Caixin Weekly | The Wave of Chinese Restaurants Going Overseas (AI Translation)
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文｜财新周刊 冯奕铭
By Caixin Weekly's Feng Yiming
文｜财新周刊 冯奕铭
By Caixin Weekly's Feng Yiming
刚刚过去的6月，中国新茶饮品牌霸王茶姬在新加坡购物中心狮城大厦举办为期七天的快闪活动，有的顾客排队一个小时。
In June, Chinese new tea beverage brand BaWang ChaJi hosted a seven-day pop-up event at Singapore's Suntec City Mall, with some customers waiting in line for an hour.
这个快闪活动是在为霸王茶姬2024年8月正式开业的门店造势。其实，霸王茶姬早在2018年就通过国家总代理（下称“国代”）形式进入新加坡市场，五年后双方却因门店选址和装修等事宜出现分歧。2024年初，新加坡十余家霸王茶姬门店被翻牌成“与茶amps tea”，国代自立门户。
This flash event is generating buzz for the official opening of a Bawangchaji store in August 2024. In fact, Bawangchaji had already entered the Singapore market in 2018 through a national general distributor (referred to as "national distributor"). However, five years later, disputes arose between the two sides over store locations and renovations. In early 2024, more than ten Bawangchaji stores in Singapore were rebranded as “Yucha Amps Tea,” with the national distributor branching out independently.
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- BaWang ChaJi hosted a pop-up event in Singapore ahead of its planned store opening in August 2024, following disputes with its previous distributor.
- Several Chinese dining brands, including bubble tea and hotpot chains, are accelerating international expansion, particularly in Southeast Asia, leveraging local CEOs and franchising models.
- Chinese restaurants face challenges abroad, such as supply chain issues and localizing their offerings, but are seeing growing interest and success, with brands like Haidilao and Mixue Bingcheng leading the way.
In June 2024, BaWang ChaJi, a new tea beverage brand from China, held a seven-day pop-up event in Singapore's Suntec City Mall. The event generated buzz for an upcoming store opening in August 2024. BaWang ChaJi had previously entered Singapore in 2018 through a distributor, but disputes led to a rebranding of its stores in early 2024. Consequently, BaWang ChaJi had to restart its operations in Singapore, now opting for direct management with local CEOs rather than the agency model. The company plans to expand into eight Asian countries over the next five years, focusing mainly on Southeast Asia and setting up its Asia-Pacific headquarters in Singapore [para. 1][para. 2][para. 3].
Heytea and Shuyi Grass Jelly are other Chinese beverage brands expanding globally. In 2023, Heytea opened stores in major cities like London and New York, while Shuyi Grass Jelly entered markets in Southeast Asia, Spain, and the U.S. Chinese chain restaurant brands such as Tai Er Sauerkraut Fish, Zhang Liang Spicy Hotpot, and Yang Mingyu Braised Chicken have also accelerated their overseas plans. These companies have noticed a significant increase in franchise inquiries and industry activities. The head of overseas operations for Zhang Liang Spicy Hotpot reported having 63 stores in 15 countries by the end of 2023, with plans for further expansion in 2024 [para. 4][para. 5][para. 6][para. 7].
The surge in overseas expansion is attributed to various factors, such as lower labor costs and ease of management in Southeast Asia. Companies predominantly use franchising models due to their efficiency and lower operating risks. According to Lin Tan, CEO of PayInOne, the increase in overseas expansion is also seen in dining-related businesses, which have reported a 200% increase in both employment and salaries in the past three years. The Chinese government supports this trend, encouraging businesses to explore international markets and globalize Chinese cuisine [para. 8][para. 9][para. 10].
Over recent years, improving domestic supply chain maturity has aided in overcoming previous challenges faced by Chinese restaurants going global. Despite these advancements, supply chain and employee management remain critical obstacles. Some companies, like Mixue Bingcheng, have developed localized supply chains, while others import core ingredients and source locally for fresh products [para. 11][para. 12][para. 13][para. 14][para. 15].
