Fast-food brands from the United States and China are rapidly expanding into each other’s markets, with American chains adding thousands of outlets across China while Chinese food and beverage companies make a growing push into the lucrative US market.
Despite deepening tensions between Washington and Beijing over trade, technology and Taiwan, restaurant companies are betting that consumer demand can open doors where politics often cannot.
American chains are targeting China’s huge consumer base, particularly in smaller inland cities.
Church’s Texas Chicken recently opened its first Shanghai outlet and plans at least 600 more restaurants across the country, while Wendy’s expects to open 1,000 outlets over the next decade.
McDonald’s plans to add 1,000 Chinese restaurants this year and reach 10,000 by 2028. Burger King is also targeting 4,000 outlets in China by 2035.
KFC remains the dominant US fast-food brand in China, with about 13,000 restaurants there compared with roughly 3,750 in the United States.
The expansion is not one-way. Chinese chains are increasingly testing the US market, with beverage and snack brands leading the way.
Mixue, which has more than 53,000 locations worldwide, opened its first three US stores in December and has announced plans for at least two dozen more.
Heytea and Luckin Coffee have also expanded in the United States, while Chinese burger and chicken chain Wallace is opening restaurants in California after building a network of more than 20,000 outlets in China.
American brands have adapted their menus for Chinese consumers, while Chinese companies are adjusting products and prices for American customers.
KFC in China, for example, sells its signature fried chicken alongside egg tarts and congee.
For Chinese restaurant companies, the US offers a vast market at a time when weak consumer spending and intense competition are making growth at home more difficult.
The US accounts for about one-third of global restaurant revenue despite having only around 4% of the world’s population, according to industry consultant Aaron Allen.
Chinese chains are also competing on price. Mixue has positioned itself as a low-cost alternative in the US, while Wallace offers relatively inexpensive chicken meals.
But expansion in the US carries risks, including possible tariff pressures, fierce competition and scrutiny over how Chinese companies collect and use customer data.
For American chains, China offers enormous potential but also requires local partnerships and menus tailored to Chinese tastes.
The result is a growing two-way food trade that is bringing American and Chinese brands closer together even as the two governments remain divided over major political and economic issues.
Dining and Cooking