Helen’s Tests a Barbecue-and-Tavern Format for Lower-Tier Markets

This is an English adaptation of a FoodBud historical article originally published on July 13, 2022.

In May 2022, Helen’s opened a large-format store in Lichuan, Enshi, Hubei, testing a new model for lower-tier markets: afternoon tea by day, barbecue and drinks by night.

Lichuan is the hometown of Helen’s founder Xu Bingzhong, making it a symbolic test market for a potential second growth curve. The Longchuan Tianjie store covers 560 square meters and positions itself as an upgraded “street barbecue stall + tavern” concept for younger consumers.

During the afternoon, the store sells coffee, milk tea, pizza and other tea-time products. In the evening, it shifts to barbecue, braised snacks and drinks. Since opening, the pilot store has reportedly generated average daily sales of RMB 20,000-30,000, implying monthly revenue above RMB 600,000.

A Tavern Model Adapted for County-Level Markets

FoodBud asked a local contact in Lichuan to visit the store on a rainy weekday evening. The indoor area was full, and most outdoor tables were occupied.

At first glance, the store photos on Dianping made the outlet look like a Western-style restaurant. In practice, it was a drinking and barbecue venue.

The Lichuan store was opened in cooperation with a local developer, rather than as a fully self-operated store. Helen’s did not pay rent. The two sides were testing the model together and planned to determine the revenue-sharing ratio after the store had operated for three full months.

The location is notable: Lichuan is a lower-tier market with about 200,000 people and no university campus. The store sits between two bar-type venues, one more design-led and photo-friendly, the other more high-end. Both neighboring bars reportedly had weak traffic.

The barbecue add-on has produced one clear lesson: barbecue appears to lift alcohol sales. Guests who ordered barbecue consumed noticeably more drinks than those who did not, raising average ticket size.

At the Lichuan store, barbecue had reached 10% of sales, compared with just 1% when Helen’s previously tried to promote barbecue items. The gross margin on barbecue products was about 70%.

Based on the Lichuan result, Helen’s had already made small-scale adjustments at more than 20 stores in Wuhan between the May opening and mid-June 2022, adding barbecue items for testing. The retrofit mainly required one or two barbecue cooks, related equipment and a small kitchen expansion.

According to Helen’s disclosed information at the time, the company planned to select another 20 county-level markets in central China similar to Lichuan for small-scale validation. It also planned to expand the Wuhan barbecue test from more than 20 stores to a second batch of 180 stores, with any third-round rollout to be decided based on actual results.

To support the new product integration and validate the new store model, Helen’s brought in an external vice president-level executive and invited an experienced supply-chain expert as an adviser.

Competing With Barbecue Street Stalls?

The Lichuan store was a meaningful experiment for lower-tier markets. These markets were less affected by pandemic restrictions at the time, and young consumers had fewer tavern options. Compared with traditional street barbecue stalls, Helen’s advantages included air conditioning, a more designed space and cleaner restrooms.

According to Jihai brand-monitoring data cited in the article, Helen’s store count had expanded to 891. In the first half of 2022, Helen’s opened 130 new stores, with an annual target of 300 openings.

Helen’s already faced tavern competitors such as Haiwuli and Perry’s. By adding barbecue, however, it also began to overlap with barbecue-chain operators.

Regional barbecue chains such as Muwu BBQ in South China and Fengmao Skewers in Beijing were already established players. Whether Helen’s could standardize barbecue products and deliver consistently strong flavor still required observation, because barbecue execution is operationally demanding.

At the same time, barbecue chains were also strengthening alcohol sales. Muwu BBQ had built its own brewing center and developed an affiliated in-store drinks brand called “Ganbei” to reinforce beverage sales.

Helen’s 2021 annual report showed revenue of RMB 1.8 billion and 782 stores at year-end. The article noted that barbecue chains such as Muwu BBQ might be able to generate comparable revenue with around 200 stores.

The likely convergence is clear: tavern chains need to improve food items that pair with alcohol, while barbecue chains need stronger alcohol supply chains. Their starting points differ: Helen’s began with drinks, while Muwu BBQ and similar chains began with barbecue.

Note: store-opening targets and rollout plans in this article are historical figures from 2022.