Peninsula Landlord

Chapter 510

"Uh~~, let Dongxun explain it to you."

Seeing that Kim Jong Kook was really annoyed, Huang Xu directly threw the question to Ha Dongxun and asked him to explain the reason to Kim Jong Kook.

And Ha Dongxun had no intention of delaying. He turned his head and explained to Kim Jong Kook with great interest.
"Brother Zhong Guo, you also know that Xiaoxu's company's main business is restaurant chain franchising."

"For restaurant franchise companies, there are a lot of trivial tasks to be handled in the early stages, which is why there were so many employees here when we came last time."

"Now that his franchise stores are all up and running, the workload is not that heavy. It would be inappropriate to keep so many people here."

After listening to Ha Dong-hoon's explanation, Kim Jong-kook instantly understood the whole story.

He is not a fool, it's just that he has never managed a company, so he is a little confused.

However, when he thought of those fired employees, he couldn't help but feel a little bit reluctant.

"Xiao Xu, isn't this a bit too cruel for them?"

"They worked so hard for so long, and they were fired right after they finished building the store. Isn't this a bit..."

"Brother Zhongguo, do you think I'm a little inhumane, or a little too much?"

Huang Xu seemed a little surprised when he saw the reluctant expression on Kim Jong Kook's face.

He didn't expect that Kim Jong Kook would have such an idea, or be so naive.

Logically speaking, as a veteran who has been in the entertainment industry for decades, he should be accustomed to such things.

After all, things in the entertainment industry and business world are actually the same.

In fact, the entertainment industry, as a profit-making arena, is more realistic and cruel than the business world.

However, Huang Xu then thought of Kim Jong Kook's most famous labels, besides triple crown winner and muscular man, he is loyal.

Thinking of this, he also understood Kim Jong Kook's thoughts.

It’s just that understanding is understanding, and reality is reality, and we can’t generalize.

However, thinking that they would need to continue to cooperate in the future, he was afraid that this incident would leave too bad an impression, so after a little thought, he explained to Kim Jong Kook.

"Brother Zhong Guo, although what I did was a bit like killing the donkey after it has served its purpose, there is nothing I can do about it. Reality is so cruel."

"If I don't lay them off, the company won't survive."

"Why?"

Although we already know that these people are no longer useful to the company, or in other words, the company no longer has enough workload to assign to these people.

But Kim Jong Kook thought that since the company's franchise stores were doing so well, it shouldn't be difficult to support them.

Why did Huang Xu say that the company would not survive if they were not laid off?
Looking at Kim Jong Kook, who didn't understand his difficulties and didn't know the seriousness of the matter, Huang Xu shook his head helplessly.

"Brother Zhong Guo, do you know how much it costs every month to feed these people?"

“There are nearly a hundred employees here, right?”

“Are there so many people?”

When Kim Jong Kook heard Huang Xu mention the number of people, he suddenly understood what Huang Xu had just said.

At this time, Ha Dongxun next to him couldn't help it and said to Kim Jong Kook.

“Jongguk, there must be so many people, right?”

"Think about it, his company has so many franchise stores. How could it be built so quickly if there weren't so many people?"

"In the early stage, Xiaoxu and his team needed so many people to work together in order to expand the market and quickly set up stores."

"As long as the market picks up and there are enough franchisees paying, then the money can be earned back."

“But now the market has reached such a point that without new franchisees, these people can no longer be supported.”

"Yes, the salaries of these people already account for the vast majority of the company's revenue."

"I want to support them, but I just can't do it~!"

Listening to He Dongxun's explanation, Huang Xu also sighed twice, his face full of regret.

Kim Jong Kook felt a little embarrassed listening to what the two were saying, especially Huang Xu's face full of sighs.

He just considered whether Huang Xu's actions might be too cruel to those people, and did not consider the pressure Huang Xu would bear as the boss of the company.

It’s scary to think about the wages of nearly a hundred useless people.

It is no wonder that Huang Xu said that if the company did not lay off employees, his company might be dragged down by these people.

Thinking of this, he picked up the teacup and drank tea instead of wine to apologize to Huang Xu.

"I'm sorry, Xiaoxu. I didn't think that much and I misunderstood you."

"It's okay. The main reason is that Jong Kook has never been a boss and has never thought about these issues."

Huang Xu clinked tea with Kim Jong Kook while smiling, then looked at him with a smirk and teased him.

"But I believe that after a while, Brother Zhongguo will not have any problems in this regard without our reminders."

"And who knows, maybe you can lay off people faster than I do?"

"I"

Hearing Huang Xu's teasing, Kim Jong Kook's first reaction was to retort and say that he was a man of loyalty and would not lay off people easily.

But he opened his mouth and finally closed it obediently.

After all, he only had a vague understanding of business matters. Seeing Huang Xu so confident, he was worried that he would be embarrass himself.

When Huang Xu and Ha Dongxun saw Kim Jong Kook being humiliated, they looked at each other and then started laughing.

It's a happy thing that Kim Jong Kook suffered a setback.

But since we are talking about this topic, Huang Xu will not beat around the bush and get to the point of today.

The expansion of the music tavern owned by Ha Dongxun and his two companions, as well as related matters regarding franchising.

Talking about this incident, Huang Xu was also a little sad and felt very surprised.

Originally, he didn't take this business seriously, but he was approached by the two of them, so he helped out with some advice.

However, the two insisted on giving him shares, and he couldn't refuse, so he had to accept it.

Anyway, for him, it doesn't matter how much money he can make. It's good to have a place to drink and eat, and to entertain friends when they come over.

However, what he didn't expect was that after the music pub was renovated and reopened, business would be so booming.

Now, not only people who work and live nearby come here to consume, but even many young people from other districts come here from far away to play and watch performances.

