How Can F&B and Retail Companies Effectively Replicate Local Success Models? | Highlights

Although distinct in their business models, the food & beverage (F&B) and retail sectors face similar challenges and opportunities in their globalization efforts. F&B brands rely on chain expansion and supply chain management to rapidly replicate successful models, while retail companies enhance their global competitiveness through digital transformation and omnichannel strategies. Both industries depend on efficient supply chains, robust localized operations, and flexible market strategies to succeed globally.

At the EqualOcean "2024 Globalization Forum (GGF2024)" and the "Emerging Industries Globalization Subforum" held on December 19, a roundtable discussion titled "How Can F&B and Retail Companies Effectively Replicate Local Success Models?" brought together industry leaders. Speakers included Ms. Su Rui (粟睿), CEO of Metavita；Mr. Yang Ou (杨鸥), CMO of Happy Lamb Hotpot International Chain；Mr. Xiong Chenyu (熊晨宇), Head of Overseas Business for Tan Yu (探鱼), GTMS (甘棠明善) Group；and Mr. Nie Nan (聂楠), Founder and CEO of Hotbird Globalization (炽鸟出海) . The panel was moderated by Ms. Wang Hui (王慧), renowned consultant on global Chinese cuisine ventures. Together, they explored the practical challenges and strategies for F&B and retail companies transitioning from local operations to international market expansion.

Below is the edited transcript of the discussion：

Moderator Wang Hui: Welcome everyone to this roundtable discussion. Let’s hear from our panelists on how businesses with a "down-to-earth" approach are navigating their international expansion. Please start by introducing yourselves.

Su Rui, CEO of Metavita: Hello, everyone. I am Su Rui, CEO of Metavita. Metavita is a brand founded by an international entrepreneurial team, dedicated to bringing Chinese beverage brands to the world. We specialize in the sugar-free tea segment, with our flagship product being Big Oolong Tea.

In 2022, we launched our first product meeting international standards, which complies with regulations from both the State Administration for Market Regulation in China and the U.S. FDA. By 2023, after a year of hard work, our product was recognized by the Brussels International Taste Institute and became the top-selling Chinese oolong tea brand in the U.S.

In November 2024, we fully upgraded the Metavita brand, with the new packaging debuting on the NBA stage, making it the first Chinese sugar-free tea brand to appear in NBA arenas. Our products are now exported to over a dozen countries and regions, including the U.S., Malaysia, Singapore, Australia, and New Zealand.

Our products are not only popular overseas but also well-received in domestic markets. We’ve entered mainstream distribution channels such as convenience stores like 7-Eleven and Lawson; supermarkets like Yonghui, Hema, and RT-Mart; and high-end retailers like OLAY, BLT, and specialty snack stores.

With a 750ml large bottle size, export-grade quality, and an unbeatable price point—5 RMB in China and just 99 cents in the U.S.—our products have won the hearts of many consumers. Thank you all for your attention and support.

Yang Ou, CMO of Happy Lamb Hotpot International Chain: Hello, everyone. I’m Yang Ou from Happy Lamb Hotpot. Happy Lamb is a new brand created by the original team behind Little Sheep. We currently have over 100 chain restaurants worldwide and have established a supply chain from lamb pastures to dining tables. Annually, we serve over 6 million guests at our overseas locations, with 70% being local customers. We are committed to further expanding our presence internationally and look forward to sharing some insights today.

Xiong Chenyu, Head of Overseas Business, Tan Yu, GTMS (甘棠明善) Group: First, I’d like to thank EqualOcean for organizing this excellent event. I’m Xiong Chenyu from Shenzhen-based GTMS (甘棠明善) Enterprise Management Group. We operate in the restaurant business and manage four brands: Tan Yu (烤鱼), Sajiaojiao (撒椒), Cai Lan Vietnamese Noodles (蔡澜越南粉), and Cai Lan Hong Kong Dim Sum (蔡澜港式点心). The group currently has an annual revenue of about 5 billion RMB, with Tan Yu Grilled Fish being our sole brand with an international presence. We’ve established approximately 20 locations in Southeast Asia, including Singapore, Malaysia, Cambodia, and Indonesia. I look forward to learning and exchanging ideas with industry peers today.

