China’s restaurants expand overseas to Europe and America as a way to gain new sources of income.
Earlier this year, Song Xuan, a communication executive of Xibei Catering Group, a well-known Chinese catering brand, was in Los Angeles on a business trip.
At a restaurant, he ordered an eggplant dish with minced meat. To his surprise, it tasted extremely delicious, just like what his mother would prepare at home.
When he looked around, however, he found only a few Chinese tourists dining at the restaurant.
Song said it is the kind of situation Xibei Catering would want to avoid as it expands overseas.
“We are not opening restaurants abroad solely for consumers with Chinese background,” he said. “Our plan is not to simply copy what we do in China, but to cater to the larger population.”
Xibei’s overseas expansion strategy currently focuses on the US market. Jia Guolong, Xibei’s CEO, said he had visited Europe and the Americas last year to evaluate the market potential there.
“The United States is the world’s largest economy, and its consumption power is much stronger than China’s. Most people eat out and consume frequently. It presents a strong opportunity for quality Chinese food,” Jia said in a letter to the firm’s employees.
Xibei quickly established a food lab in the US to innovate Chinese cuisines so as to adapt cooking methods and tastes to the local markets.
The restaurant chain is working with local partners to refine its products like Shao Mai (steamed dumplings) and Mian Jin (wheat gluten).
It also plans to hire local management and marketing professionals to better understand the US catering culture.
According to Xinhua, Yang Guofu, a renowned Chinese malatang chain, is also expanding overseas. This year opening restaurants in the UK.
In March, Yang Guofu opened its first UK restaurant in London. Later in May, It opened a new outlet in Edinburgh.
It hopes the unique culinary experience can attract many who wish to explore and experience Chinese food culture.
Xibei and Yang Goufu are not alone in this kind of endeavor. In recent years, Chinese catering brands have gradually expanded overseas to fuel their growth. According to international consulting firm Frost & Sullivan, by 2026, the size of the overseas Chinese catering market is to reach $409.8 billion.
In the financial report for H1 of 2023, Haidilao, a Chinese hotpot restaurant giant, disclosed it has 115 outlets abroad. They openened their first European store in London in 2019.
Small hotpot chain Xiapuxiapu are following in Haidilao’s footsteps, opening its first store in Singapore in 2023. Haidilao’s first store outside China was in Singapore in 2012.
On-premise beverage and ice-cream giant Mixue Bingcheng, has over 36,000 stores worldwide, including more than 6,000 stores outside China.
Written by Liu sha, additional reporting by Xinhua and China Daily.
If you liked this article, why not read: Chinese Eating shows to face harsher censorship in bid to prevent food waste
