Real Kung Fu farce: Three people start a business break CAI standards as the winner of the defeat

If they are at the beginning of a divergence of goals, consider a break-up plan, and what is the cause of today's farce?

Looking south from the 16-storey window of the Goldman Sachs Tower, you can see the famous Tianhe City shopping center, which is the central area of Guangzhou, bustling and noisy, the headquarters of the real Kung Fu restaurant chain is here. Since his ex-wife Panming and her brother Pan Yuhai, Pan, August 12, the company's main gate has been 4 security guards in turn, the stranger came in first to cross-examine, the company employees have to re-enable the employee card. This is the center of the storm, and everyone is frightened.

In the aftermath of the infighting, Chua's office has been empty, and the occasional entry is due to the company's lack of meeting rooms. 38-Year-old CAI standards know that the day will come sooner or later, the dispute is expected, Pan Yuhai at all costs to beg for what he thinks belongs to his own things, in the center of the Storm Cai chose temporarily disappear. He chose to remain silent about the media.

Pan Yuhai now can't predict what to do next, he doesn't know what he should want: money or management? He doesn't seem to miss the company that once poured all his heart and soul into it. By the end of last year, Pan Yuhai had completely lost the authority to manage the company he had created, and the real Kung fu now does not belong to him, even if he has a 47% per cent stake in the hands of Cai.

A shareholder with a 47% stake in the company should be able to withdraw from the company.

Three entrepreneurial stories

Many years later, when someone asked about Cai's entrepreneurial experience, he was always telling the story about the entrepreneurial inspiration he had found in the McDonald's myth, and he decided to make his dream of a fast-food chain 1994 years later. In fact, his entrepreneurial journey is far more complicated than this glamorous story. According to the "entrepreneur" visit survey: After dropping out of school in May 1989, Cai reached the standard of a motorcycle factory under his father to study and repair, and received a monthly salary of 300 yuan; two years later, do not like only to do the work of Tsai Cai standards left with his wife Panming to start a hardware store; In 1993, the dismal hardware store closed Cai Standard was forced to take refuge in the Panming brother Pan Yuhai in 1990 founded 168 Dessert House; April 1994, in Panming, Pan Yuhai, after total, Cai Standard and Pan Yuhai their respective contributions 40,000 Yuan 168 dessert house renamed 168 steamed restaurant, shops open in Dongguan long An side of the village 107 National Highway, To this point, CAI standards of entrepreneurship is a bit of a prospect.

One with Pan, Cai Two people who have known for many years to "entrepreneurial" introduction, in the founder of the 168 steamed restaurant before Pan Yuhai very early and CAI standards, because sister Panming from childhood and CAI standards are students, and later upgraded to become lovers. Pan is a Hong Kong chef family, Pan Yuhai is a successor to the chef's home, is a natural food fan. He has a strong learning ability and likes to learn from the cooks. 168 steamed Restaurant At the beginning of the establishment, Pan Yuhai often to Dongguan every star hotel to try cooking, back after their own debugging imitation can make a similar food. The same taste, a few times the price of a large number of customers to attract. Although the restaurant is open 11 o'clock every day, someone will come knocking at the door at nine in the morning. Zhou, who later became a member of the Real Kung Fu Board, recalls that in 1994, when he jumped from McDonald's to 168 steamed restaurant, the 70-square-meter, 7-employee store could reach more than 300,000 yuan a month, and the business was ridiculously good.

Restaurant business gradually booming, 168 steamed restaurant began to have the taste of the company, the division of labor between the three became clear: CAI standards for the overall brand planning, Pan Yuhai responsible for product quality management, Panming responsible for the restaurant financial records. The structure is balanced against each other, and few quarrels arise. The situation has changed subtly in the 1997. This year CAI standards and Pan Yuhai United South China University of Technology professor, developed later to conquer the Chinese fast-food standardization of the "computer-controlled steam cabinet." The technology, which has delighted Chua's standards, has allowed 168 steamed restaurants to completely farewell the workshop-style mode of operation, and embarked on a standardized chain of expansion, which has given Cai a new chance.

In "168 times", because cannot scale production, the dining room expands only 3, the overall dominant right basically grasps in Pan Yuhai hand. It was a dish that decided all the time, Pan Yuhai personally developed and mastered the recipe of the dishes, with a planning talent CAI standards difficult to display their talent. "Computer-controlled steam cabinet" after the introduction of technology, the pan sea relatively relaxed some, he no longer need to monitor the quality of vegetables, huge and new machines can replace him to identify everything. And for CAI Standards, the standardization of the solution to the problem he jumped from the backstage front, he began to believe that he has the ability to change the entire industry.

Renaming triggers first conflict

At the end of 1997, CAI Standards and Pan Yuhai consultation after the registration of the establishment of a two-seed catering company. In the initial equity allocation, Pan Yuhai accounted for 50%, CAI standards and Panming each accounted for 25%. The logo of the two seeds is a pattern of a small seed, designed from the yin-yang symbol in the book of I Ching. Cai's interpretation of this is that "everything has two sides, to complement each other, we have to think from different angles." It's kind of like two people's entrepreneurial vows, forgiving each other and moving forward together.

