2. Unified procurement: The reduction in unit price cannot offset the increase in overall procurement costs (3C certified brand machines, genuine software, designated security monitoring systems, etc.), and the advantages of unified procurement are not obvious.

3. Settlement of suppliers: Franchised Internet cafes are in a disadvantaged position, and it is difficult to obtain a longer account period from upstream suppliers, resulting in greater funding pressure.

4. Goods and services: Since the Internet is an open platform, in addition to the advantages of Internet speed and Internet cafe environment, the franchise chain Internet cafes have not provided consumers with more valuable special services.

5. Operational performance: Franchised Internet cafes that strictly abide by various policies and regulations are generally in a state of small profits or even losses. We need to develop a differentiated business model as soon as possible to get rid of the competition that uses the same business model as traditional Internet cafes.

6. Moderate scale of single store: Due to the limitation of the minimum installed capacity, franchised chain Internet cafes cannot flexibly choose the scale of single store operation based on factors such as the characteristics of the business district, market capacity, competition, and profit and loss analysis.

Discontinuity in overall scale is one of the key issues facing Internet cafe franchise companies.

First, the construction of the concession headquarters. That is to set up a team and set up relevant departments, such as: Authorization Department, Chain Service Department, Training Supervision Department, etc.

Second, formulate concession plans and corresponding concession policies. For example, nationwide regional layout planning, concession authorization methods, authorized target areas, franchise conditions, franchise duration, concession profit model, and concession fees.

Third, we must build a successful franchise system. Internet cafe companies must build a franchise system if they want to develop franchise business. If the system is not complete, it will be difficult to ensure the healthy development of franchise business. Franchise generally consists of seven major systems: franchisee recruitment system, management system, training system, supervision system, support System, VI system, combined promotion system of franchise.

Fourth, establish a model shop. The establishment of a model shop is very necessary. The success of the model shop can verify the success of the business model and also enable a new product to have a laboratory. It is also a training place for franchisees, which can fully reflect the operator's concept.

Fifth, establish internal training mechanisms and formulate extension programs.

The above five are the foundation and prerequisites for Internet cafes to conduct franchise business. Suggestions for franchising Internet cafes: Franchising is not a way for companies to survive in a crisis, nor is it short-term speculation. It is a business model that can effectively achieve business expansion and occupy market share. Its success factors It's the brand, the system and the support. For franchise headquarters, to carry out franchising, we must establish our own brand image, build a successful and reproducible operating system, and a strong support system. From the moment of signing the contract with the franchisee, the support for the franchisee will be continuous throughout the contract period. In this regard, the franchise headquarters must be psychologically prepared in advance. Without the support of the headquarters, franchisees will be difficult to succeed, and may even run counter to the business philosophy and operating model of the headquarters, which will have a negative impact on the franchised brands. Therefore, the headquarters must continue to In order to research and develop new products, continuously update and upgrade the franchise transportation management system, develop new training courses, and do a good job for franchisees, only in this way can we obtain more franchisees and occupy a larger market share.

The owners of Internet cafes can take a lot of effort to dig for income, but how to add value to Internet cafes and make the development of Internet cafes tend to diversify the interests model has always been a key problem for Internet cafe owners to think about. Learn from successful innovation cases and find some effective information and inspiration.

A company in Zaoyang created a new business model of a hotel-style concept Internet cafe. The trial operation of the hotel Internet cafe has won great economic and social benefits. "Don't make Internet cafes look like Internet cafes." Use a hotel management company model to operate a chain of Internet cafes. The leisure station inside the store is similar to a compound popular restaurant. It provides Taiwanese milk tea, crispy fried chicken, juice, coffee, scented tea, etc. Young people who can access the Internet can dine, party, read books or chat.

In the 3D Cyberport area, there is a 3D film and television hall for players to enjoy 3D audiovisual entertainment. In addition, there are mini rooms. The mini rooms are divided into single rooms and standard rooms with air conditioning, beds, computers, and toiletries. With the development of chain business, the advertising space in Internet cafes such as computer screens, chair backs, passage corridors, and wall light boxes will bring considerable income to operators.

Innovation and profitability can be described as the new trend of future development and the development of new contacts for profitability. However, while the owners of Internet cafes maximize the development of market demand, they should combine their own environmental planning and development.