Nie Nan, Founder and CEO of Hotbird Globalization: Hello, everyone. I am Nie Nan, founder of Hotbird Globalization. I’ve spent nearly 30 years living abroad—7 years in the U.S. and 22 years in Canada—witnessing the evolution of overseas Chinese communities and the growth of Chinese enterprises over the past two decades.

With a background in finance, I previously worked as CFO for two U.S.-listed companies, one of which specialized in the meat supply chain. This experience gave me insights into supporting Chinese F&B companies in their globalization journey, particularly in supply chain development, investment, and financing. Upon returning to China, I established Hotbird Globalization to invest in and incubate Chinese F&B brands with international ambitions.

Last year, I shared my observations at this forum, and I’ve noticed a qualitative improvement in the industry's understanding of globalization. Many insights shared last year reflected a domestic mindset, often applying local strategies and channel thinking to international markets without direct experience abroad. Today, I hope this session will provide tangible and practical insights for everyone.

Moderator Wang Hui: 

A lively roundtable discussion is most engaging when there’s a bit of a “battle” of ideas. That’s what makes it interesting. A distinctive feature of today’s roundtable is that most of our guests are from the To-C (consumer-facing) space. As we all know, while the To-B (business-facing) space offers a wealth of stories, the To-C field is comparatively more challenging. This is because the ultimate measure of success in overseas markets for a brand lies in the purchasing decisions of end consumers. The guests invited today bring extensive local experience that’s worth diving into. I want to reiterate that even if you’re not from this industry, as a consumer, you can evaluate their arguments from your perspective to determine whether they hold water.

As the Editor-in-Chief of a global Chinese dining media platform, our role is as a media organization. However, for today’s host, retail and dining are just parts of their broader, emerging portfolio. For me, helping Chinese dining brands go global and bringing Chinese cuisine to international audiences is a core mission. Over the past 12 years, our team has been deeply involved in China’s chain business sector. This experience has sharpened our insights and allowed us to foresee innovative developments in Chinese chains as they globalize. We remain committed to observing, supporting, sharing, and even co-creating during this process. As consumers, you can also follow our platform and recommend it to your friends abroad to help promote the internationalization of Chinese cuisine.

After these introductions, I want to further emphasize a key point. Our panelists today have achieved incredible feats. We’ve been discussing globalization extensively, and while cross-border e-commerce is certainly one way to “go global,” many products only scratch the surface. Many of today’s panelists are genuinely “going global,” meaning they’re setting up physical operations in overseas markets. As we approach 2024, we must understand that true localization is key. Opening stores overseas requires an on-the-ground presence, not just running operations in China and promoting food through photos. These panelists have a wealth of experience in localized operations, and we hope to learn from their insights today.

First, I’d like to direct a question to Ms. Su Rui, CEO of Metavita. Metavita’s initial target market was the United States—a notoriously challenging retail market to penetrate. When Metavita made this strategic decision, how did you identify the opportunities for your product and category in the U.S. market? What approach did you take to expand into this market, and how did you execute this strategy step by step?

Metavita CEO Su Rui: Thank you, Ms. Wang, for your insightful comments. Indeed, when entering the U.S. market, we identified significant opportunities within the sugar-free tea category. This insight was based on two key observations:

First, we noted that major local tea beverage brands in the U.S. generate annual revenues of several billion dollars, indicating that tea consumption has become a habit among Americans. Second, we found evidence of consumers' willingness to choose sugar-free tea by studying the successful promotion of Japanese brands in the U.S. market. These Japanese brands began promoting sugar-free tea overseas many years ago and achieved notable success in the U.S., providing us with valuable experience to learn from. Based on these successful cases, we believed that the U.S. market had a high acceptance level and significant potential for sugar-free tea, making it our first-choice market.

