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LI FANGFANG
2005-09-12 08:02

Names can sometimes be just as deceiving as appearances.

Minor Group is determined to make it big in the major leagues of casual dining, and Chinese pizza lovers are in for a treat.

The company is a newcomer and has only two locations in Beijing, but it is ready to step up to the plate with Pizza Hut by franchising its operations.

"You can dream of big business, but you have to start by focusing on the details," says William E. Heinecke, chief executive officer of Minor Group.

Heinecke introduced world famous Pizza Hut to China in 1990 through franchises, which were available at the time for US$50,000.

The chain has since become extremely popular, especially among young people.

"The first thing is to train yourself to see gaps in the market and fill them. You will have the market all to yourself until the competition wakes up."

Heinecke is now handling the bigger challenges of bringing his own brand The Pizza Company and casual dining chain Sizzler to China.

"I have learned a lot over the years from Pizza Hut and now I want to make The Pizza Company the number one pizza brand in China," Heinecke says. He plans to open 1,818 Pizza Company and Sizzler outlets across the world and 400 in China by 2011.

Total investment in China will amount to 1.6 billion yuan (US$197.29 million) and Minor will employ up to 20,000 people.

Six Pizza Company restaurants will open this year, with five in Beijing and one in Zhengzhou, in Central China's Henan Province. Over the next six years, the company will open a total of 272 restaurants in China, and the number of Sizzler outlets will increase to approximately 100.

Pizza Hut has opened more than 180 restaurants in more than 50 cities across China over the past 15 years.

"We want to catch up. In Beijing, we will focus on equity investment and management, but outside the city, we welcome local franchises," Heinecke says.

Minor wants regional franchises to play a key role in the company's growth strategy. Experienced entrepreneurs with large capital will accelerate development, says Heinecke.

"China is an incubator for budding entrepreneurs, and franchising is one way to become one. I hope to inspire Chinese business people to work with us in the country's food service industry."

In Shanghai, the equity and franchises will exist side-by-side in the early stages. The franchise fees will differ from region to region, Heinecke adds.

"I believe Minor will be the leading multi-brand franchise operation in China. We can achieve it." The initial advertising push will be subdued, however. "We won't target consumers living five kilometres away. Ninety-five per cent of our customers live near the restaurants," says Todd Mischke, chief executive officer of Minor Group China.

The Pizza Company has been the top pizza brand in Thailand for years, with more than 65 per cent market share.

It now hopes to conquer China's second and third-tier cities to become the most popular pizza brand in China.

"Pizza Hut is our number one competitor in China and around the world. To beat them, we simply have to offer the best pizza, the best toppings, the best cheese and the best ingredients, served by the best people in the best environments," Heinecke says.

The Pizza Company plans to offer products that reflect both Chinese and regional preferences.

"China is one of the most important markets outside of Thailand for Minor Group. The country is growing quickly."

The experienced businessman encourages young people to establish their own businesses, and he plans to create an educational foundation with a Chinese university.

The Pizza Company has always emphasized innovative products. At its opening in Beijing, it introduced "Triple Crust," stuffed with cheese, bacon and sausage.

The Pizza Company's menu offers more than 20 different toppings, from classical Italian pepperoni and double cheese to the more unusual tropical seafood cocktail. Customers are also welcome to create their new combinations with their own selected toppings.

"Unlike Pizza Hut, we have our own cheese factory to offer the freshest food. I am sure The Pizza Company gives customers more for their money," says Heinecke.

The popular Sizzler chain serves steaks and offers a salad bar. The food and relaxed atmosphere are expected to be popular with middle class consumers.

"The all-you-can-eat salad bar has more than 50 items including soups, mixed salads, vegetables and fruit, plus a variety of dressings. It's an unforgettable casual dining experience," says Heinecke.

The Minor Group was established in 1967, and is made up of Minor International Plc and Minor Corporation Plc.

Minor International operates The Pizza Company, Sizzler, Dairy Queen, Burger King and Swensen's throughout Thailand, Kuwait, and China. The Minor Corporation also distributes lifestyle brands such as Laneige, Bossini, Esprit and Red Earth in Thailand.

(China Daily 09/12/2005 page3)

 
                 

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