US and Chinese Fast Food Brands Expand in Both Countries
- American and Chinese fast-food brands are expanding rapidly in each other's home markets, creating a two-way channel of gastrodiplomacy despite ongoing geopolitical tensions between Washington and Beijing, according...
- American restaurant and beverage brands are pursuing aggressive growth strategies across China, targeting smaller inland cities where populations remain large and untapped, according to Sory Park, a project...
- In contrast to the rest of the local market, KFC and McDonald's stood out as paragons of health, safety, and cleanliness.
American and Chinese fast-food brands are expanding rapidly in each other’s home markets, creating a two-way channel of gastrodiplomacy despite ongoing geopolitical tensions between Washington and Beijing, according to market research and industry reports published in September. Major U.S. chains are scaling up operations to capture demand from China’s massive population, while Chinese restaurant brands are simultaneously entering the United States as consumer palates grow increasingly international.
U.S. Fast-Food Giants Expand Deep Into Chinese Markets
American restaurant and beverage brands are pursuing aggressive growth strategies across China, targeting smaller inland cities where populations remain large and untapped, according to Sory Park, a project manager at Daxue Consulting. Last month, customers in Shanghai lined up in the rain for the opening of the first Church’s Texas Chicken location in the country, with the brand planning at least 600 additional restaurants across China.
Other major American chains have announced substantial rollout timelines. Wendy’s anticipates opening 1,000 restaurants in China over the next decade. McDonald’s plans to open 1,000 new Chinese locations this year alone, aiming for a total of 10,000 stores by 2028. Burger King, which entered the market in 2005, expects to triple its store count to 4,000 locations by 2035.
KFC holds the largest footprint among Western competitors, operating approximately 13,000 restaurants in China compared to roughly 3,750 in the United States. KFC opened its first mainland China restaurant in Beijing in 1987, when Western fast food was viewed as a high-end destination.
In contrast to the rest of the local market, KFC and McDonald’s stood out as paragons of health, safety, and cleanliness.
Navigating Local Tastes and Financial Partnerships
Operating in China’s competitive economy requires foreign chains to adapt their offerings and corporate structures. According to Sory Park, foreign brands need to operate like a Chinese company but deliver American menus that incorporate Chinese values, eating habits, and tastes.
For instance, KFC locations in China serve french fries and Original Recipe chicken alongside custardy egg tarts and savory rice porridge known as congee.
To mitigate financial risk and secure prime real estate, most American chains now rely heavily on domestic partners. Earlier this year, a Chinese investment firm acquired a 60 percent stake in Starbucks’ China operation following a period of falling store traffic. Despite political frictions involving tariffs, technology policies, and Taiwan, consumer appetite for American brands remains strong.
Despite political tensions between the U.S. and China, Chinese actually still go crazy for American brands.
Chinese Brands Build Soft Power in the United States
While American chains expand eastward, China’s saturated domestic market and slowing economy have pushed homegrown brands to test the U.S. market. This bilateral trade in burgers, chicken, and bubble tea functions as a form of consumer-led gastrodiplomacy, according to Yaling Jiang, founder of ApertureChina.
By offering a secure and accessible entry point to modern Chinese culture, consumerism serves as an effective mechanism for expanding China’s international influence.
Yaling Jiang, ApertureChina
Jiang noted that while recent U.S. arrivals like Popeyes and Five Guys are treated as guilty pleasures in China, American consumers with increasingly international palates are welcoming Chinese beverage and fast-food brands as unofficial cultural ambassadors. Brands like Mixue exemplify this outbound expansion strategy as competition intensifies at home.