Chapter 420 Acquisition of KFC
Chapter 420 Acquisition of KFC (asking for monthly tickets at the end of the month)
"Okay, then may I ask what kind of investment it is in the United States? Is it investment in real estate?" Zheng Zhijie asked quickly.
Yang Wendong smiled and said, "It's not real estate. To be precise, it's related to food. Zhou Haoran will also go with us. He will be the main person, but it is also inseparable from property management, so you can go with us to take a look."
Zheng Zhijie smiled and said, "Okay, when do we leave?"
"In the next few days." Yang Wendong added: "Once Cathay Pacific's aircraft maintenance and inspection is completed, we will set off together."
On December 12, Yang Wendong, Zhou Haoran, Zheng Zhijie and more than 4 people behind them arrived at Kai Tak Airport. There was a contracted plane that was fully fueled and ready to go.
"Mr. Yang, the plane has been inspected." A foreigner came forward and said to Yang Wendong, but the strange thing was that his English pronunciation was not British, but American.
Yang Wendong smiled and said, "Thank you, Mr. Allen. Let's go up together."
Allen, and another American guy, are top aircraft maintenance engineers hired by Yang Wendong from American airlines at a high price. They stay in Hong Kong for a long time and do nothing but conduct a comprehensive inspection of some leased aircraft before Yang Wendong or his family rents a plane for travel.
Then the two of them would also need to get on the plane with him. No matter where they went, they could stay in a five-star hotel with Yang Wendong at their destination. All other expenses, as long as they were not too outrageous, could also be reimbursed.
The core purpose is to ensure the safety of himself and his family. Although it seems to cost a lot, it is just a drop in the bucket compared to the assets of the Yang family today.
When I buy a plane someday, I will use the same strategy.
"OK, boss." After Alan agreed, he called on his colleagues to get on the plane with him.
After everyone boarded the plane, the two aircraft engineers also went to the rear of the cabin and did not appear in front of Yang Wendong and others. Yang Wendong and others were looking for a place to rest;
There were no direct flights to the United States at that time. To fly from Hong Kong to the United States, you had to stop twice in Tokyo and Alaska to refuel before you could reach Los Angeles. If you were going to New York, you had to stop once more in the middle. So the entire journey was very long. Even if it was a private plane, it would take more than 24 hours. After all, private planes had to be dispatched at various airports and could not leave immediately after filling up with gas.
27 hours later, Yang Wendong and others landed at Los Angeles International Airport. Lin Youqiang, who is based in the United States, brought his men to the airport to greet them.
"Mr. Yang, the hotel is ready." After Lin Youcheng arranged for Yang Wendong and others to get in the car, he also sat in the back seat and said, "Mr. Sanders has also arrived in Los Angeles. I have made an appointment for you for tomorrow, so you can rest for a night."
"Well, OK, thank you very much." Yang Wendong smiled and said, "Although it was a chartered flight, I was really tired after sitting for more than 20 hours."
After all, the chartered plane is not the private plane like in the previous life, which means that the seats can be more comfortable, but they can't even be reclined. So it can only be said that chartering a plane saves some time. But in terms of comfort, it can only be said to be slightly more comfortable than a first-class cabin because there are far fewer people around.
Lin Youqing also said: "Yes, it's a pity that Hong Kong is too far away from the United States, otherwise I could buy a small private plane."
"The current small private aircraft are still too small, not safe, and will be too turbulent when encountering air currents." Yang Wendong shook his head and said, "Let's wait and see when the aircraft industry develops better in the future."
Not to mention now, even an aircraft like the Gulfstream G650 decades later, although it has advanced technology and comfort, is small and will experience severe bumps once it encounters air currents. However, weather forecasting technology was more advanced in that era, and it was definitely much better than it is now.
In this era, the best private jet is still the Boeing 737 series, but this classic aircraft has not yet been released. For the time being, he will not travel around Europe and the United States often, so it is okay to wait. In a few years, when he has more funds and his international business is more frequent, and the 737 is released, he can consider it. Anyway, he can buy it with the profits from the United States, and it can also be used to deduct taxes.
After staying in the hotel for one night, Yang Wendong and Bai Yujie regained a lot of spirits. They went to the balcony of the presidential suite and looked at the Hollywood sign on the hillside in the distance, the sea further away, and the 270° city view around them.
