PAPA John's will increase its number of outlets in China to 500 over the next 10 years.

The pizza chain announced its ambitious expansion plan at the opening of its 45th Chinese mainland outlet in Shanghai. "I actually think it will be more than that," said Nigel Travis, president & chief executive officer of Papa John's International Inc.

The company expects that as China's middle class expands, so too will its army of pizza lovers. Papa John's will also open its first outlet in Hong Kong either this year or next.

The company sees huge potential in the international market as the American market saturates. Its six main growth vehicles are Mexico, the UK, Russia, Korea, India and China.  "And the biggest by far in terms of population, potential market and current speed of development is China," said Travis.

Localization helped papa John's quick expansion in China. "We have a local management team so they could understand customers' need better," said Garrison Chu, general manager of Shanghai Bangyuehan Catering Management Co Ltd, a franchisee of Papa John's International.  "We have lots of food such as rice and noodles on our menu that caters for the local taste," said Chu.

In China, franchising will make up 20 percent in future expansion. "Over time franchise may grow," said Travis. "At present it's a question of maturity."

Papa John's biggest rival on the mainland, Pizza Hut, will start franchising delivery outlets by the end of this year. The delivery outlets were set up to compete with Papa John's own delivery service.

Source:佚名