Little Sheep

About Little Sheep

Founded in 1999 by Zhang Gang and Chen Hongkai in Baotou, Inner Mongolia, Little Sheep Group Limited has established itself as a significant player in the global restaurant industry. The company's inception stemmed from Zhang Gang's background in telecommunications and a frequent habit of dining on hot pot, which sparked the idea to venture into the restaurant business. The first Little Sheep restaurant opened on August 8, 1999, and its immediate success led to the rapid opening of two more locations within two months, setting the stage for a chain-store operation.

The business operates primarily as a hot pot restaurant chain, also specializing in condiments and meat processing. Little Sheep's business model revolves around both company-owned and franchised restaurants, serving a global clientele with locations across China, the United States, Canada, and Japan. Revenue is generated through catering services and the sale of related food products. A key differentiator is its Mongolian-inspired broth, which is rich enough to be served without the traditional dipping sauces, a concept that revolutionized the Chinese hot pot experience.

Significant milestones punctuate the company's history. By 2001, Little Sheep established a meat product processing base, and by 2003, it had opened its first overseas store in Los Angeles. In 2006, the company attracted $26 million in funding from 3i and Prax Capital to fuel its franchise growth. This was followed by a listing on the Hong Kong Stock Exchange in 2008, a first for a branded catering enterprise from China. A pivotal moment came in 2011 when Yum! Brands Inc. acquired the company for approximately $587 million, a deal that led to Little Sheep's delisting from the stock exchange in February 2012. Following the acquisition, Yum! Brands held a 93.2% stake, with the founders retaining the rest. In 2016, Yum! Brands spun off its Chinese operations into Yum China, which now includes Little Sheep in its portfolio. Dissatisfied with the new business philosophies, founder Zhang Gang went on to re-found the hot pot brand "Happy Lamb" in 2017.