Small and medium-sized restaurant chain farmers: catch the B end for distribution of raw materials, A redwood $8 million series A financing

(text/plain HongGuang)

is a for small and medium-sized restaurant chain agriculture provides the whole category of raw materials suppliers, also is the centralized purchasing platform for the small and medium-sized restaurant. Farmers have learned, chain founded by senior people in the Internet and chain food and beverage, project officially launched in June 20, 2014, the current service hundreds of restaurants, average daily distribution ingredients hundreds of thousands of yuan. Chain farmers founder liu to cloud network validation, hunting company recently completed sequoia capital of $8 million. A round of funding.

founder liu had entrepreneurial snacks electricity sago network, and the chain of agriculture is his third entrepreneurial experience. Farmers, said liu convective cloud network chain aims to “throttle” for small and medium-sized catering businesses, for end users supply one-stop, full category B, more low-end ingredients procurement services.

in fact, for the majority of small and medium-sized restaurant, their bargaining power is weak, and the core value of the chain of agriculture is to have stronger bargaining power to users bring lower prices, so as to simplify the purchasing process, reduce procurement staff, save the restaurant’s operating costs.

specific view, chain farmers the procurement requirements of small and medium-sized catering businesses, to the secondary market for large quantities of purchase, so raw material is about 20% cheaper price can be provided to small and medium-sized businesses. However, small and medium-sized restaurant chain farmers purchasing channels and is roughly same, from the vegetable to the restaurant have generally four link, farmers and small and medium-sized restaurant chain at this stage is from the secondary market purchase, but you can chain farmers by a large number of procurement to reduce costs. Liu said, the businessman usually counted order in the evening, when, after the confirmation of order information chain of agriculture, replenish onr’s stock in the morning, distribution during the day, a day delivery timing designated the ingredients.

for chain farmers, due to the advantages of B side orders controllability is strong, so the distribution of pressure is not as busy as catering group buying, take-away C2C business. Distribution of chain B end users have position, the stability of the category, which can realize the timing point distribution, compared to the delivery and distribution of randomness, chain of agriculture has better controllability. At the same time, the chain of agriculture customised distribution pattern, also greatly reduced the inventory pressure.

apparently, B2B food raw material distribution industry had come to the fore. Such as easy chefs, restaurants and small peasant women, entrepreneurs from differentiated business model, and disclosure of these start-ups are financing, domestic investment and entrepreneurial begin to pay close attention to food distribution industry. Chain of agriculture pattern have strong demand, the complex rate is high enough, some merchants high viscosity characteristics, but its strong local characteristics, in other regions across the country for business expansion, it is difficult to establish a sorting center, the national market opening of explosive is not easy.

in the end, liu convective cloud network, said after completion of the financing, capital will focus on market development and the back-end for the construction of the supply chain. On the supply chain, demand chain farmers plan to accumulate to a certain extent, vegetable fields directly to purchase, bypass the secondary market, further optimize ingredients procurement chain.