Coming to America: just like their U.S. counterparts, Asia-based chains seek new revenue streams in foreign markets

Nation's Restaurant News, Feb 14, 2005 by Sarah E. Lockyer

Mike Craig, president and chief executive of Manchu Wok, a quick-service Chinese chain with more than 200 units in North America, says it may not necessarily be the concept's Asian ownership that attracts consumers, but Asian chefs and employees definitely make a difference.

"This comes up a fair bit in our research, that there is more authenticity to the restaurant if it is staffed by people of Asian background," Craig says. "Our company is top to bottom over 90-percent Chinese. Our entire operations team, from VP level to store manager, is Chinese."

Manchu Wok is partly owned by Cafe de Coral Group, based in Hong Kong. Cafe de Coral is a large restaurant company with quick-service brands operating under the trade names of Cafe de Coral, New Asia Dabao, Manchu Wok and Oliver's Super Sandwich, which the company acquired in June 2003. Other brands are Spaghetti House, Bravo le Cafe, Super Super Congee and Noodles, Bistro M and Ah Yee Leng Tong, as well as the catering business Asia Pacific Catering. The revenues of the company for the six months ended last Sept. 30 were about $191 million.

Craig says the "chaining" of the Asian segment, particularly the Chinese sector that Manchu Wok operates within, no doubt will pick up steam as larger operators continue to open units in the United States.

"It is very fragmented right now," he says. "But what will happen, as brands continue to grow and open new stores, is that people will become more used to buying [Asian] foods at branded or chain concepts like McDonald's. That part of the segment will grow, and it will grow because of consistency, quality and the kind of package presentation, the look of it."