Pizza chain opens first franchise outlet in city
Posted on: 23/08/2006
The Shanghai Daily reports that Papa John's opened its first franchise pizza outlet on the mainland yesterday, and said it hopes to open about five more franchises around the country by the end of this year.
The first franchise, operated by Shanghai Bangyuehan Catering Management Co, Ltd, opened its doors on Wujiang Road in Shanghai's Minhang District. Papa John's International said it will limit its franchising business to eastern China, including Jiangsu, Zhejiang, and Shandong provinces, to begin with.
The franchise fee is 2.5 million yuan (US$312,000), and investors can choose to start from scratch and choose their own outlet location or to take over a ready-made restaurant. Franchises account for more than 80 percent of the American pizza chain's more than 3,000 outlets across the world.
"But in China, we will not use franchising as the main way of expanding at present, since the market environment is different here compared with in the US," said Garrison Chu, general manager of Shanghai Bangyuehan Catering Management Co, Ltd.
"We are very strict in choosing our franchisees, so our franchise business won't expand aggressively at this stage. This year, we will open up to five franchise outlets in the east part of China, and next year probably follow the same speed," he added.
"Pizza is a very promising section of the fast food market, I am very confident in making back the initial investment within five to six years," said Douglas Yang, marketing manager of the new franchise.
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