2004, CAI Standard capital of 4 million yuan, please maozhong to the double seed to carry out a full range of market research and brand planning, enterprise upgrades. Maozhong gives the plan is: to give up "double seed", to enable the "Real Kung Fu" brand new, in order to embody the "conquer self, beyond the limits of" the Chinese traditional cultural connotations.

"Real Kung Fu" is a typical proposal with CAI standard-type scheme: smart, publicity, strong aggressiveness. But many on the board are still opposed to the option, and Pan Yuhai is one of the strongest opponents. This is the first time the two people on the table on the fierce quarrel, no one will forget the situation. A party to the "entrepreneur" recalls that time almost every day to open the Board of directors, and every time and fight, as two representatives, Cai Pan Two people each bear great pressure, Pan Yuhai even several times tears. Cai Standard No Pan Yuhai so excited, his feelings than pan buried deeper, not a pry and move.

CAI standards that "double seed" can not open a first-tier city market, even if the market response is good, due to the operating costs of large cities and the brand's own restrictions, profit margins are very low, expansion is not a long-term solution. Pan Yuhai think "double seed" after years of operation, has accumulated a certain reputation and influence, especially in southern China has a deep customer base, brand value at least tens of millions of, if the transition, the risk is great.

The result of this quarrel ended with the success of CAI standards, but also established a real Kungfu team with CAI as its core. Facts have proved that this is a successful planning, CAI standards for the program to help the company reshuffle success, profitability increased year by step, real Kung fu immediately enter the high-speed development channel.

The rift of the savings

Within the company, CAI Standards are recognized as intelligent and far-sighted.

A senior employee who has worked within the company for more than 7 years has revealed to "the entrepreneur" that as early as the transition, CAI and Pan discussed the issue of corporate governance. At that time, True Kung fu is still a complete family business, Cai Pan Two people accounted for 50% (Cai plus his wife held 25%), no one has the final decision-making power of the company. In order to improve the management efficiency of the company, in 2003 Cai reached the Pan Yuhai of the company as president (previously by Pan Yuhai as President), and the board of directors promised a 5-year transition. Pan Yuhai know CAI Standard planning ability, for the overall interests, Pan Yuhai back behind the scenes, responsible for the western Guangdong, North China area of pioneering work. CAI standards so logically became the spokesperson of the real Kungfu, successively appeared in the major media.

In future media reports, Cai's standards were portrayed as a legendary hero. The pioneer of the Chinese fast-food chain was quick and passionate on paper, but privately Cai was silent, and even on the board he rarely commented, and few people in the house knew what he was thinking. A lot of times, Pan felt that he did not know this together to fight friends, can not control the development of the company.

September 2006, Cai Standard and Panming 15 feelings announced the rupture, the two people agreed to divorce. In order to gain custody of their children, Panming gave up his own 25% per cent stake. A true kung Fu core personage to "the entrepreneur" discloses, this lets originally waver the Pan Yuhai emotion to cast the shadow again, and the equity balance opposition, Pan Yuhai more and more feels oneself in the company strategy difficult to exert the fist, he more becomes a front line executor. He is basically responsible for the company's pioneering work in various regions, 2004 is Dongguan and Western Guangdong, 2005 to 2007 is North China, east China.

After divorce with Panming, Cai agreed that this should be a good opportunity to go to the family, he decided to introduce VCs to solve the problem. The Xu of today's capital has been observed for nearly two years since 2005, when the two men met for 3 hours for the first time. Xu's biggest question comes from two people, 50 to 50 of equal shares, she has many years of experience to tell Cai, this is not a long-term solution, the situation needs to be improved as soon as possible. This is just said in Cai's heart disease, only true kung fu in the development process did not borrow from the bank, has been relying on its own capital development, not lack of money, so Cai did not accept the Xu proposal.

At the beginning of 2007, Chua's standards began to prepare for the introduction of VCs. He began to implement the "lean Project" of internal management in real Kung Fu, so that the company changed from "Rational law" to "legal situation" standardized management. October 2007, Real Kung Fu introduced today's capital and Zhongshan linkage two wind venture investment of about 300 million yuan. The overall management structure of the company then changed dramatically: In terms of equity, CAI Standards and Pan Yuhai both accounted for 47% equity, the capital Xu accounted for 3% of shares, Zhongshan linkage Huang Jianwei accounted for 3%; at the board, the original 5 directors were CAI standards, Pan Yuhai, Panming, Zhou and Wan Wei-min, then became CAI Standard, Pan Yuhai , one of the two seed directors and two directors of today's capital and Zhongshan linkage; The enterprise was transformed from the original private enterprise into a Sino-foreign joint venture company.

The entry of capital was the best chance to resolve the conflict, but Chua's Xu and awareness of the problem did not really capture this opportunity.

At all costs.