Bai Yujie stretched out her hands and stretched lazily, then said: "Brother Dong, the scenery in Los Angeles is really nice. There are mountains, water, and cities."
"Isn't it the same in Hong Kong?" Yang Wendong asked with a smile.
Bai Yujie said: "It's the same, but the city feels a little worse. There aren't as many mountains, and you can see very far at a glance."
Yang Wendong said with a smile: "Hong Kong is a small city. More than half of its area is still barren land and forests. The residential area is relatively small. Naturally, it cannot compare with cities in mainland countries like this."
"Yeah," Bai Yujie nodded, then looked at the Hollywood sign in the distance and said, "I've heard of Hollywood a long time ago. I want to go and have some fun."
"I want to go and see it too, but let's go together after we finish our business," Yang Wendong said with a smile.
"Okay." Bai Yujie also knew that business was more important, so she asked, "Brother Dong, is this KFC really worth a trip to the United States to discuss the acquisition in person?"
As early as when they were on the plane, Bai Yujie already knew that one of the things Yang Wendong was going to do in the United States was to acquire a company called KFC; he had also read the information about the company, which was not bad, but there should be no need for Yang Wendong to come in person to negotiate.
Yang Wendong said: "This KFC is indeed not very large in scale. If we only look at the scale of the acquisition, it does not need me to come. However, what I value more is their long-standing operating model;
This operating model is a culture summed up by the founder Sanders after long-term operation. I also need to discuss it with him face to face. "
"So you value this person named Sanders more?" Bai Yujie asked. She also knew that in some companies, people are more important than business.
Yang Wendong nodded: "You can say that."
Bai Yujie asked again: "But, this Sanders is almost 70 years old, it's impossible for him to work anymore?"
"He's not too old to sell the company." Yang Wendong said, "There are gains and losses. Even if he doesn't work in the future, he can come and give us some guidance. The most important thing is that the team he has trained should stay with him with peace of mind."
The main purpose of coming to the United States this time is to eat KFC.
As for some large companies of the future, Yang Wendong had recorded some of them that he remembered after traveling through time, probably about dozens of them; but he would most likely not have any opportunities with those related to oil, banking, heavy industry, automobiles, etc., and excluding these and the technology and Internet companies that have not yet been born, the number left is very small.
Therefore, over the years, he would read overseas English newspapers every week, looking for some information that could activate his dusty memories. By chance, he saw information about KFC and learned that its founder was seeking to sell the company, so he asked Lin Youqiang to contact him.
After several months of negotiations, the two sides finally reached an agreement on many issues, and then the boss Yang Wendong came forward.
He is still very interested in KFC as a future brand. It has considerable profits, can create a large number of jobs, and can use this business to invest in high-value real estate in the future at an early stage on a global scale.
"Yeah." Bai Yujie didn't ask any more questions.
At noon, Yang Wendong and Bai Yujie, led by Lin Youqiang, came to a KFC store in Los Angeles. A white-haired old man had been waiting at a table near the window.
"Mr. Yang, this is Harlan Sanders, the founder of KFC." Lin Youqi introduced in fluent English: "Mr. Sanders, this is Mr. Yang, my boss. I have told you before." "Yes, you have told me many times, Mr. Lin." Sanders also stood up and shook hands with Yang Wendong and said: "Hello, Mr. Yang, it's nice to meet you."
"Me too." Yang Wendong shook hands again.
Afterwards, Lin Youqiang, as the middleman, gave a few more brief introductions and everyone sat down.
Sanders said with a smile: "Mr. Yang, we shouldn't have come here to discuss business this time, but this time the deal is about 600 KFCs in the United States, so as a buyer, it's better for you to taste the flavor here. Mr. Lin has also eaten KFC in more than a dozen cities across the United States before."
Lin Youqing also nodded and said, "Yes, I was on a business trip in the United States during this period. Even if it was not for KFC's business, I also went to the local KFC to taste it."
"It's okay, I don't mind. On the contrary, I also like the taste of roast chicken." Yang Wendong said.
After eating too much delicacies from land and sea, Yang Wendong sometimes goes to Hong Kong's food stalls to change his taste. As for hygiene, as long as it is similar, it is fine and there is no need to compare it with big hotels.