From a product perspective, our offerings have two standout features: 1. Large capacity – Our Big Oolong Tea is packaged in 750 ml bottles. 2. Dual compliance – Our products simultaneously meet the regulatory standards of China’s State Administration for Market Regulation and the U.S. FDA, making this a first in the Chinese market.

Our choice of large-capacity packaging wasn’t just about offering a cost-effective option but also about aligning with international market expectations. Market research revealed that mainstream beverage sizes in the U.S. and Japan typically range between 600–650 ml. By launching a 750 ml product, we aimed to cater to the preference for larger tea drink bottles in these markets. Additionally, to ensure that our products could seamlessly enter both the Chinese and U.S. markets, we adopted bilingual labeling and included two different sets of nutritional information on the same product. This approach guaranteed consistent quality across both regions.

In terms of pricing, our product is priced at $0.99 in the U.S., aligning with the price of mainstream American beverages of similar size (680 ml). By maintaining a similar price point but offering a 750 ml product, we provide a higher-value option for consumers.

After finalizing the product and pricing, the most critical step was entering the U.S. market. The U.S. market relies heavily on offline retail channels, especially for heavy goods like beverages. For distribution, we partnered with OCM, a leading North American food export brand with an extensive distribution network. OCM operates logistics and sales teams across six major cities, including New York, Los Angeles, and Houston, enabling seamless integration of our products with local retailers. Leveraging our product's competitive advantages, we successfully expanded from the Chinese-American market to the broader Asian-American demographic. This year, we upgraded our brand and packaging to prepare for deeper penetration into mainstream markets.

Brand Marketing：Once a product enters the market, building strong brand recognition among consumers is vital. To achieve this, we actively participated in major food expos domestically and abroad, including the New Products Expo (dubbed the U.S. version of China’s Sugar and Alcohol Fair) and the Natural Products Expo, a leading American trade show for organic and natural products. These events significantly boosted our brand and product visibility in the local market.

For end-consumer engagement, we ran advertisements for two consecutive years on the iconic Times Square Screen 1 in New York. In November, we collaborated with our strategic partner OCM to unveil our new packaging and brand image during an NBA game between the Brooklyn Nets and the Orlando Magic. This event made us the first Chinese sugar-free tea brand to appear at an NBA game in the U.S. Through such initiatives, we aim to capture consumer attention and lay a strong foundation for entering the mainstream U.S. market.

The above summarizes our insights into the U.S. market and opportunities within the sugar-free tea category, along with our strategies across product, pricing, distribution, and marketing.

Moderator Wang Hui: Thank you, Su and Yang. Your insights into consumer behavior are invaluable. Whether it's foodservice establishments or FMCG products, both of you started in the U.S., and your experiences provide us with valuable insights into the American consumer market.

In overseas markets, I've come to deeply understand that many people still focus their attention on leading e-commerce platforms. However, countries with highly developed infrastructure and internet ecosystems, like China, are rare. China's digital ecosystem is truly unique. In most other regions, offline consumption still dominates, with online channels playing a supplementary role. For instance, in many Southeast Asian shopping malls, consumers still prefer in-person shopping, and online retail accounts for a relatively smaller share.

Next, let's invite Mr. Yang to share Happy Lamb Hotpot's journey of rising to prominence in the U.S. market. Happy Lamb pursued a direct-operated model for its overseas expansion, growing its brand through company-operated stores abroad. The brand was established with a global vision, starting in the U.S. From the outset, Happy Lamb was designed for globalization. As we often say, globalization should not solely be viewed from a Chinese perspective. Instead, we should evaluate the global expansion of Chinese enterprises through a global lens. Happy Lamb has undoubtedly gained valuable insights throughout this process, and we’re eager to hear them. To begin, Mr. Yang, could you share why Happy Lamb chose not to expand domestically through a franchise model but instead decided to start in the U.S. with a direct-operated strategy, painstakingly opening one store at a time to build the brand?

