Zhao Gang, Founder of Huaxiaoxiao Xinjiang Fried Rice Noodles: Making fewer mistakes in business is more important than exerting more effort

GateUser-bd883c58 · 2026-03-28T09:11:23+00:00

The current dining market environment encourages brands to adopt a steady and prudent development strategy, focusing on maintaining cash flow, core regions, and product quality to improve profitability and repurchase rates. This approach helps them establish a foothold in the competition and build momentum to face future challenges.

GateUser-bd883c58

2026-03-28 09:11:23

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Ask AI · How does the current dining market environment drive brands to take a steady approach?

On March 25, the 2026 China Catering Industry Festival and the 35th HCC Global Catering Industry Expo, co-hosted by the World Federation of Chinese Catering Industry and Hongcan Network, was held at the Hangzhou International Conference and Exhibition Center. At the “2026 China Catering Industry Conference,” Zhao Gang, founder of Huaxiaoxiao Xinjiang Fried Rice Noodles, stated, “‘Guarding’ does not mean passively retreating, but rather developing steadily.”

△ Zhao Gang, founder of Huaxiaoxiao Xinjiang Fried Rice Noodles

In his view, current dining brands primarily need to focus on three aspects:

First, safeguard cash flow, prioritizing profit and focusing on the survival rate and profitability of stores. “In the past, many brands pursued a wide coverage of stores, but in today’s market environment, brands must center on single-store profitability.”

Second, protect core regions. More and more dining brands are shifting from a nationwide approach to deepening in specific regions. Previously, companies pursued a national layout, but the costs and risks associated with cross-regional development have grown exponentially. The more suitable path now is to safeguard regional markets and develop in mature business circles through densification, which can better solidify the brand’s moat.

Third, maintain product quality. Centering on customer consumption demands, the focus should shift from marketing-driven to repeat purchase-driven, ensuring product quality and achieving the best cost-performance ratio to enhance consumer repurchase.

“The so-called ‘guarding’ is to accumulate energy for the next cycle of development; making fewer mistakes is often more important than exerting more effort. By safeguarding cash flow and protecting the fundamentals like product repurchase, brands can traverse cycles and ultimately win the market,” Zhao Gang said.

Author: Hongcan Editorial Department

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