Recently, Wallace's parent company, Fujian Huashi Food Co., Ltd., completed its termination of listing on the New Third Board and officially withdrew from the capital market after nearly ten years of listing. After the news hit the hot searches, many netizens mistakenly believed that the brand would be withdrawing from the market, and worried that they would not be able to eat it in the future.
It is understood that at present, Wallace stores maintain normal operations.Wallace made it clear that delisting will not affect consumer rights and business cooperation. In the future, it will strictly implement the main responsibilities of food safety, labor and employment, and pay taxes in accordance with the law, and adhere to the bottom line of compliance.
According to previous announcements, before the suspension, Wallace Foods completed the review procedures of the board of directors and shareholders' meeting in accordance with the law in January this year. On February 11, it announced the official completion of delisting from the New Third Board, and the stock would be terminated from February 12.
Regarding the reasons for delisting, the previous announcement pointed out that the company's current operating conditions were fully considered, combined with the current market environment and the company's long-term strategy and development plan, to further improve the efficiency of operating decision-making and reduce operating costs.
Looking back on the development history of Wallace, the company was founded in 2001, and its first store was opened in front of Fujian Normal University. With its extremely high cost performance, Wallace quickly expanded across the country.
In April 2016, the company was officially listed on the New Third Board under the name Huashi Food, opening up its in-depth connection with the capital market.
By 2022, the number of Wallace stores will successfully exceed 20,000. This number even exceeded the sum of the three stores of KFC, McDonald's and Dicos during the same period, making it the first truly large-scale giant in the history of Chinese fast food.
However, the competitive landscape of the fast food industry has changed dramatically in recent years. New burger forces in China, represented by Tustin, have risen rapidly. With their national trend elements and differentiated taste, they have quickly captured a large number of young user groups.
At the same time, well-known catering giants also began to dive downwards. KFC's Crazy Thursday and McDonald's various money-saving meals have directly squeezed Wallace's living space in the low-price segment.
These brands have formed a siege on Wallace, greatly reducing the market effectiveness of the low-price strategy on which Wallace started. The price advantage that once existed is no longer an impenetrable moat in the face of the giants' subsidy wars and the innovations of new forces.