Din Tai Fung: The Art of the Dumpling

Case Solution

H. Brian Hwarng, Xuchuan Yuan
Ivey Publishing ()

AWARD-WINNING CASE This case won the Decision Sciences Institute (DSI) Award for Best Teaching Case Studies, 2015. In 2014, Din Tai Fung, one of the best-known Taiwanese cuisine brands, operated more than 100 restaurants in all the world. Attracted by its characteristic xialongbao (soup dumplings), the long lines of customers in front of Din Tai Fung were a common sight. There were constant requests for partnerships for global expansion. However, feedback from overseas clients indicated a notable gap in service quality between overseas offices and Taiwan. The demand for support from foreign branches has also increased significantly due to the high growth rate in recent years. The company’s chief executive postponed his plan to open his 10th office in Taiwan. However, existing partners enthusiastically evaluated plans to open new offices in foreign markets. Two new potential partnership offers from Dubai and the Philippines were aggressively pursued. What is the best way to address the increasing number of requests for assistance from foreign branches and ensure high quality? Should Din Tai Fung agree to the two promising offers of cooperation from abroad? What was the best overseas expansion strategy?

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