Chinese food has gained popularity abroad as a result of China's "One Belt, One Road" initiative. In recent years, many Chinese investors have poured into the Malaysian food and beverage (F&B) industry and occupying a place with a Chinese restaurant. This paper aims to delve into the current state of Chinese restaurants in Malaysia, mainly based on the example of Lanzhou Noodle Flagship Store and Chengdu Huangchengba Hotpot Outlets in Malaysia. This study, which was qualitative in nature used interviews and retrospective case studies to collect the required data. Data analysis from interviews revealed five themes that discussed the challenges faced by investors including inadequate localization and taste adaptation, neglect of local regulations, high operating costs, poor location choice, lack of effective marketing and promotion, as well as staff management and service quality issues. Retrospective case studies further enhanced the findings of interview data on the cause of failure of food businesses by Chinese operators in Malaysia. Based on these findings, the study extends suggestions to current and future Chinese restaurant operators to actively conduct a comprehensive market research and evaluate their strategic positioning, localizing menus and ensure regulatory compliance, optimize supply chain management, leverage social media and delivery platforms for marketing, and prioritize customer experience and service excellence.
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