How hard is doing business in china?

[civic94]

If i post it in the wrong forum, i sorry, please put it in the right one. i cant seem to find business.

A friend of a friend of mines wanted to go to china and start a restaurant, he saw on the news how some abc's in these past years have went back and started some businesses. from what i can see in the states, many chinese restaurants battle each other even though its america. yea, i know, chinese folks should help each other, but its doesnt work that way, the worst is nyc, theres just too many chinese restaurants. people keep on lowering their prices and workers pay gets cut, bosses dont make much.

anyways i can imagine that its very cut throat, someone will copy your idea, and someone will make it cheaper to a point where no one makes any profit, and of course, bribes.

does anyone know more about it? that friend of a friend kind of want another person to help out, but i dont think i will. but i still want to know how it is, and it might be an option if in the future, i change my mind.

[Mindmaxd]

The answer is NOT EASY,There are tons of restaurants in China,so for a new comer is a little hard,But if your reatautant are special and have a reasonable price and nice serive that will be more heplful for you to open market and gothter some popularity，In chinese is 人气,That is very important for a restaurant,Sometimes one customer will help you bring more new customers,The premise is this customer had a good feeling in your restaurant.

Chinese people like eat and that is why there are tons of restaurants,Now days in China many food are unsafe and people want eat healthy food,if you can do more on this way that will be nice.

I always wanna open one restaurant ,Hope this will help you.

[Scandinavian]

Further than what Mindmaxd says: The Chinese are also relatively conservative when it comes to food. I have met people, although not many, who are reluctant to eat in Chinese restaurants that serve food from other provinces. The selection of very tasty Chinese food at very low prices must mean that there is a need for a truly new idea in order to succeed, or just do what everyone else is doing and only achieve medium success.

Further than getting the business concept right. You also need to actually register a company in China. This is a lot easier to do if you are a Chinese national, so finding a partner in China may be the way to go. Setting up a foreign owned business is not impossible, just requires some paperwork.

[andysun731]

A special coffee bar near a university in China may be a good idea, because there are international students and Chinese students who would like to have some coffee or something western often.

[civic94]

cool thanks guys. he read about some abc's going to china to work and open businesses, and my aunt knows someones son thats doing the same thing, left america for china to do business, so thats why he wants to do so.

its seems like the chances of surviving is not high, but then again even in america its not that good of a chance.

Oh yea, does anyone know how much it will cost to open a small place, like maybe 1000 sf? maybe 50k usd? that friend of a friend told me he has that much to work with, I told him to look into bribes and make sure he has enough.

[count_zero]

"The Chinese are also relatively conservative when it comes to food"

I would say that they are conservative in what types of cuisine they will try. The amount of Italian restaurants in Beijing is unbelievable - but everyone's heard of pizza and pasta, right? And spaghetti, well that's just "Italian noodles".

I feel sorry for people who try and start up a Venezuelan restaurant or something more exotic.

[gougou]

Restaurants are difficult the world over - everyone wants to open one, few can really differentiate themselves. In Beijing, I'd guess that the foreigners making money in restaurants are virtually all geared toward the expat crowd (or, at the lower end of the spectrum, the student crowd).

Getting a partner in China comes with its own risks, as the story of Kro's nest shows. See here, or plenty of other places around the blogosphere. Also a few stories on Beiiing Boyce, such as this one.

Don't even start with bribes.

[civic94]

Restaurants are difficult the world over - everyone wants to open one, few can really differentiate themselves. In Beijing, I'd guess that the foreigners making money in restaurants are virtually all geared toward the expat crowd (or, at the lower end of the spectrum, the student crowd).

sounds good, i will let him know. He didnt think there is that much ex-pat geared resturaunts in big cities. His parents opened a couple of resturaunts in america, both failed but they have made their money during the good times and banked it. so he wants to do his own thing, was gearing towards american food too. but i think his skin color will not be a plus.

my uncle also told me that in america, chinese food can be so bad, but americans will still eat it if your in a suburb, if that same food is in china, only dogs and pigs would eat it, meaning that it has to be good to survive.

[liuzhou]

What no one has so far mentioned is that you also need a whole load of licences and permits before you even begin. You need a minimum cash capital and then, as you suggested, you have to bribe the fire inspectors (you need a fire certificate), food safety inspectors (well, they have such things after all) and health inspectors (all restaurant staff need health certificates).

Good luck! I wouldn't.

[jkhsu]

he read about some abc's going to china to work and open businesses, and my aunt knows someones son thats doing the same thing, left america for china to do business, so thats why he wants to do so.

Have you tried contacting that person's son that your aunt knows? He's probably a good place to start with questions.

You can also try contacting the American Chamber of Commerce.

Quite a few ABCs have opened restaurants in China. I've been to several of them (a Mexican restaurant, an American Diner, etc.) in Shanghai but I'm guessing those are the successful ones. I'm sure a lot of people have failed as well. There are so many factors that can affect your chance of success. If you're serious about opening a restaurant there, you need to do your research. Take a trip to China, talk to people who have done it and understand the need in the market.

[civic94]

Quite a few ABCs have opened restaurants in China. I've been to several of them (a Mexican restaurant, an American Diner, etc.) in Shanghai but I'm guessing those are the successful ones. I'm sure a lot of people have failed as well. There are so many factors that can affect your chance of success. If you're serious about opening a restaurant there, you need to do your research. Take a trip to China, talk to people who have done it and understand the need in the market.

