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Chinese fast-food chains taste success at home, abroad

ANN/CHINA DAILY – Wrapped in a bright red cape, with a horn, round belly and starry eyes under flame-shaped eyebrows, Ta Lion has become a beacon for a new generation of China’s fast-food lovers.

Ta Lion is the brand ambassador for the Tastien burger chain.

Since its establishment in 2012, Tastien, also known as Tasiting, has quickly spread to over 7,000 locations across the nation, serving up Chinese-style burgers that stand out for their hand-rolled, freshly baked buns.

Their offerings blend Western-style burgers with traditional Chinese flavours, offering choices such as Peking duck and Mapo tofu. At the end of March, Tastien launched a cumin-flavoured duck burger, which has been a hit with customers.

Wang Ping, a 43-year-old Beijing resident, said: “I had my first taste of their burger when I was very hungry and had no other fast-food choice in the neighbourhood.

“It turned out to be juicy and full of flavour. I have been buying them ever since then.”

The rise of Tastien is part of a broader boom in Chinese fast food, with chains like Liao Xiang Ji and Micun Banfan expanding rapidly. Some, like Bingz, have seen success abroad, challenging global giants and eyeing markets like the United States.

ABOVE & BELOW: Takeaway food at a Tastien outlet in Guangzhou, China; and customers wait in line at a Bingz restaurant in Singapore. PHOTO: CHINA DAILY
PHOTO: CHINA DAILY
Vendors at a Dragon Fest carnival in New York, United States. PHOTO: CHINA DAILY

CULINARY HERITAGE

This trend reflects a growing appetite among young consumers for fast food that incorporates Chinese culinary traditions and ingredients, driven by a renewed interest in cultural heritage.

Tastien, in particular, embraces Chinese cultural elements not only in its menu, but also in its branding and store design, combining traditional motifs with a modern aesthetic.

During the Spring Festival, Tastien teamed up with reality show National Treasure to introduce a special “Treasure Basin” set meal. Inspired by a lacquered carved box, an item once used by royalty for storing valuables or food, the meal symbolises wealth and prosperity.

Lao Xiang Ji, a chain with over 1,000 locations nationwide, is rapidly expanding to meet the demands of these young consumers.

Known for its quick-serve chicken dishes, Lao Xiang Ji has tapped into health trends by collaborating with Boohee Health to launch a fat-reduced menu, in line with the popularity of the movie You Only Live Once and a growing consumer preference for low-calorie options.

They’ve even introduced a “Nutritionist Recommended” section on their mini app, complete with calorie counts for each dish. This initiative has been well received online, with social media users launching challenges like the “14-Day Lao Xiang Ji Eating Challenge”.

Chen believes that for Chinese fast-food chains to continue growing and to compete with Western fast food, they must maintain their price advantage, ensure the quality of their dishes, and gradually increase their coverage area.

China’s domestic fast-food brands are relatively young, he said. “Chinese entrepreneurs should have a vision to ensure their Chinese fast-food brands still exist 20 to 30 years from now,” Chen said. “These emerging brands should strive to explore business models, products, and services that are better than their competitors.”

WORD-OF-MOUTH APPEAL

Chinese snack and fast-food options are diverse, including noodles, rice dishes, buns, dumplings, wontons, pancakes, and porridge. Typically, Chinese cuisine offers a wide range of flavours and involves complex cooking processes, which can be a challenge for standardisation compared with Western fast food. However, Chinese fast-food chains are finding ways to adapt.

For Wang Guoyu, founder of Nan Cheng Xiang in Beijing, efficiency is crucial in the food industry. With over 200 outlets, Nan Cheng Xiang earned CNY1.5 billion in revenue last year, setting a bench mark for fast-food efficiency.

Each outlet generates about CNY10 million annually, which is five to 10 times the industry average.

Nan Cheng Xiang mainly operates as a community canteen in residential areas, offering all-day service and a cost-effective menu.

For instance, the average amount spent on lunch is around CNY30, which attracts regular customers such as parents with children and seniors.

A notable aspect of Nan Cheng Xiang’s strategy is its exclusive focus on Beijing for the past 21 years, without franchising, financing, IPO plans, or advertising.

Instead, it relies on word-of-mouth and the appeal of its outlets. Wang believes that expanding the company’s footprint in Beijing is more effective than spending on ads.

Unlike mall-based outlets, community stores have flexible operating hours, opening from 6am to 10pm to maximise revenue. Wang said that rent and labour are the major cost factors in Beijing’s food industry, and full-day operations require careful management.

GOING GLOBAL

Bingz, a Chinese fast-food chain famous for its roujiamo meat burgers, decided to slash prices in early 2023. Some dishes like the chicken bone spicy and sour noodles dropped from CNY15.75 to just CNY9.9 for a limited time.

Founder Meng Bing said their market research highlighted the importance of offering value for money. “We’ve noticed a shift away from impulsive spending to a more practical mindset, where people want quality products and services for their money,” Meng said.

At the end of last year, Bingz opened a new factory in Leling, Shandong province. The factory processes noodles for the global market and meat products for domestic tastes.

Bingz also sources ingredients globally to ensure quality and affordability. “Our restaurants are adopting a low-margin, high-volume sales strategy, moving away from high prices to attract more customers,” Meng explained.

Currently, Bingz has about 200 stores across China, spanning 13 cities including Beijing, Shanghai, Tianjin, and Guangzhou, Guangdong province. This year, Bingz plans to expand to more provincial capitals, aiming to surpass 500 stores by the year’s end.

In 2021, Bingz opened its first international restaurant in Toronto, Canada. Today, Bingz operates five stores in Ontario province, with a single outlet’s annual revenue exceeding CNY20 million, outperforming established brands like Burger King, Starbucks, and Subway, Meng said.

The menu favourites in Canada include the Signature Beef Burger, Black Pepper Beef Burger, Butter Chicken Burger, Plum Fizz and Cold Noodles Salad.

New restaurants are set to open in British Columbia later this year, with Bingz aiming for a total of 15 restaurants by the end of 2024, Meng said.

The success in Canada has encouraged Bingz to enter the United States market. A central factory is being built in San Diego to serve North America, with plans to open 10 restaurants in California by the end of 2025.

Bingz currently employs over 300 people in Canada and the US, with the number expected to grow to nearly 1,000 by the end of the year. “The US is seen as Bingz’s biggest market outside China, with a target of 3,000 restaurants introduced in multiple five-year phases,” Meng said.

Last year, Bingz also launched in Singapore, and rapidly became popular. Meng doesn’t view Singapore as a market but as a regional hub for Southeast Asia, with plans to open more than 50 restaurants in the city.

Singapore’s restaurants have also attracted customers from Malaysia and Indonesia, particularly for the chain’s Butter Chicken Burger, Sizzling Chili Noodles, and Hong Kong Milk Tea.

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