Culinary traditions ride fast-food lane in China

In the bustling landscape of fast-food chains in China, Tastien, a Chinese burger chain hailing from Fujian province in East China, often goes unnoticed by many.

With just 22 stores in Beijing, Tastien pales in comparison to the wide presence of quick-service restaurant, or QSR giants, such as McDonald's and KFC.

Nestled in remote corners of the city, Tastien's locations remain elusive to most of my friends and colleagues. They are yet to savor its delectable Chinese buns.

My attempts to describe the unique flavor of Tastien burgers as compared to their Western counterparts proved inadequate.

On a recent Tuesday afternoon, when Tastien runs its weekly promotional offers, I counted four customers at one of its QSRs in Beijing. I ordered a set of its popular Chinese-style burgers with duck meat filling. They were supposed to taste different from Western-style burgers. My taste buds, however, struggled to discern nuanced differences. A part of my mind went 'Is innovation in taste then just a marketing gimmick?'

The rise of Tastien, nevertheless, represents a growing appetite among young consumers for fast food that celebrates Chinese culinary traditions and ingredients. Tastien's buns and minced meat have their origins in roujiamo, a local snack from Shaanxi province in Northwest China.

Tastien infuses its menu, branding, products and store design with Chinese cultural elements. While Tastien may still be relatively unknown in major cities, its name resonates strongly in second- and third-tier cities, even reaching rural regions, where it faces less competition from global fast-food labels.

With a network of 7,254 stores spanning 342 cities in 22 provincial-level regions, Tastien ranks as the third-largest QSR brand that serves Chinese-style burgers in China, trailing Wallace that boasts 19,976 stores and KFC with 10,749 stores.

Among the big names, only McDonald's has fewer (less than 7,000) restaurants in China than Tastien. What sets Tastien apart is its significant presence in small cities, where nearly half of its stores are located. In contrast, only about 37 percent of KFC restaurants were in these cities by the end of last year.

As Tastien continues to expand its footprint, its official website displays a prominent banner ad for franchising opportunities. Tastien's franchisees are said to be aged between 23 and 40, operating stores with a usable area of over 65 square meters each.

The total cost of establishing a store, including franchise fee, deposit, brand usage fee, design and decoration fee, equipment fee and material fee, reportedly adds up to about 450,000 yuan ($62,100), according to Blue Whale Finance.

Rent and transfer fee can swell the total investment for a store to the range of 750,000 yuan to 800,000 yuan, according to media reports.

While franchise eligibility has been enhanced, the profit threshold for entry remains decreased. One report said Tastien stores typically achieve a gross profit margin of 55 percent to 65 percent, with takeout services yielding margins of 45 percent to 55 percent.

With an average order price of around 20 yuan and a daily sales volume of 250 orders, stores generate daily turnover exceeding 6,000 yuan each, barely breaking even.

The payback period for a store typically ranges from one-and-a-half to two years. Tastien, however, has been facing challenges in operations and innovations.

Despite being dubbed the maker of "Chinese hamburgers", Tastien's business model involves on-site production by employees, different from the standardized procedures found in Western fast-food chains.

While handcrafted burgers enhance taste, they also impact meal delivery speed and incur higher labor and kitchen area costs.

A high repurchase rate is crucial for sustained success in the QSR space. While many restaurants highlight affordability, Tastien stands out with Chinese burgers that whet the curiosity of visitors. But on the delivery and takeout platforms, the top-selling Tastien food is its fried chicken burger, not the bun with Chinese fillings.

The ability to retain users ultimately depends on taste. Only when users remember the flavor will they repurchase a food. Yet, sooner or later, Tastien will find its place in the market, I think.