Chubby Group Founder David Zhao Shares How He Built a Nine-Figure Food and Beverage Conglomerate at 29

The most successful ventures are often those backed by passion, and David Zhao’s entrepreneurial journey certainly fits the bill. At just 13, he founded MoreViews Inc., a digital agency, and since then, he has started a number of other companies. Today, he is the co-founder and managing partner at Chubby Group, a food and beverage conglomerate that currently includes over a dozen restaurants and is worth over nine figures.

Zhao’s First Steps Into the Food and Beverage Industry

While Zhao originally entered the food and beverage (F&B) industry as a marketing freelancer to pay for college, it has become a much bigger part of his life. He made his first investment in the sector after being inspired by a client, and the rest is history, with Zhao and Chubby Group having numerous restaurants in their portfolio.

When asked about his transition to the F&B industry, Zhao remarked, “From what was intended as a sideline investment, I found myself deeply involved in the industry. Now, eight years later, our growth has been phenomenal, with 15 locations already operational and 25 more slated for next year.”

Expanding Culinary Horizons with Chubby Group

With 15 locations, Chubby Group brings a unique flair to the table with each restaurant in its portfolio. The group has ambitiously expanded its range of dining experiences, including Chinese hot pot at X Pot, Japanese BBQ at NikuX, Shabu Shabu at Mikiya, and more.

Beyond revolutionizing Asian dining concepts, Chubby Group is expanding further. Zhao said, “We are now expanding our culinary horizon to include a variety of global cuisines.” Moreover, he continued by saying, “Our expansion is not limited to cuisine alone; we’re growing our presence internationally.”

While the strategy might seem aggressive, Chubby Group’s calculated plan has seen immense progress during its expansion to 15 locations. Moreover, in 2024, Chubby Group plans to up that number to 40.

Yet, the key to Chubby Group’s success is not solely a numbers game or all about good food. Instead, it is the group’s strategic moves in supply chain management, technology, and the creation of a unique luxury membership community that are propelling it forward.

“The hallmark of our dining experience is the fusion of top-quality ingredients with cutting-edge technology to enhance customer service. As we grow, we are committed to adapting to local flavors while maintaining our core values of quality and innovative dining experiences,” explained Zhao.

Investing in the Supply Chain

No matter the business, the importance of a reliable supply chain is paramount. Look at what happens when shipments are delayed or shortages occur. This is something everyone got a taste of during the pandemic, and Chubby was no exception.

“The most formidable challenge we have faced was navigating the tumultuous period of COVID-19. However, we turned this challenge into an opportunity by taking control of our supply chain, starting with Wagyu beef,” explained Zhao.

Instead of allowing third-party suppliers to handle everything, it has strategically acquired parts of the supply chain. Where Wagyu is concerned, Chubby Group has partnered with ranches in California and Oregon to secure a stable and high-quality supply. In fact, the group manages a $2 million inventory of Wagyu, employs a unique feeding program, and fully owns the cattle being raised.

Not only does Chubby Group’s approach ensure quality control, but it also enables the group to minimize food waste and leverage its resources across the restaurant portfolio. When asked about the decision, Zhao said, “This model has allowed us to utilize all parts of our resources across various concepts and consumer products, establishing a unique niche in the market.”

And Wagyu is not the only product. Chubby Group has also ventured into caviar production through its farm in Asia, indicating an expanding scope in supply chain control.

Embracing Technology for Growth

When it comes to securing a supply chain and running a successful business, technology cannot be ignored. Outside of traditional business expansions, Chubby Group has also stepped into the technological sphere, making direct investments in tech companies that align with the food and beverage industry.

The use of robotics, which has been a part of the group’s operations for years, exemplifies this integration of technology. Moreover, Chubby Group is exploring investments in FinTech, POS Systems, private vending machines, and its membership system.

The group’s Web3 membership platform, owned and operated by Chubby Group, aims to onboard 1 million members by 2024, highlighting Zhao’s vision to blend cutting-edge technology with traditional business models.

NFT-Based Customer Membership and Loyalty Program

The membership program does not simply use technology for the sake of doing so. Instead, it provides real benefits. Chubby Group employs NFTs to offer a unique membership experience, using a three-tiered system of silver, gold, and black that each provides a range of exclusive benefits that include:

• Complimentary Dishes
• Priority Reservations
• Access to Private Events

The use of NFTs in this context is a pioneering step, and the digital membership system is designed to be user-friendly, requiring only an email and a credit card for signup. That makes it accessible regardless of one’s familiarity with blockchain technology.

Conclusion

David Zhao’s Chubby Group is an example of innovative entrepreneurship in the food and beverage industry. The conglomerate, following Zhao’s leadership, is headed down a path of rapid expansion, integrating advanced technology and unique business strategies. Moreover, this is just the start of Chubby Group’s grand ambitions. In the future, don’t be surprised if you see everything from quick-service and casual dining to fine dining and supermarkets, all under the Chubby Group umbrella.