Various flavors of Mahua are seen at the Mahua museum in Ciqikou ancient town, Chongqing. (Photo/Mei Yao)

Chongqing - "Hello, everyone; my name is Yang Xuewu, and I am the inheritor of the traditional craft of Ciqikou Chen-Mahua."

In August, at the opening ceremony of the Sixth Mahua Festival in Ciqikou of Chongqing, a man with a non-local accent said this, causing an immediate stir in the audience.

People wondered, "Isn't the boss of Chen-Mahua supposed to be surnamed Chen? Why is it being passed on to an outsider with the surname Yang? What happened in the company?"

The brand, Chen-Mahua, is a time-honored food brand in Southwest China's Chongqing. It was originally founded by Chen Jinghong, the grandfather of Chen Changyin. Chen Changyin continued his family's business, moving from Hechuan to Ciqikou ancient town and selling Mahua, a type of fried dough twist. As Ciqikou became a popular tourist destination, the reputation of Chen-Mahua skyrocketed.

Why does the Chen-Mahua brand have a successor with a different family name? The story begins at the end of 2006.

Appointed outsider encounters resistance

At the end of 2006, Chen Jianbing, the only son of Chen Changyin, after taking over the family business, hosted a dinner specifically to invite his university classmate, Yang Xuewu. As soon as they sat down, Chen got straight to the point, inviting Yang to join the family business.

In fact, even before taking over, Chen Jianbing increasingly realized that with the rise of the internet, the impact of emerging brands, and the diversification of consumer tastes, traditional business models were no longer enough to satisfy consumers. Without change, Chen-Mahua might be left behind by the times.

"A barber can't cut his own hair," meaning it's best to have others help when identifying one's own issues. With this in mind, Chen Jianbing came up with a bold idea—to bring in external talent to inject new energy into the company.

Yang Xuewu and Chen Jianbing were close friends and classmates at Chongqing University of Technology, and they knew each other well. After graduation, Yang went to work at a foreign company, gaining extensive experience in business management and a broad perspective. As their friendship deepened, Chen increasingly felt that Yang had keen market insight and unique views on using modern marketing strategies to upgrade the brand.

At that dinner, Chen shared his concerns with Yang. Yang quietly listened without giving any clear response. It wasn't until they were about to toast farewell that Yang suddenly downed a large glass of wine and loudly said, "Alright, let's do it together."

"He was actually observing me to see how sincere I was," Chen Jianbing later recalled.

The plan was to establish a new company with market-oriented operations and appoint his classmate as the general manager. Chen Jianbing faced fierce opposition when he shared this idea with his father.

"Family businesses have always been passed down through bloodlines. Bringing in an outsider could lead to uncertainty, especially when most of the current staff are relatives," said Chen Changyin.

Sure enough, when Chen Jianbing floated this idea among the family, it caused an uproar. Many relatives felt that after working hard in the family business for decades, having an outsider suddenly parachute in to manage them was unacceptable. Some even worried it would block their career advancement. Two of Chen Jianbing's cousins and one uncle even handed in their resignations.

Faced with this strong opposition from family members, Chen Jianbing didn't back down. He knew that for Chen-Mahua to remain competitive among the growing number of Mahua shops in Ciqikou, it was essential to establish a modern corporate structure and upgrade the brand. To achieve this, bringing in external intellectual resources was the best option. Whether or not he could win over the trust and support of family members would ultimately depend on his performance. After persistent persuasion, Chen Changyin finally agreed to let his son give it a try.

From workshop to modern enterprise

Amid a wave of skepticism, Yang Xuewu officially joined the business. His first task was to change Chen-Mahua's registration from an individual business to an enterprise, formally establishing Chongqing Ciqikou Chenmahua Food Co Ltd, the first Mahua leisure food company in Chongqing.

"For consumers, enterprises generally have greater market credibility than individual businesses, which helps strengthen brand recognition. At the same time, it's easier for companies to access capital and other resources, which is crucial for growth and securing a strong market position," Yang explained.

Along with the registration change, it is also essential to enhance competitiveness. The key was to open up new sales channels and expand the market. At the time, Chen-Mahua's sales were primarily confined to Ciqikou.

"Chen-Mahua shouldn't just be Ciqikou's Chen-Mahua," Yang suggested. Chen Jianbing proposed to Chen Changyin that they should expand the market, allowing Chen-Mahua to move beyond Ciqikou and enter supermarkets across the city and eventually nationwide.

