Lamian Xiao Long Bao - Personal research

Market Research on Singaporean - chinese FnB chain

1. KTOP – REBRANDING Hanoi, 1 2 .2021 INITIAL MARKET RESEARCH Hanoi | 01.2022

2. CATEGORY 2. COMPETITOR 3. CUSTOMER 4. COMPANY 4C ANALYSIS

3. CATEGORY ANALYSIS

4. CATEGORY ANALYSIS Chinese Cuisine Market size & Growth 1. Asian-centric cuisines (including Hotpot, BBQ, Japanese, Korean, Chinese, Thai,…) have witnessed a large scale growth over the past 5 years and are anticipated to continuously to rise. 2. Currently, Chinese cuisine is more popular in HCMC compared to Hanoi. Source: Decision Lab – Food industry report (2018), Euromonitor - Foodservice in Vietnam, Foody HCMC 2018: ASIAN-CENTRIC: 64% 2022-2023: The predicted growth rate of Asian restaurants (14%) is higher than that of total FSR (5 %) HN The number of Chinese restaurants account for 4.6% total restaurants in Hanoi while 7.4% in HCMC. Besides Hotpot, Japanese & BBQ, CHINESE cuisine is another prospect segment to enter

5. HONGKONG/ CANTONESE SICHUAN/ HUNAN OTHERS SHANGHAI Taste: Light & flavourful Cooking: Fast cooking methods: stir-frying & steaming Representatives: Char siu , tea-smoked duck, shark fin soup, dried fry noodles,… Taste: Hot, spicy & numbing Cooking: Braising, double boiling & deep frying (use lots of seasoning) Representatives: Mapo tofu, hotpot, noodles,… i.e. NORTHERN CHINESE Taste: Meaty & pickled Cooking: Barbecuing, roasting are frequently used Main ingredients: wheat, mutton, beef Taste: Fresh, sweet & mellow Cooking: Red cooking method Representatives: Xiao Long Bao , soup dumplings, noodles, steamed crabs, fried pork buns,… CATEGORY ANALYSIS Chinese Cuisine Devision by Style Universally, Chinese cuisines are divided into 4 main styles

6. CATEGORY ANALYSIS Chinese Cuisine Devision by Style In Vietnam; however, Hongkong /Cantonese and Sichuan are the most popular.

7. COMPETITOR

8. Premium (>600K) Mid-priced (450K-600K) Value (250K-450K) E ntry (<250K) HONGKONG/ CANTONESE SICHUAN/ HUNAN SHANGHAI OTHERS (Chinese in general, Taiwanese, Northern Chinese…) COMPETITOR ANALYSIS Hao chi (4) Minh Ký (1) Feng Huang (5) Fu Rong Hua (1) Meiwei (9) Ngô Dining (1) Fortuna (1) Tim Ho Wan (1) Dim Tu Tac (4) Baoz Dimsum (2) Ocean Palace (1) Ngân Đình (3) Royal Garden (1) Haidilao (10) John Anthony (1) CJK (7) Dimsum Corner (3) Mỹ Tường Viên (5) San Fu Lou (16) CJ Palace (2) Based on the competitive landscape & estimated financial model of LMXLB, the brand is recommended to enter the VALUE SEGMENT (TA 250-450K) COMPETITOR ANALYSIS

9. VALUE SEGMENT (TA: 250 - 450K) KEY PLAYERS: SAN FU LOU, BAOZ DIMSUM, MỸ TƯỜNG VIÊN, MEIWEI

10. COMPETITOR ANALYSIS SAN FU LOU (4 STORES IN HANOI – 12 STORES IN HCMC) Signature : Dimsum , Roasts & Wok Style : Cantonese Reasons for coming : reputation (HCMC); Chinese-infused ambiance; dishes (HK roasted duck, salted egg bun) TA : 300K (buffet)/ 350-400K (ALC) CONCEPT CUSTOMERS Group of friends/colleague Couple

11. COMPETITOR ANALYSIS BAOZ DIMSUM (2 STORES IN HCMC) Signature : Dimsum Style : HongKong /Cantonese Reasons for coming : variety of food; good dimsum TA : 300 - 400K CONCEPT CUSTOMERS 2-3 generation family Group of friends/colleagues Couple

