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Business / Industries

Shaxian Delicacies adds Thai spice for culinary growth

By Zhu Wenqian (China Daily) Updated: 2015-08-28 13:52

Shaxian Delicacies, a brand under the Shaxian Snacks Group Co, is banking on its agreement with the Bangkok-based Chia Tai Group Co Ltd for sustained growth.

The Chinese restaurant chain, well-known for its affordable food and local tastes, plans to integrate 6,000 branches within three years and set up 4,000 new outlets within five years.

Shaxian Delicacies, which serves a special style of cuisine from Shaxian county in Fujian province, expects the agreement to help it earn annual revenue of 50 billion yuan ($7.8 billion) and make it a key player in the Chinese restaurant industry. Shaxian snack foods have often been an economical option for tourists and students, as one can get a square meal for about 20 yuan.

Although most of the restaurants are sparsely decorated, a Shaxian restaurant is easy to recognize from the giant sign in the front of the shop. The chain currently has about 70,000 branches and operates in every major Chinese city. That is 10 times the number of franchises that the United States fast food giant KFC has, and five times of McDonald's outlets in China.

"The cooperation signals the continued growth of public catering. Chia Tai Group Co Ltd values the local Chinese features of Shaxian Delicacies, and the whole Chinese catering industry," said Feng Enyuan, vice-president of the China Cuisine Association.

"Shaxian snack foods have a wide distribution network and good demand, especially in the coastal areas and developed regions. Chia Tai Group is positive about transforming its investment into further economic opportunities, given the vitality, social identity and significant market for Shaxian snack foods."

From January to July, China's catering industry revenues rose 11.6 percent year-on-year to 1.76 trillion yuan. The growth rate of the catering industry has exceeded the growth rate of total retail sales of consumer goods, for the first time since 2010, according to the CCA.

"China's catering sector has picked up after an adjustment prompted by the country's austerity drive. While the government crackdown on lavish spending continues to influence high-end restaurants, the economical restaurants with a broader customer base have fared well," Feng said.

Ordering and serving in a Shaxian restaurant has always been quick. Chefs usually start to prepare soups and other ingredients early in the morning, and most dishes are ready for the customers to eat by lunch time. With nearly 100 choices on the menu, Shaxian foods include steamed dumplings, noodles, wontons, and pressed salted ducks. Besides, stew pot soup is a must-order that goes with every other dish.

Yu Jianping, vice-president of Chia Tai Group, said the company plans to bring the best research and development talent, factories, raw materials, management systems and food safety concepts to Shaxian snack foods.

zhuwenqian@chinadaily.com.cn

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