How Digital Marketing Helped Bring A Taste Of L.A. To Beijing

In 2015, more than 800,000 Chinese made their way across the Pacific to Los Angeles , says Kate Chang, head of the Los Angeles Tourism & Convention Board in China. For those unable to make the trek stateside, two millennials from Los Angeles (L.A.) are bringing a taste of California to Beijing, with their successful F&B venture, the widely lauded restaurant Palms L.A. Kitchen and Bar.

So how did these two entrepreneurs compete and thrive in the Chinese capital’s dog-eat-dog F&B scene? A clever use of digital marketing and effective online marketing was crucial to the success of Palms L.A., according to its founders.  

Founded by Christian Jensen and Michael Tsai, Palms has become a hotspot for anyone looking to take a break from Beijing’s hustle and escape to California, if only for an hour or two.

“California means sunshine and lifestyle. Palms brings the relaxed-yet-sophisticated, youthful and eclectic vibe of the L.A. dining experience to China,” explains Christian.

Like many expats in China, the couple originally planned to stay for a few months, but the global recession happening in the West influenced their decision to stay. After five years in the corporate jungle, the duo decided to quit their day jobs and open Palms, China’s first Mexican-Korean fusion restaurant, in 2014.

“We both got bitten by the entrepreneur bug,” Christian explains. “There was a hole in the market and there weren’t great options in the fast-casual segment where we could eat and go for drinks.”

The duo were keen to avoid the common mistake of being a "brand first, restaurant second". Food is king: “The foundation of our business is pretty simple: flavor, service and value. Our customers know they’ll have a good time, and that they can afford to come whenever they want.”

They would soon realize that running a F&B operation in Beijing required marketing muscle, and that doing business in China’s always-online world presents a myriad of unique challenges.

“This is a pay-to-play culture and we sometimes can be a bit set in our Western ideals. The underlings at some online platforms can be very aggressive, but we decline ‘paid cooperation’ for ethical reasons,” explains Christian.

“But that doesn’t mean we ignore the culture of reciprocity and relationship building. Co-promotion and co-branding activities with businesses that share our customer base has been a win-win.”

Managing The Brand's Online Reputation

Similar to the West, online reputation management is an unforgiving process that can make or break a business. That’s why the Palms team closely monitors customer sentiment online on platforms like Dazhong Dianping -- every day, even before getting out of bed.

“Not a day goes by that we don’t review the previous day’s comments with our staff, and we actively review ad-buy and paid options on the same platforms,” says Christian.  

Asking The Real Question: To Groupon Or Not To Groupon? 

China is home to a range of apps that have evolved beyond the Groupon concept, offering thoughtful content and attractive photos, shot professionally for the promotion, in addition to the special offer.

“We’ve had success with apps, namely Enjoy. They present our business in a good light and their user demographic is the upper-middle income consumer we want to target,” says Michael. “They drive far more value than just pushing group discounts. All you have to do is look at how well our specials sell on Enjoy to see that’s the case.”

Does that mean you should sign up for every relevant app?

Christian advises to “choose your partners carefully, as many apps have exclusivity clauses in their contracts.”

Thriving In The WeChat World  

To make a dent in the Chinese restaurant scene, they needed to leverage the country's biggest social network, WeChat. But working with a "closed" social media platform is tricky.

“You have to have an official account, but spam is death. WeChat isn’t a way to soundblast the whole market, but a way to talk intimately with your most passionate fans,” explains Christian. 

“Successful WeChat content has a personality – it sounds like an individual. Many brands fail here because they regurgitate press releases that no one wants to read (even their own PR team!).”

“WeChat recently added promoted ads, but the cost is off-putting for small businesses. So we turned to dahao (popular verified accounts). Before we can get online, we have to sit down and eat with these bloggers. Rapport and a human touch are still indispensable, even in digital marketing.”

Making It Palatable For Online Audiences

For online PR, top titles including Conde Nast Traveler and Vogue have large circulations on their iPad and app versions -- some up to double their print circulation. Many don’t realize that their iPad, app and even official WeChat account content is markedly different. They’re not copy-pasting, but there is overlap.

“Marketers need to grasp this interconnection between print, digital and social. Print hasn’t been the priority for some time now. I’d much rather have something that we can share instantly,” says Christian.

Keeping It Real, the Cali Way 

The owners believe the restaurant has been successful because they have cultivated friendships among expats from the U.S. West Coast. These "Palms ambassadors" play a crucial role in promoting the restaurant with their social media channels. For this inner circle, “you can’t fake it,” says Michael.  

“In this age of instant reviews, we’re completely dependent on our core fans. They build our brand and promote us without our even asking. We are completely transparent with them and stay in contact with them daily.”

Among the "Palms ambassadors" includes the L.A. Times’ China Bureau Chief and LA tourism board’s China representative.

Thanks to them, “L.A. Mayor Eric Garcetti and most of the City Council surprised us one night during an official visit – so we can also count fans in high places!”

Growing A Brand In China: From The Inside-Out 

Palms began as a Mexican-Korean restaurant started by two Americans in China. For the brand’s next chapter, the founders are looking to expand domestically and eventually internationally - perhaps even bringing the brand back home.

Want more digital marketing and PR tips? Then follow me on LinkedIn and Twitter (@RealJoeEscobedo).