12. COMPETITOR ANALYSIS MỸ TƯỜNG VIÊN (4 STORES IN HANOI) Signature : Dimsum , Roasts & Wok Style : HongKong /Cantonese Reasons for coming : 40+ types of dimsum , roasted pig, P eking duck,… TA : 350K (buffet)/ 400K (ALC) CONCEPT CUSTOMERS Young family/ Senior family with grown-up children Group of friends/colleagues Couple

13. COMPETITOR ANALYSIS MEIWEI (4 STORES IN HANOI – 5 STORES IN HCMC) Signature : Dimsum , Roasts & Seafood Style : Chinese in general Reason for coming : Dimsum steamer on the table TA : 350K – 450K (ALC) CUSTOMERS Young family / Senior family with grown-up children Group of friends/colleagues Couple CONCEPT

14. Name Capacity TA Strength Weakness Signature dishes San Fu Lou (12 stores) 40 -70 seats per store 300 .000- 400 .000 Franchise – wellknown brand name Many locations Variety of food: dimsum buffet, hotpot, ALC (roasts, wok,...) In consist e nt at different location Dimsum : variety of choices 3-meat bqq dish San Fu Lou noodles Mỹ Tường Viên ( 4 store s ) 190 seats per store 350.000-400.000 Well-designed restaurants reflecting Chinese identity. Bad Service : bad staff attitude & slow operation. Roasted pig: Crispy skin Peking duck: Taste of skin roll Xiao Long Bao : Juicy sauce inside and fit-in size. Baoz Dimsum ( 2 stores) 150 - 200 seats per store 3 .000- 4 .000 Variety of Food Great Menu Selection Ambiance serves different group sizes Bad s ervice & i n consist e nt q uality , esp on public occasions Peking Duck Pineapply prawn Dimsum : variety of choices Mei Wei ( 9 stores) 150 - 200 seats per store 350.000- 450.000 Dimsum steamer on the table Spacious and nice ambiance Bad service Inconsistent quality Hongkong Roasted Seafood Dimsum Stir seafood noodles in a pot COMPETITOR SUMMARY Current key players are perceived quite all-rounded regarding offerings (diverse menu with fine quality & standard casual ambiance)

15. Menu comparison by variety Various No item   CJL Fenghuang Mỹ Tường Viên San Fu Lou Meiwei Furong Hua Baoz Dim tu tac Chi Dao Bao Appetiser 15 7 6 3   6   10   Xiao Long Bao 4 1 4   1 2 1 1 1 Dimsum 11 19 27 19 41 24 23 36 24 Lamian 11                 Noodle 6 8 16 19 17 5 5 20 Soup 4   6 6 5 5 6   8 Wok & Poultry & Meat 8   23 15   6     15 Seafood 6   7 7 14 1 11 10 14 Roasted meat     8 7 6 14 5 14 4 Vegetable & Tofu 10 12 6 6 10 4 2 18 31 Rice 6 1 5 4   5 7   13 Congee   1   4   2   3 4 Hot pot   24 26 48     18     COMPETITOR SUMMARY Regarding product variety, key competitors are regarded strong at not only Xiao Long Bao / Lamian but also roasts and wok.

16. Points of parity Sufficient v ariety of food Standard casual ambiance 2. Points of difference Authentic Xiao Long Bao & La Mian , focusing on freshly handmade on the spot Distinctive Shanghainese ambiance featuring unique elements such as “ shikumen ”,… DIFFERENTIATION STRATEGY Enjoying authentic Xiao Long Bao & La Mian in Shanghainese-infused atmosphere

17. CUSTOMER

18. FRIEND/COLLEAGUE Occasions: l unch, gathering,… The opinion leader in the group might be a “ dimsum lover” Love food at good value of money; comfortable but too noisy space COUPLE (Similar to couples eating Jack Saloon) Occasions: dating, hanging out,… Need: well-designed ambiance (fancy is a plus) and good quality food Love to try out trendy restaurant or unique concept Favor the whole experience other than singular food or service or product FAMILY (Similar to family groups of Manwah, CJK) Occasions: family gathering, celebration,… Need: diversity of food that is suitable for every family member. Love well-designed, comfortable but too noise space. Hate low service and bad staff attitude. CUSTOMER PORTRAIT

