As a pioneer in the globalization of Chinese cuisine, Din Tai Fung has spent nearly half a century creating a highly regarded benchmark for Chinese cuisine abroad. Below, EqualOcean decodes how this established restaurant brand has successfully secured its foothold in the global dining market.
From a Taipei Oil Shop to Global Dining
If we were to write the opening chapter of Din Tai Fung’s success story, it would undoubtedly begin in 1972. That year, due to a market shift from bulk oil to packaged oil, founder Yang Bingyi transformed his oil business, which he had run for over a decade, into a xiaolongbao specialty shop. This forced transformation ended up creating a globally renowned culinary legend.
Through an almost obsessive pursuit of product quality, Din Tai Fung quickly gained a strong foothold in Taiwan. In 1993, the brand was selected by The New York Times as one of the "World’s Top Ten Gourmet Restaurants." This international recognition laid a critical foundation for its subsequent global expansion.
In 2010, the brand achieved further accolades when its Hong Kong branch was included in the Michelin Star Guide, making it one of the few Chinese restaurant brands to achieve such recognition. In 2014, CNN named Din Tai Fung one of the "World’s Best Chain Restaurants," further solidifying its status in the international dining market.
Operational Challenges and Overseas Rebirth
Recently, Din Tai Fung announced the closure of 14 locations in the Beijing area due to the expiration of business licenses. These closures included popular flagship stores such as the Shin Kong Place and Financial Street locations. This news drew widespread attention within the industry and prompted questions: why is there such a stark contrast between the brand’s domestic and overseas markets?
Compared to the operational difficulties faced by its Beijing stores, such as challenges linked to a 10% service fee, Din Tai Fung’s overseas business continues to thrive. Data indicates that the brand currently operates over 170 locations across more than 10 countries and regions worldwide, with nearly every store becoming a "must-visit hotspot" in its respective market.
The most representative example is the flagship store in New York, which opened in 2022. This store, covering an area of 2,450 square meters and accommodating 450 diners, is the largest Din Tai Fung location in the world. Since its opening, it has been almost fully booked daily, with weekend wait times often reaching 2-3 hours. In Las Vegas, the annual revenue of a single store has exceeded $25 million, showcasing the brand's strong appeal in overseas markets. Beyond the high demand for seats in its U.S. locations, Din Tai Fung's popularity has even inspired American netizens to create the "Din Tai Fung Index."
Decoding the Core Strategies Behind Overseas Success
Din Tai Fung’s decades-long success in overseas expansion has not been as simple as riding the wave of opportunity.
"Turnkey Service Output" Brand Authorization Model
Unlike traditional franchise models, Din Tai Fung creatively adopted a "turnkey service output" brand authorization model. This approach involves the comprehensive output of the entire value chain, including product development, brand services, talent training, and supply chain management, ensuring a high level of consistency in quality and service across all locations.
Specifically, this model includes the following key elements:
Rigorous Franchisee Screening: Din Tai Fung typically conducts a 1-2 year evaluation of potential franchisees to ensure they have sufficient operational capability and alignment with the brand’s values.
Comprehensive Training System: From chefs to service staff, all employees are required to undergo professional training at headquarters.
Continuous Quality Monitoring: Headquarters conducts regular surprise inspections at each location to ensure the quality of products and services.
Flexible Renewal Mechanism: Outstanding franchisees, upon contract expiration, are only required to pay a fixed percentage of annual revenue for renewal, without incurring additional authorization fees.
DPS Precision System: Taking Chinese Cuisine Standardization to the Extreme
Din Tai Fung’s proudest achievement is its self-developed DPS (Din Tai Fung Precision System). This system refines the xiaolongbao production process to an astonishing level of precision:
Dough skin weight is precisely controlled at 5 grams.
Diameter of the rolled dough skin must be exactly 6.5 centimeters.
Filling weight is strictly limited to 16 grams.
Each dumpling must have exactly 18 folds.
The Subtle Balance of Localization Strategy
While maintaining core product standardization, Din Tai Fung also demonstrates exceptional localization expertise.
In the Japanese market, to integrate with local service culture, Din Tai Fung adopts Japan's refined service philosophy. Its store designs incorporate minimalist Japanese aesthetics, and it offers custom sauces tailored to Japanese tastes.
In the U.S. market, Din Tai Fung expanded seating capacity to accommodate American dining habits. At the same time, the menu design places greater emphasis on visual displays and English descriptions to cater to local preferences. In Muslim markets, Din Tai Fung offers a fully halal-compliant product line, earning local halal certification. Additionally, it adjusts ingredient choices by substituting chicken or beef for pork to meet dietary requirements.
High-End Market Positioning and Reputation Building
As of now, Din Tai Fung operates 182 stores globally, including 13 in the U.S., located in major cities across California, Nevada, and Washington State. The Japanese market is even more prominent, with 26 stores across Tokyo, Osaka, Kyoto, Nagoya, and other cities. These figures reflect Din Tai Fung's steady expansion strategy. In these regions, the brand prioritizes markets with high acceptance of Chinese cuisine and focuses on areas concentrated with high-end consumer demographics.
