Cherng advised the viewers that on the finish of 2023, Panda made the strategic—and profitable—resolution to sharpen its give attention to its core menu choices.
This yr, Panda Restaurant Group is anticipated to earn greater than $6.2 billion in gross sales, making it one of many largest restaurant manufacturers in North America. Andrea Cherng, its Chief Model Officer and daughter of co-CEOs Andrew and Peggy Cherng, calls the corporate’s success an “American Dream come true.”
On the Nationwide Restaurant Affiliation’s Supply Chain Spring Conference, Cherng advised attendees that Panda, which began out as a single “mom-and-pop” restaurant, is now a world model with 2,500 shops, however at all times poised to reinvent itself when vital.
Inform us about Panda’s historical past.
Panda Restaurant Group began as a single restaurant in Pasadena, CA, opened by my grandfather, Grasp Chef Ming-Tsai Cherng, and my father, Andrew Cherng, in 1973. My father loves to inform the story of how, within the early years, he used to chase individuals down the road simply to get them to attempt the restaurant. He anticipated it to be an immediate success, nevertheless it wasn’t. It took 4 years of studying what our prospects actually wished, analyzing opponents, and refining our menu and method earlier than we discovered success. At present, we’ve grown to 2,500 eating places and 55,000 associates.
It’s been an unbelievable journey. Whereas we’ve grown and advanced, we stay grounded in the identical rules that formed us from the start. Our values mirror these of my dad and mom: a deep respect for heritage, a relentless drive to maneuver ahead, and a deep caring for the individuals who make all the pieces doable. We’re dedicated to creating pathways to alternative for everybody, which leads to the expansion of our individuals, groups, and model. Although we’re rooted in our origins as a family-run enterprise, these very values encourage us to maintain shifting ahead—adapting, innovating, and striving to fulfill the altering wants of the world round us.
How does Panda keep aggressive and stay related?
We’re seeing extra Restricted Time Gives (LTOs) flooding the market than ever earlier than. We’re additionally navigating challenges, like worth wars, tariffs, and the speedy rise of AI—whether or not we’re prepared for it or not.
In these unsure and disruptive instances, it’s extra vital than ever to embrace openness and a willingness to study. We’ve got a alternative: can we method these challenges with agency conviction, or can we lean into curiosity? It’s curiosity that opens the door to reinvention. Are we curious sufficient to rethink and reshape our personal recreation? And are our suppliers and companions strolling that path with us?
We’d like trustworthy conversations about how the buyer panorama and our class are evolving. Solely by understanding these shifts can we create new, efficient approaches that meet the second and set us as much as thrive.
How do you entice prospects in such a difficult surroundings?
Constructing belief and genuinely understanding your customers’ wants is crucial for long-term success. With out this basis, sustained development can change into difficult. Customers at this time outline worth otherwise than they did even six months in the past. If we focus solely on worth, however overlook the model expertise, it could remedy our present gross sales challenges however leaves the query of future gross sales development unanswered.
What are some large adjustments Panda is engaged on?
On the finish of 2023, we made the strategic resolution to sharpen our give attention to our core menu choices. We’re finest recognized for our Panda Plates — basic two-item combos like half chow mein and half fried rice, paired with a double serving of our Authentic Orange Hen. Our precedence was to raise the standard of each plate as a result of that’s what our customers worth most: higher high quality and stronger worth for the worth.
How is the model reinventing itself?
As we stepped into 2024 and competitors intensified, we acknowledged the necessity to rethink how we have interaction our company. Our response was twofold: improve our core choices and introduce extra LTOs than ever earlier than. This spirit of reinvention continues to drive us at this time. We method this second with curiosity and dedication, centered on evolving in ways in which higher meet the altering wants and expectations of our prospects and gasoline our future development.
