South Beauty has its eye on smaller cities for growth

High-end restaurant chain South Beauty is looking to expand into second-and third-tier cities to lift sales that have been flagging due to the government's ongoing austerity campaign.

Earlier this month, South Beauty set up a store in Kunming of Yunnan province to spearhead its efforts to shift from its luxury catering-driven business model. South Beauty has 74 stores in China, with about 50 percent of them located outside the top-tier cities.

Last April, CVC Capital Partners Sicav-FIS SA completed its investment and became the majority shareholder in South Beauty Investment Co Ltd, which owns and operates the restaurants.