South Beauty Group

South Beauty Group is a Chinese restaurant chain established in 2000 by Zhang Lan. The inaugural restaurant opened in Beijing's China World Trade Center, targeting a clientele of white-collar workers with its blend of authentic Sichuan cuisine and upscale dining environments. The founder, Zhang Lan, began her entrepreneurial journey after returning to China in the early 1990s from Canada with $20,000 she had saved. She initially opened other restaurants before consolidating her efforts and capital, around 60 million yuan, to launch the South Beauty brand, focusing on the mid-to-high-end dining sector.

The company operates on a model of directly-operated chain restaurants, focusing on a modern interpretation of Sichuan cuisine while also incorporating other styles like Cantonese and French. A key aspect of its strategy was creating a unique dining experience, combining food with stylish decor and ambiance. The business experienced significant growth, becoming the designated Chinese food service provider for the 2008 Beijing Olympic Games and the 2010 Shanghai World Expo. By the end of October 2013, the group operated 80 restaurants across 24 cities in China. Over the years, the company also launched other brands, including the high-end Lan Club and SUBU.

The group's history includes several major financial and ownership transitions. In 2008, Zhang Lan sold a 10.5% stake to private equity firm CDH Investments for 200 million yuan to fuel expansion, under an agreement that hinged on the company going public by the end of 2012. After failed attempts to list on both the A-share market in mainland China and later in Hong Kong, South Beauty faced a clause requiring it to buy back CDH's stake. This financial pressure led to a significant turning point in 2014, when European private equity firm CVC Capital Partners acquired a majority stake of 82.7%. Following this acquisition, Zhang Lan remained as chairwoman for a period but eventually exited the company she founded. The company has since undergone further ownership changes, with Everpine Capital and later Tianxing Overseas Hai Group taking control, aiming to rejuvenate the brand by focusing on product quality and targeting a younger demographic.

Keywords: South Beauty Group, Zhang Lan, Chinese cuisine, Sichuan restaurant, high-end dining, restaurant chain, Beijing Olympics caterer, CVC Capital Partners, CDH Investments, Lan Club, restaurant investment, Chinese food service, hospitality group, fine dining China, culinary brand, food and beverage, corporate catering, restaurant management, Everpine Capital, premium dining