Rebirth in Hong Kong: From Dessert Shop to Industrial Empire

Chapter 20 Initial Unveiling of the Blueprint
On the third day of the Lunar New Year, Chen Bingwen gave all employees a day off.

He and his parents were in the shop counting their earnings.

During the seven-day Lunar New Year Fair in Victoria Park, Chan Kee Dessert's total sales across all four stalls exceeded HK$580,000.

Aside from the 55,000 yuan for labor, materials, and bidding, the total cost, including all other expenses, is around 320,000 yuan.

In just seven days, Chen Bingwen earned 267,000 yuan.

Even after repaying the 80,000 yuan loan, I would still have 187,600 Hong Kong dollars in hand.

HK$187,600.

The seven-day frenzy of the Victoria Park Lunar New Year Fair earned Chan Ping Man his first real pot of gold.

Staring at the numbers on the passbook, Chen Guofu and Wang Qiaozhen stood to the side, their eyes wide open, deliberately holding their breath.

It was as if if the sound were raised even slightly, the mountain of wealth before them would vanish into thin air.

"Awen...this...this is all what we earned?" Chen Guofu unconsciously rubbed the corner of his clothes with his fingers.

"Yes, Dad. The final payment for the Victoria Park Lunar New Year Fair was settled yesterday. After deducting all costs, bonuses, wages, and the HK$80,000 loan to be repaid to Wing Lung, the net profit was HK$187,000."

HK$180,000 was an astronomical sum in Hong Kong in 1978, a sum that would take an ordinary worker ten or twenty years to save without eating or drinking.

Wang Qiaozhen looked at her son: "Awen, with so much money, how do you plan to use it? Save some? Buy a house?"

There was nothing she could do. Having been poor her whole life, suddenly acquiring wealth she had never dared to imagine before, Wang Qiaozhen had only the most basic wish of an ordinary citizen.

Chen Bingwen shook his head. Although his family of three still lived in the shop, he had no plans to buy a house. Renting an apartment in a couple of days would be enough. He wanted to use his money wisely.

He walked to the wall and pointed to the map of Hong Kong Island hanging on the wall. “Dad, Mom, the Victoria Park Lunar New Year Fair proves two things: First, our desserts have a market, and a very large market.”

Secondly, our model of central kitchen production and mobile sales points/stalls is feasible and highly efficient.

During the seven-day Lunar New Year Fair in Victoria Park, the Chan Kee Food Factory was able to meet the demand for tens of thousands of servings of sweet soup every day by operating in three shifts, which is enough to prove that the model of central kitchen plus sales points or stalls is feasible.

His finger pressed heavily on the densely packed industrial area markers in the Kowloon region of the map.

"Next, we will continue to operate the mobile stalls in the industrial zone, and we will expand them! Now that we have a food factory as a backing, production capacity is not a problem."

Previously, we only covered a few buildings in Cheung Sha Wan and Lai Chi Kok, which was far from enough!
We need to have our Chan Kee mobile sales points in all the places where workers gather, such as Shek Kau Mei, Kwun Tong, and Kowloon!

My goal is to establish at least twenty locations!

"Twenty points?!" Chen Guofu gasped. "That would require a huge number of people and vehicles!"

"We'll use modified tricycles; they're low-cost and flexible. We'll assign two people to each location: one to handle sales and the other to maintain order and restock."

Chen Bingwen had a plan: "We will promote key personnel from our existing workers to be foremen. We previously recruited fifty workers, and they are all skilled after being trained at the Victoria Park Lunar New Year Fair. It would be a waste not to make use of them."

In addition, Zhong Qiang was stationed at the Changsha Bay Food Factory to ensure uninterrupted production and supply from the central kitchen.

"Let Ahai take charge of the scheduling, management, and training of all mobile stations."

Upon hearing the number, Wang Qiaozhen subconsciously asked, "Twenty percent. Just buying a car must cost a lot of money, right?"

Chen Bingwen picked up the passbook and patted it gently, "This money has to be spent eventually."

A well-established distribution point can easily sell a couple hundred bowls of sweet soup every day; twenty distribution points would sell three to four thousand bowls! After deducting costs, the profit is enough to cover expansion expenses with a large surplus.

More importantly, it firmly embedded the "Chen's Sweet Soup" brand into the daily lives of every worker—this is an intangible asset!

In Chen Guofu and Wang Qiaozhen's minds, the concept of brand was still only the most basic understanding. They could not have imagined that in later generations, a series of business operations could be carried out around the brand, maximizing its role.

However, Chen Bingwen did not intend to explain the brand's effects to his parents. Explaining brand operation thoroughly is not something that can be done in a short time.

He changed the subject, pointing to the bustling commercial centers on the map: "Industrial zones alone are not enough."

In areas like Central, Causeway Bay, and Tsim Sha Tsui on Hong Kong Island, and Mong Kok and Yau Ma Tei in Kowloon, office workers, shoppers, and tourists have stronger spending power and higher demand. I plan to open 'Chen's Dessert Stations' in these locations!

