The world's largest quick-service Chinese restaurant operator, Hong Kong-listed Cafe de Coral Group, has expanded to the United States west coast through a HK$99 million (US$13 million) acquisition of 20 restaurants based in California.

Chairman of the Cafe de Coral Group Michael Y.K.Chan said the acquisition would complement the company's existing North American business. The group already owns 48 per cent of the Chinese quick-service restaurant chain Manchu Wok.

"The acquisition will provide a sizable foundation, a time-tested operating system and a perfect strategic fit for the group to step into the lucrative California market. It would also further position Cafe de Coral as a leading market player in the fast food industry in North America," Mr Chan said.

With this latest acquisition, Cafe de Coral Group will have over 200 restaurants in North America. The acquired restaurant chain comprises 17 Chinese fast food restaurants under the name of China Inn, two Japanese fast food outlets and a Chinese bistro located in major California cities including Los Angeles, San Francisco, Sacramento and Fresno.

Mr Chan added that the group has plans to double the number of American outlets to 400 in the next five years. "Food service in the US, one of the largest and most sophisticated markets in the world, has annual sales of over HK$2,723 billion (US$350 billion), with over 30 per cent represented by quick service restaurants which have shown rapid and consistent growth in the past decade."

He further added that Chinese food continues to win major market share because of its real and perceived health image. "Large regional players and national brands like Manchu Wok and China Inn have been able to capitalise on this trend as customers turn to the comfort and trust of branded offerings."