CEO of Baifu Group and Founding Partner of ShenDianBao, Wang Xiaolong: The more single-minded the chain brand products are, the greater the survival pressure.

Why Multi-Category Operations Have Become a New Trend for Chain Brands?

On March 24, the 2026 China Catering Industry Festival and the 35th HCC Global Catering Industry Expo, co-hosted by the World Federation of Chinese Catering Industry and Hongcan Network, kicked off at the Hangzhou International Expo Center. At the “2026 China Catering Industry Conference,” Wang Xiaolong, CEO of Baifu Group and founding partner of Shendiabao, shared insights on the topic of “Current Market Situation and Response Strategies in the Catering Industry.”

Wang Xiaolong believes that the domestic economy has entered a structural transformation cycle, with the overall direction of the economy shifting from investment and export-driven to consumption-driven.

△Wang Xiaolong, CEO of Baifu Group and founding partner of Shendiabao

In this context, brands that have grown from the consumption upgrade dividend are undergoing painful transformations, with many brands experiencing continuous declines in comparable same-store sales. The original single-store model and business model of these brands no longer fit the current market situation.

The reason is that the successful experiences of these brands in the past may no longer be reliable. As times have changed, the key elements of the dividend have also changed—rents have increased, labor costs have risen, and consumer preferences have shifted. For example, regarding consumer preferences, today’s consumers are more focused on cost-effectiveness, prefer aesthetically pleasing products and stores, and rely more on online content to make choices.

Therefore, in light of the changes in the elements of the era dividend, continuing to adhere to the past “positioning theory” may exacerbate operational challenges for catering businesses. Wang Xiaolong stated, “Previously, catering brands became more competitive by focusing more, but now, for chain brands, the more singular the product, the greater the survival pressure.”

Wang Xiaolong summarized two response strategies for catering brands, starting from benchmark brands such as Sushi Ron, Uniqlo, and Salia that are resistant to economic cycles.

First, the business model is one of the key factors determining whether a company can grow, and the success of a business model is based on a profitable single-store model. In his view, the primary task for catering brands is to refine a single-store model that offers high product quality, good cost-effectiveness, high efficiency, aesthetic appeal, and low break-even points; to transform store models to multi-category, boutique varieties, multiple time slots, and omnichannel operations; to make full meals more like fast food, and to treat fast food and dinner as smaller full meals.

Second, franchising is the main strategy used by international benchmark catering brands to expand their footprint. Currently, China has a number of giant franchise operators, including several listed companies such as Yum China, McDonald’s China, and Domino’s China. “Leveraging super franchisees is an important tool for brand development,” Wang Xiaolong said.

Author: Hongcan Editorial Team