It is worth noting that Din Tai Fung's expansion has never been reckless. Every new store location is chosen after thorough market research to ensure precise access to target consumer groups. For instance, the first U.S. store was strategically located in Los Angeles, while the first Japanese store opened in Tokyo’s Takashimaya Department Store. These carefully considered choices laid a solid foundation for future growth.
Unlike many Chinese brands that struggle to break out of the "family restaurant" or "cheap Chinese food" image in overseas markets, Din Tai Fung has successfully established an international reputation as a "luxury Chinese dining" brand. By offering elegant dining environments, ritualistic service, and exquisitely presented dishes, the brand has encouraged customers to willingly pay a premium for this "experiential dining."
In the U.S., Din Tai Fung’s pricing strategy is particularly clever—positioned higher than ordinary Chinese restaurants but lower than top-tier Michelin three-star establishments. This positioning creates a perception of exceptional value among middle-class consumers.
Furthermore, Din Tai Fung’s success heavily relies on organic word-of-mouth rather than conventional advertising. In Japan, the first branch achieved three times its projected revenue upon opening, a success driven largely by consumer experience and word-of-mouth promotion. In the U.S., the Las Vegas branch was hailed by Forbes as "one of the most recommended restaurants in Las Vegas," creating a virtuous cycle of professional endorsements and customer acclaim.
"Authenticity+" as a Unique Advantage
In various markets filled with diverse "Chinese restaurants," Din Tai Fung has demonstrated its unique competitive edge.
For example, in the Japanese market, compared to local Chinese cuisine restaurants, Din Tai Fung stands out with its consistency and authenticity. Many Japanese Chinese restaurants have adapted their flavors to local tastes (e.g., Japanese-style Mapo Tofu). However, Din Tai Fung retains traditional flavors while presenting its dishes in an exquisite manner, meeting Japanese consumers' desire for a sense of ritual in dining.
In the U.S., Din Tai Fung's main competitors include Asian-inspired restaurants like Momofuku and P.F. Chang's. However, these establishments often follow a "fusion Asian" approach, while Din Tai Fung remains committed to its image as a "purely Chinese restaurant," giving it a distinctive advantage in authenticity. Moreover, the transparent kitchen design, allowing customers to watch the xiaolongbao-making process, offers an interactive dining experience that has won over American consumers.
Deep Lessons from Din Tai Fung’s Success
Din Tai Fung’s success provides a comprehensive model for the globalization of Chinese cuisine. Based on its experience, EqualOcean offers the following insights for Chinese cuisine brands aiming to expand internationally:
Standardization as a Solid Foundation
One of the greatest challenges for Chinese cuisine abroad is the difficulty of standardization. Different chefs may produce varying flavors, and even the same chef’s output can have slight differences. Chinese cuisine brands going global can draw inspiration from Din Tai Fung’s DPS system, breaking down complex production processes into quantifiable steps. Establishing precise production standards and quality control systems ensures product consistency, enhancing both competitiveness and brand image.
Precise and Focused Brand Positioning
The positioning of Chinese cuisine should avoid being overly broad, which can lead to a diluted focus. EqualOcean emphasizes that a "focused" strategy is particularly valuable for Chinese cuisine globalization: brands should identify their core strengths, excel in niche areas, establish a clear brand identity, and use signature products to attract a loyal customer base.
Balanced Localization
For international markets, Chinese cuisine needs to retain its core identity—traditional dishes, culinary techniques, distinctive flavors, and cultural heritage—while skillfully incorporating local ingredients, seasoning styles, and dining customs. By optimizing presentation and service models, and balancing tradition with innovation, Chinese cuisine brands can create a dining experience that captures the charm of Chinese food while meeting the demands of local markets. This approach effectively expands market share and enhances the global influence of Chinese cuisine.
Cultural Awareness: Beyond "Gastro-Diplomacy"
Amid the wave of Chinese cuisine globalization, a deeper question arises: In a globalized context, how should Chinese cuisine present itself to the world? This question reflects the complex interplay of cultural identity, industry evolution, and social transformation.
Examining Din Tai Fung's success reveals more than just the globalization of a restaurant brand; it represents the reconstruction and rebirth of Chinese culinary culture within a modern framework. This process preserves the continuity of cultural heritage while achieving seamless integration with contemporary business logic. It highlights that the globalization of Chinese cuisine is not merely about "going out" but about finding a delicate balance between global and local, tradition and modernity.
EqualOcean believes that true globalization is not simple replication or expansion but achieving innovation while preserving tradition and embracing transformation while staying true to authenticity. In this sense, the globalization of Chinese cuisine is both an industry revolution and a cultural dialogue.
Looking Ahead: A Future Full of Possibilities
In 2024, we see a future rich with potential: technology is reshaping industry boundaries, a new generation of consumers is redefining cultural perceptions, and the wave of globalization is fostering new business paradigms. Against this backdrop, the path of Chinese cuisine globalization will inevitably be a complex narrative intertwining tradition and modernity, local and global, technology and humanity.
At the core of this narrative lies a steadfast commitment to cultural confidence and an embrace of innovation. Just as each xiaolongbao embodies the dedication of its craftspeople, the journey of Chinese cuisine globalization will ultimately carve out a new chapter for this era through a balance of tradition and progress.