Catering stocks are making money in US dollars! Increase investment in the US to build a central factory and set up a subsidiary 2024-08-31 15:38 Economic Daily / Reporter Yan Yafang / Taipei real-time report

Catering stocks continue to increase their investment in the United States, optimistic about the huge domestic demand opportunities in the United States . Not only 85°C and Bafang Yunji under Meishi-KY continue to build central factories in the United States, but Wangpin and Wacheng have also established subsidiaries in the United States and plan to open restaurants there. Wangzuo's "Duan Chunzhen Beef Noodles" and Juyan Hutong's "Hutongli BBQ" are using the brand licensing model to accelerate their development in the local market, and the cluster of catering industry concept stocks in the United States is gradually taking shape. Legal persons are generally optimistic that the U.S. market has high unit prices and good gross profit margins, which will bring new opportunities to catering stocks.

Seeing that the United States is the world's largest consumer market, coupled with the continued tightening of consumption in the Chinese mainland market, catering stocks have expanded their layout in the US market. 85°C currently has 78 locations in eight states and 11 major cities in the United States. Since the beginning of this year, six new stores have been opened in the United States, and the goal of opening eight to 10 stores throughout the year is expected to be successfully achieved.

85°C already has three central kitchens in the U.S. Last year, it spent US$18.5 million, or NT$568 million, to build a fourth central kitchen in New Jersey, which is expected to be officially opened after the first store on the East Coast opens. The company expects to move into New Jersey on the East Coast as early as the end of this year, and will enter New York, Illinois, and Oklahoma in 2025. It is estimated that the number of stores in the U.S. will reach 100 by 2026.

The board of directors of Banfang Yunji recently launched a new round of investment in the United States. It will indirectly invest through its U.S. subsidiary to establish a subsidiary in Texas with an investment of US$7.2 million, approved at NT$234 million. It will also spend more than NT$200 million to acquire real estate in Dallas and will set up a second central factory in the United States.

Banfang Yunji is accelerating its expansion in the U.S. market, and expects to have 11 stores in Southern California by the end of 2024. It will also focus on Texas as its next store expansion target. Texas has a population of more than 30 million, second only to California's 39 million, and covers three major cities, Dallas, Austin, and Houston. With its large population and abundant capital, it is expected to increase its operating capacity in the next two to three years.

Wangpin recently announced that it will enter the US market with an investment of NT$160 million and has applied to establish subsidiaries in Delaware and Texas. Since the preparation period for opening a new restaurant in the US is at least one year, the market expects the first store to open in the fourth quarter of next year at the earliest. Wangpin Group has many brands under its umbrella and is still evaluating which brand to enter the US market. The company said that it will make brand selections based on store locations and local customer base.

At the end of last year, the board of directors of Wahaha also approved a contract of NT$320 million through its subsidiary First Delicious to invest US$10 million to indirectly invest in the United States and establish a subsidiary in the United States. Wahaha said that it has signed a contract with Westfield Century City, a well-known shopping mall in California, to open its first store in a Class A shopping mall in Los Angeles, with an average customer unit price of US$40. By 2025, there will be at least two stores in the United States.

In addition, Wangzuo uses Duan Chunzhen as the main brand to enter the US market. The first branch in the United States will open in 2021, adopting an overseas licensing model. There are currently two stores in California. Juyan Hutong also announced that it will open its first BBQ restaurant in the United States in Los Angeles in the fourth quarter. "Hutongli BBQ" will be franchised as a single store. The catering style is different from the single-point model in Taiwan, but it combines BBQ with an all-you-can-eat model. The average customer spending is estimated to be US$60.