US and Chinese fast-food chains are expanding across each other’s markets, creating an unlikely commercial bridge between the two countries amid disputes over tariffs, technology and Taiwan.
American restaurant and drinks brands are pursuing China’s vast consumer base, while Chinese chains are looking to the United States for growth as weak domestic spending and fierce competition make expansion at home more difficult.
Yaling Jiang, founder of market research firm ApertureChina, described the exchange as “business- and consumer-led gastrodiplomacy”. She said American brands such as Popeyes and Five Guys were viewed in China as a guilty pleasure, while Chinese food and drinks companies were becoming unofficial ambassadors for their country.
“Consumerism builds a safe, introductory channel for contemporary Chinese culture and can be a great way to elevate China’s soft power,” Ms Jiang said.
The shared appetite comes as US president Donald Trump prepares to host Chinese president Xi Jinping at a state dinner. The White House has not disclosed the menu, although both leaders have publicly demonstrated an interest in inexpensive, popular food.
Mr Xi made a rare public visit to a steamed-bun restaurant in Beijing in 2013, where he queued for a 21-yuan meal. Mr Trump’s enthusiasm for fast food is well known, including an appearance at a McDonald’s fry station during his 2024 campaign.
American fast-food chains expand in China
Church’s Texas Chicken opened its first Shanghai restaurant last month, drawing customers who queued in the rain. The company plans to open at least 600 more outlets in China, while Wendy’s expects to launch 1,000 restaurants there over the next decade.
McDonald’s plans to open 1,000 new Chinese restaurants this year and reach 10,000 outlets in the country by 2028. Burger King, which entered China in 2005, expects to triple its presence to 4,000 restaurants 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 China Market Research Group.
KFC was the first major American fast-food chain to enter mainland China, opening in Beijing in 1987. McDonald’s and Pizza Hut followed in 1990, and KFC now has about 13,000 restaurants in China, compared with roughly 3,750 in the United States.
Mr Rein said the early American arrivals were regarded as premium destinations, while McDonald’s and KFC were seen as symbols of improved hygiene and health standards. Much of the remaining growth opportunity lies in smaller inland cities, where McDonald’s and Starbucks are continuing to open outlets.
Foreign chains face challenges, however, and many now depend on Chinese partners to secure sites and share financial risk. A Chinese investment firm acquired a 60% stake in Starbucks’ China operation earlier this year after several years of declining customer traffic.
American companies have also adapted their menus to local tastes. KFC restaurants in China serve their established fried chicken and chips alongside egg tarts and congee, a savoury rice porridge.
“They need to operate like a Chinese company but deliver American menus that incorporate Chinese values, eating habits, and tastes,” said Sory Park, a project manager at Daxue Consulting.
Chinese restaurant brands target the US market
Chinese companies are pursuing the reverse journey. Mixue, which has more than 53,000 outlets worldwide, opened its first three US stores in December, attracting queues in New York for soft-serve ice cream, fruit teas and milk tea with toppings including coconut jelly and taro balls.
The company has announced at least two dozen further locations across four states. Other Chinese brands entering the United States since 2023 include Heytea, which has 40 outlets there, and Luckin Coffee, which has 20 New York stores.
Wallace, founded in 2000, grew to more than 20,000 restaurants by selling American-style chicken and hamburgers in China. Its second US restaurant opened in California last month, with the company modifying its chicken sandwich recipe for American customers.
Chinese food and drink companies have often expanded first in south-east Asia before attempting the US. At home, a property slump and weak consumer spending have made growth harder, with the average lifespan of China’s 16 million restaurants and chains expected to fall to 15 months last year, according to a US government report.
The US is an especially attractive destination because it accounts for one-third of global restaurant revenue despite representing about 4% of the world’s population, said Aaron Allen, founder of restaurant consultancy Aaron Allen and Associates.
Chinese brands are frequently competing on price. A medium matcha latte at a Mixue in Hollywood cost $6.83, while the same drink at a nearby Starbucks was almost $1 more. Wallace sells three full-size chicken sandwiches for $10.
Mr Allen said low-cost operations could help Chinese companies, but warned they might face consumer resistance or higher tariffs if they relied on inexpensive Chinese imports. Restaurant brands could also face scrutiny over how they collect and use customer data.
Luckin Coffee chief executive Jinyi Guo told investors in February that the US was “one of our important long-term opportunities” and said the company was proceeding “with great patience and discipline”.
