CREATE: The Event for Emerging Restaurateurs, held on Tuesday, July 22, 2026, provided the backdrop for a significant industry recognition as Nation’s Restaurant News (NRN) bestowed its prestigious Brand Icon award upon Panda Express. The award, celebrated for acknowledging entities at "the intersection of legacy and innovation," was presented during a candid interview between NRN Editor-in-Chief Sam Oches and Panda Express co-CEOs Dr. Peggy Cherng and Andrew Cherng. This accolade underscores the remarkable journey of Panda Express, from its humble beginnings to its current status as a global culinary force.
The Genesis of an Empire: From Panda Inn to Quick-Service Dominance
The story of Panda Express is intrinsically linked to the entrepreneurial spirit of Andrew Cherng and his family. The foundation was laid in 1973 with the opening of Panda Inn, a full-service Chinese restaurant in Pasadena, California. Andrew Cherng, who had prior experience working in restaurants in New York City, recalled his initial optimism, admitting, "I thought we would be an instant success. Boy was I wrong." The early years were a testament to perseverance, with business growth proving to be slow and challenging during the first two to three years. Cherng recounted moments of desperation, including his mother’s traditional practice of sprinkling salt on the restaurant’s threshold to ward off negativity and attract customers. "We did that quite often," he shared.
Despite the initial struggles, these formative experiences instilled a deep appreciation for every patron. "That struggle made me appreciate every guest very, very well," Cherng reflected. "We were fortunate to go through that very difficult process. It was challenging, but it was wonderful." This foundational period shaped the company’s enduring commitment to customer service and operational excellence.
The Pivot to Quick Service: A Strategic Masterstroke
A decade after the inception of Panda Inn, Andrew Cherng identified a significant opportunity to revolutionize the Chinese dining experience. In 1983, he pioneered a quick-service model, deviating from the traditional sit-down restaurant format. This innovation wasn’t initially situated in the conventional food court setting but rather as an inline store within a mall. Cherng acknowledged the unconventional nature of this choice, noting, "which is not very normal." However, its strategic placement adjacent to the mall’s escalator and a popular pizzeria ensured robust foot traffic. "The business actually took off very easily," he stated, recognizing the inherent advantage of high-traffic retail environments.
This early success with the inline mall location prompted a strategic shift. Cherng realized that "opening in a mall is indeed a lot easier" than establishing a street-front presence. This realization led to a concentrated effort to expand within the burgeoning number of malls that were rapidly opening throughout the 1980s, predominantly in food courts. "That was fantastic," Cherng enthused, highlighting the era as a period of significant growth and strategic advantage.
The menu underwent a crucial evolution during this expansion phase. The team meticulously identified which of Panda Inn’s most popular dishes could be effectively adapted for a quick-service environment, ensuring that the core flavors and quality remained intact while optimizing for speed and efficiency. This careful curation of the menu was instrumental in the chain’s burgeoning success.
The Operational Backbone: Peggy Cherng’s Vision for Systems and People
While Andrew Cherng drove the strategic vision and business model innovation, his wife, Dr. Peggy Cherng, provided the essential operational framework and technological foresight. An engineer by training, Peggy Cherng recognized the paramount importance of data capture for enhancing operational efficiencies. Her engineering mindset was instrumental in developing the chain’s pioneering point-of-sale (POS) system, a technology that was still in its nascent stages of development and adoption in the mid-1980s.
"Before I joined the restaurant business, my goal was to be an inventor," Dr. Cherng explained to the CREATE attendees. "So automatically I was thinking of efficiently developing systems to help the business." The absence of readily available POS solutions necessitated an in-house development approach. "We had to develop it ourselves. It made people more efficient and helped them serve guests better," she stated, emphasizing the dual benefits of improved employee productivity and enhanced customer experience.
Beyond her technological contributions, Dr. Cherng was a driving force behind the development of the "Panda Way," the company’s core philosophy centered on love for people, guests, and the communities they serve. She observed that the restaurant industry often attracts individuals who may lack formal educational privileges but possess a strong ambition to improve their circumstances and communities. To address this, Panda Express established Panda University, an initiative dedicated to empowering employees and fostering their personal and professional growth. "They really want to be the best they can be, and then we can really serve our guests with love," she articulated, connecting employee development directly to the quality of customer service.
Cultivating Talent: The "Panda Way" of Employee Ownership and Empowerment
A cornerstone of the Cherngs’ leadership philosophy has always been the development of their people. As Panda Express expanded, Andrew Cherng implemented a unique strategy for staffing new locations. He would select two key individuals from existing restaurants – one from the front of the house and one from the back of the house – to lead each new establishment. This approach not only ensured experienced leadership but also fostered a sense of ownership and accountability.
"We asked them to contribute only like $1,000, and they would own a 10% stake in the business. But of course they also got paid," he revealed. This incentive program fostered loyalty and dedication, as employees had a direct stake in the success of their respective restaurants.
Cherng also spoke poignantly about addressing the self-esteem of employees, many of whom come from backgrounds with limited educational opportunities. "They undervalue themselves, so we try to elevate our associates from ‘No, I can’t do this’ to ‘Yes I can.’ It’s to help them see the possibilities… I’m very proud that going to work at Panda is getting a ticket to get out from being poor. Their kids are going to very good schools. All kinds of things happen." This profound commitment to employee upliftment has been a significant factor in the company’s culture and sustained success.
A Philosophy of Continuous Improvement: "No Best, Only Better"
Panda Express operates under a guiding principle of continuous improvement, encapsulated by the mantra "No best, only better." This philosophy permeates all aspects of the business, from strategic growth objectives to hiring practices and employee well-being. The Cherngs remain focused on expanding sales, recruiting top-tier talent, and enhancing the lives of their employees by making the complex restaurant business both enjoyable and manageable.
"Even though we have challenges, we were so blessed to build a business like this," Andrew Cherng expressed, reflecting on the company’s journey with gratitude.
Looking Ahead: Charting a Course for Future Growth
The Brand Icon award recognizes Panda Express not only for its past achievements but also for its potential for future impact. With over 2,600 locations across the United States and annual sales exceeding $6 billion, Panda Express currently ranks as the 11th largest restaurant chain in the nation. This impressive scale, however, is viewed by the Cherngs as a launching pad for further expansion.
"Everything’s possible once you put your mind to it. It’s the same for you… We’re only in the 11th position as the biggest chain, so we have room to grow from there," Dr. Peggy Cherng confidently told the audience at CREATE. This forward-looking perspective highlights the company’s ambition to continue innovating and expanding its global footprint.
The recognition by Nation’s Restaurant News as a Brand Icon is a testament to Panda Express’s enduring legacy, built on a foundation of strategic innovation, operational excellence, and a deep-seated commitment to its people and communities. As the company continues to evolve, its story serves as an inspiring case study for emerging restaurateurs navigating the dynamic and ever-changing landscape of the food industry.
About the Author:
Bret Thorn, Senior Food Editor at Nation’s Restaurant News, has been a leading voice in the culinary and foodservice industry for over two decades. With a background that includes culinary studies at Le Cordon Bleu and extensive international experience, Thorn possesses a deep understanding of global food trends and restaurant operations. He is known for his insightful reporting on F&B trends, chef movements, and the operational challenges and successes of restaurants. His work has been recognized with prestigious awards, including the Jesse H. Neal National Business Journalism Award. Thorn’s dedication to exploring the nuances of the food world, from culinary techniques to business strategies, makes him a respected authority on the subject.