It can be said that except for the first half month or so, the rest of the time was basically crowded, and people lined up as soon as the door opened.

And most importantly, the pub's profits are considerable.

Yesterday, when they were chatting with Ji Seok Jin, they only mentioned that their single-table consumption was relatively high, and did not mention their profit problem. In fact, their profit, especially the net profit, is the most terrifying, reaching an astonishing 40%.

The gross profit can also reach more than 60 percent.

For an average restaurant, a gross profit of more than 40% and a net profit of more than 10% are already quite good figures.

The sauerkraut fish and spicy hot pot that Huang Xu had previously made only had a gross profit of around 40%, and a net profit of just over 10%.

Just this has made those franchised stores earn a lot of money, and those who haven't joined are scrambling to get in.

You can imagine how shocking the pub's statistics are.

As for why they have such high profits, it is mainly because more than half of their turnover comes from tips from customers to the performing artists.

The pub and the artist will split the tips in a 50-50 split.

For this part of the money, they have almost no other expenses except providing the performance venue and the stage.

If the depreciation of the equipment is deducted, it can almost be considered a cost-free deal.

That’s why the net profit is so high.

Otherwise, no matter how high their consumption is or how many high-profit products they have, they cannot reach this figure.

The purpose of their meeting today is to determine whether to open up to franchising, and if so, what kind of model to use.

After the topic started, Huang Xu was the first to ask questions to the two of them.

"Jongguk, Dongxun, have you two thought it through?"

"Should we open it up to franchisees?"

"Or, according to your original idea, we raise money ourselves to open a branch?"

"Xiao Xu, after we separated yesterday, I discussed it with Brother Zhong Guo, and finally decided to listen to you."

"When it comes to doing business, we two are just laymen, so it's better for us to listen to professionals like you."

When Ha Dong-hoon heard Huang Xu's question, he first looked at Kim Jong-kook next to him, and then told Huang Xu their decision.

In fact, according to their original idea, they had no intention of opening up for franchising.

In other words, there is no idea of ​​opening up for franchising.

After so many years, there are still so many artists in Korea who have side jobs, but they basically run it on their own or find a few partners to run it together.

If the business is good and you have money, you can open a branch.

At most, they will only look for partners to open a branch when they are short of funds or when a friend comes to them.

I have basically never heard of anyone running a franchise chain.

Of course, one of the main reasons is that people here don’t quite understand this, or those who do understand look down on these stars.

After all, the status of Korean stars is far different from that of Chinese stars.

Except for those who are particularly powerful and at the top of the entertainment industry, no one will be taken seriously by these people.

However, the situation is a little different now because they know Huang Xu.

The two of them witnessed with their own eyes how Huang Xu's chain franchise grew from a few small stores in the beginning to a behemoth with four or five hundred chain stores today.

It can be said that those who witnessed the whole process were simply stunned when they looked at Huang Xu.

They never thought that business could be done this way.

Although it is not clear how much money Huang Xu earned from this, given the scale, the number would not be too small.

Therefore, the two of them were quite impressed with Huang Xu's business acumen.

So after meeting Huang Xu yesterday, the two discussed that if things didn't work out, they would give the decision-making power to Huang Xu and let him lead them in development.

Anyway, Huang Xu also has shares in the pub, so I believe he won’t harm the two of them.

Huang Xu was not surprised when he heard what He Dongxun said.

After all, his past achievements are there. Unless he stumbles one day and his career suffers a huge setback, their trust in him will not change.

Not only do they need to listen to their own suggestions in daily management, but when faced with any major decisions, they will most likely execute them according to their own opinions.

There is no way, this is the deterrent effect brought by his past achievements.

Therefore, Huang Xu had no intention of delaying. After thinking for a while and organizing his words, he began to tell the two of them.

"If it were up to me, I would definitely choose to open up for franchising."

"After all, the advantages of the franchise business model are innumerable."

"It reduces financial pressure, reduces investment risks, allows for rapid expansion, and allows for a large amount of franchise fees to be collected in a short period of time."

"Of course, this model is not without its drawbacks."

"First of all, the control over franchise stores will be greatly weakened, and the consistency and standards of the brand will be difficult to control."

"Secondly."

Huang Xu spent a few minutes briefly explaining to the two the pros and cons of joining this business model, and then looked at the two with a serious expression.

"Also, this model of joining has a very serious drawback. If it is not handled properly, then there will be very serious sequelae for you."

"what?"

The two people were listening attentively, thinking about what choice would be most beneficial to themselves, when they suddenly saw Huang Xu's serious expression and were shocked.

Looking at the two people's reactions, Huang Xu did not keep the question in suspense this time, but directly told the answer.

"That is, if the franchise store's reputation is too bad, it may affect your reputation and reputation, and even affect your career as an artist."

"This"

Hearing what Huang Xu said, they were stunned and just stood there in a daze.

No matter how much money the pub makes now, in the minds of these two people, their main job is still to be artists and stars.

Now Huang Xu said that if the pub’s reputation was too bad, it might damage their reputation, which made them want to back off.

Just thinking about the wealth that was within their reach, the two were reluctant to give it up.

So the two of them couldn't help but get into a dilemma.

Huang Xu looked at the two people who were struggling, and had no intention of disturbing them. Instead, he drank tea quietly and waited for their choice.

At the same time, Kim Jong Kook and the other man were very confused by Huang Xu's words and kept thinking about the pros and cons in their heads.

On the other side, Choi Jin-ri, who was driving Goo Hara to the company, had a trace of confusion on her face after hearing Goo Hara's words, and then she quickly looked at her friend in the passenger seat with disbelief.

"Hola, what did you just say?"

(End of this chapter)