"Sugar water station?" Chen Guofu was unfamiliar with this new term.

“Yes,” Chen Bingwen nodded, confirming, “It’s the standard store.”

It doesn't need such a large storefront; a small storefront of ten or twenty feet, or even a bright counter space in a shopping mall, is enough.

The key features are: prominent location, cleanliness, and simple operation.

The shop does not perform complicated processing; all the sweet soups and pastries are prepared in a central kitchen and delivered in insulated containers.

The staff only need to fill the bowls, sell the food, and collect the money.

It's like an upgraded, permanent version of the Victoria Park stalls.

Chen Bingwen continued, "Referring to the successful experience of Victoria Park, we will unify the red background and gold lettering of the signs, the uniforms, and the service process."

No kitchen is needed, which saves on rent and labor costs.

It relies on the standardized production and rapid delivery network of the central kitchen.

One or two employees are all it takes to run a store!

These "dessert stations" require little investment, can be quickly replicated, and attract customers through branding and convenience.

We'll start by opening our first pilot store at a street corner in Sham Shui Po, or in a newly opened shopping mall.

"This is great!" Chen Guofu's eyes lit up. "It's convenient, saves time and effort, and looks high-end!"

"However, to support the expansion of twenty distribution points in the industrial zone and standard stores in the commercial zone, relying solely on a central kitchen in Cheung Sha Wan will soon strain production capacity and limit the delivery radius."

Therefore, the second central kitchen must be established immediately!

During his few days at the Victoria Park Lunar New Year Fair, Chen Bingwen had a deep understanding of the delivery issues.

Since Chan Kee Food Factory is located in Cheung Sha Wan, while Victoria Park is in Causeway Bay, the two are more than 15 kilometers apart.

Even if the truck departs before dawn, the insulated containers filled with sweet soup and snacks will be jostled around on the truck for more than an hour, and by the time they arrive at Victoria Park, the sweet soup will have lost a lot of its temperature.

Chen Bingwen knew that the reach of a single central kitchen was limited, and that freshness and delivery efficiency would become major problems if the sales points were far apart.

However, in Hong Kong in 1978, the cost of cold chain distribution was too high, which was simply not something that Chan Kee Dessert's low-profit, high-volume model could afford.

“Therefore, the second central kitchen must be established immediately, and it must be built in Kwun Tong!” Chen Bingwen tapped the word “Kwun Tong” heavily on the map with his finger, his tone leaving no room for doubt. “The Kwun Tong Industrial Zone itself has a large number of workers, making it an important target area for our mobile operations.”

More importantly, it is centrally located, with convenient access to both waterways (docks) and land routes (main roads).

Setting up a factory here will not only solve the supply problem in East Kowloon, but also shorten the delivery distance to the eastern districts of Hong Kong Island, such as Shau Kei Wan and Chai Wan, by at least one-third compared to going through Cheung Sha Wan!

The sugar water takes a short time to travel, so there is little temperature loss and the freshness can be guaranteed.

Two factories, one in the west and one in the east, forming a strategic triangle, are essential to steadily support our expansion network throughout Kowloon and Hong Kong Island!

Chen Guofu looked at the map and understood the strategic significance of Kwun Tong, but his expression became even more serious: "Awen, you are right."

But where's the money? 187,000! We need to set up 20 mobile outlets, open the first standard store, and now we need to open a new factory in Kwun Tong, buy equipment, and hire people... Even if we break it down into smaller pieces, this amount of money might not be enough!

The opening of this new factory in Kwun Tong will be another bottomless pit.

Rent, equipment, raw materials, labor—aren't all of these expensive?
What if something gets stuck and the cash flow is disrupted?
Or... should we hold off on the Kwun Tong area for now? Let's stabilize the mobile outlets and standard stores, and secure a stable source of income before moving on to the other side?

Wang Qiaozhen nodded repeatedly, her eyes full of worry.

Chen Bingwen looked at his parents and understood their natural caution towards market risks, stemming from their ordinary, common-sense background.

However, business opportunities are fleeting. The brand effect and popularity brought by Victoria Park are at their peak, which is the golden window of opportunity for expansion.

If we hesitate now, and our competitors realize this and imitate us, our market share will be eroded.

"Dad, Mom, the business world is like a battlefield; opportunities are fleeting."

"The hype surrounding Victoria Park hasn't died down yet; it's the perfect time for us to capitalize on this momentum and widen the gap! If we don't establish our presence now, it'll be much harder and more costly for others to copy our model and seize market share!" Chen Bingwen's tone was resolute, filled with unwavering determination. "I'll take care of the money. Tomorrow, I'll go to Wing Lung Bank and talk to Manager Zhou Mingzhe!"
We have the success story of Victoria Park, a clear and feasible expansion plan, and the stable and high-quality asset of the Cheung Sha Wan Food Factory as collateral.

