Chaohe-suan NB expands franchising to 11 Yangtze River Delta cities as national rollout follows a separate path

Chaohe-suan NB, part of Alibaba’s Hema grocery business, is expanding the geographical scope of its franchise programme. A report published by Sina Finance on 14 October, citing Chinese retail news outlet Linkshop, said Ningbo, Shaoxing, Jinhua, Changzhou, Wuxi, Suzhou and Nantong had joined Shanghai, Hangzhou, Jiaxing and Huzhou on the list of eligible cities. For prospective franchisees considering the Chinese market, the significance lies not just in the additional cities, but also in the different pace of franchise recruitment and nationwide store expansion.

Franchise availability grows from four cities to eleven

According to the report, Chaohe-suan NB formally opened its franchise programme in November 2025, initially covering only Shanghai, Hangzhou, Jiaxing and Huzhou. The seven additions bring the total to eleven cities, all within the area served by its Yangtze River Delta supply chain.

This footprint differs from the brand’s overall store network. The report notes that Chaohe-suan NB stores have expanded beyond the Yangtze River Delta into southern, northern and south-western China. The brand’s arrival in a region therefore does not necessarily mean franchises are available there. Prospective operators should distinguish between where stores operate and where franchise applications are being accepted.

Testing the store model before widening franchise recruitment

The timeline outlined in the report shows that Chaohe-suan NB began testing its operating model in eastern China in 2023, exceeded 400 stores by the end of 2025 and continued its nationwide expansion in 2026. Before opening up to franchisees, its company-operated network had already gained substantial experience running stores across different areas.

Earlier reporting by Linkshop indicated that Chaohe-suan NB maintained a pace of more than 20 new openings a month in the first half of 2026. In Shanghai, nearly 200 stores formed a relatively dense network, helping to shorten warehouse-to-store delivery distances. These details suggest that franchise recruitment is being built around an existing store and distribution network, rather than being opened nationwide alongside the broader rollout.

Total store numbers do not indicate the scale of franchising

Figures cited at the time of publication put Chaohe-suan NB’s total store count at more than 600. That figure represents the brand’s entire network: it cannot be used to calculate the number of franchised stores or taken as evidence of their trading performance.

For operators considering discount retail, the overall store count offers a useful indication of the brand’s reach, but individual opportunities still need to be assessed against local conditions. This is particularly important when a brand is expanding across regions while franchise recruitment remains geographically concentrated. Distribution capacity and actual franchise availability should be verified separately.

Focus due diligence on supply arrangements and local trading conditions

All the newly eligible franchise cities are in the Yangtze River Delta, making supply-chain coverage an important factor in understanding this expansion. However, being within delivery range does not mean every local catchment offers the same trading conditions.

Practical advice: prospective applicants should first confirm whether their city is open to franchising. They should then ask the brand to clarify delivery frequency, ordering requirements, responsibility for stock losses and the site-assessment process. Financial projections should reflect local rents, staffing costs and competition, rather than treating the pace of nationwide expansion as evidence of likely returns from an individual store.