67 WALL STREET, New York - March 17, 2014 - The Wall Street Transcript has just published its Restaurants Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Emerging Market Expansion - Store Sales Growth Trends - Cautious Consumer Spending - Restaurant Trends in China - Value for Consumers - Quick Casual Restaurant Growth
Companies include: Country Style Cooking Restaurant Chain Co., Ltd. (CCSC) and many more.
In the following excerpt from the Restaurants Report, the CFO of Country Style Cooking Restaurant Chain Co., Ltd. (CCSC) discusses company strategy and the outlook for this vital industry:
TWST: You mentioned you are positioned to become the regional number one player, and you have said that you have a mission to become the number one QSR restaurant in China. How do you plan to accomplish that?
Mr. Zhao: I would like to give you a bigger picture of QSR players in China. Number one, in terms of store numbers, is KFC. For example, including KFC or Pizza Hut or Little Sheep, three brands, they have around 5,000 stores in China. They are number one. Number two is McDonald's. McDonald's has 1,500 outlets, and they are the second player in the China market. Those two are what we consider tier-1 players. We are one of the tier-2 players. We have 300 outlets. One of the tier-2 players is still private, and it has about 500 outlets. Another player is listed in Hong Kong and has around 300 or 400 stores. There are also others, but those are the major players. We are one of the top players among tier-2 players.
We have done our homework in analyzing the potential market and analyzing our peers, and out of that, we have created a strategic growth plan. If we want to be the number one Chinese QSR player in the market, we have to have the biggest store numbers. Our strategic plan by 2020 is to pursue 1,000 stores in 100 cities in 10 provinces. So we still have a long way to go. Currently, we have only 300 - so we have to build 700 in six years, which is challenging - but we have set up the plan and provided guidance to everyone in the company that we are marching toward the goal to try to be number one by 2020. That's how we illustrate our strategic plan in terms of our expansion. When we talk about being a leading player in the market, we also want to outperform our peers - not only in store numbers and topline growth - but also with a higher ethic, good profit delivery and also good social responsibility. So it's like a whole set of concepts to guide us moving forward.
TWST: Are you planning any changes geographically or in terms of other issues as part of this plan?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.