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Dicos fast-food chain to re-enter Xiamen market

Updated: 13 Sep 2009
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On 10th September, 2009, Dicos signed a contract with the Huijing Group to open its new direct managed chain store in the Huijing Shopping Mall, Xiang'an District of Xiamen.
 
Mr. Lin, the person in charge of marketing for Dicos in the South Fujian Area, said, “Dicos plans to open 4-5 new restaurants in Xiamen. The site preparation has got under way.”
 
The signing for the opening of the new Dicos restaurant in the Huijing Shopping Mall indicated that Discos will restart its market in Xiamen.
 
Earlier in July, the Dicos fast-food chain closed another restaurant at Changqing Road in Xiamen, following the previous closure of its Malong restaurant in May. Many industry insiders believe that the intense competition of Xiamen’s fast-food industry is the main reason.
 
For this, Lin explained, "The franchisees were very cautious about the market as they think the shop rent is too expensive and the personnel costs are too high in Xiamen, leading to the slow development of Dicos in Xiamen."

In view of this situation, Dicos decided to withdraw all the franchise stores. The new outles will all be direct managed chain stores.
 
Translated by WOXnews.com
SOURCE Link: Taihainet
 
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