HONG KONG, Dec. 22, 2023 /PRNewswire/ — On 19th December 2023, Xiaocaiyuan, a leading Chinese restaurant chain, announced that it had completed a new financing round from China’s leading consumer institution, Harvest Capital. This is the second investment in Xiaocaiyuan after the first financing round was completed in March this year. As the exclusive investor of Xiaocaiyuan, Harvest Capital has invested RMB 500 million. In recent years, this has also been the largest financing source in China’s mass convenience catering market.
Xiaocaiyuan is a leader in China’s mass catering circuit, with over 500 directly managed restaurants, leading the industry in business scale, growth rate, and shop efficiency. Since its establishment in 2013, Xiaocaiyuan has adhered to a consumer-centric, standardized, digital, and intelligent system to serve the high-frequency and fast-growing mass catering industry and is recognized by Chinese consumers as a “family kitchen.”
In the first three quarters of 2023, Xiaocaiyuan improved on indicators such as shop numbers, same-store sales, and staff efficiency. Xiaocaiyuan’s growth against the trend fully validates the effectiveness of the Company’s long-term strategy of focusing on the direction of mass convenience catering and extreme value for money. With a deep understanding of catering modernization and standardization and strong execution, the management of Xiaocaiyuan will continue to provide consumers with “tasty and inexpensive” dishes and quality services.
China’s consumption is characterized by the transition from the third to the fourth era of consumption. Consumers’ sense of practicality influences the development of the catering industry, and mass catering services have the characteristics of immediate demand, high frequency, and high cost-effectiveness, representing “tasty and inexpensive.” This aligns with the development trend of China’s catering and consumer industries.
As the exclusive external investor of Xiaocaiyuan, Harvest Capital is firmly optimistic about China’s consumer market’s long-term value and potential. Harvest Capital believes that popular, just-demanded, high-frequency, cost-effective people’s livelihood consumption will constitute the future direction of China’s society’s consumption investment, which is the big race track with long slopes and thick snow. It meets the development needs of the times, satisfies the upgraded needs of the people from “cheap to good quality,” creates consumer welfare continuously, and has social value.
Xiaocaiyuan is an excellent consumer company that combines technology. The Company attaches great importance to digitization and intelligence, taking data assets as the core, and actively builds smart shops that integrate online and offline. In recent years, the Company has gone online with an SAP system, CRM system, BI system, SCM system, etc., realizing business, user digitalization, operation digitalization, and supply chain digitalization.
Song Xiangqian, Chairman of Harvest Capital, said, “Today’s business competition is, in essence, competing for entrepreneurs’ cognition, and even more so for their altruistic spirit and operation and management capabilities. We see such wisdom from the small vegetable garden team headed by Chairman Wang Shugao.”
The Company aspires to make mass convenience catering come into tens of thousands of households so that Xiaocaiyuan can become a community catering provider at the level of people’s infrastructure and a way of life for the Chinese people.
Xiaocaiyuan perfectly matches Harvest Capital’s investment criteria of “good industry, good company, good people.” As a “Champion Coach” and “Business Partner,” Harvest Capital will provide long-term services to Xiaocaiyuan and help it improve its capability. We believe that we will achieve the goal of “Wherever there are Ethnic Chinese, there are small vegetable gardens” as soon as possible.