Q&A: Panda Express founders
Panda Express founders Andrew and Peggy Cherng talk continued growth, start-up success.
April 16, 2008
When Andrew and Peggy Cherng launched Panda Express more than 20 years ago, Chinese cuisine in the United States had yet to find mainstream appeal. Built on the success of Panda Inn, the restaurant started by Andrew and his father, Ming-Tsai Cherng, Andrew and Peggy grew Panda Express into what it is today: the fast-casual category leader in Asian cuisine.
In 2007, Panda Express boasted $1 billion in sales across its 1,000 U.S.-based locations, and it continues to grow even as other chains as scaling back operations or permanently closing their doors. Here is what the Cherngs told Fast Casual about the success of Panda Express and their continued philanthropic efforts.
When you opened the first Panda Inn restaurant in 1973, what was your vision for the restaurant's future?
When we opened the first Panda Inn restaurant in 1973 in Pasadena, Calif., our main vision was to be able to stay in business, in order to support our family and all of our employees. Now, with more than 1,000 restaurants in 36 states — and growing at 160 new restaurants a year — what Panda has become is beyond our wildest dreams.
How and when was the idea for Panda Express developed?
We were approached by a friend and regular guest of Panda Inn who was developing a new mall in Glendale, Calif. We were asked to create a version of our sit-down restaurant that could be adaptable to the mall. Without any experience, we accepted the challenge and opened our first Panda Express in 1983. Many of our Panda Express entrees have roots at Panda Inn.
Were there any hidden challenges to launching an express model? If so, how did you overcome them?
We had beginner's luck and were very fortunate when we launched Panda Express.
While other chains have taken an economic hit during the current recession,Panda Express continues to open units. To what do you attribute the company's current success?
Panda Express' success is largely attributed to the 17,000-plus associates in our organization. Our mission is to deliver exceptional Asian dining experiences by building an organization where people are inspired to better their lives. Great business naturally results from doing all we can to can to help our people succeed in every aspect of their lives. This enables us to focus on providing great food, great service and great ambiance for our guests.
Why is Panda Cares such an important aspect of Panda Restaurant Group's operation?
Panda Cares' purpose is to promote the spirit of giving and establish a caring presence in communities where Panda Restaurant Group's guests and associates live and work. As one of our Panda core values states: "We give our time and resources to support each other and our communities."
I recently read where Panda Express hosted Chinese New Year celebrations at schools in Las Vegas, Los Angeles, San Diego and Phoenix. What was the idea behind these community programs, and were they a success?
As part of Panda Express' annual Chinese New Year celebration, we reached out to elementary students across the county to share with them a piece of our culture. This is a great opportunity for our local operators to directly give back to their communities. We designed a fun and interactive curriculum, which was taught to the students by our associates. In many of the schools, we also hosted a catered lunch for the entire student body. Overall, this program impacted over 20,000 students.
Your corporate headquarters incorporates the principles of feng shui in its design. Do you see more Americans embracing those ideals, especially now that McDonald's has announced a feng-shui inspired restaurant in Hacienda Heights, Calif.?
As the practice of feng shui becomes more popular, I can definitely see it being further embraced by Americans, who are very open to new and different cultures and ideas.
If you were to give any restaurant-industry advice to those just starting out, what would it be?
Focus on providing the best food and building trust with and among your associates to better serve guests.
