Restaurant chain Xiao Nan Guo looks to personal diners for growth
Shanghai operator Xiao Nan Guo is changing its focus to target personal dining which is outgrowing the once lucrative business segment
Mainland restaurant chain operator Xiao Nan Guo Restaurants Holdings plans to open its first mainland Dining Room outlet, a brand originally designed for the Hong Kong market, in Shanghai next year.
Chairman Wang Huimin who founded the company in Shanghai 25 years ago said the economic slowdown had affected business diners as companies tightened their belts but she remained upbeat about the outlook for the country's catering sector because more and more people are eating out.
"Overall, the market size is growing, but we need to sniff out new trends to ensure the growth of our businesses," she told reporters. "We want to focus on the segment where opportunities are bigger."
Xiao Nan Guo, which completed an initial public offering on the Hong Kong stock exchange in July, owns 63 large-size outlets under its name in more than 10 mainland cities.
Business diners have been one of its major revenue sources for the past 25 years.
"Today, personal dining is outgrowing business diners," Wang said.