Happy Lamb Hotpot International Chain CMO, Yang Ou: Thank you. I think today’s theme of “true globalization” aligns with what Mr. Nie mentioned earlier. The question is no longer whether to go global—it’s about how to go global. True globalization requires real, physical involvement, not just conceptual strategies, but actual immersion in overseas markets.

For Happy Lamb Hotpot, our advantage lies in having physical restaurant locations. Over time, we’ve transitioned from a franchise-based model to adopting a fully direct-operated approach for our overseas markets, including building supply chains. We believe that to become a truly international brand, we must establish a stronghold in each market ourselves. Franchisees and partners might help rapidly expand the number of stores, but they may not fully grasp our brand philosophy. No one understands the brand better than we do. By being on the ground ourselves, we can directly experience and understand the nuances of each market.

For instance, when we entered the London market, we chose a high-rent location near the British Museum’s Triangle District for our first store. If profitability was our sole focus, we wouldn’t have chosen such a location. Moreover, we made significant early investments in the supply chain, such as partnering with UK ranches, deploying staff, and setting up factories and supply chains required for exports. Ensuring the quality of exported products involved high costs and investments. If the goal were only short-term profitability, these efforts would not have been necessary, as the return on such investments might take years or even decades. True globalization demands determination, faith, and a commitment to long-term investment. It’s a pursuit for those with a long-term vision.

The second point is that as business grows, competitive barriers become increasingly important. In globalization, simple opportunities are often no longer available. The challenges of offline businesses, including logistics, entry fees, and team building, create significant hurdles. When these barriers are high, and others struggle to achieve what you can, they become your source of competitive advantage.

Our extensive early-stage investments are aimed at continually increasing our competitive edge. For others who follow, matching these barriers will be extremely difficult, giving us a clear advantage in the long run. For example, in the U.S. market, many of our locations can offer meat products at a lower price than our competitors. While others might need to price their meals at $50 to maintain operations, we can achieve profitability at $30–40. This is our competitive edge, and it will become increasingly evident over time.

We chose a capital-intensive model because, while the early stages are challenging, only through steadfast belief and long-term commitment can we achieve our goals.

Moderator, Wang Hui: When it comes to the development of the restaurant industry, in China, we often hear about chains with a thousand or even ten thousand stores, or brands opening two to three hundred stores in a single month. However, this model does not work in overseas markets. Mr. Yang pointed out in his talk that there are significant differences between the development of restaurant brands in China and overseas markets.

Recently, during my conversations with U.S. consular officials, I learned that their impressions of Chinese cuisine often revolve around family-run eateries and concerns about food safety. These perceptions highlight that Chinese culinary culture has yet to establish a strong brand presence overseas—a gap we all need to work together to bridge. Everyone here has made substantial contributions to spreading Chinese culinary culture.

Unlike Happy Lamb Hotpot’s direct-operation model, Tan Yu has chosen to expand through joint ventures. The reason behind this strategy lies in Tan Yu’s rigorous selection of local partners, aiming not only to open stores but also to ensure the brand’s success in the local market. We now invite Mr. Xiong to share how Tan Yu balances the choice between direct operation and joint venture partnerships in its overseas expansion. Tan Yu has opened stores in multiple countries. Could you share any specific strategies in terms of site selection and market planning with the audience?

Xiong Chenyu, Head of Overseas Business Division, Tan Yu Brand, GTMS Group: Thank you, Ms. Wang. I fully agree with the points shared earlier, including the importance of pricing strategies and building a brand moat through heavy investments. Let me illustrate why Tan Yu chooses the joint venture model in overseas markets with an example.

I’m primarily based in Shenzhen and Southeast Asia, both regions with consistently high temperatures. When I traveled to Shanghai for an event, I thought I wouldn’t need heavy clothing, but upon landing, I was hit by a cold wind. This scenario is analogous to a brand expanding overseas hastily without thorough market research. Just as I might fall ill, a brand’s rushed expansion might result in setbacks in its target market.

