Opens first Asian outlet in Shanghai
SHANGHAI: Applebee’s International Inc, which operates around 2,000 restaurants mostly in North America, plans a rapid expansion drive in Asia that will focus on China, India and Southeast Asia.
The firm, who is motto is “eatin’ good in the neighbourhood”, opened its first Asian restaurant in Shanghai on Friday, and another two in the city should be open by the end of 2008.
“China is a spring board for us for all of Asia,” Rohan George, president in charge of international business, said.
“Our timetable is based on how we grow in China,” George said. “As our model takes shape, we’ll start moving very quickly.”
Applebee’s, which has opened on average 100 new restaurants a year since 1993, is looking at expansion into India, Thailand, Malaysia, Singapore and the Philippines, George said.
The Overland Park, Kansas-based company uses a franchise system for nearly three quarters of its restaurants, where its signature meals include oriental chicken salad, riblets, and fiesta lime chicken.In China, Applebee’s is offering oriental dishes such as mango shrimp salad and orange plum fish fillet to try to compete against US chains such as Yum Brands Inc, which operates Pizza Hut, and McDonald’s Corp for a 200 billion yuan ($26.7 billion) fast-food market.
Pizza Hut leads with more than 250 restaurants in 60 Chinese cities, while Papa John’s has over 50 stores in 12 cities. Applebee’s will target younger customers in China than it does in the US, where the average bill for a meal last year came to $11 per person.
“It is the right time to come to China,” George said in the new restaurant, where a photo of Chinese basketball player Yao Ming was projected onto a wall. “In the past five years, especially Shanghai, we start to see a new consumer base coming about. They’re young, vibrant, trendy and looking forward to having a good time.”
Applebee’s, which is in the process of being acquired by IHOP Corp, currently operates just over 1,900 restaurants, including in the US, Mexico, Canada and Brazil.
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