Seafood buffet chain growing along with popularity of malls in China

Yin Sha Hai Xian Bai Hui (the name translates roughly as (‘Silver Shark Seafood’) is seeking franchisees to roll out stores in parts of China to add to the dozens of outlets it operates across a vast swathe of central and southern China. 

The company is run by Yi Ke Food & Beverage Management Co. (which also uses the English name Chengdu Eke Catering Management Co), a firm that operates several other chains, including two hot pot chains focused on lamb and beef.

A typical Yin Sha Hai Xian Bai Hui evening buffet meal at the restaurant costs CNY 188 (USD 27.29, EUR 24.40) with lunch charged at CNY 158 (USD 22.93, EUR 20.51)  at the firm’s outlet on Jin Hua Street in Chengdu city. The chain, which has focused on second- and third-tier cities  where much of China’s urbanization is currently focused, seeks to appeal to the aspirationally wealthy in those cities, with a well-advertised availability of Häagen-Dazs ice-cream and French wines.

The firm doesn’t reveal publicly how many outlets it’s operating, but it does list a dozen cities where Yin Sha Hai Xian Bai Hui restaurants are operating – and claims to oversee more than 200 restaurants in total. A special phone line operated by the firm answers queries from would-be investors.

The management company behind Yin Sha Hai Xian Bai Hui also appears to be cooperating with one of China’s largest real estate development firms, Wanda, which also has significant investments in real estate and cinemas in the United States. Yin Sha Hai Xian outlets in Chengdu, Shijiazhuang and Wuhan cities are all located in malls built and run by Wanda. 

The partnership is taking advantage of a wave of commercial real estate that has recently sprung up in China’s regional cities in recent years, seeking to cash in on rising consumer spending. Many  of these malls have started to place more emphasis on their dining and entertainment potential as online commerce has impacted traditional retailing. 

The shift to malls has happened at the same time as a clampdown on corruption has squeezed high-end restaurants long frequented by officials and businessmen. Another restaurant firm looking to tap the mainstream side of the market is Tai Yi Xian F&B Management Co, a Beijing-based firm with big ambitions. The firm’s best known seafood chain is currently the Hai Cuo Dao Seafood, a quick-service focused operation with a more Western-looking menu. Battered sole, sardines in sauce and battered shrimp all feature on the menu, alongside seafood noodles. The chain, in a note to investors, claims to have consulted chefs from China, Thailand and Japan in drawing up its menu and has the goal of eventually expanding throughout Southeast Asia. 

Investors have been keen to get exposure to growing consumption in China. China’s catering industry posted revenue of CNY 3.57 billion (USD 518.2 million, EUR 463.2 million) in 2016, according to data released at the annual China Catering Industry Development Conference hosted by the China Cuisine Association earlier in May. That represents a year-on-year rise of 10.8 percent in revenues, a growth clip that’s considerably higher than a 6.7 percent year-on-year rise in GDP in 2016. 

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