19. COMPANY

20. SWOT OPPORTUNITIES Asian cuisines (including Chinese) are regarded potential to grow in the near future. A dvantage of becoming the pioneer in the Shanghainese-cuisine sub segment . THREATS Challenge to educate customers about Xiao Long Bao and La Mian , which are lesser-known compared to dimsum /dumplings in general. Current key players are perceived quite all-rounded regarding offerings (diverse menu with fine quality & standard casual ambiance ). WEAKNESSES Lack of brand awareness in Vietnam. Roasts & wok dishes are not significant enough for customers to increase their spending. STRENGTHS The inheritance of CJ brand name helps endorse quality. Original Shanghainese Xiao Long Bao & La Mian creates distinctiveness and attracting customers. Golden Gate’s ecosystem would facilitate brand penetration. Take advantage of Shanghainese cuisine and ambiance to penetrate the market Emphasize on Xiao Long Bao & La Mian menu with great quality and variety Consider introducing selective protein dishes to upgrade customers’ spending

21. Key Partners Cooperate with key partner to acquire office/family customers (ex: banking, buildings near store location) Key opinion customers to popularize products/concepts. Delivery partners/platform Key Activities Product education: La Mian , Xiao Long Bao & Shanghai cuisine Refresh and include new item to menu. CX & service measure & improvement. Value Propositions Food: Variety of Xiao Long Bao & La Mian choice Authentic Shanghainese dish (protein) Service : energetic and attentive. Ambience : combination of Yangtze river identity (rustic) and artful contemporary details. Customer Relationships Customer collect info through social media Customer rating / feedback / collect loyalty benefit through TGS . Customer Segments Friends/colleagues (50%) Age: 25-30 Love: New experiences (food & ambience) to celebrate. Family with grown kid (35%) Age: 32-40 Love: Tasty and various food choices to all family. Couple (15%) Age: 25-40 Love: Good taste and aesthetic products/ambience. Channels Online : MXH: Facebook, Tiktok , Instagram. 3 rd party: Review group, MI with aesthetic choices. Offline : WOM; Store; CX case especially celebration/New experience. Key Resources Product: Product library and calendar. Resources : Focus on high quality food and good service: Wok kitchen 10) – Dimsum & La Mian Kitchen (6) – Service (8) Cost Structure Fixed cost 25.1% Cost of Sales 28% Cost of Labour 19% Marketing Fee 2% Other expenses 16.6% Revenue Stream ALC : 70% Buffet Dimsum : 15% Combo: 5% Đồ uống ( trà sữa , soft drink, rượu bia pha ,…) 10% + CJ LMXLB’S BUSINESS MODEL CANVAS

22. Based on performance of Singaporean CJL: Dimsum , Lamian , and Rice & Noodle are best sold. Propose to diversify these categories. Meat/Protein dishes aren’t various, hampering the ability to increase TA > Propose to add selecive protein dishes from CJK. Vegetable category: poor choices > Propose to add favorite items from CJK to balance customers’ meals. Original rice is important to Vietnamese > Propose to add rice and congee for children. Tea category is well contributed > should well exploit. Deserts contribute poorly > Propose to develop new items to fulfill the experience. CJ LMXLB MENU PROPOSAL DIVERSIFY DIMSUM, LA MIAN, RICE & NOODLE CHOICES INTRODUCE SELECTIVE PROTEIN DISHES TO UPGRADE CUSTOMERS’ SPENDING

23. Dựa vào bảng Producmix của LMXLB SNG, ta thấy XLB, Dimsum , Lamian , Rice&Noodle là những món bán được nhiều nên cần làm phong phú hơn ở những nhóm món này . Dựa trên Menu của LMXLB, cơ cấu các món rau vẫn còn nghèo nàn nên để bữa ăn của khách hàng cân bằng hơn cần thêm các món rau được yêu thích từ Menu CJK Trong Menu LMXLB, tỷ lệ Protein chiếm thấp nên khó có khả năng đẩy được TA lên cao . BU có đề xuất đưa thêm các món Protein từ CJK vào Menu của LMXLB Theo phong cách ẩm thực của người VN, thường có cơm trắng ăn kèm thức ăn nên BU có đề xuất cơm trắng và 1 món cháo cho Trẻ em Trà chiếm tỷ trọng lớn trong cơ cấu Producmix nên cần phát huy Các Món Dessert chiếm tỷ lệ thấp nên cần thêm những món hấp dẫn hơn để bữa ăn của khách hàng được full fill ( bổ sung Dương chi kim lộ từ CJK)

