Chain Stores in Taiwan

Chang Chin-ju　/　photos Chung Yung-ho

September 1983

中文

1. The interior decor of Mercuries and Associates' first branch in Taipei is bright and vibrant.

Chain stores with the same names, interior furnishing, products, and personnel have sprung up all over the country. These stores provide the public with greater convenience while competing successfully with larger enterprises.

Standardization is the most salient feature of these stores. The procurement, purchasing, and distribution are all centrally done. This standardization includes types of products, product quality, the training of personnel, and the decor of the store.

Chain stores can be divided into two general types: corporate chains, and voluntary or franchise chains. With corporate chains the branches are owned by the central company, and each individual store has a manager appointed and supervised by the company. Voluntary or franchise chains are, however, harder to supervise in that the central company does the advertising, etc., but the individual stores are owned by the person running them and therefore the parent company is not responsible for the staff, etc., and also doesn't need to put a great deal of investment into it.

In 1961, Tien Jen Tea stores started a new trend by opening branches all over Taiwan; since then, many chain stores have sprung up. Among these are Mercuries and Associates, Hai Pa Wong Restaurants, President Enterprises, Mentor Hair Stylists, Fotofast 40, and Foremost Dairies.

Mercuries and Associates was first opened in 1960 as an import/export firm. Later, in 1975 it was established as a mail-order business.

However in 1976, chain stores were opened because the general public didn't trust the quality of mail order goods. So the mail order part of the business began to decline. Now the mail order section comprises only 20% of the entire business, while the chain stores have been very successful.

Operated as a corporate chain, each branch has a manager that takes care of the routine of running a store. Also to increase the quality of service in the stores there are ten training programs a year with personnel taking turns attending.

In order to improve their management, the administrative section was instructed very early to computerize operations. Thus it became efficient, more reliable, and more modern.

There are 33 stores spread over the countryside, and they are located in highly populated areas.

Hai Pa Wong Restaurants are famous for their quality seafood. The food there is fresh and inexpensive.

Founded about ten years ago, near the mouth of Kaohsiung Harbor it enjoyed exceptionally good business. But in the Harbor area there were many seafood restaurants, and therefore the owner, Chuang Ta-te, thought to himself, "In the future there will be more competition so why don't I open up another store and expand my business?" Thus he opened a branch in Taipei.

After opening up this first branch in Taipei, he noticed that it got a lot of business. This prompted him to open five more stores in Taipei, with two branches still in Kaohsiung.

Both Japanese and Chinese cuisine cooks share the kitchen. Besides seafood, Hai Pa Wong Restaurants also has branches featuring fried chicken and western style dining. In terms of those serving Chinese cuisine, Szechuan style is favored.

Each branch is completely independent and therefore the central headquarters has two meetings a month to help solve any problems and difficulties encountered by the managers.

Over three years ago, new stores with orange signs, simple interiors, and abundant and attractive products began to spring up in all areas of the country. On the front of these stores in green lettering was "President Enterprises Grocery Stores."

President Enterprises are famous for their many products such as soft drinks, dairy products and instant noodles. These were opened in May of 1979, and they adopted the name 7-Eleven because the management system was imported from the stores of the same name in the U.S.

They are open from 7 a.m. to 11 p.m. There are presently two Taipei stores that are open around the clock.

One important feature of President's stores is that they are no larger than 120 square feet in area. You always know where to find tea or some other item because it is always kept on the same shelves. And similar items such as tea and coffee are placed together.

There are at present 70 branches, 61 of which are corporate style and nine franchises. In the planning stage is a bakery section to be added onto the Chungli factory. This section will bake bread twice a day and then distribute it to the stores.

Recently, hairdressers have even gotten into the chain store business. The first to adapt itself to this innovation was Mentor Hair Stylists.

Besides the normal hairdressing services, Mentor also offers skin care and makeup instruction.

In 1978, Mentor started to expand and open up branches. There are now eleven salons--eight in Taipei, two in Kaohsiung, and one in Taichung.

Mentor salons serve as teaching institutions, and a student must undergo training before being allowed to touch a customer. No beginners are allowed to practice on customers. Thus, customers have faith in the service that they receive.

Though stylists have to work on Sundays, they are given two weeks off at the end of the year, and have a stake in the firm. As the chairman of the board, Lai Hsiao-yi, said, his staff has a chance to become partners. Also each time a new shop is to open, experienced operators are sent to operate it. Again, this is to capture the customers' trust.

Photo lovers hate to wait for their pictures to be developed and also hate to travel to get them developed. The founders of Fotofast 40 obviously knew this, and organized themselves to meet these needs.

"Photographers generally send the negatives to a developer. This normally takes three to five days, though actual processing time may only be about 30 minutes," says Fotofast 40 manager Lin Tai-chieh. Thus Liu bought the machinery to develop negatives and does it at each of his eleven branches in 40 minutes. The stores also attend to enlarging pictures. The customers' faces light up upon seeing good quality pictures which cost only NT$5.5 apiece.

About 20 years ago when American servicemen were stationed in Taiwan, Foremost Dairies was opened in cooperation with Americans, to meet their needs.