Well since I was going to china in a year or two, thats how i met this guy, thru a friend. he wants a partner and i have to weigh my options.

just a question, if a ABC goes to china and opens a american food place, how does the locals view them? i mean, i can imagine if I was a average chinese person I would much rather go to a american food place with a white american as a boss, than a abc who's skin is still yellow.

like in nyc, some chinese who are cantonese only go to cantonese resturaunts/markets, while the fujianese folks go to their peoples businesses.

do some local folks see/dont like abc's as someone who forgot their ancestors, cant speak a lick of chinese, lucky to have citizenship, etc?

[gougou]

if I was a average chinese person I would much rather go to a american food place with a white american as a boss, than a abc who's skin is still yellow.

If you were an average Chinese, you wouldn't go to an American food place.

[civic94]

If you were an average Chinese, you wouldn't go to an American food place.

oh lol really? i thought some chinese will love to try amerincan stuff, or at least thats what i saw when i was at my university. all the guys wanted to get american girls, american friends, eat american food.

[anonymoose]

I had been going to reply to the original topic of this thread twice previously and each time got side-tracked by something else. Now I have the time to reply, but given your latest post, I want to comment on something else. You mentioned in another thread that white americans are american by default regardless of heritage, yet asians are always first and foremost seen as asians. But I wonder to what extent this is self inflicted. I mean, by saying things such as "when i was at my university. all the guys wanted to get american girls, american friends", it sounds like you are labeling yourself as non-american, and if so, then it is hardly surprising that others would do the same.

[liuzhou]

To get back on topic, in my experience the chances of an independent restaurant surviving in China are very low, more especially if they offer non-Chinese food. The racial profile of the owners is irrelevant.

There was an absolutely wonderful pizza place here a few years ago - best pizzas I have eaten outside of Italy. Every time I went, the place was empty and it didn't last a year. Then the execrable Pizza Hut opened and the locals were queuing up for miles to get in. They still are several years later.

Same with the French place before that. It lasted about nine months. It seems that the locals only want "foreign food" if it lives up to their very low expectations of what is supposedly western food. If it isn't McDonalds or KFC, it isn't real foreign food!

I am so tired of people telling me that western food is shit, when the only experience they have of western food is walking past a KFC once.

[civic94]

I mean, by saying things such as "when i was at my university. all the guys wanted to get american girls, american friends", it sounds like you are labeling yourself as non-american, and if so, then it is hardly surprising that others would do the same.

no, the mainland friends that i had was into that. I wasnt, I want to date chinese girls because its more rare, have chinese friends, and eat chinese food. im too used to being "one of a couple" of chinese folks in my high school of 1000 people.

Out of my 4 years in high school, i was class of 04, so during my freshmen year we had the 01, 02, 03 and 04, and my last year as a senior we had classes of 04, 05, 06, 07. 1000 people average per year. 7 years total, so its about 2500 students that i saw. out of all those 7 years there is less than 10 chinese people there, including me. I have no interest in american girls, food, or friends. been around that all my life. I have some american friends, it comes and goes, we cant get to be anymore than friends. we just cant relate, what they go thru in struggles deep inside dont match what i'm going thru. it goes to a point where ethnicity comes into play. I think thats for most people, usually but not all close/best friends are the same ethnicity.

[anonymoose]

I have no interest in american girls, food, or friends. been around that all my life. I have some american friends, it comes and goes, we cant get to be anymore than friends. we just cant relate, what they go thru in struggles deep inside dont match what i'm going thru. it goes to a point where ethnicity comes into play.

So what if the american girl is ethnically Chinese?

[civic94]

So what if the american girl is ethnically Chinese?

thats great. i guess it comes from me being around the american culture and my family wants me to marry chinese. where can i date and marry chinese if there is no chinese around?

really good questions that your asking me, and i know i have issues with my identity. family wants me to be chinese, and i have tried very hard to be chinese and learn cantonese, and as some of you may know, i found out how un-chinese i was when i went to a college in the middle of nowhere.

my aunt gets mad at my cousins when he speaks english, because she feels that his heritage is wiped out in just 1 generation. same goes for my mom, always tell me stories and traditions. many folks who come to america for a better life never expected their kids to be banana's, honeslty ;)

[jkhsu]

just a question, if a ABC goes to china and opens a american food place, how does the locals view them?

From my experience this is not a concern with Chinese locals. It is a bigger deal in the US though. For example, when I go to Japanese restaurants in the US, I typically try to find out if the owner / chef is Japanese. A lot of Taiwanese and Koreans open Japanese restaurants in the US (and some are very good btw). In China, I was brought to a few highly recommend Japanese and Korean restaurants by locals; never once did they (locals) know anything about the owners or even cared.

On the other hand, when I was at a French restaurant in a 5 star hotel in China, I did notice that they had a single French chef in clear view (it was an open kitchen). I'm guessing that this was more for the tourists who did care.

[civic94]

thanks for the replies. it helps. 1 more question, has tons of ABC's went to the big cities in china and opened a restaurant? i have been reading about it online.

I have told that friend of a friend about what you guys told me, but i think hes still going to try and find a partner with cash and time to do it with.