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Franchise Promotion Association Seminar | Speaker: Happy Lemon - Mr. Chen Shengzhong, Chief Investment Officer | Compiled and Shared by : New Open
Chen Shengzhong, the Chief Investment Officer of Happy Lemon, generously shared his comprehensive strategy for overseas operations. He emphasized that the key to success lies in correctly positioning the product and actively understanding market demand. For example, restaurant brands need to review their product positioning: is it a general tea beverage, a frozen pure tea, or a business model focused on gift packaging? Is the target market foreigners, Chinese, young people, or older adults? Identifying the target audience helps the brand establish itself overseas, find the best strategies, and enhance its focus and competitiveness. Catering products need to resonate with the local market, transforming products into brands and turning influence into tangible results.
Expanding a Restaurant Brand Internationally: Key Considerations and Experiences
1. Establishing a Stable Supply Chain
In an era of inflation and changing consumer behavior, it is crucial for brands to establish stable partnerships with upstream suppliers, especially in overseas markets. Ensuring the stability and quality of food supplies is vital. For instance, if your restaurant considers using pre-prepared dishes, it is essential to ensure stable supply and food safety from upstream suppliers. If sourcing ingredients overseas becomes too costly or legally restrictive, it’s necessary to find alternative ingredients that maintain the original product’s uniqueness.
2. Is Choosing Overseas Consultants Necessary?
Selecting overseas consultants (accountants, advisors, lawyers) is a crucial step in expanding a restaurant brand. These professionals can help resolve legal and financial issues, ensuring that the brand operates legally and compliantly in the new market. They can also save a lot of time. In the U.S., setting up a brand involves extensive pre-assessment, government applications, compliance reviews, and store decoration, usually requiring about a year for preparation. Particularly, the timeline for decoration in the U.S. can be unpredictable, so finding experienced individuals is more reliable.
3. Integrating Technology with Restaurants
Leveraging technology can enhance production efficiency, reducing labor costs and training time, thereby creating more business value. Additionally, many intelligent management systems today can help brands achieve data-driven management, accurately control raw material usage to avoid waste, and generate reports to record customer preferences.
4. Choosing the Right Store Location
Choosing an appropriate store location overseas is crucial. When finding locations through agents, careful evaluation is necessary.
5. Maintaining Brand Consistency and Marketing Strategies
A brand needs to maintain consistency, ensuring uniform service and product quality across all stores. Marketing strategy is also key to success. If unfamiliar with local customs and practices, consider outsourcing to professional firms to build a strong brand foundation. It’s especially important to have the brand's social media accounts managed by the head office, maintaining a single main account to avoid disputes or unforeseen incidents.
Business Model Strategies in the U.S.: Direct Operations, Partnerships, and Franchising
In key areas, direct operations leading franchising efforts are advisable, while other regions can adopt a regional partnership approach to expand the market. This mutual benefit structure integrates points into a network.
Case Studies
1. Happy Lemon and Fried Chicken Master Overseas Collaboration
Happy Lemon and Fried Chicken Master successfully expanded into the overseas market through collaboration. Such brand alliances not only reduce the risks of operating independently but also complement each other’s strengths, enhancing overall brand influence.
2. 8% Culinary Delights and J&G Fried Chicken’s Brand Strategy
8% Culinary Delights opted for direct operations in the U.S. to maintain high-quality standards. J&G Fried Chicken chose to partner with 85°C to enter the U.S. market quickly, increasing brand visibility and planning to introduce fast-food products to meet the U.S. market demands.
Recommendations from New Open Consulting
A successful international brand will carry local culture with it. For example, Din Tai Fung taught foreigners to use chopsticks, and 8% Culinary Delights opened up market segments. Ensuring that overseas customers understand your brand value hinges on articulating your brand’s strengths and aligning them with market needs. If your dream is to own a brand overseas, start boldly with your first store!
Facing the aforementioned challenges, it’s crucial to establish a stable supply chain, address labor issues, and stay attuned to market dynamics and consumer changes to remain competitive. If you need in-depth discussion or solutions, feel free to contact us. New Open International Consulting is committed to providing you with professional services, helping you take the first bold step!
Chain Franchise Promotion Association Seminar | Speaker: Chen Shengzhong, Chief Investment Officer of Happy Lemon | Overseas Entrepreneurship | Happy Lemon | J&G Fried Chicken | 8 Way Dumplings | Overseas Consultant
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