Recently, a new Sichuan hotpot restaurant called “Chuan Xiao Xia” has opened on Kearny Street in San Francisco’s Chinatown, quickly becoming a must-visit spot for tourists from across the country and around the world. This three-story, 7,500 square foot establishment was founded by two young immigrants from China, drawn by the area’s rich history and favorable business environment.
As you step into Chuan Xiao Xia, the simple yet rustic dining decor greets you. The walls are adorned with traditional Chinese calligraphy and Sichuan opera masks, showcasing a deep cultural essence. One of the co-founders, 34-year-old Qu Chuanlin, is part of China’s first generation of new immigrants. Before the pandemic in 2020, he was actively involved in the restaurant investment scene in mainland China, running multiple restaurants. However, after his establishments faced closure due to the pandemic, he returned to the Bay Area to reunite with his family and, while playing basketball, met his current partner, a computer engineer at a tech company. This led them to decide to open a hotpot restaurant.
Qu Chuanlin shared that opening a hotpot restaurant in the U.S. is no easy feat. The requirements for storefronts, geographical locations, size, and health standards are significantly more stringent than those for standard restaurants. Ultimately, they chose Chinatown, viewing it as a historic site. In contrast to other shopping districts, which often consist of modern buildings devoid of historical context, they wanted their hotpot restaurant to leverage Chinatown’s culture while taking advantage of the mature business environment here.
Qu Chuanlin mentioned that he grew up in a family that was always involved in business, which sharpened his commercial acumen. He didn’t want to set up shop in the South Bay, where many Chinese restaurants are clustered. He believes he made a smart decision choosing Chinatown, noting that from finding a location to renovation and opening, the entire process took just over five months—a feat that would have been impossible elsewhere, made easier by the support of the Chinatown Merchants Association.
San Francisco’s Chinatown environment is thriving with the infusion of young entrepreneurs. Shao Qiqian, the president of the Chinatown Merchants Association, expressed his excitement about seeing the younger generation contributing to the community’s vibrancy. Most tourists spend two to three hours in Chinatown, often choosing to dine during their visit. The presence of more young business owners not only invigorates the local economy but also serves as significant encouragement for the community.
Shao Qiqian highlighted that during the day, six police officers patrol Chinatown, a resource they have worked hard to secure, ensuring that the young business owners and their patrons can enjoy a safe environment.
The younger generation’s approach to business significantly differs from traditional small operators. Qu Chuanlin noted that his partner, a tech industry professional, focuses on data analysis within the restaurant. This includes tracking ingredient usage rates, meal preparation standards, and staff training, all driven by data to minimize reliance on guesswork.
Their marketing strategy is also data-focused, setting goals based on daily, weekly, and monthly operational statistics. They leverage social media by showcasing their dishes and culture, inviting influencers to promote their brand online.
Despite the challenges posed by international tourists often unfamiliar with spicy food or hotpot dining, Qu Chuanlin and his team are prepared. After training their staff, they guide customers on how to enjoy hotpot and offer numerous non-spicy broth options to cater to all tastes.
Qu Chuanlin recounted an awkward moment when a customer who was unsure about how to dine simply paid the bill and walked out. “We adapt on the fly until the customers are satisfied,” he said. So far, the feedback has been positive, with a monthly growth target of 25% that they are managing to achieve.
Qu Chuanlin believes that the business environment in San Francisco’s Chinatown is exceptionally favorable, allowing him to grow his business much faster than friends who have opened shops elsewhere. He encourages other entrepreneurs to consider setting up in Chinatown, emphasizing that a greater variety of quality restaurants will attract even more visitors.