Domestically, Tan Yu operates over 190 directly managed stores, and our Cai Lan Dim Sum brand runs nearly 100. We have purchased land in Nansha and entrusted China Construction Third Bureau to establish a supply chain system that can support 6,000 stores. This solid foundation gives us the confidence to expand internationally. I strongly agree with Mr. Yang’s emphasis on creating a brand moat.

When it comes to selecting franchisees, proper preparation is essential, just as asking about Shanghai’s weather conditions in advance would have saved me from the cold. Similarly, before venturing abroad, we seek local partners who are well-versed in local laws, regulations, and the restaurant industry. These partners bring strong business resources to the table, which helps reduce costs and increase revenue.

On the matter of site selection, there’s a saying: “In retail, pricing is king; in food and beverage, location is life.” How do we ensure franchise stores are managed to the same standard as directly operated ones? The KPIs for our Overseas Development Division are not about how many stores we open each year but about the net revenue of our franchisees. We combine direct-operation thinking into the decision-making process, asking franchisees to critically evaluate whether they would choose a location if they were the operators.

We’ve developed a 90-page slides specifically for franchisee training. Additionally, all our partners assist franchisees in negotiating with malls and assessing potential locations. In China, there are tools like "Yingshang" to support site selection, but these tools are not available overseas. How do we address this? For Tan Yu, finding a reliable franchisee is key. Franchisees should ideally have experience operating restaurant brands or possess resources in commercial real estate while understanding industry norms.

Recently, a Thai franchisee signed an exclusivity agreement with a mall group, limiting them to opening stores only within that group’s properties. While some of these malls are excellent, others are subpar—this is a self-imposed limitation. If they had approached the situation differently, seeking partners with good connections to developers, wouldn’t the process have been smoother?

Finally, regarding site development, I recommend adopting a “wolf’s hunting mindset” rather than passively accepting what others offer. We need clear rules when choosing locations: which malls to enter, which to avoid, and which city-level commercial districts are must-haves. These guidelines prevent us from being constrained by long-term contracts or settling for leftover spaces. Malls aim for profitability, and we should not accept locations that don’t align with our vision. If a location doesn’t meet our standards, we’d rather pass than compromise our mission, vision, and principles just to secure a spot. Securing the right location is important, but it must never come at the cost of our core values.

Moderator Wang Hui: From your perspective, Mr. Nie, could you summarize and share what you believe are the most appropriate strategies and paths for Chinese companies, particularly in the two sectors discussed today—retail and fast-moving consumer goods, and restaurant businesses—to achieve true international expansion?

Nie Nan, Founder and CEO of Chizbird Global: In my worldview, the term "going global" doesn’t exist. The reason I avoid using this term is that it is entirely based on a China-centric perspective of observing the world. If we elevate our view to a global or planetary level—looking at Earth from the Moon—"going global" becomes irrelevant. Wherever there are opportunities, we should conduct business, whether it’s in China or the U.S. Instead of "going global," it’s more accurate to use "globalization" to define the topic we’re discussing today.

For a company with Chinese roots to truly globalize, three conditions must be met: the brand must become global, the organizational structure and decision-making must localize, and the company must be able to leverage local capital markets. Without these conditions, companies often remain in the stages of foreign trade or cross-border e-commerce, adhering to competition models rooted in China. There are very few Chinese brands that can truly be considered global, and those that succeed overseas often appeal primarily to the 56 million overseas Chinese, as we are the ones who truly value Chinese brands.

The so-called globalization of an enterprise can be analyzed across three dimensions: internal capabilities, the external environment, and the founder’s mindset.

Internal Capabilities: People, Products, Place, and Capital

People: Companies operating overseas differ fundamentally from domestic businesses in terms of personnel, including employees and customer demographics. If over 50% of your customers are not Chinese, your staff composition should reflect this to better serve your clientele. How can you effectively serve customers if your employees can’t communicate fluently in English? This is not realistic. In China, the influence of the internet has fostered a user-centered mindset. However, does this mindset still apply in overseas markets?

