Japanese low-price cafe chain Doutor Coffee is heading to China following its parent company’s failed foray with pasta restaurants.
Doutor Nichires Holdings is partnering with restaurant group Xiao Nan Guo, whose business includes high-end Chinese dining. It flourished on lavish official meals funded by taxpayer money until President Xi Jinping cracked down on official extravagance.
As Chinese consumers become increasingly price-conscious, the partners see potential for the low-price Doutor Coffee chain.
Doutor Nichires, which also runs chains such as Excelsior Caffe and Hoshino Coffee in Japan, had three pasta restaurants in Shanghai until about three years ago. It now has 18 overseas locations, including cafes in Singapore.