Chinese restaurants still encounter cultural barriers and localization challenges in international markets. For example, Chinese spicy hotpot brands like Zhang Liang found Singaporeans unfamiliar with their self-selection dining model. Adjustments in North America included providing more staff services to align with the local tipping culture. Local supply chains and employee management pose significant hurdles. Many enterprises rely on Chinese communities for staffing and face issues like low operational efficiency and different regulations overseas [para. 16][para. 17][para. 18][para. 19].
In 2024, Haidilao spun off its overseas business into Super Hi International and continues expanding rapidly, focusing on Southeast Asia. They successfully transitioned Chinese cuisine from 'immigrant dining' to 'branded dining' overseas. Their overseas expansion strategy involves establishing central kitchens and collaborating with local supply chains. For personnel management, Haidilao emphasizes hiring and training locals, ensuring fair promotion opportunities, and allowing experienced managers to develop new markets [para. 20][para. 21][para. 22][para. 23][para. 24].
- Overlord Tea Ji
- Overlord Tea Ji, a Chinese tea brand, held a seven-day pop-up event in Singapore to promote its upcoming August 2024 store opening. Initially entering the market in 2018 through a national distributor, it faced issues leading to a rebranding to "amps tea" by the distributor in 2024. Overlord Tea Ji is now pursuing direct operations, hiring local CEOs and planning expansions in eight Asian countries, with a focus on Southeast Asia.
- HEYTEA
- HEYTEA announced franchise opportunities in 2023 and opened its first stores in London, Melbourne, New York, Kuala Lumpur, and Vancouver that year. They plan to establish a pop-up store in Paris by July 2024.
- Shuyi Burned Fairy Grass
- Shuyi Burned Fairy Grass, a Chinese milk tea brand, began expanding overseas in 2023 and has since entered markets in Southeast Asia, Spain, and the United States.
- Tai Er Sour Fish
- Tai Er Sour Fish is a Chinese restaurant chain known for its pickled fish dish. The brand expanded internationally during the pandemic, opening its first overseas store in Singapore in 2021, followed by locations in Malaysia, Thailand, and Indonesia in 2022, and the United States in 2023. Tai Er focuses on creating centralized hubs to streamline supply chains and offers a unique dining experience tailored to local market preferences.
- Zhang Liang Spicy Hot Pot
- Zhang Liang Spicy Hot Pot began expanding overseas in 2019, starting with the U.S. It now has 63 international stores across 15 countries. By 2024, the company plans to continue expanding. They focus on reducing costs and benefiting from growth in markets like Indonesia, where their menu aligns well with local tastes and budgets.
- Yang Mingyu Braised Chicken
- Yang Mingyu Braised Chicken is a fast-food brand from Shandong, China, established in 2011 with over 6,000 domestic outlets. The company began overseas expansion in 2016, opening its first U.S. store in Los Angeles in 2017. As of now, it operates in over 10 countries with around 100 international franchise stores.
- Haidilao
- Haidilao, a major Chinese hotpot chain, began its overseas expansion in 2012 in Singapore. It has since expanded to markets such as Thailand, Malaysia, Japan, and the U.S. In 2022, it spun off its international business into an independent company, Tehai International. As of Q1 2024, Tehai International operates 119 stores, with about 60% in Southeast Asia.
- Teriyaki International
- Teriyaki International, a subsidiary of Haidilao, was established in 2022, focusing on the company's international expansion. As of Q1 2024, it operates 119 stores, 60% of which are in Southeast Asia, emphasizing a shift towards refined operations and digital development under CEO Yang Lijuan's leadership.
- Luckin Coffee
- Luckin Coffee started its overseas expansion in 2023, viewing Singapore as a "launch pad." Within a year, it opened 32 company-owned stores there. Luckin plans to further expand into Malaysia and the United States, adhering to a direct-operated store model without opening franchises.
- 5coffee
- 5coffee is a Chengdu-based coffee brand that signed its first franchisee in Malaysia in 2023. By the first half of 2024, the brand had signed nearly 20 overseas stores. The company receives about 20 inquiries per month from prospective franchisees.
