Greenery Cafe to Add 300 Stores and Launch G Coffee by 2014

In the early 2010s, Chinese restaurant chains faced extreme difficulty getting listed on the A-share market. Only two—Quanjude and Xiangeqing—had ever succeeded. Others, like NetEase Ya, Guangzhou Restaurant, and even international names like Little Sheep and South Beauty, either withdrew applications or failed due to inconsistent profitability. Regulators were said to be considering raising the required annual profit threshold from 30 million RMB to 50 million RMB.

Greenery Cafe, a Guangzhou-based Western restaurant chain founded in 1989, planned to have 300 stores by 2014 and was gearing up for a potential IPO—despite the hurdles.

Why IPOs Were (and Are) Tough for Chinese Restaurants

Analysts said the high IPO bar for restaurants stemmed from unreliable financial reporting. Many lacked proper invoices for farm-market ingredient purchases or verifiable sales records. The average restaurant lifespan was just 2.3 years—shorter than small businesses overall. But Greenery Cafe had reportedly survived and grown for over 20 years, with over 100 outlets nationally.

How Greenery Cafe Prepared for Scale and Compliance

By 2014, Greenery Cafe had introduced several key operational changes. The company built a centralized processing center and invested in SAP enterprise software. It centralized purchasing—buying directly from groups like the Australian Beef Association and the U.S. Alaska Seafood Marketing Institute—and standardized all transactions to be non-reversible. These moves supported the shift from a single-brand, experience-led management style to a professional, multi-brand corporate structure.

The chain had also secured 20 million RMB in venture capital—not to rush toward IPO, but to build a scalable, modern management system. This included support for banquets and online ordering. According to franchisee Huang Tao (pseudonym), with about 500,000 RMB in profit per store needed to reach the 50 million RMB target across 100 locations, Greenery’s daily sales of over 1,000 steak dishes showed solid performance. CEO Lin Xin emphasized long-term brand sustainability over a quick listing.

From Franchising to Company-Owned Growth

While franchisees lined up with investment offers, Greenery Cafe chose to limit franchising. CEO Lin Xin said the company aimed to adjust its store ownership ratio from 40% company-owned / 60% franchised to 60% / 40% by 2014. The goal was 300 total stores, including a push into Shanghai as part of a national expansion. Franchise stores didn’t contribute fully to corporate revenue and posed brand risks, though Lin Xin noted the company would still use franchising in smaller cities to combat counterfeit operations.

Rather than forcing buybacks, Greenery preferred repurchasing equity to gain majority control of franchises. The company believed that true scalability required vertically integrated operations—like supplying its own processed beef and sauces—and partnerships with major real estate firms such as Shenzhen International Trust, Dalian Wanda, and Guangzhou Grandbuy to manage rising rent costs via revenue-sharing leases.

Introducing G Coffee: A New Brand for Young Professionals

To broaden appeal beyond full-service restaurants, Greenery launched G Coffee—a sub-brand targeting young urban professionals. The first G Coffee location opened at Guangzhou South Railway Station. It emphasized a healthy, low-calorie coffee experience and positioned itself as part of an “always on the way to the café” lifestyle.

G Coffee complemented Greenery’s existing brand by attracting a different customer segment and allowing co-location strategies similar to McDonald’s dessert kiosks. Lin Xin projected 500 G Coffee outlets within five years. Like the main brand, G Coffee aimed to leverage centralized resources while offering a more casual, quick-access coffee option.

Frequently Asked Questions

What was Greenery Cafe’s store count goal for 2014?

Greenery Cafe aimed to expand to 300 total locations across China by 2014, up from around 100 stores previously.

Why did Chinese restaurants struggle to go public in the early 2010s?

Chinese regulators found it difficult to verify the accuracy of restaurant financials, particularly regarding revenue and ingredient costs, leading to concerns over sustainable profitability. There was talk of raising the minimum required annual profit for IPO eligibility from 30 million RMB to 50 million RMB.

How did Greenery Cafe prepare for potential IPO compliance?

Greenery invested in centralized systems including a processing center, SAP enterprise software, and direct sourcing from suppliers like the Australian Beef Association. It also adopted non-reversible financial processes and brought in 20 million RMB in venture capital to build scalable management practices.

What changes did Greenery make to its franchise strategy?

Greenery reduced reliance on franchising, aiming to shift store ownership from 40% company-owned / 60% franchised to 60% / 40% by 2014. The company preferred to buy back franchise equity to gain control and would still use franchising selectively in smaller markets to counter brand piracy.

What is G Coffee and who is it for?

G Coffee is a Greenery sub-brand targeting young professionals, offering a healthy, low-calorie coffee experience. The first location opened at Guangzhou South Railway Station, with plans to grow to 500 stores within five years.