Look Out McDonald's And KFC: Here Comes China's Alan Song
- Editor
- Mar 3
- 2 min read
Whats Happening:
Alan Song, founding partner of Harvest Capital, believes Chinese restaurant chains can become global brands rivaling McDonald's and KFC. Song's fund has invested in companies like LXJ International, Xiaocaiyuan, and Babi Food, which he thinks can become the "McDonald's and Starbucks of the East." Harvest Capital now has over $4 billion in assets under management and is expanding internationally.
Key Moves:
Harvest Capital has invested in Chinese restaurant chains like LXJ International and Xiaocaiyuan
The fund now has over $4 billion in assets under management
Harvest Capital is expanding internationally, establishing companies in the U.S., Japan, Singapore, and Hong Kong
By The Numbers:
Harvest Capital has over $4 billion in assets under management
The fund made a return of more than $1 billion from a $50 million investment in Eastroc
LXJ International, Harvest's largest Chinese fast-food chain investment, has 1,400 stores in China
Key Quotes:
"The companies we have invested in -- like Lao Xiang Ji ("LXJ International"), Xiaocaiyuan and Babi Food -- can all become the McDonald's and Starbucks of the East," - Alan Song
"Chinese people can create their own brands and deserve a better life. Chinese entrepreneurs will also become owners of outstanding brands like those in the West." - Alan Song
"The world is facing the possibility of consumption downgrade, and China is no exception. We will closely align with the development trends of the Chinese and global economies, placing greater emphasis on developing high-quality consumer industries" - Alan Song
Bottom Line:
Harvest Capital, led by Alan Song, is betting on Chinese restaurant chains becoming global brands. With over $4 billion in assets under management and successful investments in companies like LXJ International, the fund is expanding internationally. Song believes that as China transitions to a consumption-oriented society, there's significant room for growth in consumer spending, potentially spawning more global companies from China.
Comments