Products: Chinese products often need localization in new markets. For instance, Xi'an Famous Foods operates 300 stores in China offering roujiamo (Chinese-style hamburgers) paired with liangpi noodles and spicy vermicelli. Yet in the U.S., Canada, and Southeast Asia, they’ve added French fries—a category that requires no consumer education. Similarly, when McDonald’s and KFC entered China, they adapted their menus accordingly.

Place: In countries with underdeveloped internet infrastructure, offline channels dominate, necessitating a fundamentally different approach to channel building compared to China.

Capital: I emphasize two aspects here: first, whether the company can generate healthy cash flow, and second, whether it can leverage local capital market resources—critical for businesses with ambitions like going public or scaling up. The circulation of funds and talent is the core of business success, not just operations. If you’re an employee, this might not seem as pressing, but if you’re an entrepreneur, you must consider these aspects seriously. The financing approach can make a significant difference.

External Environment: Finance, Tax, Legal, and Regulatory Factors

Finance: How does the company structure its financial framework?
Tax: In the U.S., for instance, each of the 50 states has different tax laws, and businesses must adapt accordingly.
Legal: Companies may face challenges related to data privacy laws. In Western countries, user data belongs to individuals, not companies. Franchise law is another example—regulations vary by state, and a single misstep can lead to cascading failures. While a brand might recover, systemic legal issues could be fatal.

Regulations: Policies, especially those influenced by geopolitics, can shift rapidly. For example, the China-U.S. dynamic can lead to sudden policy changes. Additionally, platforms like TikTok, Amazon, and SHEIN each have their own rules, which cross-border businesses must navigate carefully.

The Founder’s Mindset

This is the most critical factor. The core of Chinese companies’ globalization lies in the "personality" of the organization, and the personality of the organization reflects the personality of its founder. A company’s globalization journey is essentially the founder’s project. Does the founder understand branding? Have they contemplated cultural differences? Have they learned another language? These are pivotal questions.

Take branding as an example: McDonald’s has over 43,000 outlets worldwide, while China’s Mixue Bingcheng has over 40,000 stores. McDonald’s has established a global brand, but Mixue Bingcheng is often perceived as a generic white-label product overseas. This is a simple truth: China emphasizes STEM fields and logical thinking, but branding involves both "product" and "storytelling." The product ("品") is crucial, but it’s not enough without the story ("牌"). McDonald’s has mastered storytelling; Mixue Bingcheng has not.

Finally, cultural understanding is incredibly broad. For example, in the U.S., understanding religion and race is vital for businesses. The largest religious country in the world isn’t an Arab nation; it’s the U.S. Christianity has 2.5 billion adherents, Islam 1.9 billion, Hinduism 1.1 billion, and Buddhism 600 million. These groups represent your potential consumers. Businesses must elevate their awareness and deepen their understanding of their target audience. This is the most important task for any enterprise.

Moderator Wang Hui: Mr. Nie has repeatedly emphasized the importance of perception during this discussion. In this roundtable forum, recognizing differences in information is particularly critical. As we all know, if the ultimate goal and direction are misaligned, the industry's strong ability to replicate quickly may lead to outcomes that diverge significantly from expectations. Our earlier discussions have focused on defining strategies and directions. When I first received the roundtable topic—"Replicating a Successful Model"—I pointed out to the organizers that although we have been working in this field for quite some time, there is, in fact, no universally recognized successful model yet. Everyone is still in the process of accumulating and building brands and markets, which means we are not replicating success but rather establishing and refining it.

If the goal is rapid growth, or what we might call "running at full speed," we are still far from achieving it through replicating a successful model. Mr. Nie mentioned the importance of having an ambitious goal, and to reach that so-called "full-speed" stage, there is still a long way to go. We must remain patient and avoid falling into the trap of rapid expansion. None of the panelists here have adopted such a model, which demonstrates that a truly effective overseas market model still requires continuous refinement and development.