Once again, Chen Changyin rejected this proposal. It wasn't that he didn't want to grow the family business, but as a traditional craftsman, he believed in the saying, "Good wine needs no bush." He thought that as long as the product quality was maintained, the market would naturally grow. Expanding aggressively, however, would require scaling up production, which could complicate storage and logistics. Over time, this might compromise the freshness and taste of the Mahua. "If we go too far and the quality suffers, the decades of reputation we've built could be destroyed overnight."

"Modern business is about the mutual promotion of product quality improvement and market expansion in a spiral upward process," Chen Jianbing and Yang Xuewu patiently reasoned with Chen Changyin. "The larger the market, the more money we make, which can be reinvested in research and development to meet the ever-changing demands. This virtuous cycle is how the company can stay ahead."

After persistent persuasion, Chen Changyin relented. Chen Jianbing and Yang Xuewu quickly got to work. They first consolidated the previously scattered workshops into a single production base, establishing uniform production standards and processes. They even created diagrams of these standards and processes, hanging them in the workshop to ensure workers followed them closely, guaranteeing stable quality in large-scale production.

Next, the two divided responsibilities. Chen Jianbing established a research and development department, launching new flavors like pepper, five-spice, and nori. He also outsourced the design and production of vacuum-sealed packaging. Meanwhile, Yang, with his marketing expertise, began visiting major supermarkets and retail channels to expand the market. With the brand's existing reputation and Yang's industry connections, many retailers were willing to offer shelf space for Chen-Mahua products. Soon, Chen-Mahua moved from street stalls in Ciqikou to the shelves of supermarkets across Chongqing.

Selling in supermarkets allowed the company to automatically track sales data through checkout systems, making it easy to see daily sales figures. Yang immediately relayed this data to Chen Jianbing, helping him adjust production accordingly. They later upgraded the production base with industrial internet technologies, establishing a database that aligned production with orders, optimizing efficiency, and reducing inventory levels by 30 percent.

Through their collaboration, the two classmates transformed a traditional food workshop into a well-managed modern enterprise. Their products not only covered multiple provinces and cities across China but also made their way overseas via the New International Land-Sea Trade Corridor, reaching international markets.

Designating as the inheritor

Seeing the "outsider" invited by his son to help grow the family business, Chen Changyin was pleased and proud. To retain such talent and encourage more exceptional individuals to join, he decided to reward Yang Xuewu handsomely. After much thought, he came up with a novel idea—designating both Chen Jianbing and Yang Xuewu as the fifth-generation inheritors of Chen-Mahua.

With this honor, Yang Xuewu took on a heavy responsibility—since it was now a "family business," he had to devote himself fully to expanding Chen-Mahua.

As consumer demands evolved, the need for leisure foods like Mahua shifted from mere hunger satisfaction to a focus on cultural significance. Creating a unique consumption experience that evokes deeper associations while enjoying the food became a common strategy in the leisure food industry.

After sharing this idea with Chen Jianbing, they quickly agreed to develop a Mahua museum in Ciqikou that would combine exhibition, experience, and sales. This would enhance Chen-Mahua's brand influence while boosting the overall competitiveness of Mahua products in Chongqing.

However, they disagreed on the museum's vision —Chen Jianbing favored a modern commercial complex, while Yang Xuewu insisted on preserving traditional elements to provide visitors with an authentic cultural experience.

After some debate, they found a compromise: retaining traditional display and experience areas while incorporating modern interactive features and business models, allowing visitors to enjoy cultural enrichment and comfort.

The Mahua Museum officially opened last year. The two-story museum features a display area on the first floor, showcasing the evolution of Mahua through old photos, valuable artifacts, and engaging narratives. The second floor is an experience area where visitors can make Mahua themselves, appreciating the charm of traditional craftsmanship.

Rich in Chongqing's food culture, the Mahua Museum quickly became a must-visit tourist spot, significantly enhancing Chen-Mahua's market influence.

Seizing the momentum, Chen Jianbing and Yang Xuewu organized DIY workshops, intangible cultural heritage competitions in schools and communities, and other immersive experiences. This transformed Mahua from a simple snack into a representative Chongqing delicacy.

"Family businesses often fall into the 'one-man rule' trap, which is a significant drawback for commercial decision-making. An ideal solution is to introduce more external perspectives, similar to how publicly listed companies establish independent directors. However, this is challenging for small companies, as professional managers often still cater to the owner's preferences," Chen Jianbing said.

He noted that by designating inheritors, he hoped to foster a sense of ownership among professional managers. This new approach to business management could pave the way for Chen-Mahua and other family enterprises to create a brighter future.

(Zhou Ying and Mei Yao, reporters from Chongqing Daily, contributed the Chinese version of this report.)