Why are many foodservice industries more proactive in building new brands than they were a few years ago? Catering companies that focus on set menus, dumplings, and mixed dishes have introduced new brands from a variety of different industries in recent years. For example, Wangpin has 22 brands in Taiwan as of April 2022, and 50% of 11 brands were established after 2018. In the previous company, I had a discussion with foreign colleagues about the significance of the new brand.
Why were these discussions taking place then? Because it is difficult for new brands to make profits in the early stage, there will be discussions on whether banner design to do a good job of existing brands first, whether existing brands may still have room for growth, and whether to work harder on existing brands. I sorted out the arguments that emerged during the discussion at that time, and provided reference for those who are faced with the choice of "centralizing management resources" or "diversifying management resources". The basic logic of why to do a new business Yup? Well done, why do you want to start a new business? In fact, any business will encounter four cycles of adjustment, growth, maturity, and decline.
Therefore, when old businesses reach a certain stage, they all have the opportunity to enter the recession cycle, but don’t worry, after entering the recession period, after adjusting the brand positioning, you can still have the opportunity to enter a new business cycle.