In the FMCG and restaurant sectors, supply chain issues are particularly important. Let us invite Mr. Su to share his thoughts on how to build a supply chain that serves both local and overseas markets, where elements can be shared, and where localization is necessary.

Metavita CEO Su Rui: Regarding supply chain management and building a team for international expansion, I’d like to share two key points. For the F&B and FMCG sectors, solving supply chain challenges is the first step to going global. Supply chains can be divided into domestic and international segments. Domestically, we collaborate with Jinmailang's factories, leveraging their globally advanced German Krones and French automated production lines to ensure product quality, production capacity, and quality control. This strengthens our competitiveness in capacity supply and cost control worldwide.

As for the international supply chain, we rely on the scale advantages of strategic partners in the U.S. For instance, during shipping, our beverage products, which are considered heavy goods, can be paired with their light goods to balance freight costs. Once our products reach the U.S., we utilize the local distribution networks of our clients in six cities, enabling cost-effective and timely delivery to consumers. The synergy between domestic and international supply chains gives us a distinct competitive edge.

The second point concerns building a global team. Language barriers can indeed hinder overseas expansion. Our team consists of international talent, many of whom are overseas students with strong language skills and familiarity with local markets. We call our team “hexagonal warriors” because they effectively handle both domestic and international markets, achieving dual efficiency. This approach outperforms conventional teams in terms of human resource efficiency and cost control.

Take sales as an example. How do we balance domestic and international talent and operations? Domestically, the second and third quarters are peak seasons for beverages, while the first and fourth quarters are off-season as colder weather reduces demand. During these off-seasons, our team shifts focus to Southeast Asian and U.S. markets, balancing business operations through international markets. This ensures that even during domestic off-seasons, our team remains engaged and focused, optimizing resources and markets. This efficiency is critical and serves as a valuable reference for other brands venturing overseas. In the early stages of our venture, we lacked the resources to separate domestic and international operations entirely, which led us to establish the “hexagonal warrior” team.

Moderator Wang Hui: There was a case of a soy sauce brand whose overseas products differed significantly from those sold domestically. In contrast, Metavita aims for global development, maintaining synergy between the Chinese and international markets in several aspects, including shared growth and innovation. This ensures that the products familiar to Chinese consumers remain consistent with those available in overseas markets.

Now, let’s turn to Mr. Xiong. Given the diverse product categories in China and the numerous countries in Southeast Asia, Tanyoto has successfully expanded to several of these markets. Could you share which product categories are easier to introduce into international markets?

GTMS Group Tanyu Brand Overseas Business, Head Xiong Chenyu: Mr. Su mentioned not distinguishing between Chinese and U.S. markets. In my view, this distinction is significant. It's akin to planting a seed—a seed that helps a brand grow into a global brand. As Mr. Nie pointed out, wherever there’s profit, that’s where we should go, and every market has categories suitable for itself. Taking Tanyoto as an example, while we have entered many markets, there are still many markets we haven’t ventured into. Some markets are inherently resistant to spicy products.

For a founder, having the right mindset and determination is crucial. It’s essential to spend a month in the target market personally; this isn’t something that can be outsourced to a strategic consulting firm. The restaurant business is unique and cannot be managed like other industries.

Additionally, Chinese tea beverage brands are facing intense competition overseas but struggle to penetrate high-end markets in Europe and the Americas. Why? These regions have stringent food safety regulations. Many tea beverage brands in China promote their products as "milk tea," but the milk used is often liquid non-dairy creamer containing thickeners. While advertisements may omit this detail, the ingredient list reveals it. Would we serve such products to our own children? This highlights why Chinese brands often face criticism abroad. To succeed internationally, we must adhere to local rules and respect local consumers; only then will they respect our brands.

Moderator Wang Hui: Thank you, Mr. Xiong. Now, a question for Mr. Nie. We’ve been discussing Chinese cuisine going global, but from a global perspective, could you share an example of an international restaurant brand we can learn from?