This time, not only do I have to pay off the previous loan of 80,000, but I also need to borrow another 300,000!

"Three hundred thousand?!" Chen Guofu gasped, his voice trembling slightly. "Awen, is this...is this feasible? Will the bank lend that much?"

"It has to work!" Chen Bingwen's eyes gleamed with confidence and shrewdness. "Manager Zhou is a smart man."

My plan is supported by solid performance, has a replicable success model, innovative growth points, and a key layout to solve core bottlenecks!

This is a clear, rapidly scalable, and stable cash flow closed loop!

Three hundred thousand is not an exorbitant demand, but rather the necessary leverage we need to tap into a larger market and achieve exponential growth!

The 180,000 yuan should theoretically be enough for Chenji Dessert's continued business operations.

However, as Chen Bingwen said, business opportunities are fleeting. If we can quickly spread twenty dessert sales points in the industrial zone and combine them with standardized stores, we can achieve economies of scale.

This way, costs can be spread out, the brand can be deeply rooted in people's hearts, and it can truly transform from a dessert shop into a food brand covering Hong Kong and Kowloon!

Moreover, in Chen Bingwen's mind, the reason for taking out a loan of 300,000 yuan to support the business expansion of Chen's Dessert Shop was only one aspect.

On the other hand, and more importantly, this 300,000 loan will be his first and most important springboard to leverage the capital market!
The reason why Chen Bingwen was willing to take out such a large loan without any scruples was because of a news article he saw in the Hong Kong Economic Journal.

In a corner of the Hong Kong Economic Journal's financial section, there was an inconspicuous short news item: Wharf Holdings' unusual trading activity.

Chen Bingwen knew that this news meant that in the coming months, a capital war would be about to begin, led by Li Ka-shing, backed by HSBC, and aimed at swallowing up Wharf Holdings, the core asset of the British giant Jardine Matheson!

This battle will completely reshape the capital landscape of Hong Kong Island and create countless overnight fortunes.

At this moment, Wharf Holdings' share price is still hovering at a historic low of HK$12-14!
He knew the real explosion would come in just one month, and Wharf Holdings' share price would soar like a rocket, eventually reaching a staggering height of HK$46!

An opportunity ten or even a hundred times bigger than the Victoria Park Lunar New Year Fair is right in front of Chen Bingwen!

He couldn't possibly let go of such a once-in-a-lifetime opportunity.

However, to ease the worries of the elderly couple Chen Guofu and Wang Qiaozhen, Chen Bingwen covered up the past by claiming that the dessert shop was expanding.

Looking into their son's eyes, which held a maturity beyond his years and an unquestionable confidence, Chen Guofu and Wang Qiaozhen's initial doubts were eventually replaced by a complex mix of worry and trust.

The blueprint drawn by their son was too grand; the vision of "a food brand covering Hong Kong and Kowloon" was simply too far-fetched for them.

But the miracle of 260,000 visitors to Victoria Park in seven days is right before their eyes, leaving them no choice but to believe it.

Chen Guofu finally just sighed deeply and patted Chen Bingwen on the shoulder: "Bingwen, Dad believes in you!"

"Don't worry, Dad, Mom."

Chen Bingwen spoke firmly, reassuring his parents.

He knew perfectly well that he must never reveal his true plan to "leverage the capital market" to his parents, as that would only increase their unnecessary panic.

The opportunity at Wharf Holdings was his secret weapon as a time traveler, and a crucial step in his leap in social class.

Having convinced his parents, Chen Bingwen still needed to prepare a business plan to persuade Zhou Mingzhe.

This is the most difficult step.

Chen Bingwen did not slack off in the slightest, scrutinizing every word and sentence to ensure that every piece of data and every logical element in the plan was flawless.

This plan avoids all sensitive terms such as "capital market" and "leverage," and is based entirely on the feasibility, profitability, and growth potential of the real business.

Chen Bingwen was confident that the success of the Victoria Park Lunar New Year Fair, clear logic, detailed data, and the mortgage of the Cheung Sha Wan factory were enough to impress Zhou Mingzhe, a professional banker.

He estimated that with this business plan, the success rate of getting a loan of 300,000 was at least 70%.

However, before that, there was one more thing that Chen Bingwen needed to resolve.

I promised Uncle Fu's son, Ah Sheng, that I would give him an answer in seven days. Now that the Victoria Park Lunar New Year Fair is over, it's time to give Ah Sheng my answer.

An inconspicuous corner of an ice room in Sham Shui Po.

Ah Sheng, wearing a floral shirt and smoking a cigarette, sat casually opposite Chen Bingwen.

"Ah Wen, Victoria Park is making a fortune. Now can you tell me what the idea was?"

Chen Bingwen smiled and pushed a thick envelope towards him before speaking.

He sincerely thanked him, saying, "Brother Sheng, thank you so much for helping me with the Victoria Park matter. This is just a small token of my appreciation."

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(End of this chapter)