The change made Pan Yuhai very dissatisfied, and he felt himself completely marginalized.

During the reform period, the resignation of former Real Kungfu director Zhou and Yi Wei, general manager of south of the south, weakened Pan Yuhai's power in the company, and many of the new employees and airborne executives did not know Pan's background. After the nature of the enterprise becomes a Sino-foreign joint venture, the number of shares is no longer the basis of decision. Since the new directors are mostly within Chua's control, this has led to a difficult decision by pan.

According to the insider revealed that by the end of 2007, Pan Yuhai and CAI standards have been the past Brotherhood, the company's people just see two people meet, in 5 minutes will be red. Repeatedly down, Pan Yuhai understand that the company is no longer within his control. At the beginning of 2008, Pan Yuhai to the board of Directors to apply for a long time to launch a multi-brand strategy, the creation of Harbin Master Beef noodles. The board eventually agreed to Pan Yuhai's proposal and decided to inject 50 million yuan to support the wholly-owned subsidiary of Pan's creation of real Kung Fu. CAI standards at that time thought that this may be a good solution, pan sea if there is their own company, the two people in the real kungfu strategy of the quarrel will be much less, so will not affect the company's executive power. It turns out that in 2008, Pan Yuhai was busy with the creation and promotion of the master, and really less involved in the development of real Kung Fu.

Unfortunately, it only lasted a year. Cai Standard originally promised to Kazakhstan master capital injection 50 million yuan, under the pressure of cash, advance to account 16 million yuan. Before the brand was founded, because Cai Pan two people promised not to intervene in public, so Cai for master ha only put forward constructive opinions, do not insist on implementation. Most of these opinions were later not adopted by Pan.

Ha Master in the operation of a year, the situation is not ideal, funds have been left, for Pan Yuhai, he will not let his children die, so in early 2009 he found CAI standards, I hope the company will be the remaining 34 million yuan immediately injected. Real Kung Fu in the 2009 development plan is to continue to expand the store, because CAI standards never do franchise stores, so the company's cash flow became very tense, coupled with the impact of the financial crisis, CAI standards can only say that the master's development plan to slow down. At this point, the transfer of control, the interests of the serious imbalance Pan Yuhai completely angry. Panzai two contradictions and then Pan Yuhai, then decided to revenge CAI standards.

Cai reached the bank in early 2009 to a loan of 100 million yuan of unsecured loans, for the year's store expansion. Pan Yuhai learned the news, but to the bank claimed "two major shareholder contradictions, loan risk", the loan pushed back. This is something that is shocking to everyone. CAI standards did not expect Pan Yuhai will sacrifice the company's interests in the form of retaliation, he had thought of many possible, but the fact is beyond the bottom of his heart.

Although in today's capital and Zhongshan linkage under the joint guarantee CAI standards eventually applied to the loan, but Panzai two people after the total turn. And then a series of things that happened is not surprising: August 12, 2009, Pan Yuhai brother Pan hand-held Pan Yuhai signed power of attorney to the real Kung Fu headquarters reported. Pan, the Southern development manager of the real Kung Fu restaurant chain, said in his letter of attorney that "in accordance with the October 8, 2007 True Kung Fu of the" cooperative Framework agreement, article 7.7 ' True Kung Fu management ... The general manager by the CAI Compliance party delegated, deputy general Manager by the Pan Yuhai aspects of the provisions, from now on I appointed Mr. Pan as deputy general manager of the company, stationed in real Kung Fu headquarters office. "This appointment, CAI standards as a private delegation of Pan Yuhai, the board of directors later on Pan Yuhai and Panming to the headquarters of the conduct of the serious condemnation, Panzai contradictions intensified to climax."

Even at the peak of the conflict, someone asked CAI standards what the most painful thing is, his silent moment the answer is still, and Pan Yuhai dispute. Pan Yuhai for CAI standards of emotion to be simple, the contradictions intensified after he only left to Cai, he thought it was Cai let him out of the management of the company, he is not as early as the beginning of the same can with the other calmly sit down.

Cai has long known that this contradiction will explode sooner or later, he just can't decide what time it is. According to the insider, he had feared that Pan Yuhai will be in the process of reform or in the early days of the IPO on the eve of a big one, now really the other party after he was relieved, he felt that these problems the sooner exposed the better, because we all have time to solve the problem. The so-called "problem" of Chua's standard refers to the 47% stake held by Pan Yuhai, which is somewhat too high in any case. In the introduction of the wind, CAI standards once and Pan Yuhai discussed the issue of equity change, pan delay did not promise, this matter also to nothing. In the current situation of stalemate, CAI standards do not guess also know the answer.

Cai Standard now began to adjust the mentality, ready to be listed in the next two or three years, slowly persuaded Pan Yuhai to sell some or all of the equity. This is a long and arduous road, but in Cai's view, it is the expectation of all the directors and the only way to solve the problem.

But is this what Pan Yuhai expected? Cai has once again neglected his partner-no, it's time to call the opponent's expectations.