Chinese Retaurant Chain Raises $30 Million

Zhejiang C.Straits Food Chain Co. Ltd., a Western cuisine restaurant chain in China, has raised $30 million from Goldman Sachs and Whitesun Equity Partners. The company plans to go public “in the near future.”

 

PRESS RELEASE 

Zhejiang C.Straits Food Chain Co. Ltd. (“C.straits Cafe” or 'the

Company”) made an announcement today (April 10) in relation to

the closing of US$30 million investment from the Goldman Sachs

Group, an international investment bank and one of the top 500

enterprises in the world, and Whitesun Equity Partners. C.straits

Cafe would invite representatives from these two strategic

investors to join the Company's Board of directors. Working closely

with these two investors, C.straits Cafe aims to achieve the goal of

opening 1,000 stores in China in the near future.

 

“C.straits Cafe” is already a famous brand of western cuisine

and cafe chain in China and the Company currently operates a total

of 400 direct own and franchised stores. The Company has also

entered into a strategic alliance with the Kai Yuan Hotel Group (“Kai

Yuan”), a premium hotel operator in China. C.straits Cafe and Kai

Yuan plans to jointly expand their market position in the PRC and

open high-end hotels equipped with western style cuisine and

teppanyaki services provided by C.straits Cafe.

 

C.straits Cafe's President, Ms. Jin Mei-Yang, said, “Goldman

Sachs Group and Whitesun's investment is a great recognition for

the brand and people of C.straits Cafe. The Company will continue

to focus on strengthening the brand value of C.straits Cafe and

providing its customers with high quality cuisine and catering

service”. Ms. Jin believes that the strategic investors can help

enhance C.straits Cafe's corporate governance and improve the

Company's management practices in the long run.

 

David Chou, Managing Director of the Goldman Sachs Group,

stated, “Catering industry in China has huge growth potential given Chinese consumers' increasing per capita income. Among many different restaurant chains in China, C.straits Cafe has proved its unique positioning and execution capability. We will help the Company keep expanding its footprint in China and increase the number of restaurants with the aim to go public in the near future.”

 

David Lin, Managing General Partner of Whitesun Equity

Partners, said, “C.straits Cafe's excellent products and services are

tailored towards white-collars and business people in China. With

the booming Chinese economy and rapid accumulation of personal

wealth, the high-end catering industry in China will see robust

growth in the coming years.”

 

Kai Yuan currently operates more than 20 high-end hotels in

China. Kai Yuan's Director, Mr. Chen Miaolin, stated, “Kai Yuan

looks forward to work more closely with C. straits Cafe to open new stores in the future. Both companies have worked very well

together in the past and aims to strengthen the level of cooperation going forward.”

 

According to Ms. Jin, C.straits Cafe will divide its expansion

strategy into four major regions of China, including Eastern China,

Central China, Northern China and Western China, with Hangzhou,

Wuhan, Tianjin and Chongqing as the centers of each region. The

Company will simultaneously set up central kitchen, logistic

distribution, training schools and coffee bean factory in these

regions in order to provide consistent product quality, just-in-time

delivery, and frequent employee training. Ms. Jin believes that with

Goldman Sachs and Whitesun's help, the C.straits Cafe will see

more rapid development in the future and the Company's brand will

become a symbol of quality western style dining in China.

 

About C.straits Cafe: C.straits Cafe is a sino-foreign joint venture

company in China and it operates a nationwide chain of restaurants

 

focusing on western style cuisine and cafe. The Company was

founded by a female entrepreneur, Ms. Jin Mei-Yang, in Zhejiang

province with the aim to providing quality food and service to

consumers in China.

 

C.straits Cafe strives to provide an elegant and comfortable

environment for its customers to carry out business activities and

enjoy personal leisure time or other social activities. C.straits Cafe

has become a renowned brand of western style cuisine and

teppanyaki with over 400 nationwide restaurants. Both the

President, Jin Mei-Yang, and the Chairman, Yang Jin-Fa, wish to

foster a home-grown quality brand of western style cuisine in China.

 

About Goldman Sachs: Goldman Sachs is a leading global

investment banking, securities and investment management firm

that provides a wide range of services worldwide to a substantial

and diversified client base that includes corporations, financial

institutions, governments and high net worth individuals. Founded

in 1869, it is one of the oldest and largest investment banking firms.

 

The firm is headquartered in New York and maintains offices in

London, Frankfurt, Tokyo, Hong Kong and other major financial

centers around the world.

 

About Whitesun Equity Partners: Whitesun Equity Partners is an

international private equity fund and its majority shareholders

include renowned enterprises, banks and life insurance companies.

Whitesun typically invests in enterprises that have top quality

management teams and high growth potential.