How Two Ninety-Yuan Steaks Launched a Chain Empire

In late May, a new steakhouse called KaKa & King opened in Hangzhou — and promptly sold 29 RMB (about $4 USD) steaks to packed crowds. But while customers flocked for the price and Instagram-worthy decor, industry watchers missed the bigger play: this was just the first move in a much larger game.

The answer isn’t just a cheap steak. The real story? A master plan to roll out 200+ low-cost restaurants across China in under 18 months — starting with 50 by year’s end, anchored by that viral 29 RMB cut.

What Is KaKa & King — And Why Is It Different?

KaKa & King is the first brand in a new wave of budget-focused concepts from Cross-Strait Cafe, a major Chinese coffee and restaurant group. Launched in Hangzhou, the steakhouse quickly gained attention for its modern, youthful interior and shockingly low prices: a full steak meal for just 29 RMB. But industry observers initially assumed it was just a side project.

Instead, founder and chairman Yang Jinfah revealed it’s the spearhead of a massive rollout. “This is just the beginning,” he said in an exclusive interview. “We’ve got several more concepts in the pipeline.”

The Full Expansion Plan: From Steak To Stir-Fry

The brand’s ambitions go far beyond beef. The full portfolio of planned concepts includes:

• KaKa & King – Affordable steakhouse (launched)
• Treasure Island Thai City – Thai cuisine
• Public – Japanese teppanyaki (iron plate cooking)
• Magic Tower Legend – Bakery
• Future additions: Korean BBQ, hot pot, and general barbecue spots

The rollout is aggressive. In 2024 alone, the company plans to open 50 locations across major cities including Hangzhou (15 stores), Wuhan (8 stores), Chengdu, and Nanjing. By 2025, the goal is to hit 200 stores nationwide.

How They’re Scaling So Fast — And Cheaply

Yang credits Cross-Strait Cafe’s decade of operational experience, a strong talent pipeline, and — crucially — heavy investment in centralized kitchen infrastructure. The company has already poured 40 million RMB (approximately 19 million USD) into a new central kitchen facility in Xiasha, Hangzhou. This single kitchen is designed to supply ingredients for thousands of locations.

Further central kitchens are planned for Wuhan, Chongqing, Beijing, and Fuzhou. “For provincial capitals, we’ll run company-owned stores,” Yang explained. “But in second- and third-tier cities, we’ll use single-store franchising to accelerate expansion.”

The central kitchen also solves a critical cost issue. While typical steak restaurants face 20% food waste on cuts, Cross-Strait’s model minimizes waste — even repurposing trimmings into sauces. “We’ve turned what others see as a loss into an asset,” Yang noted. The group’s existing network of 600 coffee shops also gives it bulk-buying power on proteins and other key ingredients.

Frequently Asked Questions

What is KaKa & King?

KaKa & King is an affordable steakhouse brand launched by Cross-Strait Cafe in Hangzhou, China, offering meals like steak for as low as 29 RMB (around $4 USD). It features a modern, youth-oriented design and quickly became popular for its low price point.

How much does a steak cost at KaKa & King?

A steak meal at KaKa & King costs just 29 RMB (approximately $4 USD), an exceptionally low price for a full steak dish in urban China.

Is KaKa & King part of a larger chain?

Yes. KaKa & King is the first brand in a broader expansion plan by Cross-Strait Cafe. The company plans to launch multiple budget-focused restaurant concepts, including Thai, teppanyaki, bakery, Korean BBQ, and hot pot.

How many locations does Cross-Strait Cafe plan to open in 2024?

Cross-Strait Cafe aims to open 50 budget restaurants by the end of 2024, including 15 in Hangzhou, 8 in Wuhan, and others in Chengdu and Nanjing. The full 2024 target is 50 locations, leading to 200 by 2025.

What’s the strategy behind the rapid expansion?

The strategy combines existing operational expertise, a central kitchen system (with 40 million RMB invested in Hangzhou alone), and a franchise model for smaller cities. The central kitchen reduces food waste and supply costs, while franchising speeds up openings in lower-tier markets.

Why is Cross-Strait Cafe focusing on low-cost dining now?

Founder Yang Jinfah points to rising incomes — Chinese household earnings have grown over 10% annually — and increasing demand for affordable, high-quality casual dining. The company sees the next few years as a critical window to establish dominance in the budget segment.

Recommended FrontStreet Beans for Casual Dining Pairings

Try FrontStreet Coffee’s Ethiopia Huakui for a bright, juicy profile with blueberry and floral notes — perfect alongside a light steak or salad. For heartier dishes, their PWN Golden Mandheling brings deep chocolate and nuttiness with a syrupy body. Both beans highlight the balance and clarity that complement casual, affordable meals without overpowering them. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.