Noodle-and-seafood restaurant chain using IPO cash to expand
A successful restaurant chain operator is seeking to roll out its new chain of quick-service seafood noodle restaurants across China.
The convenience-style “Hai Xian Yu Shang Mian” is the creation of high-profile couple Yang Yu Qi and her husband Li Feng, the duo behind other successful chains like ‘Shao Bing Xi Shi.’ Outlets of the branch in Beijing target a young customer set with value-focused meals at an average CNY 30 (USD 4.36, EUR 3.93) per bowl of noodles, served with a selection of seafood such as squid, shellfish and prawns.
The couple listed their main operating group, Jue Wei Shi Pin Co, on the Shanghai stock market earlier this year and now the company is seeking franchisees to open Hai Xian Yu Shang Mian (which also uses an English name ‘Seafood Meets Noodles’) outlets in cities across China. Documents circulated to would-be franchisees shows an estimated CNY 3.2 million (USD 464,680, EUR 419,000) monthly cost to operate a 100-square-meter store in a first-tier city – a figure that includes rent, equipment and marketing as well as staff costs.
Backers in the firm include Chinese venture capital firm Shanghai Hao Jun Capital Investment Co., which invested CNY 100 million (USD 14.5 million, EUR 13.1 million) prior to the initial public offering. In general, the concept of seafood-and-noodle chains are gaining in popularity in China as a surge in convenience-style eateries have opened in new malls in smaller cities throughout the country in the past decade.