Chapter 36 – The Big Step Beyond the Province
The early summer air carried a hint of grilled beef and fresh-baked bread as Chen Hao walked through the newest Patriot Burger outlet in the provincial capital. Customers lined up, their chatter mixing with the sizzling from the kitchen. The Italian chain's branch across the street was also bustling — a sight that would have made any investor smile.
For Chen Hao, however, it was a reminder that his "money-losing project" was refusing to lose.
"Boss, we've finalized negotiations for the properties in Jiangnan City," Zhang Ming reported, handing over a folder. "Ten prime locations, all for outright purchase. Only one landlord insisted on a lease — a ten-year term. That makes the ratio exactly what you wanted: ninety percent owned, ten percent leased."
Chen Hao skimmed the papers, pleased. Good. Owned properties will bleed cash faster, he thought, conveniently ignoring that in the long run, these assets could only appreciate.
The Expansion Plan
The decision had been made — Patriot Burger and La Trattoria Italiana would no longer be confined to one province.
The first targets were three prosperous neighboring cities: Jiangnan, Donghai, and Beijiang.
The plan was straightforward on paper:
Patriot Burger: From 11 stores to 25 by year's end, with at least 12 of those outside the home province.
La Trattoria Italiana: From 8 stores to 15, with new branches following the burger chain's trail.
Cold Storage & Logistics: Land purchases in each target city to build regional supply hubs, even if local leasing would have been far cheaper.
When his management team reviewed the numbers, they stared at him like he'd lost his mind.
"Boss, building cold storage in every city during the first wave will tie up a huge amount of capital—"
"Exactly," Chen Hao interrupted. "Better to lock in losses early than get trapped later by suppliers or landlords."
The managers exchanged glances. In their minds, this was bold strategic vision. In Chen Hao's mind, it was glorious financial self-sabotage.
The "Hidden" Motivator
Privately, Chen Hao had another reason for owning every major asset. Rumors had been floating for months about competitors cutting supply lines, bribing local landlords, or buying out critical storage space.
By controlling his own properties and logistics, he believed he was over-insuring his business against failure.
Ironically, his department heads saw it as an unbeatable moat. "Boss is building the backbone of a national food empire," one whispered during lunch.
Laying the Group's Foundation
To simplify coordination, Chen Hao decided to bundle the two chains, the supply network, and cold storage into one parent entity.
The proposed name: Haitang Group.
On paper, it was a simple holding company. In reality, it was the first official step toward the "closed loop" supply chain he would one day regret not losing money on.
By the time the month ended, the first batch of construction crews were breaking ground on storage facilities, while teams of recruiters scouted for staff in the new cities.
Chen Hao looked at the updated budget sheet — tens of millions of yuan flowing out at once.
Finally… losses worth noticing, he thought, satisfied.
Meanwhile, his CFO quietly made a note in the margin: Projected long-term asset appreciation: substantial.