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Chinanews, Beijing, Jan. 24 – A young man, who once wanted to open a Kentucky franchise1 chain store, was turned down by the high charges for opening the store. The young man then opened a new fast food restaurant and nine years later, he has earned 3 million yuan by selling his Chinese-style hamburgers, the Wealth magazine reported.
Nine years previously2, Liu Huanbao was a college graduate in Wuhan. After graduation, he made a living by doing various jobs. He sold electric appliances, made advertisements and later worked in the catering3 industry. One day, in order to avoid the summer heat, he happened to enter into a Kentucky chain store on Jianghan Road and found that the business was extremely good there. An idea suddenly occurred to him: Why not join Kentucky and open a chain store of his own? Prompted by this idea, he submitted his application letter right that afternoon. However, he later found that he had to pay 8 million yuan as franchise fees in order to join the Kentucky chain stores. In February, 1998, when he got a job in the Wuhan Kentucky Catering Co., Ltd. his first routing was cleaning! He worked as a cleaner for one month before he was transferred to make Kentucky fried chickens and hamburgers. By working in the Kentucky chain store, he learned how the fast food restaurant was managed. He was soon promoted as a manager trainee4. In early 1999, he quit his job and started his own business. Through investigation5, he found that in the large cities in China, most consumers who ate hamburgers were students. Although he could make hamburgers himself, he knew that they could not be compared with Kentucky hamburgers. So he decided6 to open a small hamburger store near schools and if business was good, he could expand his business later. In April, 1999, his own store, Pala Hamburger, was opened in a room he rented at the Wuhan No.6 Middle School. Since his store was located in a right place, he sold out all his hamburgers in the first business day with an earning of 740 yuan. Six months later, he employed 4 more workers in his store and his business revenue reached 100,000 yuan. After doing some research, he found that if he opened a chain store near a high school where the number of the students reached over 2,000, he would surely make much more profit. So he began to expand his business. By the end of 2004, Liu had opened more than 20 Pala Hamburger chain stores. In September 2005, Liu opened his Pala Hamburger Management Consulting Firm. Within one month, the consulting firm had three franchise chain stores in Wuhan. Now what concerns Liu most is how to manage his business well. He believes that if people choose to join his chain store, he will not let them down.
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