Dexter entered the market relatively late, and sells and McDonald's is very similar so that when the Texter is said to be a copycat of McDonald's. Compared with the previous year added more than 400 stores, Texaco in 2015 significantly slowed down the pace of store opening, is expected to open 200 new stores this year. "This is the new normal for Texaco, the number of stores opening next year and the year after will definitely be more than this year, but the previous opening of 400 or 500 stores a year is definitely no longer the norm." Lee Ming-yuan, vice president of the restaurant business group of Texaco's parent company, Ting Hsin International Group, said. In addition, in the past, Texaco's new stores were mainly concentrated in big cities, but this year's 200 will be distributed more evenly, with a similar percentage in each region.
Just two years ago, Wei Ying-hsing, one of the founders of Ting Hsin Group, said Texaco wanted to expand at a high rate to achieve its long-term goal of reaching 25,000 stores in 2040 on the mainland. But now, Texaco is starting to emphasize more, "What we are pursuing is not blind growth in the number of stores, what we are pursuing is growth in store quality."
Blind expansion had cost Texaco dearly: In 1996, Top New Group bought the Texaco brand and opened its first store in Chengdu. At that time, Ting Hsin Group developed a "blossoming" strategy for Texaco, spreading out across the country. However, the simultaneous launch of operations in new markets such as Beijing, Shanghai and Chengdu left Texaco without a solid foundation and a complete structure. When the financial turmoil hit in 1998, Texaco's strategy got itself "bruised and battered".
After 1998, Texaco made adjustments and decided to do a good job with the entire organization, service and logistics structure before moving to the north market. It was from this time that Dex developed the basic business model of expanding the market scale through franchising based on the second and third-tier city markets, which has been used up to now.
Currently, the number of Dex stores in Shanghai has exceeded 40, 32 in Beijing and 25 in Guangzhou. According to Li Mingyuan, the strategy in the north and Guangzhou markets should be to build up the height of the Texaco brand and its psychological share among consumers (the ratio of the share the brand occupies in consumers' minds to the share the category as a whole occupies), not to rush to open as many stores as possible. How to open a successful store is more important than quickly open a lot of stores, but also a commitment to the franchisee.