Venture(US:VEMLY) Jing Ji Guan Cha Wang·2025-09-19 09:24Core Viewpoint - The founder of Yunhaiyao, Zhao Han, has passed away, which raises concerns about the future leadership and direction of the company, a leading player in the Yunnan cuisine restaurant sector [1][5]. Company Overview - Yunhaiyao specializes in Yunnan cuisine, particularly known for its steam pot chicken, and has been recognized as one of the top dining establishments in China [1][3]. - The company reported annual revenues exceeding 1 billion yuan in 2020, positioning itself among the top tier of Chinese casual dining chains [1]. - As of now, Yunhaiyao operates 138 stores across 15 provinces and cities in China, with 97% of its locations situated in shopping centers [1][3]. Founder’s Background - Zhao Han was born in 1985 in Kunming, Yunnan, and founded Yunhaiyao while studying at Renmin University of China [1][2]. - He initially faced challenges in establishing the first restaurant due to a lack of experience and the niche market for Yunnan cuisine, leading to early financial losses [2]. Business Strategy and Expansion - The company shifted its business model to focus on expansion within shopping centers, capitalizing on the growth of commercial real estate in China [3]. - Yunhaiyao has adapted its menu to cater to a broader audience, combining traditional Yunnan dishes with popular flavors to appeal to urban consumers [3]. Recent Challenges - Yunhaiyao faced a significant setback due to a food safety incident in Singapore, which resulted in food poisoning among employees of ByteDance, leading to legal repercussions and a fine [4]. - The company is also experiencing brand aging issues, with newer dining concepts gaining popularity among younger consumers [5]. Leadership Transition - Following Zhao Han's passing, the company’s operations are primarily managed by Lu Zhitang, with Zhao's focus shifting to restaurant investments [5]. - In February 2025, the board of directors was restructured, with Zhu Haiqin taking over as chairman and CEO, indicating a shift in leadership and strategic direction [5].