Positive Reviews: A High – end Burger Brand Transforms into Baking, Flexibly Adapting to Open Up New Consumption Scenarios
In the current era dominated by rational consumption, the “descent to the masses” of high – end catering brands is not a compromise but an active survival breakthrough. Blue Frog’s transformation from “burgers starting at 78 yuan” to “baked goods starting at 12 yuan” is essentially a sharp response to the changing market demand, and its positive significance is mainly reflected in three dimensions.
First of all, the transformation effectively covers more consumption scenarios and improves the operating efficiency of stores. The consumption peaks of traditional high – end burger restaurants are concentrated in lunch and dinner time. During non – peak hours (such as morning, afternoon tea, and midnight snacks), the seats and manpower are often idle. By introducing baked goods and desserts, Blue Frog extends the consumption scenarios from “full meals” to “breakfast”, “afternoon tea”, “light meals”, etc. For example, its “drink + baked goods” afternoon tea set (from 14:00 to 17:00) and the 83 – yuan brunch set directly fill the gaps during non – peak hours. This “time – filling” strategy not only improves the store’s space utilization efficiency but also reduces the pressure of sharing fixed costs (such as rent and manpower). Data shows that the per – capita consumption has dropped from 150 yuan to 120 yuan, but the increase in passenger flow and table turnover rate may offset the impact of the decline in the unit price per customer, and the overall revenue may remain stable or even increase.
Secondly, affordable baked goods serve as a “connector” between the brand and young consumers, expanding the customer base. The core customer group of high – end burgers is the middle – and high – income group. However, under the trend of rational consumption, the consumption frequency of this group may decline. Meanwhile, price – sensitive customer groups such as young white – collar workers and students are kept out because of the high unit price of burgers (starting at 78 yuan). Blue Frog’s baked goods are priced between 12 and 38 yuan, overlapping with the mainstream price range of professional bakeries (such as Origami Bakehouse and Paris Baguette). Relying on the endorsement of its “high – end Western cuisine brand”, it forms a differentiated label of “affordable + high – quality”. For example, products like oatmeal country bread and Sichuan pepper French bread retain Blue Frog’s Western cuisine genes (such as the baking process of baguettes) and attract new customers with their affordable prices. These new customers may further consume burgers or steaks after trying the baked goods, forming a virtuous cycle of “low – threshold customer attraction – high – unit – price conversion”.
Finally, the expansion of the product line injects “freshness” into the brand and alleviates the growth bottleneck. In the past two years, the number of Blue Frog stores has stagnated at around 80, falling into the dilemma of “opening one and closing one”. The core problem lies in the weak growth of the single – store model – high – end burgers relying on the full – meal scenario are difficult to break through the limitations of customer groups and time periods. The strategy of “more than just burgers” (adding light meals, wide noodles, whole – grain rice, desserts, etc.) is essentially building a “multi – category matrix” to retain old customers through rich choices. For example, the light – meal series (bancroft fish salad, Mexican shrimp spring rolls) caters to the demand for healthy diets, and wide noodles and whole – grain rice cover the customer group that “doesn’t eat burgers”. This “all – time, all – customer – group” product layout provides a new fulcrum for the growth of Blue Frog’s single – store revenue and lays a foundation for future large – scale expansion (such as regional replication).
Negative Reviews: Cross – border Baking Harbors Hidden Risks, and the Brand Positioning and Operational Capability Face Double Tests
Although Blue Frog’s transformation is reasonable, it is not “foolproof”. The cross – border move from high – end burgers to affordable baked goods may lead to problems such as blurred brand positioning, increased operational complexity, and dilution of core advantages. The following potential risks need to be vigilant.
Firstly, the conflict in brand positioning may weaken the original high – end image. The brand assets accumulated by Blue Frog over the past 23 years are mainly based on the perception of “American high – end burgers” – from the burger pricing starting at 78 yuan, the ritual of grilled steaks, to the delicate store scenes (such as the transparent baking window in the Guomao store), consumers’ expectation of it is “quality full meals”. The affordability of baked goods (starting at 12 yuan) naturally contradicts the “high – end” label. For example, when consumers buy a 12 – yuan cinnamon bread at Blue Frog, they may question whether its “high – end” reputation is well – deserved. On the contrary, if the baked goods emphasize “high – end ingredients” (such as using imported flour), the pricing may lose competitiveness. This contradiction of “wanting to increase sales volume while maintaining the brand’s tone” may cause the brand to “fall between two stools” in consumers’ minds: old customers (the original burger – consuming group) may be lost because the brand “becomes low – end”, and new customers (the baked – goods – consuming group) may give up repeat purchases because the price or quality fails to meet their expectations.
Secondly, the baking market is highly competitive, and Blue Frog’s differentiated advantages are not obvious. The scale of the Chinese baking market has exceeded 300 billion yuan. The industry concentration is low, but the competition is fierce: there are not only national chain brands such as Origami Bakehouse and 85°C but also local internet – famous bakeries (such as Brieek in Shanghai and Bake by Yolanda in Beijing). Even coffee brands like Luckin and Starbucks strengthen their store scenes through baked goods. Blue Frog’s baked goods (such as oatmeal country bread and cranberry European bread) are highly homogeneous with mainstream products and lack “memorable features”. For example, desserts like strawberry soufflé and pistachio Basque cheesecake are common in professional bakeries or tea shops (such as Heytea), making it difficult to form unique selling points. If Blue Frog fails to establish differences in ingredients (such as organic flour), processes (such as traditional European bread fermentation technology), or flavors (such as innovative baking integrating Western cuisine elements), it is likely to be involved in a “price war”, and the profit margin will be compressed.