Nie Nan, Founder & CEO of HotBird Globalization: In my opinion, Chinese cuisine faces two major benchmarks when going global: Haidilao and Happy Lamb Hotpot. Happy Lamb is one of the earliest and most exemplary pioneers of Chinese cuisine internationally.

In terms of global restaurant brands, McDonald’s is an undeniable giant. It’s not only the world’s largest fast-food chain but also the largest meat supplier and toy distributor globally. McDonald’s serves as the ultimate goal for all restaurant businesses.

For Chinese restaurants, the pinnacle is Din Tai Fung. It has deliberately avoided scaling up but achieves annual single-store revenues of $30–50 million. Din Tai Fung is a perfect example of East-West fusion. In our eyes, it’s a Chinese brand, but to foreigners, it feels like an international brand. This differentiation is its unique advantage.

Finally, I’d mention a U.S. brand called CheckFlay. It operates only six days a week, closing every Sunday for religious observance. This unique characteristic gives it a strong sense of differentiation in the market.

Moderator Wang Hui: Mr. Yang, you have a unique methodology for Chinese cuisine expanding globally. Could you share it with us?

Yang Ou, CMO of Happy Lamb Hotpot International: Excellent companies share a common trait—they are soulful organizations. Chick-fil-A, for example, is a company full of soul, guided by unwavering faith. This faith ranks first among the five critical elements for global expansion. The importance of having a clear purpose cannot be overstated. Before venturing abroad, a company must clarify its goals and objectives. How far a company can go largely depends on the founder's vision, mindset, faith, and philosophy. Delving into the experiences of these exemplary companies provides invaluable lessons for Chinese enterprises pursuing globalization.

Secondly, companies going global must approach the journey with humility and respect. Chinese restaurant brands and other enterprises alike should avoid adopting a mindset of "crushing foreign competitors." This attitude is counterproductive. Look at successful companies like McDonald’s—they strike a balance among suppliers, customers, and consumers. They contribute to society by providing fair prices to suppliers, ensuring quality products, and delivering value to customers. Franchisees and partners also benefit. Brands like Fat Donglai and Sam’s Club exemplify contributing positively to society and local communities.

When Chinese companies enter overseas markets, if they rely on low-cost competition, disrupt local labor markets, force employees to work overtime, or neglect their well-being, they undermine local ecosystems. This leads to resistance, not because of intentional targeting but due to the disruption of local balances. In e-commerce, for instance, price wars have prompted the U.S. to impose tariffs on Chinese goods, and future restrictions may follow.

What overseas markets truly value is investment in the local community—opening stores, creating jobs, offering good employee benefits, and delivering high-quality products to customers. These actions represent differentiated value and contributions to society rather than merely pursuing profits or market share. The more a company focuses solely on seizing market share, the more likely it is to face backlash. Chinese companies must reflect on this. The lack of respect for local markets contradicts the humility and harmony emphasized in traditional Chinese culture. Instead of being market disruptors, Chinese companies should aim to be value creators.

Additionally, companies should integrate more deeply into local markets and establish a presence by hiring local employees—such as white managers—and ensuring that over 70% of the workforce consists of locals. This approach fosters genuine internationalization, going beyond catering solely to Chinese communities to achieving deeper local market penetration and long-term growth.

Lastly, localized operations are crucial. Companies need international teams whose members have overseas educational backgrounds, a deep understanding of foreign cultures, and more than a decade of local experience. Having team members permanently based abroad is key to effectively managing and growing the brand.

Moderator Wang Hui: This roundtable has been closely aligned with local consumer insights, and it’s these perspectives that bring such depth to our discussion. Let me conclude with a slogan for Chinese cuisine's global journey: telling the story of Chinese food brands and spreading the beauty of Chinese culinary culture worldwide. It’s not just about opening stores abroad—it’s about taking brands global, which is a higher-level challenge, especially for top leadership. Chinese cuisine is a beautiful endeavor, and we hope to share this beauty with consumers across the globe. Thank you to all our panelists!