Soon, residents in Mexico will be able to partake in the imitation Chinese tradition that is P.F. Chang’s. The American restaurant chain is expanding, and it struck a deal with Latin American restaurant operator Alsea SAB to open 30 restaurants in Mexico in the next 10 years.

In this economy?

Everyone knows that sales in the restaurant industry have taken a brutal beating since the start of the recession. Dining out was the first thing to go for many cash-strapped individuals and families. Slate.com:

Restaurants are the top category in which U.S. consumers said they are most likely to cut back, according to a recent Boston Consulting Group survey.

It’s a no-brainer that preparing your own food at home is much less expensive than going out to eat. Clipping coupons and checking for sale items at the grocery store can help you save even more and keep you from needing a payday loan to pay for groceries.

So how is P.F. Chang’s doing so much business that it has the capital to expand?

Hard work pays off?

According to Daniel Gross at Slate.com, P.F. Chang’s “same-store sales fell a bit but profits produced at its 350 outlets rose 38 percent from the first quarter of 2008.” Gross also has a theory about how and why P.F. Chang’s is doing well amid economic chaos:

“The company has avoided wholesale restructuring and panicky discounting. … Rather, it simply has worked hard at doing a better job running things. Co-CEO Rick Federico says that in early 2008, when traffic first softened, management went through ‘all elements of our business that don’t touch our guests or our product’ in a search for efficiencies,” Gross writes.

Restaurant expansion

Here are some details on the Mexico expansion of P.F. Chang’s, which also owns Pei Wei Asian Diner. From the Associated Press:

Restaurant chain P.F. Chang’s China Bistro Inc. said Monday it is expanding to Mexico, with the first location to open in Mexico City in the fourth quarter.

The company will develop 30 restaurants in Mexico over the next decade via a license agreement with Alsea SAB de CV, an operator of fast-food and casual restaurants in Mexico.

The P.F. Chang’s difference

As Gross from Slate points out, P.F. Chang’s didn’t make its fortune off of people seeking authentic Chinese cuisine. Gross uses a musical analogy to explain P.F. Chang’s business philosophy as he sees it:

Just as saxophonist Kenny G provides jazz for people who don’t really like authentic jazz, P.F. Chang’s peddles Chinese food to diners who might not cotton to authentic Sichuan fare.

Gross also chronicles the beginnings of P.F. Chang’s successful ride to economic stability:

P.F. Chang’s rode the trading-up boom of this past decade, opening stores in tony malls and economic hot zones and becoming the first Chinese-food chain to reach $1 billion in revenue.

Let’s not get carried away

P.F. Chang’s hasn’t been totally immune to the economic downturn. It scaled back the number of stores it plans to open this year from about 20 down to eight. It introduced $7.95 lunch specials and three-course dinner deals.

Its expansion into Mexico will be slow but steady. P.F. Chang’s provides a good example of how good business decisions and small changes can amount to big success.

¿Cuándo es el cinco de mayo? It’s this Tuesday. That’s the day millions commemorate Mexico rising up against the repo man… who happened to try to take over the country. Cinco de Mayo celebrations have nothing to do with Mexico’s Independence Day, which falls on September 16. Look at the history of cinco de mayo and you’ll see that the holiday commemorates the victory of the Mexican militia over the French army at The Battle Of Puebla in 1862.

Here’s the deal. Mexico had gained independence from Spain in 1821 after a difficult struggle. Internal strife, including the Mexican-American War (1846-1848) and Mexican Civil War of 1858, had ruined the nation’s economy. Mexico’s cash advance debts to Spain, England and France were heavy, the lenders wished to collect and debt relief was in order.

Napoleon: more eager to collect than most

France was in empire building mode, in no small part due to the appetites of Napoleon. Once Mexico stopped making loan repayments, France named Napoleon III’s relative, Archduke Maximilian of Austria, as ruler of Mexico and sent armies to take over Mexico City. Mexico appealed to the United States for aid, but President Lincoln’s hands were mostly tied by the ensuing Civil War in America.

But Puebla held the line. At Fort Loreto and Fort Guadalupe, General Ignacio Zaragoza Seguin led makeshift militias against well-outfitted French forces. It was a landmark victory for Mexican patriots who had been hoping for that polarizing moment which would unify the country. This is the victory celebrated on cinco de mayo.

Debt and Napoleons: inevitable

It was a short-lived victory. Napoleon went against the will of the French people and sent a force nearly five times larger than before. One year after the previous defeat, Napoleon’s army took Mexico City and installed Maximilian as ruler.

Maximilian’s rule for only three years (1864-1867), however. With the American Civil War now over, President Lincoln sent troops to help Mexico rid themselves of the French, which came in relatively short order. Even today, the bullet-holed shirt of Maximilian sits on display in Chapultepec Castle museum in Mexico City.

Party without credit cards or mortgage loan modification

The Cinco de Mayo holiday is regional in origin, originating in the state of Puebla. Celebration there is particularly spirited, but it’s big everywhere there are people who like to celebrate Mexican culture and heritage. Cervezas, comida, margaritas, danzas y musica are trappings of joyous celebration. As you’ll see in the video below, the love of the automobile has permeated Mexican culture as it has America’s. Yet as fun as it looks, get more bounce to the ounce from your budget and go with cash advance in a standoff, rather than hydraulics.

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