Zhang Lan cooks up beautiful success

A South Beauty Group restaurant in Shanghai. The group was set up in 2000 and has 71 restaurants, of which 43 are in major cities such as Beijing and Shanghai. Provided to China Daily

High-end dining experience

It was her resolve and passion for innovation that helped Zhang overcome many challenges when she decided to transform her single restaurant into a high-end chain, said An Yong, co-CEO of South Beauty Group, who credits Zhang for most of the group's success.

It was Zhang who insisted that the group should take the high-end dining route, said An, who has worked with the company for more than 12 years.

Beijing-based South Beauty Group was set up in 2000 and has 71 restaurants, of which 43 are in major cities such as Beijing and Shanghai. The restaurants, well known for their innovative fusion style of authentic Sichuan cuisine, are popular among businessmen and expatriates.

Though she declined to reveal the group's revenue and profit for this year, Zhang said the figures have been good.

Both revenue and profits have registered double-digit growth in recent years and are likely to continue to rise over the next five years, Zhang said during the opening ceremony of South Beauty's new restaurant in Yizhuang, Beijing, in September.

In 2008, CDH Investment and China International Capital Corp Ltd purchased a 10 percent stake in South Beauty for around 300 million yuan ($48.06 million). These investments put the value of the company at more than 3 billion yuan four years ago.

With accumulated wealth of 3.1 billion yuan, Zhang was also ranked as China's second-richest woman entrepreneur in the 2011 China Restaurant Rich List by Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, best known for its China Rich List, a ranking of the nation's wealthiest individuals.

Zhang said overseas expansion, a robust domestic market and a focus on innovation will be key weapons in her arsenal as she strives to achieve her goal of making the group a major global luxury brand.

But overseas expansion will have to wait for now, she said, as market conditions in Europe and the United States are not conducive enough. Due to uncertain economic conditions, South Beauty Group will initially look at investing in the Asian market, particularly in Singapore, and then Europe and the US.

Less ambitious compared with last year, when she announced that the group would open restaurants in London and Singapore by 2012, she said the group does not have a specific timetable for new overseas restaurant openings.

Most customers who visit the company's outlets are those with high disposable incomes who want high-end service and Zhang said she has the same target audience in mind for overseas markets.

But she said it is impossible for the group to set up restaurants in Chinatowns. Outlets in bustling commercial centers are the only choice.

Part of that strategy also lies in not complying with the old saying of "do as the Romans do" when tapping overseas markets, Zhang said, adding that the group's cuisine will, however, maintain the characteristics of traditional Chinese food.

"The distinctive and unique features of Chinese food are our biggest advantages when competing in overseas markets," Zhang said.

In 2007, the group began to increase its international profile by providing Chinese food on flights from China to France, the Netherlands and South Korea.

It began to win more global popularity when it was selected as the food and beverage provider for the 2008 Beijing Olympics.

Then it was invited by the Shanghai World Expo in 2010 to provide catering services at the exhibition venues. "These international events have given us great confidence in planning overseas expansion," Zhang said.

She likes to read biographies about successful global CEOs. She is "crazy" for management studies and has completed EMBA courses from China Europe International Business School and Cheung Kong Graduate School of Business, two of China's internationally acclaimed business schools. She is enrolled as an EMBA student at Shanghai Jiao Tong University.

"The case studies that are part of the study curriculum at the EMBA courses often give me a lot of inspiration and confidence," she said.

Zhang said the company plans to standardize its process in order to better control costs and foster expansion.

"Standardization is very important for Chinese restaurants to expand rapidly and steadily, because it can increase operational efficiency and ensure quality. We have also worked with (US global management consulting company) McKinsey to advance our standardization process," Zhang says.