Chanson International Closing The Year In Expansion Mode

From seasonal pies to tasty treats, Chanson International Holdings CHSN, a provider of bakery, seasonal and beverage products, reports it is serving up its food and beverage menu to a growing list of consumers in the U.S. and China. To meet that demand and drum up more, Chanson is expanding and inking partnerships. 

Expansion is a key focus area for the company. In November Chanson announced it expects its total number of chain stores in China and the U.S. to reach 60 by the end of 2024. The company currently operates 49 stores in China, with eight more set to open by the end of the year. In the U.S., Chanson said it is close to opening three more stores. It's a big increase from Chanson's initial public offering in April 2023, when the company had a total of 37 stores, and surpasses its goal to open three to five new stores each year. 

"Our expansion strategy allows us to optimize resource allocation and respond to customer demands swiftly and effectively, ultimately driving growth in key markets. As part of our long-term vision, we are dedicated to enhancing our brand presence across China and the United States, delivering outstanding dining experiences to guests," said Gang Li, Chairman and CEO of Chanson. "This strategy not only accelerates store openings but also strengthens our position as a trusted and innovative leader in the bakery and beverage industry. We are confident that our focus on service excellence and quality will continue to drive sustainable growth and customer loyalty."

At the new locations, Chanson said it expects to deliver a curated selection of packaged bakery products, freshly made pastries and an extensive beverage menu, focusing on healthy, ready-to-eat options along with what it says is impeccable service in a cozy café ambiance. The idea is to create a space where customers can relax and socialize. 

Sweet Treats On The Fly 

The expansion comes as bakeries are popping up around the U.S. and China, driving growth and sales. Globally the market for specialty bakeries is on an upswing, with sales projected to reach $731.69 billion by 2032, growing at a CAGR of 5.4% between now and 2032. The U.S., in particular, is projected to see strong growth, with the market in the U.S. reaching $148.98 billion by 2032, driven by consumption of bread, cakes and pastries. 

Driving a lot of the demand for bakery products around the world is convenience and the evolving lifestyles of people who are increasingly living busy and hectic lifestyles. They can pop into a bakery like those operated by Chanson and get a quick meal or snack on the go. Pre-made and pre-packaged food items tend to be affordable, which is also driving demand.  

Chanson Drinks To Growth 

Beyond opening more stores as Chanson closes out 2024, the company is also expanding its brand by inking collaborations like the one it just signed with Xinjiang Hengtai Investment Co., Ltd., a hotel and restaurant management company to expand Chanson's coffee brand Soul ● Song, through a franchise operation model in Yili, Xinjiang, China. Chanson said the deal is a milestone in developing the coffee brand, deepening its presence and extending its brand name in the Xinjiang region, which is home to 25.89 million people and a tourist destination. 

In July, Chanson opened a Soul ● Song café in partnership with Xinjiang Hengtai at the scenic Nalati National Tourist Resort in Yili, Xinjiang, China. According to Chanson, the company's Soul ● Song's coffee brand's “blend bean concept” – which highlights the art of blending – offering diverse flavors to suit every customer’s unique taste has resonated with customers. Chanson said the café quickly became a must-visit destination within the resort, breaking Chanson's single-day coffee-related sales record by achieving daily sales of RMB 30,000 on both Aug. 8 and Aug. 15, 2024. That marked Chanson’s first attempt at adopting a franchise model, partnering with a local enterprise for mutual growth and success. Building on its growing influence in the Yili region, Chanson plans to open five additional Soul ● Song cafés under the franchise model by 2025.

"The introduction of the franchise model is a key milestone in the growth of our Soul ● Song brand, and underscoring a commitment to enhancing our marketing strategy and brand visibility. After thorough investigation and analysis, we selected the picturesque and culturally rich 5A-level tourist resort in Nalati as the ideal location to showcase our brand's uniqueness and positioning within a high-quality consumption environment," said Li. A 5A-level tourist resort is the highest rating by the Chinese government, awarded to China's important and well-maintained tourist attractions. "Our goal is to provide consumers with an unprecedented experience that combines food and cultural elements. We believe that this franchise model will foster sustainable growth for Chanson while contributing to the vitality of Xinjiang's local tourism economy," the CEO said.

Bakeries, cafes and coffee shops in China and the U.S. are growing as consumers seek out tasty treats and healthy snacks that are quick to grab and eat on the go. Chanson wants to be the bakery of choice to serve consumers, whether they are in a rush or want to kick back in a cafe. It is expanding and inking partnerships to meet that end, which could be part of why the stock is up more than 500% year-to-date as of Nov. 29, having witnessed a significant uptick shortly after the company's most recent earnings announcement. 

To learn more about this expanding bakery chain, click here. 

Featured photo by Mink Mingle on Unsplash.

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