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Top Chinese restaurant chains eye Taiwan market

by Staff Writers
Taipei (AFP) July 24, 2009
As political tensions ease and trade ties boom, China is taking on a new challenge -- to win over Taiwan with its culinary clout.

A number of China's leading restaurant brands, notably Peking Quanjude, Tianjin Goubuli and Chongqing Cygnet, are aiming to expand their business to the island as early as this year, the companies and reports said.

Others might follow, with a delegation from more than 20 restaurant chains scheduled to visit Taiwan in August on a fact-finding trip, according to the Beijing-based China Cuisine Association.

The expansion became possible when Taiwan recently lifted a decade-old ban on investment by Chinese firms or individuals -- the latest step forward in rapidly improving ties.

Under the new investment measures in effect since June 30, Chinese investors will be permitted to buy into 100 categories in the island's infrastructure, manufacturing and service sectors, including restaurants.

Taiwan and China have been governed separately since 1949, when the nationalist Kuomintang fled to the island after losing a civil war to the Chinese communists.

Over the years, various Chinese cuisines took root in Taiwan along with some 1.5 million mainlanders who relocated here. Famous dishes such as Peking duck and Sichuan hot pot became regular favourites on the island.

Officially, China still claims sovereignty over Taiwan but business and civil exchanges have boomed since Beijing-friendly President Ma Ying-jeou took office last year.

The main challenge for Chinese investors is to find the right local partner and serve genuine cuisine despite the lack of original ingredients -- the reason hot pot chains Tanyutou and Little Sheep stumbled in Taiwan after managing to invest indirectly through Hong Kong, observers say.

"Tanyutou's partner wasn't an industry pro while Little Sheep just can't pull it off when its key ingredient, the Inner Mongolian sheep, was unavailable," said food critic Wang Jue-yao.

Quanjude, China's oldest Peking duck restaurant, is facing similar obstacles because of Taiwan's ban on Chinese poultry imports over bird flu concerns.

"We want to make authentic Peking roast duck but Peking duck has fatty skin and tender meat while Taiwanese duck is leaner. There is still some gap" in taste, said Quanjude chef Bi Quansheng at a recent promotion in Taipei.

The stakes are even higher now for the Chinese players looking to conquer Taiwan's competitive culinary world, critic Wang said.

"Since none had been successful, for companies like Quanjude which sees itself as China's number one restaurant brand it must succeed at the first try. It is a face issue," she said.

"The Taiwan market is very symbolic. It would be a sort of an ideological victory to be the first Chinese company to succeed here."

Some local restaurateurs, however, are sceptical about their Chinese peers expanding to the island amid the recession.

"It is already very difficult to turn profits in Taiwan's restaurant business and recent economic downturns make it even harder," said Chuang Li-yu, who has run a Peking duck restaurant in Taipei for 30 years.

"I think those big-name Chinese restaurants can generate some buzz at first but after the novelty wears off they have to manage to build a loyal clientele," she said.

Jennifer Shang, chief of China Cuisine Association's international division, is optimistic, saying Tanyutou's closure in Taiwan was "an individual case" which should not discourage others.

"Members of our delegation are interested in the Taiwan market. They are looking forward to seeing it first hand and exchanging ideas with Taiwanese restaurateurs," she told AFP.

Quanjude got a boost during a recent two-week food festival in the island's two largest cities Taipei and Kaohsiung, with patrons fully booking its duck banquet priced at around 7,260 Taiwan dollars (220 US) for a table of five.

"We are confident and it has long been our wish to make roast duck for Taiwanese people," said Quanjude vice general manager Liu Xiaohung in Taipei.

"We believe it will meet most people's taste."

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