There is also a very classic saying in the previous life that KFC in the mainland is the most hygienic shop that most ordinary people can access, almost without exception. Even though there are some shortcomings, the big chain brands are much better than ordinary restaurants in terms of hygiene.
"Haha, okay." Sanders smiled, then waved to a blonde woman, who nodded and left.
Sanders added: "Wait a moment, KFC is a fast food restaurant, and the food is served very quickly."
"Are these chicken steaks, chicken nuggets, and hamburgers prepared in advance?" Yang Wendong asked again.
Sanders nodded and said, "Of course, the kitchen starts working very early and will prepare everything in advance. As for the vegetables, they are shipped from the factory, basically the day before, and are kept in a frozen low-temperature environment throughout the process."
"But I also heard about a food spoilage incident that happened in New York City last year. It even went to court, right?" Yang Wendong asked again.
Since we are going to acquire the company, we must check the information carefully. A small lawsuit was dug up. Although it is a small matter, if we make good use of it, we may be able to save some money for the acquisition or gain some other benefits.
Sanders said: "Yes, that incident was indeed quite serious. Later we investigated the cause and found that the chicken we bought from the factory had problems, but we did not find any problems during our internal inspection."
"This is indeed a loophole. Is there any solution?" Yang Wendong asked again.
Sanders responded: "Later, we changed suppliers and put forward higher requirements for the new suppliers. However, this is beyond our control. When it comes to us, random inspections are actually just a matter of luck."
"So the core is still in the factory?" Yang Wendong asked again: "Does KFC have its own factory?"
Sanders shook his head and said, "No, we can't do it. One reason is that we have financial constraints, and the other is that the factory has a certain scale requirement, and there must be enough stores around it to achieve the goal of low cost.
Although I have 600 KFCs here, I only have a small meat processing factory next to the headquarters. I only hold shares and do not have the ability to acquire it. "
"So that's how it is." Yang Wendong nodded and said, "For a chain store like this that is not large in scale, it is indeed difficult to control the front end by itself."
Just like a factory, only when the scale is large enough can it develop in the direction of supply chain. Otherwise, if the quantity is small, the cost will be higher if you do it yourself, which will not be cost-effective.
However, it is extremely difficult to grow a business from small to large without the advantage of raw materials, and only less than one in a hundred can succeed.
Sanders added: "It's a pity that I'm old. If I were still young, I might try harder."
"It would be a wonderful life to be able to create a company like KFC." Yang Wendong smiled and said, "Then let's discuss cooperation?"
At this time, the waiter brought a bunch of food, and Sanders said again: "Okay, let's discuss it while we eat."
Yang Wendong nodded and asked, "Mr. Sanders, I heard that you have other requirements besides funding?"
Sanders nodded and said, “Yes, KFC will be sold, but I hope it can develop normally until it becomes one of the largest restaurant chains in the United States;
This was my goal back then, but due to my age and lack of funding, there are only 600 of them in the U.S. today, far behind the others.”
"That's no problem. My goal is to develop KFC to a global level." Yang Wendong also said: "If it's not like this, why would I come all the way to the United States?"
"Okay, but I want it to be reflected in the text." Sanders added: "After the acquisition, you will have to invest no less than $50 per year for expansion."
"50? Sure." Yang Wendong finally nodded and agreed.
Although it was not a good idea to leave these things in writing, he also knew that the old man Sanders cared very much about the company he founded. He even wanted to sell the company because he knew that KFC could not develop in his hands.
Many entrepreneurs, even after selling their company, are very concerned about its future.
Sanders added, "Okay, I won't be involved in your management in the future, but in terms of hygiene, it cannot be lower than the current requirements."
"Of course I attach great importance to hygiene, but are there any standards for this?" Yang Wendong asked.
If you want to run a restaurant business, you naturally care about hygiene. The bigger the business, the more so. Because while chain stores increase their fame, one downside is that if there is a problem with one store and it is exposed by the media, it will affect other branches.
Sanders smiled and said, "Of course there are standards. I have written them down. We will go to the kitchen later and you will know."
PS: Please give me a monthly ticket at the end of the month
(End of this chapter)