Strategic Development Plan for the Next Five Years

After four years of in-depth research and analysis of the catering services market in the U.S., the company has decided to focus on the U.S. catering market in its future strategic development plan.

1. Development plan in the U.S. for the next five years:

(1) From 2023 to 2024, the company will first invest in opening two high-end Chinese restaurants with over 200 dining seats in Boston.

(2) From 2025 to 2026, the company will invest in opening one high-end, high-standard flagship Chinese restaurant with over 200 dining seats in New York.

2. Reasons for placing a strategic focus on investing in the U.S. catering services market:

(1) The market size of the catering services sector in the U.S. is huge, with a valuation of about USD 900 billion.

(2) The competition of Chinese restaurants in the U.S. is much smaller than that in the Chinese mainland (for Shunfeng, there is even no rival). Chinese restaurants in the U.S. are generally less competitive than the company. Compared with these peers, Shunfeng possesses nearly three decades of experience in running high-end restaurants and has developed outstanding signature dishes, so it is easier for Shunfeng to surpass its competitors and win customers in the Chinese restaurant market in the U.S.

(3) The per capita consumption expenditure in the U.S. is higher than that in the Chinese mainland (in terms of per-customer transaction), and the profits from investing in Chinese restaurants in the U.S. are higher than that in China.

(4) The costs for cold chain, logistics, food material procurement, etc., in the U.S. have an edge over those in the Chinese mainland. The gross profit margin, net profit, and return on investment in the U.S. are also higher than in the Chinese mainland.