Fast Food Chains Forge Unlikely Bridge Between U.S. and China
As geopolitical tensions persist, American and Chinese fast-food brands are expanding into each other's markets, creating a unique form of cultural and economic exchange.
Despite significant political and economic divisions, fast food from both China and the United States is finding a growing audience in the other's country, acting as an unexpected cultural bridge. American restaurant and beverage chains are increasing their presence in China, capitalizing on its vast population, while Chinese chains are venturing into the U.S. market, driven by economic pressures at home.
This cross-border culinary exchange is a form of "gastrodiplomacy," according to Yaling Jiang, founder of ApertureChina, a market research firm. In China, American brands like Popeyes and Five Guys are considered a "guilty pleasure" for consumers. Simultaneously, the evolving tastes of Americans are creating an opening for Chinese brands to serve as informal cultural ambassadors.
"Consumerism builds a safe, introductory channel for contemporary Chinese culture and can be a great way to elevate China’s soft power," Jiang explained.
Even as leaders engage in high-stakes diplomacy, a shared appreciation for accessible meals might be a point of commonality. Chinese President Xi Jinping once publicly visited a Beijing steamed-bun restaurant and ordered a modest meal, while U.S. President Donald Trump has a well-documented fondness for fast food, even participating in a McDonald's fry station during his 2024 campaign.
Recent expansions highlight this trend. Church’s Texas Chicken plans to open at least 600 more locations in China after its first Shanghai opening saw customers lining up in the rain. Wendy’s anticipates opening 1,000 restaurants in China over the next decade. Established players are also deepening their commitment: McDonald's aims to open 1,000 new restaurants in China this year and a total of 10,000 by 2028, while Burger King plans to triple its store count to 4,000 by 2035.
"Despite political tensions between the U.S. and China, Chinese actually still go crazy for American brands," said Shaun Rein, founder and managing director of the Shanghai-based China Market Research Group. KFC, which was the first major American fast-food chain to enter mainland China in 1987, now operates about 13,000 restaurants there, significantly more than its approximately 3,750 locations in the U.S.
American brands are extending their reach into China's smaller inland cities, where significant population growth is expected, according to Sory Park, a project manager at Daxue Consulting. However, success in China often requires partnerships with local Chinese firms to navigate location scouting and share financial risks. Starbucks, for example, saw a Chinese investment firm acquire a 60% stake in its China operations following a period of declining store traffic.
To cater to local tastes, American chains often adapt their menus. KFC restaurants in China offer items like egg tarts and congee alongside their signature fried chicken and french fries. "They need to operate like a Chinese company but deliver American menus that incorporate Chinese values, eating habits, and tastes," Park noted.
Conversely, Chinese brands are making their U.S. debuts. Mixue, a global chain with over 53,000 locations, opened its first three U.S. stores in New York, drawing crowds for its soft-serve ice cream and milk teas. At least nine other Chinese chains have entered the U.S. market since 2023, primarily offering drinks and snacks. Notable among them are Heytea and Luckin Coffee, which has established 20 stores in New York and previously surpassed Starbucks to become China's largest coffee brand.
Wallace, a Chinese chain founded in 2000 that sells American-style chicken and hamburgers, opened its second U.S. location in California, adjusting its chicken sandwich recipe for American palates. Many of these Chinese chains first expanded in Southeast Asia before targeting the U.S., partly due to a real estate slump and weak consumer spending in China.
While American brands often hold a premium image in China, Chinese brands frequently compete on price in the U.S. For instance, a Mixue matcha latte is priced lower than a similar drink at a nearby Starbucks, and Wallace offers three chicken sandwiches for $10. "The Chinese can build stuff cheaper and faster. Why would that not apply to food?" asked Aaron Allen, founder of restaurant consulting firm Aaron Allen and Associates.
However, Chinese brands entering the U.S. may face scrutiny regarding customer data practices and potential backlash if they significantly undercut U.S. competitors with low-cost imports. Luckin Coffee's co-founder and CEO Jinyi Guo has emphasized patience and discipline in their U.S. expansion, calling it a long-term opportunity.