- Sweet La La
- Sweet La La, a milk tea brand, opened its first overseas store in Indonesia in August 2023. At the 2023 partner convention, Chairman Wang Wei announced plans to expand comprehensively into the Southeast Asian market with an aim to open 500 stores by the end of 2024.
- Teaback
- Teaback is a Chinese new tea drink brand aiming for international expansion. It plans to enter eight Asian countries, focusing on Southeast Asia, with its Asia-Pacific headquarters in Singapore. After a failed national distributor partnership in 2023, Teaback decided to appoint local CEOs and directly manage operations. This strategic move aligns with a broader trend of Chinese tea and coffee brands exploring overseas markets.
- Mixue Ice Cream
- Mixue Ice Cream, China's largest milk tea chain, first "went global" in 2018 by opening a store in Vietnam. By September 30, 2023, Mixue operated about 4,000 stores in 11 countries. Known for its extreme cost-effectiveness, the brand has successfully expanded into markets like Malaysia and Indonesia, adapting its supply chain for local conditions while maintaining low prices.
- Jiumaojiu Group
- Jiumaojiu Group (09922.HK) operates the chain brand Tai Er Sauerkraut Fish. Despite the pandemic, Tai Er expanded overseas, opening its first international store in Singapore in 2021, later entering Malaysia, Thailand, Indonesia, and the U.S. by 2023. The group segments its international market into Southeast Asia, North America, and Hong Kong/Taiwan regions, with multiple stores in each area.
- 2012：
- Haidilao opened its first international store in Singapore.
- 2016：
- Mixue Bingcheng began researching overseas markets.
- 2017：
- Yang Mingyu's Braised Chicken Rice entered markets in Thailand, Japan, Myanmar, and South Korea.
- By September 2017：
- Yang Mingyu's Braised Chicken Rice opened its first U.S. store in Los Angeles.
- 2018：
- Bawangchaji entered the Singapore market through a national distributor.
- After 2018：
- Mixue Bingcheng opened its first international store in Vietnam.
- By 2019：
- Heilongjiang fast-food brand Zhang Liang Spicy Hot Pot established an overseas team and announced the opening of international franchises.
- 2019：
- Pandemic halted overseas expansion; Zhang Liang Spicy Hot Pot saw a nearly 80% drop in consultation and store opening numbers.
- By 2021：
- Yang Mingyu had stores in markets like Thailand, Japan, Myanmar, and South Korea.
- 2021：
- Tai Er Sauerkraut Fish opened its first overseas store in Singapore.
- 2022：
- Haidilao spun off its overseas business into an independent company, Super Hi International.
- 2022：
- Tai Er Sauerkraut Fish expanded to Malaysia, Thailand, and Indonesia.
- In early 2023：
- Consultation numbers for overseas expansion warmed up again after the pandemic.
- 2023：
- Luckin Coffee began targeting international markets, opening 32 stores in Singapore.
- 2023：
- Heytea opened its first stores in London, Melbourne, New York, Kuala Lumpur, and Vancouver.
- 2023：
- Shuyi Grass Jelly expanded to Southeast Asia, Spain, and the United States.
- 2023：
- Local Chengdu coffee brand 5coffee signed its first Malaysian franchisee.
- August 2023：
- Beverage brand Tianlala opened its first overseas store in Indonesia.
- September 30, 2023：
- Mixue Bingcheng had about 4,000 stores across 11 countries.
- March 2024：
- China's Ministry of Commerce issued the 'Guiding Opinions on Promoting High-Quality Development in the Catering Industry.'
- June 13, 2024：
- Chabaidao announced it had established four stores in South Korea, and two each in Thailand and Australia.
- June 21, 2024：
- Yang Lijuan stepped down as CEO of Haidilao and became CEO at Special Sea International.
- In June 2024：
- BaWang ChaJi hosted a seven-day pop-up event at Singapore’s Suntec City Mall.
- July 2024：
- Heytea plans to launch a pop-up store in Paris.
- August 2024：
- BaWang ChaJi plans to officially open a store in Singapore.
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