Thirdly, multi – category operation poses higher requirements for the supply chain and management ability. The supply chain of high – end burgers mainly focuses on beef, steaks, and wines, while baked goods require a stable supply of ingredients such as flour, cream, and fruits, and have higher requirements for freshness (such as soufflé needs to be made on the spot) and shelf life (such as baguettes need to be sold on the same day). If Blue Frog builds its own baking kitchen, it needs to invest in equipment, manpower, and warehousing costs. If it outsources, the product consistency may be affected. In addition, the store needs to manage the meal – preparation processes of multiple categories such as burgers, steaks, baked goods, and beverages simultaneously, which poses great challenges to the kitchen layout, staff training, and inventory management (such as avoiding raw material waste). For example, although Blue Frog’s “Buy one get one free on Monday for burgers” activity can attract customers, if the baked goods receive negative reviews due to insufficient stock or unstable quality, it may damage the overall reputation.
Fourthly, over – reliance on discounts may damage long – term profitability. Blue Frog reduces the per – capita consumption (from 150 yuan to 120 yuan) through activities such as “buy one get one free” and “set – meal discounts”, which can increase the passenger flow in the short term. However, in the long run, it may cultivate consumers’ habit of “waiting for discounts”, resulting in a decline in the sales volume of regular – priced products. For example, if consumers form the psychology of “not buying on non – promotion days” for the steak set that is originally priced at 288 yuan and promoted at 198 yuan on Wednesdays, the profit margin of the steak (assuming the cost is 100 yuan, the original profit is 188 yuan, and the profit after promotion is 98 yuan) will be greatly compressed. In addition, the gross profit margin of baked goods is usually lower than that of burgers (the gross profit margin of burgers is about 60% – 70%, and that of baked goods is about 50% – 60%). If the sales proportion of baked goods is too high, it may pull down the overall profit rate.
Advice for Entrepreneurs: Transformation Should Adhere to the “Core”, and Expansion Should Follow “Logic”
Blue Frog’s transformation provides a reference for high – end catering brands to respond to consumption changes. However, entrepreneurs need to avoid “transforming for the sake of transformation” and should formulate strategies based on the following principles:
Clarify the brand’s core value and avoid dilution of the brand positioning: The key to the transformation of high – end brands is to “uphold the essence and be innovative” – “upholding the essence” means maintaining the quality and tone of the core category (such as Blue Frog’s burgers still need to maintain the high – end positioning starting at 78 yuan). “Being innovative” means attracting new customers through new categories, but there should be a clear distinction between the new and old categories. For example, Blue Frog can establish the bakery as an independent sub – brand (such as “Blue Frog Bakery”), distinguish it from the main brand in terms of decoration and menu design to avoid consumer confusion. At the same time, integrate the characteristics of the main brand into the baked goods (such as using the grilled beef of burgers to make beef ciabatta) to form “brand linkage” rather than “brand dilution”.
Expand categories based on “scenario complementarity” rather than simple addition: New categories should serve the goal of “covering more consumption scenarios” rather than simply increasing the number of SKUs. For example, Blue Frog’s baked goods and desserts can be mainly targeted at the afternoon – tea scenario (from 14:00 to 17:00) to complement the full – meal scenario. The light – meal series can meet the health needs during lunch time and form a “meat – vegetable combination” with burgers. At the same time, it is necessary to evaluate the effectiveness of categories through data monitoring (such as the sales proportion of each time period and the repeat – purchase rate of new products) and eliminate inefficient products in a timely manner.
Build differentiated advantages and avoid being involved in homogeneous competition: In the baking market, entrepreneurs need to find “irreplaceable” selling points. Blue Frog can rely on its Western cuisine genes to develop “Western – flavored baked goods” (such as black truffle Parmesan baguettes, smoked salmon croissants), or emphasize the freshness of “baked on the spot” (such as setting up an open – style baking kitchen for consumers to watch the production process). In addition, it can combine the membership system (such as giving burger discount coupons for purchasing baked goods) to convert the new customer flow into consumption power for the core category.
Balance short – term promotions and long – term profitability and optimize the single – store model: Promotion activities should aim at “increasing the overall profit” rather than simply reducing prices. For example, the “Buy one get one free on Monday for burgers” activity of Blue Frog can set a threshold of “needing to purchase an additional beverage or baked good” to increase the unit price per customer. The “Wednesday steak set” can be limited in quantity (such as 10 sets per day) to avoid excessive profit consumption. At the same time, it is necessary to optimize the supply chain (such as cooperating with local baking raw material suppliers to reduce costs) and improve operational efficiency (such as training employees to quickly make multi – category products) to ensure that the gross profit margin of the new business is not lower than the original level.
Pay attention to consumer feedback and adjust strategies dynamically: During the transformation process, it is necessary to collect consumers’ evaluations of new categories (such as “whether the baked goods are fresh” and “whether the price is reasonable”) through online reviews, membership questionnaires, etc., and adjust the product taste, pricing, or marketing methods in a timely manner. For example, if consumers feedback that “the soufflé is too sweet”, the sugar formula can be adjusted. If the sales of the “12 – yuan European bread” are poor, a “Buy two get one free” promotion or a combo set with coffee can be launched.
In summary, Blue Frog’s transformation is an active attempt by high – end catering brands in the era of rational consumption. Whether it can succeed depends on whether it can find a balance between “expanding new customers” and “maintaining old customers”, “attracting customers with affordable prices” and “maintaining high – end tone”, and “multi – category operation” and “core advantages”. For entrepreneurs, the essence of transformation is to “adapt to changes”, but “adaptation” does not mean “blind following” – only by adhering to the brand’s core value and making decisions driven by logic and data can they walk more steadily and further in the volatile market.
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