Besides dairy products, there are also hamburgers and sandwiches. The meats are prepared and frozen and then distributed to the branches by the factory in Neihu. Not only do the dairies supply these restaurants but also other stores around the country.

New improvements are now underway, and although it was originally opened to meet the tastes of foreigners, it has met the approval of many Chinese. These include offering more variety of flavors of ice cream and milk as well as specials. Thus one shop in the business district has its own special but the management would like to unify all specials.

Also, due to the high quality of their food, international standard hotels, such as the Taipei Hilton, have sent cooks to learn from Foremost cooks.

These chain stores reflect the continuing prosperity of the Republic of China, while providing the public with standardized, inexpensive products at convenient locations.

[Picture Caption]

1. The interior decor of Mercuries and Associates' first branch in Taipei is bright and vibrant. 2. Many of Mercuries and Associates' items are conveniently gift wrapped. 3-9. Mercuries and Associates' branches are full of gift items such as toys, glass ornaments, lamps, bags, etc.; young girls greet these with great enthusiasm.

1. The starlit exterior of Hai Pa Wong's original Taipei branch is very attractive. 2. Hai Pa Wong's Fried Chicken-an example of changing products to meet changing needs. 3.4. The iceboxes at Hai Pa Wong are filled with all manner of seafood. 5.6. Two dishes from Hai Pa Wong's western style restaurants. 7. Waiters make sure that tables are set correctly. 8. NT$100 a plate buffet--eat all you can. 9. Hai Pa Wong Fried Chicken branches feature western style meals.

1. President Enterprises' grocery stores imported 7-Eleven's management system. 2. Stores located in school and business districts also sell periodicals. 3. President Enterprises' bread is machine made and wrapped. 4. 7-Eleven stores carry all manner of household products. 5.6. The neat shelves of a 7-Eleven store. 7. The exterior of one of Mentor Hair Stylists' eleven stores. 8. Attentive hair stylists who have had extensive training in pleasant manners are always ready to serve a customer. 9. Large, clean, pleasant surroundings in which to have your hair done. 10.11. Facials and manicures are all in the realm of Mentor's highly professional staff.

1. Exterior view of Fotofast 40's Chung Hsiao East Road branch. 2. Well done photographs come out of the developing machine one by one. 3. Passersby can look in to see photos being developed. 4. Some Fotofast 40 shops also sell film, picture frames, and photo albums. 5. A skilled technician enlarges pictures.

1. Foremost's Shih Lin shop. Due to its good location and its established name, business is good. 2.3. Foremost's most famous products: banana split, milk and a hamburger. 4. Bright and airy interior decor. 5. Mercuries and Associates domestic manager, Fang Chung-yi, "being attentive and friendly" are the special features of Mercuries and Associates' staff. 6. President Enterprises' Grocery Store division general manager Wu Ying-jen.

Top: Mentor Hair Stylists' chairman of the board, Lai Hsiao-yi, pays special attention to the training of his personnel. Center: Foremost Dairies' chairman of the board Wang Chieh-min. Bottom: Fotofast 40 general manager Liu Tai-chieh.

2. Many of Mercuries and Associates' items are conveniently gift wrapped.

3-9. Mercuries and Associates' branches are full of gift items such as toys, glass ornaments, lamps, bags, etc.; young girls greet these with great enthusiasm.

1. The starlit exterior of Hai Pa Wong's original Taipei branch is very attractive.

2. Hai Pa Wong's Fried Chicken-an example of changing products to meet changing needs.

3.4. The iceboxes at Hai Pa Wong are filled with all manner of seafood.

5.6. Two dishes from Hai Pa Wong's western style restaurants.

7. Waiters make sure that tables are set correctly.

8. NT$100 a plate buffet--eat all you can.

9. Hai Pa Wong Fried Chicken branches feature western style meals.

1. President Enterprises' grocery stores imported 7-Eleven's management system.

2. Stores located in school and business districts also sell periodicals.

3. President Enterprises' bread is machine made and wrapped.

4. 7-Eleven stores carry all manner of household products.

5.6. The neat shelves of a 7-Eleven store.

7. The exterior of one of Mentor Hair Stylists' eleven stores.

8. Attentive hair stylists who have had extensive training in pleasant manners are always ready to serve a customer.

9. Large, clean, pleasant surroundings in which to have your hair done.

10.11. Facials and manicures are all in the realm of Mentor's highly professional staff.

1. Exterior view of Fotofast 40's Chung Hsiao East Road branch.

2. Well done photographs come out of the developing machine one by one.

3. Passersby can look in to see photos being developed.

4. Some Fotofast 40 shops also sell film, picture frames, and photo albums.

5. A skilled technician enlarges pictures.

1. Foremost's Shih Lin shop. Due to its good location and its established name, business is good.

2.3. Foremost's most famous products: banana split, milk and a hamburger.

4. Bright and airy interior decor.

5. Mercuries and Associates domestic manager, Fang Chung-yi, "being attentive and friendly" are the special features of Mercuries and Associates' staff.