Although Chinese takeaways are popular fixtures of almost every high street the length and breadth of the country, these outlets tend to be independent and do not utilise the “strength in numbers” marketing technique of rival chain food stores such as McDonald’s, KFC or Burger King. However, one firm which has enjoyed huge success in the South West of England is looking to change this trend, and is now actively seeking franchise partners in the West Midlands as part of a nationwide expansion programme.
Entrepreneur James Liang founded the Hotcha Chinese takeaway chain two years ago, and since then has seen the company go from strength to strength in its primary market through its strategy of recruiting experienced franchise partners. According to Mr Liang, franchise outlets in its existing market have an average annual turnover of around £500,000, equating to a profit of £150,000 each year.
After conducting a feasibility study, Hotcha directors have identified nine key locations in which they believe franchise outlets would have success similar to that in the South West. They are Harborne, Kings Heath, Shirley, Solihull, Earlsdon, Coventry, Stoke-on-Trent, Worcester and Stafford.
Speaking of the expansion, Mr Liang said; “We are looking for experienced franchisees with strong knowledge of their local markets, a successful track record in business or the food sector and the ambition to launch Hotcha stores in due course.
“Knowledge of Chinese cuisine is not a prerequisite, as we have developed efficient processes and a training programme which ensures that our food can be cooked quickly and to a high standard.”
Hotcha has taken on Andrew Emmerson as a non-executive director as a means of supporting the expansion, with his impressive track record lending credence to the plans in the eyes of potential investors. Fresh from a stint as an executive of Dunkin Donuts in the USA, he has been involved with firms such as Dominos Pizza, Upper Crust and Millie’s Cookies – therefore, he is bringing a wealth of experience in the hospitality sector to the role.
The expansion into the West Midlands, which has a relatively high market saturation of Chinese takeaway businesses, may be seen as risky, but if it pays off Hotcha will have effectively doubled its consumer base whilst gaining access to Birmingham’s growing local economy. Perhaps, as Mr Liang certainly believes, the time has finally come for Asian cuisine to explore national branding possibilities.
