The King of Malatang: How Yang Guofu Dominates the Market with a Single Broth

How a School Dropout Built a 6,000-Store Empire by Reinventing a Classic Dish: The Yangguofu Malatang Story

China’s most popular malatang—a classic spicy street food—doesn’t come from its birthplace in Sichuan. It comes from Northeastern China and was created by a man named Yang Guofu.

How did a recipe from China’s spicy heartland get reinvented by an outsider? By revolutionising the dish with a single innovative idea—a new soup base—Yang Guofu built a global empire of over 6,000 stores that sells 200 million bowls a year. This is the story of how he did it.

The Humble Beginnings of a Visionary

Yang Guofu was not a typical entrepreneur. Born in 1970 in a small county near Harbin, he grew up in a poor family with many siblings. He dropped out of school at 15 with no formal education or special skills.

To survive, he took on any difficult job he could find, from farming to collecting scrap. But he refused to accept a life with no future and was determined to find a bigger opportunity.

After years of working odd jobs and helping his relatives at a night market, Yang Guofu and his wife finally opened their own small food stall. It was a difficult life of long hours and little security. Every day, he looked for a chance—a single idea—that could change their lives.

The Breakthrough: Identifying a Market Gap

In 2000, Yang Guofu noticed something: local malatang shops were always busy. He saw it as a potential opportunity and immediately rented a small space to start his own.

He quickly identified a critical problem. Most malatang on the market followed the traditional Sichuan recipe: overwhelmingly spicy and numbing. This flavour profile was too intense for many customers in Northeastern China who preferred richer, milder tastes.

He realised the key to success was to create a better soup. This began a three-year obsession. Most difficult of all, Yang Guofu himself couldn’t handle spicy food well, but he forced himself to taste-test countless recipes day after day.

As he later said, “I didn't have an education or a powerful background. This was my only way out.”

Three Innovations That Changed Everything

Finally, his persistence paid off. Yang Guofu developed a revolutionary version of malatang based on three simple but groundbreaking innovations:

The Broth reinvented: He abandoned the traditional spicy oil base and created a creamy, savoury broth using Northeastern beef bones, whole milk powder, and a touch of rock sugar. This created a rich, satisfying soup that was flavorful without being overpoweringly spicy.

A New Way to Pay: Instead of selling a fixed bowl for a set price, he allowed customers to choose their own ingredients and pay by weight. This empowered diners and gave them complete control over their meal.

Modern and Hygienic: He replaced the traditional, unsanitary communal cooking pot with an individual pot for each order. This simple change made the experience cleaner, more modern, and more appealing to a wider audience.

This new style of malatang was an instant success.

Building a Global Franchise Empire

In 2003, the first official Yangguofu Malatang restaurant opened in Harbin. By 2007, Yang officially trademarked the name and began offering franchise opportunities. With its low investment cost and high potential profit, people eagerly signed up.

However, as the brand exploded in popularity, Yang Guofu noticed that inconsistent quality among franchisees was damaging his brand’s reputation. He made a difficult but brilliant decision: he paused all new franchising to reorganise and build a stronger support system.

This focus on quality over reckless growth paid off massively.

By 2017, the brand was opening 2,500 new stores in just five years.

As of 2023, Yangguofu Malatang has over 6,000 stores across China and in 10 other countries.

The System: How to Successfully Manage 6,000 Stores

The secret to Yangguofu’s scalable success lies in its world-class management system for its franchisees, most of whom run their own stores. The company ensures every location is successful through:

Comprehensive Training: Franchisees receive extensive training on operational excellence and can connect with other owners through an internal forum to solve problems together.

Centralised Supply Chain: A sophisticated procurement system allows the central office to monitor each store’s performance indirectly. When issues arise, headquarters can immediately provide solutions.

Direct Oversight and Support: The company uses a system of store audits and performance ratings to understand the detailed situation at each location. This allows headquarters to provide tailored advice and support to every franchisee.

By ensuring its partners have the tools to succeed and make a profit, the Yangguofu Group created a stable and resilient business that continues to grow rapidly. His story is a powerful lesson in how innovating a timeless product can build a global legacy.