24. CJ LMXLB MENU PROPOSAL (cont.) CATEGORY PROPOSE TO ADD IN REASON Khai Vị Soup chua cay To well upsell Súp vi cá thịt cua To well upsell       Dimsum Bánh Xếp Triều Châu Diversify dimsum choice (the most ordered category) Sủi cảo chua cay Bánh Bao Kim Sa Há cảo tôm lá hẹ Há cảo hấp Xíu mại hấp       Rau Đậu Hà lan xào mộc nhĩ, ngó sen Supplement vegetables to balance customers' meal Rau xào trứng kim ngân Đậu hũ chiên muối tiêu Cải Hồng Kong xào tỏi       Món chính Đậu hũ Tứ Xuyên Add protein dishes to boost TA to more than 300k + Cá điêu hồng chiên sốt xì dầu (Con) Cá điêu hồng hấp kiểu Hong Kong (Con Tôm tươi hấp tỏi Kim ngân Tôm chiên hoàng kim Gà xào hạt điều & ớt khô Sườn Kinh Đô Chân gà hấp tàu xì       Cơm - cháo Cơm trắng Adapt to Vietnamese taste and choice for children Cơm - cháo Cháo thịt trứng bắc thảo       Tráng miệng Dương chi kim lộ Well-sold desserts at CJK

25. FINANCIAL MODEL ON EXCEL

26. APPENDIX

27. Name Logo TA Strength Weakness Signature concept/dishes Timhowan ( 1 store – seats: 100 ) 600.000 Ambience: Pandorama view. Brand: 3-star Michelin. Price is reasonable regarding its prestige. Location: Inconvenient parking. Sweet taste of dimsum. Poor choices & small portion. Good quality of dimsum BBQ bun: balance of sweet and sweet. Shrimp dumpling Pork dumpling: thin and leathery covering & crunchy stuffing. Fu Rong Hua ( 1 store – seats: 100 ) 500.000 Diverse menu: dimsum (including XLB); noodle; stir-fried; roasted;… Location: lake view Service: low and inconsistent, esp when crowded Roasted duck: crispy skin, flavourful meat Chicken feet dimsum : flavourful Fenghuang ( 4 stores – seats: 120 ) 300.000 Variety of food: especially dimsums which are served hot. Service (considerate service and CX scenarios) Service : slow operation. Dimsum : Salted egg bun 4-part hot pot 3-colored handmade noodles. Hao Chi ( 4 stores ) <70 seats per store 200.000 – 250.000 Good v alue for money Variety of dimsum with unique presentation Well -designed restaurants Small & a bit noisy space Charcoal dimsum Xiao Long Bao : Juicy sauce inside and fit-in size. Char siu noodles Dimsum Corner (3 stores ) <60 seats per store 130.000 – 150.000 Variety of dimsum which is served hot. Good value for money Inconsistent quality Dimsum : Salted egg bun, Mushroom bun, Har Gao,

28. COMPETITOR ANALYSIS VALUE SEGMENT | FENG HUANG (5 RESTAURANTS) Signature : Buffet Dimsum & Hotpot Style : Cantonese Strength: Wide range of dish from dimsum to hotpot Very value for money Weakness - Inconsistent quality (ambience is not mentioned) Customer portrait: Female & Male 30 – 45; Value seeker, group size >4 Psychographics & Behaviors Food Authenticity is not prioritized factor Occasion: Celebrate with family, group of friends or co-workers FENG HUANG CUSTOMER FENG HUANG CONCEPT

29. COMPETITOR ANALYSIS ENTRY SEGMENT | HAO CHI DIMSUM TAIPEI (4 STORES IN HANOI) Signature : Dimsum & Bobatea Style : Taipei - Boutique shophouse (<70 seats per store) Reasons for coming : variety of dimsum with unique presentation; stylish ambience; good value for money HAO CHI CONCEPT Couple dating Friends/colleagues hanging out Family with kids HAO CHI CUSTOMER