Da Niang Dumplings chain sold to hotel group
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One of China’s largest dumpling chains has been sold to a local hotel group.
Da Niang Dumplings, previously owned by private equity company CVC Capital Partners, has been bought by Shanghai-based hotel group GreenTree Inns Hotel Management Group.
Three years ago, when CVC took control, Da Niang Dumplings boasted more than 440 restaurants across China. It operates an integrated business model, manufacturing dumplings, then preparing and serving them at its restaurants, which target the budget end of the market. This is the first foray into food retailing for GreenTree, which manages and franchises more than 2500 hotels inside and outside China.
CVC is believed to have exited the business in the second half of last year after a fractious relationship with founder Wu Guoqiang. Last February, Wu publicly accused CVC of poor management leading to revenue declines of 10 per cent in 2014 and again in 2015.
Questions & Answers
Q.Which company has acquired the Da Niang Dumplings chain?
Which company has acquired the Da Niang Dumplings chain?
Shanghai-based GreenTree Inns Hotel Management Group, a company that manages and franchises over 2500 hotels, has purchased the dumpling chain. This marks their first venture into food retailing.
Q.What was the previous ownership structure of Da Niang Dumplings?
What was the previous ownership structure of Da Niang Dumplings?
Da Niang Dumplings was previously owned by the private equity company CVC Capital Partners. CVC had taken control of the business three years prior to its recent sale.
Q.Why did CVC Capital Partners decide to sell Da Niang Dumplings?
Why did CVC Capital Partners decide to sell Da Niang Dumplings?
CVC Capital Partners is believed to have exited due to a fractious relationship with founder Wu Guoqiang. Wu publicly criticised CVC for poor management, which he claimed led to significant revenue declines in 2014 and 2015.
Q.How many restaurants did Da Niang Dumplings operate when CVC took control?
How many restaurants did Da Niang Dumplings operate when CVC took control?
When CVC Capital Partners took control of Da Niang Dumplings three years ago, the chain boasted more than 440 restaurants across China. They target the budget end of the market.
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