There are certain qualities in some businesses in Beijing that make them more than just famous brands. To become a Zhonghua Laozihao (China Time Honoured Brand) requires good products, good services and a lot of luck. And in the old days, a little imperial or central government support couldn’t hurt.

But the main thing was having a good product served by those the people of Beijing could trust, day in and day out, generation upon generation. Such was the reputation of Baikui Laohao (time-honoured Baihui), which has been serving Beijing’s diners for more than two centuries.

In Beijing, if you want to eat shao yangrou (braised mutton with soy sauce), the local people, without hesitation, will recommend you try the Baikui Laohao Restaurant, a Zhonghua Laozihao. It is now taken for granted that no restaurant can match Baikui Laohao Restaurant in making shao yangrou. They will also likely tell you that while you’re in the area you should also stop by the restaurant’s nearby sister company the Longfusi Snack Restaurant.

Established in 1780, Baikui Laohao made its reputation with the special mutton creations of Bai Kui, a Muslim and the founder of Baikui Laohao. Initially, Bai opened a small mutton shop opposite the Longfusi (Longfu Temple), offering fresh beef and mutton and braised mutton and beef products. The shop was eventually expanded into a restaurant. All the while, he continued to search for ways to improve his menu, featuring braised mutton with soy sauce as his special product. His braised mutton with soy sauce was crisp on the outside and soft on the inside after braising and frying.

Baikui braised mutton was so famous that people paid scant attention to the neighbouring Dongguangshun Restaurant, which was famous in its own right, but which faded away and ceased operations because of the strength of Baikui Laohao. But the business environment was even more complex than it might at first appear. Nearby was also the famous Longshengguan Noodle Restaurant. To eat the Baikui braised mutton with Longshengguan’s noodles became a popular enjoyment when people visited the Longfu Temple. Years later, the Longshengguan Noodle Restaurant went the way of Dongguangshun: only Baikui lingered in the minds of diners.

The recipes and techniques that enabled Baikui to survive and prosper have been handed down through the centuries, a unique assembly of fine ingredients and cooking finesse. For instance, throughout its long history, Baikui has used goats with black heads and white faces imported from the Inner Mongolia Autonomous Region. The goats must be one year to two years old and should have been castrated. This yields mutton that is fresh, pleasingly fragrant and with less fat. Herbs used in cooking are found at Tongrentang, a renowned pharmacy and Zhonghua Laozihao. Preparations such as making soup, pressing, stacking, boiling and frying must follow strict Muslim practices.

Another factor for Baikui Laohao’s prosperity is its location at Longfusi. In antiquity, and until about a decade ago, Longfusi was the site of an important temple fair in Beijing. Any savvy retailer or restaurateur knows that traffic is everything, and the business cluster in this area greatly added to Baikui Laohao’s business fortunes.

But success comes in many forms: in addition to its famous braised button, Baikui Laohao also provides other Muslim foods and snacks for its guests.

But the modern market place has brought additional changes to Baikui Laohao, as with other traditional industries in the capital. In olden times, the goats used by Baikui Laohao were obtained in February only; the goats were perfect specimens at this time of year, especially with regard to fat and flesh. Therefore, during the long winter, Baikui braised mutton was a rare luxury. Now, there are sufficient goats to serve the same traditional Baikui dishes all year long.

Still, to keep abreast of the marketplace and the tastes of modern diners, Baikui Laohao has modified its business strategy and products. Modern people are more inclined to watch their waistlines and to try to avoid heavy, high-calorie foods; so Baikui Laohao now offers products that have a lighter colour and that use less salt and soy sauce. Still, the fine taste remains.

"When former guests come to Baikui Laohao, even some overseas Chinese returning to Beijing, they will re-discover the same taste of braised mutton," said Guo Chaoyan, the general-manager and executive chef of the Baikui Laohao Restaurant.

As with other traditional foods and snacks in Beijing, the preparation of Baikui's braised mutton and snacks involves relatively high labour costs and yields thinner profits than that found in some other sectors of the food industry. Several years ago, Baikui found its business tightly squeezed.

Its management group responded to the challenge. In adjusting to its market, Baikui demolished some barriers that had separated Han and Muslim traditions and brought some Han nationality foods into its restaurants, such as songshu guiyu (squirrel-shaped mandarin fish), a common, red-coloured Han dish. Yet, this tampering with tradition was accomplished with sensitivity toward the two traditions. Guo assured that Baikui Laohao respected the taboos and the Muslim culture. While the Han love the colour red above all, and the normal colour of songshu guiyu was red (the colour of blood), Baikui Laohao changed its presentation to a golden colour out of respect for its Muslim customers. In food preparations, the restaurant still strictly adheres to Muslim practice.

The changes in this Zhonghua Laozihao are far from merely cosmetic; the restaurant has worked hard to improve its management and service. The company has adopted methods to reduce costs and to be more efficient. The staff has been trained to better serve their guests.

Because of its adherence to the best traditions of the past and present, the constantly improving Baikui Laohao is again enjoying its tradition of success.