Business Intelligence on Retailing, Franchising, and Consumerism in China

BBQ Increases China Expansion

Korean fast food chain BBQ is now targeting to expand its business in China by opening more franchising stores.

Lin Leiping, marketing director of BBQ, says that they plan to increase the number of BBQ stores from the current 13 to 50, which will all be franchised chain stores. Lin says that opening a new BBQ store requires RMB200,000, which includes franchising fees and other costs such as rent, decoration and equipments. Franchisees can pick up store locations by themselves, while the head office of BBQ will take full responsibility in the stores design, equipment installation and employee training.

70% of the products provided by the head office of BBQ are said to be semi-manufactured goods, so that franchisees only need to learn some simple cooking skills.

Entering China in 2003, BBQ now has 16 stores in Shanghai. It mainly provides food delivery service around the residential areas.

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