Cantonese restaurant group Tao Heung says it is poised to double in size to 200 restaurants and bakeries by 2017, banking on the growth of the mainland's middle class.
The firm, famed for offering a whole chicken at HK$1, plans to expand into mainland provinces outside of Guangdong this year.
It currently operates 69 restaurants in Hong Kong and 17 restaurants in Guangdong.
'Cantonese food is considered an upmarket cuisine in the provinces outside of Guangdong,' said Eric Leung, Tao Heung's chief executive. 'We will cash in on the undeveloped mid-priced market by setting up restaurants in those provinces.'
The upcoming restaurants will be set up in Shenyang, Nanning, Shanghai and Wuhan.
Leung says the introduction of the minimum wage has increased mainlanders' spending power, but it has also led to higher operating costs.
This year, Tao Heung will open five to six restaurants in Hong Kong and up to nine on the mainland, including Zhongshan, Guangzhou and Huizhou.
