How Andrew built the fortune
Andrew Cherng opened Panda Inn in Pasadena, California, in 1973 together with his father, Ming-Tsai Cherng, a trained chef from Yangzhou. The sit-down restaurant served Mandarin and Sichuan dishes and did well enough to add more locations. In 1983 the developer of the Glendale Galleria shopping mall invited the family to open a fast service counter, and that outlet became the first Panda Express.
The quick service format turned out to be far more scalable than the original restaurant. Cherng's wife Peggy, who holds a doctorate in electrical engineering, brought computer systems and operating discipline to the business, and the couple expanded the chain through malls, airports, universities and later standalone locations with drive-throughs. A sweet and crispy orange chicken dish introduced in 1987 became the chain's signature item.
The Cherngs have kept the company private and run the vast majority of restaurants themselves rather than franchising, which lets them retain profits and control quality. Their combined ownership of Panda Restaurant Group is the source of their wealth.
Panda's expansion also benefited from timing. The 1980s and 1990s saw rapid growth in shopping malls and in American appetite for quick, inexpensive meals, and the chain's steam table format, in which customers choose from dishes prepared in front of them, suited busy food courts. The company later developed menus and kitchen systems that allowed it to open in a wide range of locations without losing consistency.
Companies and holdings
Panda Restaurant Group is based in Rosemead, California, and operates several brands:
- Panda Express, the largest Asian restaurant chain in the United States, with locations in many countries
- Panda Inn, the original full-service restaurant
- Hibachi-San, a Japanese-style grill concept
The group has opened a small number of licensed outlets in places such as airports and military bases, but most restaurants remain company operated. Andrew Cherng serves as founder and chairman, and Peggy Cherng has served as co-chair and co-chief executive.
Panda Restaurant Group has also invested in new formats and technology, including digital ordering and redesigned restaurants, while testing new dishes in selected locations before rolling them out nationally.
Early life and career
Cherng was born in 1947 in Yangzhou, China, a city known for its cuisine. His family later lived in Taiwan and Japan, and he moved to the United States in 1966 to study at Baker University in Kansas, where he met Peggy, who had come from Burma by way of Hong Kong. He later earned a master's degree in applied mathematics at the University of Missouri.
After his studies he moved to Southern California, where a cousin ran a restaurant. He worked there to learn the trade before persuading his father to join him in opening their own place in Pasadena.
His father's background as a professional chef shaped the family's commitment to cooking food fresh in each restaurant. Andrew handled the business side while learning the kitchen, and the combination of family recipes with his own interest in systems and management laid the foundation for the chain.
The Pasadena restaurant was a modest operation at first, with family members filling many roles, and its early survival depended on building a loyal local clientele before any expansion was possible.
Philanthropy and public life
The Cherngs direct much of their giving through Panda Cares, the company's charitable arm, which collects donations from customers in restaurants and supports children's health and education, including children's hospitals and disaster relief. They have also given personally to education, including to their own alma maters and to institutions in Southern California, and to Chinese American cultural organisations.
Andrew Cherng is known for an interest in personal development and for encouraging employees to pursue self-improvement programmes. He gives occasional interviews about the company's history but keeps his private life out of the public eye.
The couple have also become known for their emphasis on employee development, offering training and wellness programmes and promoting many restaurant managers from within. They often describe the company's culture as one of continuous learning, a value that grew out of their own experience as immigrant students.