Wei Laoxiang

About Wei Laoxiang

Wei Laoxiang Catering Management (Beijing) Co., Ltd. operates as a large, cross-regional restaurant chain in the Chinese catering market, specializing in sauce-fragrant hot pot. The company was established in 2004 by founder Wei Lijuan. From its inception, the business has pursued a dual-pronged growth strategy, combining directly operated stores with a franchise model to expand its footprint.

A significant milestone in the company's history was its listing on the Shanghai Equity Custody and Trading Center on April 16, 2015. This was followed by a strategic investment of 90 million RMB from Jinsheng Xinyuan Asset Management in March 2016. This capital injection was earmarked for several key initiatives, including a deeper penetration of the Beijing market by opening new, centrally located stores in shopping malls, enhancing brand promotion efforts, and upgrading the physical appearance and layout of its restaurants, such as adopting open-kitchen designs. By 2016, the chain had grown to 342 stores.

The core of Wei Laoxiang's business is its sauce-fragrant chicken hot pot. The business model relies on revenue from its directly-owned restaurants and franchise fees from its numerous partner-operated locations across more than 30 cities in China. In addition to its main hot pot brand, the company diversified its portfolio by launching a small hot pot brand, Juanjuanhong, and a noodle brand called La Xiaowan in 2015. This expansion demonstrates a strategy to capture different segments and dining preferences within the competitive casual dining sector.